Chapter 3.20
REAL PROPERTY TRANSFER TAX
Sections:
3.20.030 Persons on whom tax imposed.
3.20.060 Conveyance not subject to tax – Plans of reorganization or adjustment.
3.20.070 Conveyances not subject to tax – Securities and exchange commission orders.
3.20.080 Conveyances not subject to tax – Transfer or termination of partnership.
3.20.090 Conveyance not subject to tax – Instruments taken in lieu of foreclosure – Exception.
3.20.110 Administration by county recorder.
3.20.010 Authority.
This chapter shall be known as the “Real Property Transfer Tax Ordinance of the City of Millbrae.” It is adopted pursuant to Part 6.7 (commencing with Section 11901) of Division 2 of the Revenue and Taxation Code. (Ord. 255, § 1; 1976 Code § 3-4.01; 1966 Code § 2785).
3.20.020 Imposition of tax.
There is imposed on each deed, instrument or writing by which any lands, tenements, or other realty sold within the city, granted, assigned, transferred, or otherwise conveyed to or vested in the purchaser or purchasers or any other person or persons by his or their direction, when the consideration or value of the interest or property conveyed (exclusive of the value of any lien or encumbrances remaining thereon at the time of sale) exceeds one hundred dollars, a tax at the rate of fifty-five cents for each five hundred dollars or fractional part thereof. (Ord. 255, § 1; 1976 Code § 3-4.02; 1966 Code § 2786).
3.20.030 Persons on whom tax imposed.
The tax imposed by MMC 3.20.020 shall be paid by any person who makes, signs, or issues any document or instrument subject to the tax, or for whose use or benefit the same is made, signed or issued. (Ord. 255, § 1; 1976 Code § 3-4.03; 1966 Code § 2787).
3.20.040 Security for debt.
The tax imposed pursuant to this chapter shall not apply to any instrument in writing given to secure a debt. (Ord. 255, § 1; 1976 Code § 3-4.04; 1966 Code § 2788).
3.20.050 Exemptions.
The United States or any agency or instrumentality thereof, any state or territory, or political subdivision thereof, or the District of Columbia, or any person(s) or entity which is by Federal or California law exempt from such transfer taxes, shall not be liable for any tax imposed pursuant to this chapter with respect to any deed, instrument or writing to which it is a party, but the tax may be collected by assessment from any other party liable therefor. (Ord. 255, § 1; 1976 Code § 3-4.05; 1966 Code § 2789.1).
3.20.060 Conveyance not subject to tax – Plans of reorganization or adjustment.
A. The tax imposed pursuant to this chapter shall not apply to the making, delivering or filing of conveyances to make effective any plan of reorganization or adjustment:
1. Confirmed under the Federal Bankruptcy Act, as amended;
2. Approved in an equity receivership proceeding in a court involving a railroad corporation, as defined in subdivision (m) of Section 205 of Title 11 of the United States Code, as amended;
3. Approved in an equity receivership proceeding in a court involving a corporation, as defined in subdivision (3) of Section 506 of Title 11 of the United States Code, as amended; or
4. Whereby a mere change in identity, form or place of organization is effected.
B. Subsection (A) of this section shall only apply if the making, delivery or filing of instruments of transfer or conveyances occurs within five years from the date of such confirmation, approval or change. (Ord. 255, § 1; 1976 Code § 3-4.06; 1966 Code § 2789.2).
3.20.070 Conveyances not subject to tax – Securities and exchange commission orders.
The tax imposed pursuant to this chapter shall not apply to the making or delivery of conveyances to make effective any order of the Securities and Exchange Commission as defined in subdivision (a) of Section 1083 of the Internal Revenue Code of 1954; but only if:
A. The order of the Securities and Exchange Commission in obedience to which such conveyance is made recites that such conveyance is necessary or appropriate to effectuate the provisions of Section 79k of Title 15 of the United States Code, relating to the Public Utility Holding Company Act of 1935;
B. Such order specifies the property which is ordered to be conveyed;
C. Such conveyance is made in obedience to such order. (Ord. 255, § 1; 1976 Code § 3-4.07; 1966 Code § 2789.3).
3.20.080 Conveyances not subject to tax – Transfer or termination of partnership.
A. In the case of any realty held by a partnership, no tax shall be imposed pursuant to this chapter by reason of any transfer of an interest in the partnership or otherwise, if:
1. Such partnership (or other partnership) is considered a continuing partnership within the meaning of Section 708 of the Internal Revenue Code of 1954; and
2. Such continuing partnership continues to hold the realty concerned.
B. If there is a termination of any partnership within the meaning of Section 708 of the Internal Revenue Code of 1954, for purposes of this chapter, such partnership shall be treated as having executed an instrument whereby there was conveyed, for fair market value (exclusive of the value of any lien or encumbrance remaining thereon), all realty held by such partnership at the time of such termination.
C. Not more than one tax shall be imposed pursuant to this chapter by reason of a termination described in subsection (B) of this section, and any transfer pursuant thereto, with respect to the realty held by such partnership at the time of such termination. (Ord. 255, § 1; 1976 Code § 3-4.08; 1966 Code § 2789.4).
3.20.090 Conveyance not subject to tax – Instruments taken in lieu of foreclosure – Exception.
A. The tax imposed pursuant to this chapter shall not apply with respect to any deed, instrument, or writing to a beneficiary or mortgagee, which is taken from the mortgagor or trustor as a result of or in lieu of a foreclosure; provided, that such tax shall apply to the extent that the consideration exceeds the unpaid debt, including accrued interest and cost of foreclosure.
B. When any such deed, instrument, or writing itself fails to establish entitlement to this exemption, the mortgagee or beneficiary may establish within a reasonable time of the payment of the tax that the transfer is exempt under this section and any refund thereafter made shall not bear interest. (Ord. 255, § 1, Amended by Ord. 250, § 4; 1976 Code § 3-4.09; 1966 Code § 2789.4(1)).
3.20.100 Proof of exemption.
Whenever it is claimed that the deed, instrument or writing to be recorded is not subject to the tax imposed by this chapter or is exempt therefrom, the recorder may require the person filing same to furnish reasonable documentary proof to substantiate such claim. (Ord. 255, § 1; 1976 Code § 3-4.10; 1966 Code § 2789.5).
3.20.110 Administration by county recorder.
The county recorder shall administer this chapter in conformity with the provisions of Part 6.7 of Division 2 of the Revenue and Taxation Code and the provisions of any county ordinance adopted pursuant thereto. (Ord. 255, § 1; 1976 Code § 3-4.11; 1966 Code § 2790).
3.20.120 Claims for refund.
Claims for refund of taxes imposed pursuant to this chapter shall be governed by the provisions of Chapter 5 (commencing with Section 5096) of Part 9 of Division 1 of the Revenue and Taxation Code of the state of California. (Ord. 255, § 1; 1976 Code § 3-4.12; 1966 Code § 2791).