Chapter 5.35
REAL PROPERTY TRANSFER TAX1
Sections:
5.35.010 Short title and authority.
5.35.020 Administration.
5.35.030 Tax imposed.
5.35.040 Exception.
5.35.050 Exemption of public agencies.
5.35.060 Partnership interest.
5.35.070 Tax liability.
5.35.080 Refunds.
5.35.010 Short title and authority.
This chapter may be cited as the real property transfer tax regulations of the city. It is adopted under the authority of Part 6.7 of Division 2 of the Revenue and Taxation Code of the State of California, beginning with § 11901. (1991 code § 4-4.1)
5.35.020 Administration.
The county recorder shall administer this chapter in conformity with Part 6.7 of Division 2 of the Revenue and Taxation Code and a county ordinance adopted pursuant to it. (1991 code § 4-4.2)
5.35.030 Tax imposed.
There is imposed on each instrument or writing by which land, tenement, or other realty sold within the city is transferred or conveyed to the purchaser or other grantee when the consideration or value of the interest conveyed (exclusive of the value of an encumbrance remaining at the time of sale) a rate as set by city council resolution and consistent with state law. (Amended during 2005 recodification; 1991 code § 4-4.3)
5.35.040 Exception.
A. Security agreement. The tax imposed does not apply to an instrument in writing given to secure a debt.
B. Conveyance.
1. The tax imposed does not apply to a conveyance to make effective a plan of reorganization or adjustment:
a. Confirmed under the Federal Bankruptcy Act;
b. 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;
c. 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
d. Whereby a mere change in identity, form, or place of organization is effected.
2. Subsection B.1 of this section only applies if the filing of instrument of transfer or conveyance occurs within five years from the date of confirmation, approval, or change.
C. Order of securities and exchange commission. The tax does not apply to the making of conveyances to make effective an order of the Securities and Exchange Commission, as defined in § 1083(a) of the Internal Revenue Code of 1954 if:
1. The order of the Securities and Exchange Commission recites that the conveyance is necessary or appropriate to carry out Section 79k of Title 15 of the United States Code, relating to the Public Utility Holding Company Act of 1935; and
2. The order specifies the property which is ordered to be conveyed. (1991 code § 4-4.4)
5.35.050 Exemption of public agencies.
The United States or its agency or instrumentality, a state, territory, or political subdivision, or the District of Columbia is not liable for the tax imposed with respect to the instrument or writing to which it is a party, but the tax may be collected from any other party liable for it. (1991 code § 4-4.5)
5.35.060 Partnership interest.
A. In the case of realty held by a partnership, no levy is imposed by reason of transfer of an interest in a partnership if:
1. The partnership is a continuing partnership within the meaning of Section 708 of the Internal Revenue Code of 1954; and
2. The continuing partnership continues to hold the realty concerned.
B. If there is a termination of a partnership within the meaning of Section 708 of the Internal Revenue Code of 1954, for purposes of this chapter, the partnership shall be treated as having executed an instrument whereby there was conveyed for fair market value, exclusive of the value of an encumbrance remaining, all realty held by the partnership at the time of termination.
C. Not more than one tax may be imposed by reason of a termination described in subsection B of this section, and any transfer pursuant to it, with respect to the realty held by the partnership at the time of termination. (1991 code § 4-4.6)
5.35.070 Tax liability.
The tax imposed under PHMC § 5.35.030 shall be paid by the person who makes, signs, or issues the instrument subject to the tax, or for whose use or benefit the instrument is made, signed, or issued. (1991 code § 4-4.7)
5.35.080 Refunds.
A claim for refund of the tax imposed is governed by Revenue and Taxation Code section 5096 and following. (1991 code § 4-4.8)
Editor’s note: For statutory provisions regarding real property transfer tax, see Revenue and Taxation Code section 11901 et seq.