Alameda Municipal Code § 3-58 Real Property Transaction Taxes

This section may be cited as the Alameda Real Property Conveyance Tax Regulation. The tax imposed under this section is solely for the purpose of raising revenue. This section is not enacted for regulatory purposes.

(Ord. No. 1921 N.S.)

A tax is hereby imposed on each transfer, by deed, instrument or writing, by which any lands, tenements or other real property sold, located in the City, are or is granted, assigned, transferred or otherwise conveyed to, or vested in, a purchaser thereof, or any other person at or by the direction of the purchaser, when the value of the consideration exceeds one hundred ($100.00) dollars, the tax to be twelve dollars ($12.00) for each one thousand ($1000.00) dollars or fractional part of one thousand ($1000.00) dollars of the value of the consideration.

As used herein, value of the consideration shall mean the total consideration, valued in money of the United States, paid or delivered or contracted to be paid or delivered in return for the transfer of real property, including the amount of any indebtedness, existing immediately prior to the transfer which is secured by a lien, deed or trust or other encumbrance on the property conveyed and which continues to be secured by such lien, deed of trust or encumbrance after the transfer, and also including the amount of any indebtedness which is secured by a lien, deed or trust or encumbrance given or placed upon the property in connection with the transfer to secure the payment of the purchase price or any part thereof which remains unpaid at the time of the transfer. Value of the consideration also includes the amount of any special assessment levied or imposed upon the property by a public body, district or agency, where the special assessment is a lien or encumbrance on the property and the purchaser or transferee agrees to pay such special assessment. The value of any lien or encumbrance of a type other than those which are hereinabove specifically included, existing immediately prior to the transfer and remaining after said transfer, shall not be included in determining the value of the consideration. If the value of the consideration cannot be definitely determined, or is left open to be fixed by future contingencies, value of consideration shall mean the fair market value of the property at the time of transfer after deducting the amount of any lien or encumbrance if any, of a type which would be excluded in determining the value of the consideration pursuant to above provisions of this subsection.

(Ord. No. 2638 N.S. § 1: Ord. No. 1921 N.S.)

(Ord. No. 2987, § 1)

Any tax imposed pursuant to subsection 3-58.2 hereof 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. No. 1921 N.S.)

The tax imposed pursuant to section 3-58.2 shall not apply to any transaction that is exempt from taxation pursuant to Chapter 3 of Part 6.7 of Division 2 of the California Revenue and Taxation Code as it now reads or may hereafter be amended.

(Ord. No. 1921 N.S.; Ord. No. 2465 N.S.)

(Ord. No. 2987 N.S. § 2)

Editor's note— Ord. No. 2987 N.S., § 3, adopted Nov. 4, 2008, repealed 58.5, which pertained to instruments in lieu of foreclosure and derived from Ord. No. 1921 N.S.

The County Recorder shall collect the tax imposed under section 3-58.2 and shall otherwise administer such tax in conformity with the provisions of Part 6.7 of Division 2 of the California Revenue and Taxation Code and the provisions of any county ordinance adopted pursuant thereto. Notwithstanding the preceding sentence, the City Tax Collector may make such rules and regulations, not inconsistent with subsection 3-58.2, as he/she may deem reasonably necessary or desirable to administer the tax imposed under that section. In the administration of such tax, the City Tax Collector shall interpret its provisions consistently with those Documentary Stamp Tax Regulations adopted by the Internal Revenue Service of the United States Treasury Department which relate to the Tax on Conveyances except that for the purposes of this section:

a. Realty, as used in the regulations, shall mean real property as such term is defined by and under the laws of the State of California.

b. Those provisions of the regulations providing for deduction of the value of any lien or encumbrance existing before the sale and not removed thereby shall not apply.

c. Those provisions of the regulations relating to the rate of the tax shall not apply.

d. Those provisions of the regulations which conflict with the provisions of this section shall not apply.

(Ord. No. 1921 N.S.; Ord. No. 2465 N.S. § 1)

(Ord. No. 2987 N.S. § 4)

The tax imposed under this subsection is due and payable at the time the deed, instrument or writing effecting a transfer subject to the tax is delivered, and is delinquent if unpaid at the time of recordation thereof. In the event that the tax is not paid prior to becoming delinquent, a delinquency penalty of ten (10%) percent of the amount of the tax due shall accrue. In the event a portion of the tax is unpaid prior to becoming delinquent, the penalty shall only accrue as to the portion remaining unpaid. An additional penalty of fifteen (15%) percent shall accrue if the tax remains unpaid on the 90th day following the date of the original delinquency. Interest shall accrue at the rate of one and one-half of one percent (1 ½%) a month, or fraction thereof, on the amount of tax, exclusive of penalties, from the date the tax becomes delinquent to the date of payment. Interest and penalty shall become part of the tax. An administrative charge of thirty ($30.00) dollars on each property and a seven ($7.00) dollar release of lien fee shall be added to the amount owed for each property approved for a tax lien by the City Council.

(Ord. No. 1921 N.S.; Ord. No. 2496 § 1)

The tax imposed by this section shall be paid to the Tax Collector by the persons referred to in subsection 3-58.3. Payment shall be accompanied by a declaration of the amount of tax due signed by the person paying the tax or by his/her agent. The declaration shall include a statement that the value of the consideration on which the tax due was computed includes all indebtedness secured by liens, deeds of trust, or other encumbrances remaining or placed on the property transferred at the time of transfer, and also includes all special assessments on the property which the purchaser or transferee agrees to pay or which remain a lien on the property at the time of transfer. The declaration shall identify the deed, instrument or writing effecting the transfer for which the tax is being paid. The Tax Collector may require delivery to him/her of a copy of such deed, instrument or writing whenever he/she deems such to be reasonably necessary to adequately identify such writing or to administer the provisions of this section. The Tax Collector may rely on the declaration as to the amount of the tax due provided he/she has no reason to believe that the full amount of the tax due is not shown on the declaration.

Whenever the Tax Collector has reason to believe that the full amount of tax due is not shown on the declaration or has not been paid, he/she may, by notice served upon any person liable for the tax, require him/her to furnish a true copy of his/her records relevant to the value of the consideration or fair market value of the property transferred. Such notice may be served at any time within three (3) years after recordation of the deed, instrument or writing which transfers such property.

(Ord. No. 1921 N.S.)

If on the basis of such information as he/she receives pursuant to the last paragraph of subsection 3-58.8 and/or on the basis of such other relevant information that comes into his/her possession, he/she determines that the amount of tax due as set forth in the declaration, or as paid, is insufficient, he/she may recompute the tax due on the basis of such information.

If the declaration required by subsection 3-58.8 is not submitted, the Tax Collector may make an estimate of the value of the consideration for the property conveyed and determine the amount of tax to be paid on the basis of any information in his/her possession or that may come into this possession.

One (1) or more deficiency determinations may be made of the amount due with respect to any transfer.

(Ord. No. 1921 N.S.)

The Tax Collector shall give notice to a person liable for payment of the tax imposed under this section of his/her determination made under subsection 3-58.9. Such notice shall be given within three (3) years after the recordation of the deed, instrument or writing effecting the transfer on which the tax deficiency determination was made.

(Ord. No. 1921 N.S.)

Any notice required to be given by the Tax Collector under this section may be served personally or by mail; if by mail, service shall be made by depositing the notice in the United State mail, in a sealed envelope with postage paid, addressed to the person on whom it is to be served at his/her address as it appears in the records of the City or as ascertained by the Tax Collector. The service is complete at the time of the deposit of the notice in the United States mail, without extension of time for any reason.

(Ord. No. 1921 N.S.)

Any person against whom a determination is made under this section or any person directly interested may petition for a redetermination within sixty (60) days after service upon the person of notice thereof. If a petition for redetermination is not filed within the sixty (60) day period, the determination becomes final at the expiration of the period.

(Ord. No. 1921 N.S.)

If a petition for redetermination is filed within the sixty (60) day period, the Tax Collector shall reconsider the determination and, if the person has so requested in his/her petition, shall grant the person an oral hearing, and shall give him/her ten (10) days notice of the time and place of hearing. The Tax Collector may designate one (1) or more deputies for the purpose of conducting hearings and may continue a hearing as may be necessary.

(Ord. No. 1921 N.S.)

The amount of any tax, penalty, and interest imposed under the provisions of this subsection shall be deemed a debt to the City. Any person owing money to the City under the provisions of this subsection shall be liable to an action brought in the name of the City for the recovery of such amount.

(Ord. No. 2496 § 1)

The amount of tax, penalty and interest imposed under the provisions of this subsection is hereby assessed against the property upon the transfer of which the tax is imposed, and if not paid when due, such tax shall constitute an assessment against such property and shall be a lien on the property for the amount thereof, which lien shall continue until the amount thereof including all penalties and interest are paid, or until it is discharged of record. Any person owing money to the City under the provisions of this article shall be liable to an action brought in the name of the City for the recovery of such amount.

(Ord. No. 2496 § 2 [3-11119])

The Director of Finance shall file with the City Manager a written notice of those persons on whom the City will file liens. Upon the receipt of such notice the City Manager shall present same to the City Council, and the City Council shall forthwith, by resolution, fix a time and place for a public hearing on such notice. The Director of Finance shall cause a copy of such resolution and notice to be served upon the transferor or transferee of property not less than five (5) days prior to mailing a copy of such resolution and notice to the transferor or transferee of property at his/her last known address. Service shall be deemed complete at the time of deposit in the United States Mail.

(Ord. No. 2596 § 3 [3-111120])

With the confirmation of the report by the City Council, the delinquent tax charges contained therein which remain unpaid by the transferor or transferee shall constitute a special assessment against said property, and shall be collected at such time as is established by the County Assessor for inclusion in the next property tax assessment. The Director of Finance shall turn over to the County Assessor for inclusion in the next property tax assessment the total sum of unpaid delinquent charges consisting of the delinquent transfer taxes, penalties and interest at the rate of six (6%) percent per annum from the date of recordation to the date of lien. Thereafter, said assessment may be collected at the same time and in the same manner as ordinary municipal taxes are collected, and shall be subject to the same penalties and the same procedure of sale as provided for delinquent, ordinary, municipal taxes. The assessment hens previously imposed upon the property and paramount to all other liens except for those of State, County, and municipal taxes with which it shall be upon parity. The lien shall continue until the assessment and all interest and charges due and payable thereon are paid. All taxes applicable to the levy, collection and enforcement of municipal taxes shall be applicable to said special assessments.

(Ord. No. 2496 § 4 [3-111121])

a. The tax imposed pursuant to this chapter shall not apply to any transfer of real property between domestic partners during the term of their domestic partnership, if the requirements of paragraph (d) of this subsection are satisfied.

b. The tax imposed pursuant to this chapter shall not apply to any transfer of real property between domestic partners for the purposes of effecting a division of assets upon the termination of their domestic partnership, provided that such property was acquired by either or both of the domestic partners prior to the termination of the domestic partnership, if the requirements of paragraph (e) of this subsection are satisfied.

c. For purposes of this section, "domestic partners" means two individuals who have a current declaration of domestic partnership on file with the California Secretary of State pursuant to the Domestic Partner Registration Act, California Family Code Section 297, et. seq., as may be amended, identifying themselves as each other's domestic partner.

d. Domestic partners transferring real property to one another during the term of their domestic partnership shall be exempt from paying the tax imposed under this chapter if they provide a certified copy of their declaration of domestic partnership to the county recorder, or other evidence showing that they have a current declaration of domestic partnership on file with the California Secretary of State, at the time the instrument transferring the real property is recorded.

e. Domestic partners transferring real property to one another for purposes of effecting a division of assets after the termination of their domestic partnership shall be exempt from paying the tax imposed under this chapter if they provide a certified copy of their notice of termination of domestic partnership filed with the California Secretary of State pursuant to the Domestic Partner Registration Act, California Family Code Section 297 et. seq., as may be amended, to the county recorder, or other evidence showing that they have a current notice of termination on file with the California Secretary of State, or evidence sufficient to demonstrate an intent to file a notice of termination, at the time the instrument transferring the real property is recorded.

f. Any tax imposed pursuant to this chapter should not apply with respect to any transfer between spouses or to a trust where primary beneficiary is a spouse and/or child and/or domestic partner registered with the State of California.

(Ord. No. 1921 N.S.; Ord. No. 2514 N.S. § 1; Ord. No. 2902 N.S. § 1)

Any tax imposed pursuant to this section shall not apply with respect to any deed, instrument, or other writing by which realty is conveyed by the State of California, any political subdivision thereof, or agency or instrumentality of either thereof, pursuant to an agreement whereby the purchaser agrees to immediately reconvey the realty to the exempt agency.

(Ord. No. 1921 N.S.)

Any tax imposed pursuant to this section shall not apply with respect to any deed, instrument, or other writing by which realty is conveyed by the State of California, any political subdivision thereof, or agency or instrumentality of either thereof, conveys to a nonprofit corporation realty the acquisition, construction, or improvement of which was financed or refinanced by obligations issued by the nonprofit corporation on behalf of a government unit, within the meaning of Section 1.103-1(b) of Title 26 of the Code of Federal Regulations.

(Ord. No. 1921 N.S.)