Brea Municipal Code Ch. 3.20 Real Property Transfer Tax

This chapter shall be known as the “Real Property Transfer Tax Ordinance of the City of Brea.” It is adopted pursuant to the authority contained in Cal. Rev. & Tax. Code, part 6.7 (commencing with § 11901) of Division 2.

(1961 Code, § 23.23; Ord. 413)

There is hereby imposed on each deed, instrument or writing by which any lands, tenements, or other realty sold within the city shall be granted, assigned, transferred or otherwise conveyed to, or vested in, the purchaser or purchasers, or any other person or persons, by his, her 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 ($100) dollars, a tax at the rate of twenty-seven and one-half cents ($.275) for each five hundred ($500) dollars or fractional part thereof.

(1961 Code, § 23.24; Ord. 413)

Any tax imposed pursuant to § 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.

(1961 Code, § 23.25; Ord. 413)

A. Instruments to secure debts. Any tax imposed pursuant to this chapter shall not apply to any instrument in writing given to secure a debt.

B. Public agencies. Any deed, instrument or writing to which the United States or any agency of instrumentality thereof, any state or territory, or political subdivision thereof, is a party shall be exempt from the tax imposed pursuant to this chapter when the exempt agency is acquiring title.

C. Plans of reorganization or adjustment.

1. Any 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;

2. Confirmed under the Federal Bankruptcy Act, as amended;

3. Approved in an equity receivership proceeding in a court involving a railroad corporation as defined in subdivision (m) of § 205 of Title II of the United States Code, as amended;

4. Approved in an equity receivership proceeding in a court involving a corporation, as defined in subdivision 3. of § 506 of Title II of the United States Code, as amended; or

5. Whereby a mere change in identity, form or place of organization is effected.

D. Paragraphs A.1. to A.4., inclusive, of this section shall only apply if the making, delivery or filing of instruments of transfer or conveyances occurs within five (5) years from the date of such confirmation, approval or change.

E. Orders of Securities and Exchange Commission. Any 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 § 1083 of the Internal Revenue Code of 1954; but only if:

1. 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 § 79k of Title 15 of the United States Code, relating to the Public Utility Holding Company Act of 1935;

2. Such order specifies the property which is ordered to be conveyed;

3. Such conveyance is made in obedience to such order.

F. Partnerships.

1. In the case of any realty held by a partnership, no levy shall be imposed pursuant to this chapter by reason of any transfer of an interest in a partnership or otherwise, if:

a. Such partnership (or another partnership) is considered a continuing partnership within the meaning of § 708 of the Internal Revenue Code of 1954; and

b. Such continuing partnership continues to hold the realty concerned.

2. If there is a termination of any partnership within the meaning of § 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.

3. Not more than one (1) tax shall be imposed pursuant to this chapter by reason of a termination described in paragraph F.2., and any transfer pursuant thereto, with respect to the realty held by such partnership at the time of such termination.

G. The exemptions set forth in Cal. Rev. & Tax Code §§ 11921 through 11929 shall apply.

(1961 Code, §§ 23.26, 23.27, 23.28 and 23.30; Ord. 413; Ord. 457)

The County Recorder shall administer this chapter in conformity with the provisions of Cal. Rev. & Tax. Code, Part 6.7 of Division 2 and the provisions of any county ordinance adopted pursuant thereto.

(1961 Code, § 23.31; Ord. 413)

Claims for refund of taxes imposed pursuant to this chapter shall be governed by the provisions of Chapter 5 (commencing with § 5096) of Cal. Rev. & Tax Code, Part 9 of Division 1.

(1961 Code, § 23.32; Ord. 413)

This chapter shall become operative upon the operative date of any ordinance adopted by the county pursuant to Cal. Rev. & Tax. Code, Part 6.7 (commencing with § 11901) of Division 2, or upon the effective date of this chapter, whichever is the later.

(1961 Code, § 23.33; Ord. 413)