Clearlake Municipal Code § 3-2 Real Property Transfer Tax

This section shall be known as, and for all purposes may be referred to as, the “Real Property Transfer Tax Law of the City of Clearlake.” (Ord. #3, S1)

Pursuant to the authority of Section 11901 et seq. of the Revenue and Taxation Code, there is hereby imposed on each deed, instrument or writing by which any lands, tenements, or other realty sold within the City of Clearlake shall be 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 encumbrance remaining thereon at the time of sale) exceeds one hundred ($100.00) dollars, a tax at the rate of twenty-seven and one-half ($.275) cents for each five hundred ($500.00) dollars or fractional part thereof. (Ord. #3, S2)

a. The transfer of any mobile home installed on a foundation system pursuant to Section 18551 of the Health & Safety Code and subject to local property taxation shall be subject to the tax imposed pursuant to subsection 3-2.2.

b. The purchaser of a new mobile home which is sold and installed for occupancy as a residence in accordance with Section 18613 of the Health & Safety Code, shall be subject to the tax imposed pursuant to subsection 3-2.2. Mobile homes held in the mobile home dealer’s inventory shall be exempt from the provisions of this section. (Ord. #3, S3)

The tax imposed 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. #3, S4)

Any tax imposed pursuant to subsection 3-2.2 shall not apply to: a. Any instrument in writing given to secure a debt; b. The United States or any agency or instrumentality thereof, any state or territory, or political subdivision thereof, or the District of Columbia, 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; c. The making, delivering or filing of conveyances to make effective any plan or 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 §205 of Title II 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 §506 of Title II of the United States Code, as amended; or 4. Whereby a mere change in identity, form or place of organization is effected. Paragraphs c.1. through c.4., inclusive, of this subsection 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; d. 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;

Such order specifies the property which is ordered to be conveyed; 3. Such conveyance is made in obedience to such order. e. Any realty held by a partnership by reason of any transfer of an interest in a partnership or otherwise, if: 1. Such partnership (or another partnership) is considered a continuing partnership within the meaning of §708 of the Internal Revenue Code of 1954; and 2. Such continuing partnership continues to hold the realty concerned. If there is a termination of any partnership within the meaning of §708 of the Internal Revenue Code of 1954, for purposes of this section, 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. Not more than one tax shall be imposed pursuant to this section by reason of a termination described in the preceding paragraph, and any transfer pursuant thereto, with respect to the realty held by such partnership at the time of such termination. f. 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 foreclosure; provided, that such tax shall apply to the extent that the consideration exceeds the unpaid debt, including accrued interest and cost of foreclosure. Consideration, unpaid debt amount and identification of grantee as beneficiary or mortgagee shall be noted on said deed, instrument or writing or stated in an affidavit or declaration under penalty of perjury for tax purposes. (Ord. #3, S5)

Pursuant to the provisions of Part 6.7 of Division 2 of the Revenue and Taxation Code and pursuant to the provisions of Section 18-28, Lake County Ordinance Code, this section shall be administered by the County Recorder and the Auditor-Controller of the County of Lake. (Ord. #3, S6)

Claims for refund of taxes imposed pursuant to this section 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. (Ord. #3, S7)

It is the intention of the City Council of the City that as of the effective date of this section, it shall supersede the effectiveness of the real property transfer tax article of the County of Lake, Lake County Ordinance Code Section 18-24 et seq. regarding real property transfer taxes in the City of Clearlake as implemented and adopted by Ordinance No. 1 of the City of Clearlake. However, it is not intended that this section shall supersede any portion of Section 18-28 or 18-29 of the Lake County Ordinance Code, insofar as the provisions are consistent with this section. (Ord. #3, S8)