Chapter 3.24 — DOCUMENTARY TRANSFER TAX

There is 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 any other person by the purchaser’s 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 $100, a tax at the rate of 27.5 cents for each $500 or fractional part thereof.

(Prior code § 35.060)

Any tax imposed pursuant to Section 3.24.010 shall be paid by any person who makes, signs or issues any document or instrument subject to the tax, or for whose benefit or use the same is made, signed or issued.

(Prior code § 35.061)

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

• B. United States, States, Political Subsection, and the Like. The United States or any agency or instrumentality thereof, any state or territory or political subsection thereof or the District of Columbia 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.

• C. Instruments Involving Bankruptcy, Reorganization, Receivership or Change of Identity.

  1. Any tax imposed pursuant to this chapter shall not apply to the making, delivering or tiling of conveyances to make effective any plan of reorganization or adjustment:

     • a. Confirmed under the Federal Bankruptcy Act, as amended.

     • b. Approved in an equity receivership proceeding in a court involving a railroad corporation, as defined in United States Code subdivision (m) of Section 205 of Title 11, as amended.

     • c. Approved in an equity receivership proceeding in a court involving a corporation as defined in United States Code subdivision (3) of Section 506 of Title 11, as amended.

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

  2. Subsections (C)(1)(a) through (d) inclusive of this section shall only apply if the making, delivery or filing of instruments of transfer or conveyance occurs within five years from the date of such confirmation, approval or change.

• D. Instruments Made Pursuant to 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 Internal Revenue Code of 1954 subdivision (a) of Section 1083; 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 United States Code Section 79k of Title 15, relating to the Public Utility Holding 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.

• E. Partnership Transfers.

  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 other partnership) is considered a continuing partnership within the meaning of Internal Revenue Code of 1954 Section 708;

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

2. If there is a termination of any partnership within the meaning of Internal Revenue Code of 1954 Section 708, 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 thereof) all realty held by such partnership at the time of such termination.

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

• F. Other Statutory Exemptions. The exemptions set forth in California Revenue and Taxation Code Sections 11926 through 11929, as amended, shall apply to this chapter.

• (Prior code § 35.062)

The County Recorder shall administer this chapter in conformity with the provisions of California Revenue and Taxation Code Division 2, Part 6.7, and the provisions of any County ordinance adopted pursuant thereto.

(Prior code § 35.063)

Claims for refunds of taxes imposed pursuant to this chapter shall be governed by the provisions of California Revenue and Taxation Code Division 1, Part 9, Chapter 5 (commencing with Section 5096).

(Prior code § 35.064)