East Palo Alto Municipal Code Ch. 3.52 Real Property Transfer Taxes

The ordinance codified in this chapter shall be known as, and for all purposes may be referred to as, the real property, transfer tax ordinance of the city. It is adopted pursuant to Part 6.7 (concerning Section 11901) of Division 2 of the Revenue and Taxation Code.

(Prior code § 3-3.201)

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 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 the sale) exceeds one hundred dollars ($100.00), a tax at the rate of twenty-seven and one-half cents ($0.275) for each five hundred dollars ($500.00) or fractional part thereon.

(Prior code § 3-3.202)

A. The transfer of any mobilehome installed on a foundation system pursuant to Section 18551 of the Health and Safety Code and subject to local property taxation shall be subject to the tax imposed pursuant to Section 3.52.020.

B. The purchaser of a new mobilehome which is sold and installed for occupancy as a residence in accordance with Section 18613 of the Health and Safety Code, shall be subject to the tax imposed pursuant to Section 3-3.202 hereof. Mobilehomes held in the mobile home dealer's inventory shall be exempt from the provisions of this chapter.

(Prior code § 3-3.203)

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 benefit the same is made, signed or issued.

(Prior code § 3-3.204)

Any tax imposed subject to Section 3.52.020 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, or any person(s) or entity which is by Federal or California law exempt from such transfer taxes, with respect to any deed, instrument or writing to which it is a party, but the tax shall be collected from any other party liable therefor.

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

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 Section 205 of Title 11 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 Section 506 of Title 11 of the United States Code, as amended, or

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

Subsections C1—C4, 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. The making or delivery of conveyances to make effective any order of the Securities and Exchange Commission, as defined in subdivision (a) of Section 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 Section 79K of Title 15 of the United States Code, relating to the Public Utility Holding Company Act of 1935, and

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

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 Section 703 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 Section 703 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 encumbrances 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 chapter 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.

(Prior code § 3-3.205)

Pursuant to the provisions of Part 6.7 of Division 2 of the Revenue and Taxation Code, this chapter shall be administered by the county recorder of the county.

(Prior code § 3-3.206)

Claims for refund of taxes imposed pursuant to this chapter shall be governed by the provisions of Chapter 5 (commencing with Section 5906) of Part 9 of Division I of the Revenue and Taxation Code of the state.

(Prior code § 3-3.207)

It is the intention of the city council of the city that as of the effective date of the ordinance codified in this chapter, it shall supersede the effectiveness of the real property transfer tax article of the County of San Mateo County Ordinance Code regarding real property transfer taxes in the city as implemented and adopted by Ordinance 1 of the city. However, it is not intended that this chapter shall supersede any portion of the San Mateo County Ordinance Code, insofar as the provisions are consistent with the chapter.

(Prior code § 3-3.208)

Any person or persons who makes, signs, issues or accepts or causes to be made, signed, issued or accepted and who submits or causes to be submitted for recordation any deed, instrument or writing subject to the tax imposed by this chapter and makes any material misrepresentation of fact for the purpose of avoiding all or any part of the tax imposed by this chapter shall be guilty of a misdemeanor.

(Prior code § 3-3.209)