Chapter 3.24 — DOCUMENTARY TRANSFER TAX

State Law reference— Documentary Transfer Tax Act, Revenue and Taxation Code § 11901 et seq.; tax authorized, Revenue and Taxation Code § 11911.

This chapter shall be known as the Real Property Transfer Tax Ordinance of the County. It is adopted pursuant to Part 6.7 (commencing with Section 11901) of Division 2 of the Revenue and Taxation Code.

(Prior Code, § 6501; Code 1997, § 3.24.010)

There is imposed on each deed, instrument or writing by which any lands, tenements or other realty sold within the County is granted, assigned, transferred or otherwise conveyed to or vested in the purchaser or any other person by his or her 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 $100.00, a tax at the rate of $0.55 for each $500.00 or fractional part thereof.

(Prior Code, § 6502; Code 1997, § 3.24.020)

The tax imposed by Section 3.24.020 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 it is made, signed or issued.

(Prior Code, § 6503; Code 1997, § 3.24.030)

The tax imposed pursuant to this chapter shall not apply to any instrument in writing given to secure a debt.

(Prior Code, § 6504; Code 1997, § 3.24.040)

The United States or any agency or instrumentality thereof, any state or territory or political subdivision 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.

(Prior Code, § 6505; Code 1997, § 3.24.050)

A.

The tax imposed pursuant to this chapter shall not apply to the making, delivering of filing of the conveyances to make effective any plan or reorganization or adjustment:

Confirmed under the Federal Bankruptcy Act, as amended;

Approved in an equity receivership proceeding in a court involving a railroad corporation, as defined in Section 101 of Title 11 of the United States Code, as amended;

Approved in an equity receivership proceeding in a court involving a corporation as defined in Section 101 of Title 11 of the United States Code, as amended; or

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

B.

Subsections A.1 through 4 of this section shall only apply if the making, delivery or filing of instruments of transfer or conveyances occurs within five years from the date of such confirmation, approval or change.

(Prior Code, § 6506; Code 1997, § 3.24.060)

The 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 Section 1083(a) of the Internal Revenue Code of 1954, but only if:

A.

The order of the Securities and Exchange Commission in obedience to which the conveyance is made recites that the 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;

B.

The order specifies the property which is ordered to be conveyed;

C.

The conveyance is made in obedience to the order.

(Prior Code, § 6507; Code 1997, § 3.24.070)

A.

In the case of any realty held by a partnership or other entity treated as a partnership for Federal income tax purposes, no tax shall be imposed pursuant to this chapter by reason of any transfer of an interest in the partnership or other entity or otherwise, if:

The partnership (or other partnership) is considered a continuing partnership within the meaning of Section 708 of the Internal Revenue Code of 1986; and

The continuing partnership or other entity treated as a partnership continues to hold the realty concerned.

B.

If there is a termination of any partnership or other entity treated as a partnership for Federal income tax purposes within the meaning of Section 708 of the Internal Revenue Code of 1986, for the purposes of this chapter, the partnership or other entity 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 the partnership at the time of the termination.

C.

Not more than one tax shall be imposed pursuant to this chapter by reason of a termination described in Subsection B of the section, and any transfer pursuant thereto, with respect to the realty held by the partnership at the time of the termination.

D.

No levy shall be imposed pursuant to this chapter by reason of any transfer between an individual or individuals and a legal entity or between legal entities that results solely in a change in the method of holding title to the realty and in which

proportional ownership interests in the realty, whether represented by stock, membership interest, partnership interest, cotenancy interest, or otherwise, directly or indirectly, remain the same immediately after the transfer.

(Prior Code, § 6508; Code 1997, § 3.24.080)

If the legislative body of any city in the County imposes a tax pursuant to Part 6.7 of Division 2 of the Revenue and Taxation Code (Revenue and Taxation Code § 11901 et seq.) equal to one-half the amount specified in Section 3.24.020, a credit shall be granted against the taxes due under this chapter in the amount of the city's tax.

(Prior Code, § 6509; Code 1997, § 3.24.090)

The Recorder shall repurchase any unused documentary tax stamps sold by him or her prior to July 1, 1968. The Recorder shall accept in payment of the tax any such stamps affixed to a document offered for recordation and shall cancel the stamps so affixed.

(Prior Code, § 6510; Code 1997, § 3.24.100)

A.

The County Recorder shall administer this chapter and shall also administer any ordinance adopted by any city in the County pursuant to Part 6.7 (commencing with Section 11901) of Division 2 of the Revenue and Taxation Code imposing a tax for which a credit is allowed by this chapter.

B.

On or before the 15th day of the month the Recorder shall report to the County Auditor the amounts of taxes collected during the preceding month pursuant to this chapter and each such city ordinance. The auditor shall allocate and distribute monthly the taxes as follows:

All moneys which relate to transfers of real property located in the unincorporated territory of the County shall be allocated to the County.

All moneys which relate to transfers of real property located in a city in the County which has imposed a tax pursuant to Part 6.7 of Division 2 of the Revenue and Taxation Code shall be allocated one-half to the city and one-half to the County.

All moneys which relate to transfers of real property located in a city in the County which imposes a tax on transfers of real property not in conformity with Part 6.7 of Division 2 of the Revenue and Taxation Code shall be allocated to the County.

All moneys which relate to transfers of real property in a city in the County which does not impose a tax on transfers of real property shall be allocated to the County.

(Prior Code, § 6511; Code 1997, § 3.24.110)

A.

The Recorder shall not record any deed, instrument or writing subject to the tax imposed by this chapter unless the tax is paid. If the party submitting the document so requests, the amount of tax due shall be shown on a separate paper which shall be affixed to the document by the Recorder after the permanent record is made and before the original is returned as specified in Government Code § 27321.

B.

Every document subject to tax under this chapter which is submitted for recordation shall show on the face of the document, or in a separate document, the amount of taxes due under this chapter and the Recorder may rely thereon.

C.

Every document subject to tax under this chapter which is submitted for recordation shall show on the face of the document, or in a separate document, the locations of the lands, tenements or other realty described in the document. If the lands, tenements or other realty are located within a city in the County, the name of the city shall be set forth. If the lands, tenements or other realty are located in the unincorporated area of the County, that fact shall be set forth.

(Prior Code, § 6512; Code 1997, § 3.24.120)

Claims for refunds of taxes imposed pursuant to this chapter 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.

(Prior Code, § 6513; Code 1997, § 3.24.130)

In the administration of this chapter the Recorder 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 and identified as Sections 47.4361-1, 47.4361-2 and 47.4362-1 of Part 47 of Title 26 of the Code of Federal Regulations, as it existed on November 8, 1967, except that for the purposes of this chapter, the determination of what constitutes "realty" shall be determined by the definition or scope of that term under State law.

(Prior Code, § 6514; Code 1997, § 3.24.140)

Whenever the County Recorder has reason to believe that the full amount of tax due under this chapter has not been paid, he or she may, by notice served upon any person liable therefor, require him or her to furnish a true copy of his or her records relevant to the amount of the consideration or value to the interest or property conveyed.

(Prior Code, § 6515; Code 1997, § 3.24.150)

A.

Any person 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.

B.

No person shall be liable, either civilly or criminally, for any unintentional error made in designating the location of the lands, tenements or other realty described in a document subject to the tax imposed by this chapter.

(Prior Code, § 6516; Code 1997, § 3.24.160)