Fairfax Municipal Code Ch. 3.16 Real Property Transfer Tax

The ordinance codified in this chapter shall be known as the “Real Property Transfer Tax Ordinance of the Town of Fairfax.” It is adopted pursuant to the authority contained in Cal. Revenue and Taxation Code §§ 11901 et seq.

(Prior Code, § 3.16.010)

There is imposed on each deed, instrument or writing by which any lands, tenements or other realty sold within the town 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 $100, a tax at the rate of $0.275 for each $500 or fractional part thereof.

(Prior Code, § 3.16.020)

Any tax imposed pursuant to § 3.16.020 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.

(Prior Code, § 3.16.030)

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

(Prior Code, § 3.16.040)

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 part, shall be exempt from the tax imposed by this chapter when the exempt agency is acquiring title.

(Prior Code, § 3.16.040) (Ord. 575, passed - -1988)

(A) 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:

(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 11 U.S.C. § 205(m), as amended;

(3) Approved in an equity receivership proceeding in a court involving a corporation, as defined in 11 U.S.C. § 506(3), as amended; or

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

(B) Divisions (A)(1) through (4) shall apply only if the making, delivery or filing of instruments or transfer or conveyances occurs within five years from the date of the confirmation, approval or change.

(Prior Code, § 3.16.060)

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 I.R.C. § 1083(a), but only if.

(A) 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 15 U.S.C. § 79k, relating to the Public Utility Holding Company Act of 1935;

(B) The order specifies the property which is ordered to be conveyed; and

(C) The conveyance is made in obedience to the order.

(Prior Code, § 3.16.070)

(A) 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

(1) The partnership (or another partnership) is considered a continuing partnership within the meaning of I.R.C. § 708; and

(2) The continuing partnership continues to hold the realty concerned.

(B) If there is a termination of any partnership within the meaning of I.R.C. § 708, for purposes of this chapter, the 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 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 division (B) above, and any transfer pursuant thereto, with respect to the realty held by the partnership at the time of the termination.

(Prior Code, § 3.16.080)

Any tax imposed pursuant to this chapter shall not apply with respect to 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, the 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 the deed, instrument or writing, or stated in an affidavit or declaration under penalty of perjury for tax purposes.

(Prior Code, § 3.16.090) (Ord. 575, passed - -1988)

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

(Prior Code, § 3.16.100)

Claims for refund of taxes imposed pursuant to this chapter shall be governed by the provisions of Cal. Revenue and Taxation Code §§ 5096 et seq.

(Prior Code, § 3.16.110)