Fullerton Municipal Code Ch. 21.08 Documentary Stamp Tax on the Sale of Real Property

The title of this chapter is “The Fullerton Documentary Stamp Act.”

(Ord. 1512, passed - -1967; Ord. 1741, passed - -1971)

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, her or their direction, when the consideration or value of the interest of property conveyed (exclusive of the value of any lien or encumbrance remaining thereon at the time of sale) exceeds $100, a tax at the rate of $0.275 for each $500 or fractional part thereof.

(Ord. 1512, passed - -1967; Ord. 1741, passed - -1971)

The tax imposed by this chapter is for the usual and current expenses of the city and this chapter shall therefore take effect immediately upon December 5, 1967.

(Ord. 1512, passed - -1967; Ord. 1741, passed - -1971)

The tax imposed by this chapter is imposed pursuant to Cal. Revenue and Taxation Code, Division 2, Part 6.7 (commencing with § 11901), entitled Documentary Transfer Tax Act, and subject to, and applicable only in accordance with, all of the provisions of said Act, and no levy prohibited by said Act is hereby imposed, and no tax is hereby imposed which is not in conformity with said Act, including the following provisions thereof.

“11912. Any tax imposed pursuant to Section 11911 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.

“11921. Any tax imposed pursuant to this part shall not apply to any instrument in writing given to secure a debt.

“11922. 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 part when the exempt agency is acquiring title.

“11923. Any tax imposed pursuant to this part shall not apply to the making, delivering or filing of conveyances to make effective any plan of reorganization or adjustment —

(a) Confirmed under the federal Bankruptcy Code, 11 U.S.C., as amended;

(b) Approved in an equity receivership proceeding in a court involving a railroad corporation, as defined in Bankruptcy Code Chapter 11, Subchapter IV, as amended;

(c) Approved in an equity receivership proceeding in a court involving a corporation, as defined in 11 U.S.C. § 101(9), as amended; or

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

Subdivisions (a) to (d), inclusive, 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.

“11924. Any tax imposed pursuant to this part shall not apply to the making or delivery of conveyances to make effective any order of the Securities and Exchange Commission; 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 provisions relating to the Public Utility Holding Company Act of 1935;

(b) Such order specifies the property which is ordered to be conveyed;

(c) Such conveyance is made in obedience to such order.

“11925.

(a) In the case of any realty held by a partnership, no levy shall be imposed pursuant to this part 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 I.R.C. § 708; and

(2) Such 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 part, 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.

(c) Not more than one tax shall be imposed pursuant to this part by a county, city and county or city by reason of a termination described in subdivision (b), and any transfer pursuant thereto, with respect to the realty held by such partnership at the time of such termination.

“11926. Any tax imposed pursuant to this part 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 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.

“11927.

(a) Any tax imposed pursuant to this part shall not apply with respect to any deed, instrument, or other writing which purports to transfer, divide, or allocate community, quasicommunity, or quasimarital property assets between spouses for the purpose of effecting a division of community, quasicommunity, or quasimarital property which is required by a judgment decreeing a dissolution of the marriage or legal separation, by a judgment of nullity, or by any other judgment or order rendered pursuant to Cal. Civil Code, Division 4, Part 5 (commencing with § 4000), or by a written agreement between the spouses, executed in contemplation of any such judgment or order, whether or not the written agreement is incorporated as part of any of those judgments or orders.

(b) In order to qualify for the exemption provided in subdivision (a), the deed, instrument or other writing shall include a written recital, signed by either spouse, stating that the deed, instrument, or other writing is entitled to the exemption.

“11928. Any tax imposed pursuant to this part shall not apply with respect to any deed, instrument or other writing by which realty is conveyed by the State of California, any political subdivision thereof, or agency or instrumentality of either thereof, pursuant to an agreement whereby the purchaser agrees to immediately reconvey the realty to the exempt agency.

“11929. Any tax imposed pursuant to this part shall not apply with respect to any deed, instrument, or other writing by which the State of California, any political subdivision thereof, or agency or instrumentality of either thereof, conveys to nonprofit corporation realty the acquisition, construction or improvement of which was financed or refinanced by obligations issued by the nonprofit corporation on behalf of a governmental unit, within the meaning of 26 C.F.R. § 1.1031(b).

“11932 . . . The county shall collect all taxes imposed pursuant to this part and the county auditor shall allocate the proceeds as follows...

(a) All money which relates to transfers of real property located in a city which imposes a tax on transfers of real property pursuant to this part shall be allocated one-half to such city and one-half to the county.

“11935. Claims for refunds of taxes imposed pursuant to this part shall be governed by the provisions of Cal. Revenue and Taxation Code Division 1, Part 9, Chapter 5 (commencing with § 5096).”

(Ord. 1512, passed - -1967; Ord. 1741, passed - -1971; Ord. 2791, passed - -1991)

The provisions of this chapter shall be operative on and after 12:01 a.m. on January 1, 1968, in the event the State Documentary Transfer Tax Act authorizing such tax and an ordinance of the county, imposing a documentary stamp tax pursuant to such authority, is then operative and in the event that the Congress of the United States has not provided on or before January 1, 1968, for a tax on transfers of real property. The provisions of this chapter shall be operative at all times and only during such time as the State Documentary Transfer Tax Act and any ordinance of the county passed pursuant thereto, are operative. If the Congress of the United States imposes a tax on transfers of real property after January 1, 1968 this chapter shall have no operative effect on and after the first day of the fiscal year which follows the date such federal tax is imposed.

(Ord. 1512, passed - -1967; Ord. 1741, passed - -1971)

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 the tax imposed pursuant to this chapter when such governmental entity or exempt agency is acquiring title. This exemption shall be cumulative and in addition to any other exemption provided by this chapter.

(Ord. 1633, passed - -1969; Ord. 1741, passed - -1971)