Hemet Municipal Code Art. IV Documentary Transfer Tax

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State Law reference— Documentary transfer tax, Revenue and Taxation Code § 11901 et seq.

This article is adopted pursuant to the authority contained in Revenue and Taxation Code § 11901 et seq.

(Ord. No. 559; Code 1984, § 4700)

There is imposed on each deed, instrument or writing by which any lands, tenements or other realty sold within the city is granted, assigned, transferred or otherwise conveyed to or vested in the purchaser, or any other person, by his 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 $0.275 for each $500.00 or fractional part thereof.

(Ord. No. 559; Code 1984, § 4701)

Any tax imposed pursuant to section 74-112 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 document or instrument is made, signed or issued.

(Ord. No. 559; Code 1984, § 4702)

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

(Ord. No. 559; Code 1984, § 4703)

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 article when the exempt agency is acquiring title.

(Ord. No. 559; Code 1984, § 4704)

(a) Any tax imposed pursuant to this article 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 subsection (m) of section 205 of title II of the United States Code, as amended;

(3) Approved in an equity receivership proceeding in a court involving a corporation, as defined in subsection (3) of section 506 of title II of the United States Code, as amended; or

(4) 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.

(Ord. No. 559; Code 1984, § 4705)

Any tax imposed pursuant to this article shall not apply to the making or delivery of conveyances to make effective any order of the Securities and Exchange Commission, as defined in subsection (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;

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

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

(Ord. No. 559; Code 1984, § 4706)

(a) In the case of any realty held by a partnership, no levy shall be imposed pursuant to this article 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 708 of the Internal Revenue Code of 1965; and

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

(b) If there is a termination of any partnership within the meaning of section 708 of the Internal Revenue Code of 1954, for purposes of this article, 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 article by reason of a termination described in subsection (b) of this section, and any transfer pursuant thereto, with respect to the realty held by such partnership at the time of such termination.

(Ord. No. 559; Code 1984, § 4707)

The county recorder shall administer this article in conformity with the provisions of Revenue and Taxation Code § 11901 et seq. and the provisions of any county ordinance adopted pursuant thereto.

(Ord. No. 559; Code 1984, § 4708)

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

(Ord. No. 559; Code 1984, § 4709)

This article shall become operative upon the operative date of any ordinance adopted by the county pursuant to Revenue and Taxation Code § 11901 et seq., or upon the effective date of Ordinance No. 559, the ordinance codified in this article, whichever is later.

(Ord. No. 559; Code 1984, § 4710)