Kern County Municipal Code Ch. 4.20 Documentary Transfer Tax

The ordinance codified in this chapter shall be known as the "real property transfer tax ordinance of the county of Kern." It is adopted pursuant to Part 6.7 (commencing with Section 11901) of Division 2 of the Revenue and Taxation Code.

(Prior code § 9101)

There is imposed on each deed, instrument or writing by which any lands, tenements or other realty sold within the county 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 encumbrances remaining thereon at the time of sale) exceeds one hundred dollars ($100.00), a tax at the rate of fifty-five (55) cents for each five hundred dollars ($500.00) or fractional part thereof.

(Prior code § 9102)

The tax imposed by Section 4.20.020 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 § 9103)

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

(Prior code § 9104)

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

B. Any judgment, decree or order entered and filed in a condemnation proceeding to which the United States or any agency or instrumentality thereof, any state or territory, or political subdivision thereof, or the District of Columbia is a party, and any instrument making a voluntary transfer of realty to any of said governmental entities under the threat of condemnation, shall be exempt from any tax imposed pursuant to this chapter when the exempt entity of government is acquiring title.

(Prior code § 9105)

A. The 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 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.

B. Subparagraphs 1 to 4, inclusive, of subsection (A) of this section shall only apply if the making, delivery or filing of instruments of transfer or conveyances occurs within five (5) years from the date of such confirmation, approval or change.

(Prior code § 9106)

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 subdivision (a) of Section 1083 of the Internal Revenue Code of 1954; 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 Section 79k of Title 15 of the United States Code, 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.

(Prior code § 9107)

A. In the case of any realty held by a partnership, no tax shall be imposed pursuant to this chapter by reason of any transfer of an interest in the partnership or otherwise, if:

1. Such partnership (or other partnership) is considered a continuing partnership within the meaning of Section 708 of the Internal Revenue Code of 1954; 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 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 encumbrance remaining thereon), all realty held by such partnership at the time of such termination.

C. Not more than one (1) tax shall be imposed pursuant to this chapter 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.

(Prior code § 9108)

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 equal to one-half (frax;1;2>) the amount specified in Section 4.20.020 of this chapter, a credit shall be granted against the taxes due under this chapter in the amount of the city's tax.

(Prior code § 9109)

A. The tax imposed pursuant to this chapter shall not apply 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.

B. The tax imposed pursuant to this chapter shall not apply to any deed, instrument or other writing which purports to transfer, divide or allocate community, quasi-community or quasi-marital property assets between spouses for the purpose of effecting a division of community, quasi-community or quasi-marital 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 Part 5 (commencing with Section 4000) of Division 4 of the Civil Code, 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.

C. In order to qualify for the exemption provided in subsection B of this section, 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.

(Ord. G-4461 § 28, 1987: prior code § 9109.1)

The county recorder shall repurchase any unused tax stamps sold by him 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 § 9110)

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 fifteenth 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 said taxes as follows:

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

2. All moneys which relate to transfers of real property located in a city in the county which has imposed a tax pursuant to said Part 6.7 shall be allocated one-half (½) to such city and one-half (½) to the county.

3. 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 said Part 6.7 shall be allocated to the county.

4. 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 § 9111)

A. The recorder shall not record any deed, instrument or writing subject to the tax imposed pursuant to this chapter unless the tax is paid at the time of recording. A declaration of the amount of tax due, signed by the party determining the tax or his agent, shall appear on the face of the document or on a separate paper in compliance with Section 11932 of the Revenue and Taxation Code, as amended from time to time, and the recorder may rely thereon, provided he has no reason to believe that the full amount of the tax due has not been paid.

B. The declaration shall include a statement that the consideration or value on which the tax due was computed was, or that it was not, exclusive of the value of a lien or encumbrance remaining on the interest or property conveyed at the time of sale.

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

D. The county recorder shall not accept for recordation and shall not record any deed, instrument or writing by which lands, tenements or other realty is sold, granted, assigned, transferred or otherwise conveyed unless, in addition to the other provisions of this section, the document contains upon its face the tax roll parcel number of each parcel of land described in the document. When such document describes a parcel which has been created by the division of an existing parcel and at the time of recordation has no separate parcel number, the document shall have noted upon its face the words "portion of" immediately followed by the parcel number of the parcel from which it was created.

(Ord. G-5033 § 2, 1989: prior code § 9112)

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 § 9114)

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 the same 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 § 9115)

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

(Prior code § 9116)

A. 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 is guilty of a misdemeanor.

B. No person or persons shall be liable 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 § 9117)