La Palma Municipal Code Art. IV Documentary Real Property Transfer Tax

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

(a) 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 or 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 $100.00, a tax at the rate of $0.275 for each $500.00 or fractional part thereof.

(b) This article is adopted pursuant to the authority contained in Part 6.7, commencing with Section 11901, of Division 2 of the State Revenue and Taxation Code (Revenue and Taxation Code § 11901 et seq.).

(Code 1975, § 8-16; Ord. No. 176, §§ 1, 2)

Any tax imposed pursuant to section 14-90 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.

(Code 1975, § 8-17; Ord. No. 176, § 3)

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

(b) 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 article when the exempt agency is acquiring title.

(c) Any tax imposed pursuant to this article shall not apply to the making, delivering or filing of conveyances to make effective any plan or reorganization or adjustment that is any of the following:

(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 Section 101 of Title 11 of the United States Code (11 USCA 101), as amended;

(3) 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 (11 USCA 101), as amended; or

(4) Whereby a mere change in identity, form or place of organization is effected. Subsection (c)(1) through (4), 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.

(d) 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 Subdivision (a) of Section 1083 of the Internal Revenue Code of 1954 (26 USCA [I.R.C. 1954] 1083).; 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 (15 USCA 79k);

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

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

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

(1) Such partnership or other entity treated as a partnership is considered a continuing partnership within the meaning of Section 708 of the Internal Revenue Code of 1986 (26 USCA 708); and

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

(f) 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 purposes of this article, such 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 such partnership or other entity at the time of such termination.

(g) No more than one tax shall be imposed pursuant to this article by reason of a termination described in subsection (f) of this section, and any transfer pursuant thereto, with respect to the realty held by such partnership or other entity at the time of such termination.

(h) No levy shall be imposed pursuant to this article 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.

(Code 1975, § 8-18; Ord. No. 176, §§ 4—8; Ord. No. 220, § 1)

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

(Code 1975, § 8-19; Ord. No. 176, § 9)

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

(Code 1975, § 8-20; Ord. No. 176, § 10)