Lake Forest Municipal Code Ch. 3.22 Real Property Documentary Transfer Tax

This chapter shall be known as the "Lake Forest Documentary Real Property Transfer Tax." This chapter is adopted pursuant to the authority contained in Part 6.7 (commencing with Section 11901) of Division 2 of the California Revenue and Taxation Code.

(Ord. 165 § 1, 2007)

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 or property conveyed (exclusive of the value of any lien or encumbrances remaining thereon at the time of sale) exceeds $100, a tax at the rate of twenty-seven and one-half cents ($.27 ½) for each $500 of consideration or value or fractional part thereof.

(Ord. 165 § 1, 2007)

Any tax imposed pursuant to Section 3.22.020 of this chapter 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.

(Ord. 165 § 1, 2007)

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 for the mortgagor or trustor as a result of or in lieu of foreclosure; provided, that such tax to 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 the affidavit or declaration under penalty of perjury for tax purposes.

(Ord. 165 § 1, 2007)

A. Any tax imposed pursuant to this chapter shall not apply with respect to any deed, instrument or other writing which purports to transfer, divide or allocate community, quasi-community, 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 judgment decreeing a dissolution of the marriage or legal separation, by 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 a part of any of those judgments or orders.

B. In order to qualify for the exemption provided in subsection A 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. 165 § 1, 2007)

The United States or any agency or instrumentality thereof or any State or territory or any political subdivision thereof or the District of Columbia, shall not be liable for any tax imposed pursuant to this chapter with respect to any deed, instrument or writing to which it is a party or by which it acquires title to property.

(Ord. 165 § 1, 2007)

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

(Ord. 165 § 1, 2007)

Any tax imposed pursuant to this chapter shall not apply with respect to any deed, instrument or other writing by which the State, any political subdivision thereof or agency or instrumentality of either thereof, conveys to a 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 Section 1.103(b) of Title 26 of the Code of Federal Regulations.

(Ord. 165 § 1, 2007)

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 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 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. Subsection A of this section shall apply only 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. 165 § 1, 2007)

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 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.

(Ord. 165 § 1, 2007)

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. Such partnership (or another 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 of encumbrances 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 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 the such termination.

(Ord. 165 § 1, 2007)

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

(Ord. 165 § 1, 2007)

Claims for refund 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 California Revenue and Taxation Code.

(Ord. 165 § 1, 2007)