Chapter 3.14 — REAL PROPERTY TRANSFER TAX

This chapter shall be known as the "Real Property Transfer Tax Ordinance of the Town." It is adopted pursuant to the authority contained in Part 6.7 (commencing with Revenue and Taxation Code § 11901) of Division 2 of the Revenue and Taxation Code.

(Prior Code, § 3.22.010; Code 1990, § 3.16.010; Ord. No. 89-08, § 1, 1989)

There is imposed on each deed, instrument or writing by which any lands, tenements or other realty sold within the Town shall be granted, assigned, transferred or otherwise conveyed to, or vested in, the purchaser, or any other person, by the purchaser or the direction of the same, 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 the sale) exceeds $100.00, a tax at the rate of $0.275 cents for each $500.00 or fractional part thereof. Tax revenues shall be placed in the general fund.

(Prior Code, § 3.22.020; Code 1990, § 3.16.020; Ord. No. 89-08, § 1, 1989)

Any tax imposed pursuant to Section 3.16.020 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, § 3.22.030; Code 1990, § 3.16.030; Ord. No. 89-08, § 1, 1989)

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

(Prior Code, § 3.22.040; Code 1990, § 3.16.040; Ord. No. 89-08, § 1, 1989)

The United States or any agency or instrumentality thereof, any state or territory, or political subdivision thereof, 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, but the tax may be collected by assessment from any other party liable therefor.

(Prior Code, § 3.22.050; Code 1990, § 3.16.050; Ord. No. 89-08, § 1, 1989)

(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 Law;

(2)

Approved in an equity receivership proceeding in a court involving a railroad corporation, as defined in 22 USC 205(m);

(3)

Approved in an equity receivership proceeding in a court involving a corporation, as defined in 11 USC 506(3); or

(4)

When, by a mere change in identity, form or place of organization is affected.

(b)

Subsection (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 of change.

(Prior Code, § 3.22.060; Code 1990, § 3.16.060; Ord. No. 89-08, § 1, 1989)

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 the Internal Revenue Code of 1954 § 1083(a), 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 15 USC 795, relating to the Public Utility Holding Company Act of 1935;

(2)

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

(3)

Such conveyance is made in obedience to such order.

(Prior Code, § 3.22.070; Code 1990, § 3.16.070; Ord. No. 89-08, § 1, 1989)

(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 Internal Revenue Code of 1954 § 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 Internal Revenue Code of 1954 § 708, 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 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, § 3.22.080; Code 1990, § 3.16.080; Ord. No. 89-08, § 1, 1989)

(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, or 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 the written agreement is incorporated as 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.

(Prior Code, § 3.22.090; Code 1990, § 3.16.090; Ord. No. 89-08, § 1, 1989)

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 agency or instrumentality of either thereof, pursuant to an agreement whereby the purchaser agrees to immediately reconvey the realty to the exempt agency.

(Prior Code, § 3.22.100; Code 1990, § 3.16.100; Ord. No. 89-08, § 1, 1989)

Any tax imposed pursuant to this part 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 26 CCR 1.103-1(b).

(Prior Code, § 3.22.110; Code 1990, § 3.16.110; Ord. No. 89-08, § 1, 1989)

The County Recorder shall administer this chapter in conformity with the provision of the Documentary Transfer Tax Act, Revenue and Taxation Code §§ 11901 through 11935.

(Prior Code, § 3.22.120; Code 1990, § 3.16.120; Ord. No. 89-08, § 1, 1989)

Claims for refund of taxes pursuant to this chapter shall be governed by the provisions of Chapter 5 (commencing with Section 5096) of Part 9 of Division 1 (Revenue and Taxation Code § 5096 et seq.) of the Revenue and Taxation Code.

(Prior Code, § 3.22.130; Code 1990, § 3.16.130; Ord. No. 89-08, § 1, 1989)

This chapter shall become operative upon the operative date of any ordinance adopted by the County, pursuant to the Documentary Transfer Tax Act, Revenue and Taxation Code §§ 11901 through 11935, or upon the effective date of the ordinance from which this chapter is derived, whichever is the later.

(Prior Code, § 3.22.140; Code 1990, § 3.16.140; Ord. No. 89-08, § 1, 1989)