Mendocino County Municipal Code Ch. 5.24 Real Property Transfer Tax

(a) TITLE. This Chapter shall be known as the "Real Property Transfer Tax Chapter of the County of Mendocino." It is adopted pursuant to Part 6.7 (commencing with Section 11901) of Division 2 of the Revenue and Taxation Code.

(Ord. No. 525, Sec. 1, adopted 1967.)

(b) DECLARATION; SCOPE OF TAX. There is hereby imposed on each deed, instrument or writing by which any lands, tenements, or other realty sold within the County of Mendocino shall be granted, assigned, 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 ($100.00), a tax at the rate of Fifty-five Cents ($.55) for each Five Hundred Dollars ($500.00) or fractional part thereof.

(Ord. No. 525, Sec. 2, adopted 1967.)

(c) TAX LIABILITY. The tax imposed by Section 5.24.010 (b) 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. No. 525, Sec. 3, adopted 1967.)

(d) EFFECTIVE DATE. This Chapter shall become operative at 12:01 a.m. on January 1, 1968.

(Ord. No. 525, Sec. 4, adopted 1967.)

(a) TO SECURE A DEBT. The tax imposed pursuant to this Chapter shall not apply to any instrument in writing given to secure a debt.

(b) POLITICAL ENTITY. 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 part when the exempt agency is acquiring title.

(c) BANKRUPTCY. The tax imposed pursuant to this Chapter shall not apply to the making, delivering or filing of conveyances to make effective any plan or 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 II 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 or organization is effected.

Subsection (c) (1)—(4), inclusive, of this section, shall only apply if the making, delivering or filing of instruments of transfer or conveyances occurs within five (5) years from the date of such confirmation, approval or change.

(d) SECURITIES AND EXCHANGE COMMISSION. 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:

(1) The order of the Securities and Exchange Commission in obedience to which 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;

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

(e) PARTNERSHIP. 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.

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 thereof), all realty held by such partnership at the time of such termination.

Not more than one (1) tax shall be imposed pursuant to this Chapter by reason of a termination described in subsection (e), paragraph two (2), and any transfer pursuant thereto, with respect to the realty held by such partnership at the time of such termination.

(f) IN LIEU OF FORECLOSURE. 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 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 said deed, instrument or writing or stated in an affidavit or declaration under penalty of perjury for tax purposes.

(g) DIVISION OF COMMUNITY PROPERTY.

(1) 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, 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.

(2) In order to qualify for the exemption provided in subdivision (1) 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. No. 525, 10, 11, 12, 13 and 14, adopted 1967, as amended by Ord. No. 3573, adopted 1985.)

(a) CITY TRANSFER TAX. 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 (½) the amount specified in Section 5.24.010 (b) of this Chapter, a credit shall be granted against the taxes due under this Chapter in the amount of the City's tax.

(Ord. No. 525, Sec. 20, adopted 1967.)

(a) COUNTY RECORDER. The County Recorder shall administer this Chapter and shall also administer any ordinance - article 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.

(Ord. No. 525, Sec. 25, adopted 1967.)

On or before the 15th 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 - article.

(Ord. No. 525, Sec. 25, adopted 1967, as amended by Ord. No. 541, adopted 1968.)

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

(Ord. No. 525, Sec. 25, adopted 1967.)

(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.

(Ord. No. 525, Sec. 25, adopted 1967.)

(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.

(Ord. No. 525, Sec. 25, adopted 1967.)

(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.

(Ord. No. 525, Sec. 25, adopted 1967.)

(b) REQUIRED TRANSFER STAMPS. The Recorder shall not record any deed, instrument or writing subject to the tax imposed by this Chapter unless the tax has been paid and the amount of tax reflected upon the face of the document. If the party submitting the document so requests, the amount of tax due shall be shown on a separate paper which shall be affixed to the face of the document by the Recorder after the permanent record is made and before the original is returned, as specified in Section 27321 of the Government Code.

(Ord. No. 525, Sec. 26, adopted 1967, as amended by Ord. No. 541, adopted 1968.)

Every document subject to tax hereunder which is submitted for recordation shall show on the face of the document or in a separate document the amount of taxes due under this Chapter and the Recorder may rely thereon.

(Ord. No. 525, Sec. 26, adopted 1967.)

Every document subject to tax hereunder which is submitted for recordation shall show on the face of the documentor in a separate document the location of the lands, tenements or other realty described in the document. If said 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.

(Ord. No. 525, Sec. 26, adopted 1967.)

Prior to recordation in the Mendocino County Recorder's Office, each deed, instrument, or writing by which lands, tenements, or other realty is sold, granted, assigned, transferred, or otherwise conveyed in Mendocino County, shall have noted upon it the tax roll parcel number.

(Ord. No. 3537, adopted 1985.)

(c) CANCELING TRANSFER STAMPS. The Recorder shall repurchase any unused documentary 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.

(Ord. No. 525, Sec. 27, adopted 1967, as amended by Ord. No. 541, adopted 1968.)

(d) REGULATIONS—INTERPRETATION. 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.

(Ord. No. 525, Sec. 28, adopted 1967, as amended by Ord. No. 541, adopted 1968.)

(e) PROOF OF VALUE. 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.

(Ord. No. 525, Sec. 29, adopted 1967, as amended by Ord. No. 541, adopted 1968.)

(f) REFUNDS. 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.

(Ord. No. 525, Sec. 30, adopted 1967, as amended by Ord. No. 541, adopted 1968.)

(a) Any person or persons who make, sign, issue, accept or cause to be made, signed, issued or accepted and who submit or cause to be submitted for recordation any deed, instrument or writing subject to the tax imposed by this Chapter and make any material misrepresentation of fact for the purpose of avoiding all or any part of the tax imposed by this Chapter or who fail to furnish such information as may be requested by the County Recorder shall be guilty of a misdemeanor.

(Ord. No. 525, Sec. 40, adopted 1967.)

(b) No person or persons shall be liable, either civilly or 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.

(Ord. No. 525, Sec. 40, adopted 1967.)