Menifee Municipal Code Ch. 3.22 Real Property Documentary Transfer Tax

This chapter shall be known as the “Menifee Real Property Transfer Tax”. This chapter is adopted pursuant to the authority contained in Cal. Revenue and Taxation Code Part 6.7 (commencing with § 11901).

(Ord. 2008-02, passed 10-1-2008)

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, at the direction of the purchaser or purchasers, 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 $0.275 for each $500 of consideration or value or fractional part thereof.

(Ord. 2008-02, passed 10-1-2008)

Any tax imposed pursuant to § 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. 2008-02, passed 10-1-2008)

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, the 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 the grantee as beneficiary or mortgagee, shall be noted on each deed, instrument or writing or stated in the affidavit or declaration under penalty of perjury for tax purposes.

(Ord. 2008-02, passed 10-1-2008)

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

(Ord. 2008-02, passed 10-1-2008)

(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 the California Family Code, or by a written agreement between the spouses, executed in contemplation of any 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 division (A) above, 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. 2008-02, passed 10-1-2008)

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

(Ord. 2008-02, passed 10-1-2008)

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. 2008-02, passed 10-1-2008)

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 non-profit corporation realty the acquisition, construction or improvement of which was financed or refinanced by obligations issued by the non-profit corporation on behalf of a governmental unit, within the meaning of 26 C.F.R. § 1.103-1(b).

(Ord. 2008-02, passed 10-1-2008)

(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) Division (A) above shall apply only if the making, delivery or filing of instruments of transfer or conveyances occurs within five years from the date of the confirmation, approval or change.

(Ord. 2008-02, passed 10-1-2008)

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 I.R.C. § 1083(a) of 1954; but only if:

(A) The order of the Securities and Exchange Commission in obedience to which the conveyance is made recites that the conveyance is necessary or appropriate to effectuate the provisions 15 U.S.C. § 79k, relating to the Public Utility Holding Company Act of 1935;

(B) The order specifies the property which is ordered to be conveyed; and

(C) The conveyance is made in obedience to the order.

(Ord. 2008-02, passed 10-1-2008)

(A) 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 chapter by reason of any transfer of an interest in a partnership or other entity or otherwise, if both of the following occur:

(1) The partnership or other entity treated as a partnership is considered a continuing partnership within the meaning of I.R.C. § 708; and

(2) The continuing partnership or other entity treated as a partnership continues to hold the realty concerned.

(B) If there is a termination of any partnership or other entity treated as a partnership for federal income tax purposes, within the meaning of I.R.C. § 708 of 1986, for purposes of this chapter, the 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 the partnership or other entity at the time of the termination.

(C) Not more than one tax shall be imposed pursuant to this chapter by reason of a termination described in division (B) above, and any transfer pursuant thereto, with respect to the realty held by a partnership or other entity treated as a partnership at the time of the termination.

(D) No levy shall be imposed pursuant to this chapter 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.

(Ord. 2008-02, passed 10-1-2008)

Any tax imposed pursuant to this chapter shall not apply to any deed, instrument or other writing which purports to grant, assign, transfer, convey, divide, allocate or vest lands, tenements or realty, or any interest therein, if by reason of the inter vivos gift or by reason of the death of any person, the lands, tenements, realty or interests therein are transferred outright to, or in trust for the benefit of, any person or entity.

(Ord. 2008-02, passed 10-1-2008)

All subsequent amendments to Cal. Revenue and Taxation Chapter 3 (commencing with § 11921) of Part 6.7 of Division 2 shall automatically become part of this chapter and be deemed incorporated by reference.

(Ord. 2008-02, passed 10-1-2008)

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

(Ord. 2008-02, passed 10-1-2008)

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

(Ord. 2008-02, passed 10-1-2008)