Merced Municipal Code Ch. 3.20 Documentary Transfer Tax

This chapter is adopted pursuant to the authority contained in Part 6.7 (commencing with Section 11901) of Division 2 of the Revenue and Taxation Code of the state.

(Prior code § 23A.1).

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 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 twenty-seven and one-half cents for each five hundred dollars ($500.00) or fractional part thereof.

(Prior code § 23A.2).

Any tax imposed pursuant to Section 3.20.020 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 § 23A.3).

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

(Prior code § 23A.4).

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 chapter when the exempt agency is acquiring title.

(Ord. 1137 § 1, 1957: prior code § 23A.5).

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 subdivision (m) of Section 205 of 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 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 of organization is effected.

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

(Prior code § 23A.6).

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.

(Prior code § 23A.7).

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 any 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 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, and any transfer pursuant thereto, with respect to the realty held by such partnership at the time of such termination.

(Prior code § 23A.8).

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

(Prior code § 23A.9).

A. Whenever the amount of any tax has been overpaid or paid more than once or has been erroneously or illegally collected or received by the city under this chapter, it may be refunded as provided in this section.

B. A person, described in Section 3.20.020, may claim a refund or take as credit against taxes collected and remitted the amount of taxes overpaid or paid more than once or erroneously or illegally collected or received by the city by filing a claim with the finance officer, provided such claim is filed no later than one (1) year from the date of the overpayment.

C. No refund shall be paid under the provisions of this section unless claimant establishes his or her right thereto by written records showing entitlement thereto.

D. 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 Revenue and Taxation Code of the state of California, except where said code conflicts with this chapter, then the provisions of this chapter shall control.

(Ord. 2316 § 14, 2008: prior code § 23A.10).

This chapter shall become operative upon the operative date of any ordinance adopted by the county of Merced, pursuant to Part 6.7 (commencing with section 11901) of Division 2 of the Revenue and Taxation Code of the state, or upon the effective date of this chapter, whichever is the later.

(Prior code § 23A.11).