Moraga Municipal Code Ch. 3.08 Documentary Transfer Tax

This chapter may be cited as the "documentary transfer tax ordinance of the town of Moraga." It is adopted under the authority of Part 6.7 of Division 2 of the Revenue and Taxation Code of the state of California beginning with Section 11901.

(Prior code § 11-401)

There is imposed on each instrument or writing by which land, tenement, or other realty sold within the town is transferred or conveyed to the purchaser or other grantee when the consideration or value of the interest conveyed (exclusive of the value of an encumbrance remaining at the time of sale) exceeds one hundred dollars ($100.00), a tax at the rate of $0.275 of each five hundred dollars ($500.00) or fractional part of five hundred dollars ($500.00).

(Prior code § 11-402)

The tax imposed under Section 3.08.020 shall be paid by the person who makes, signs or issues the instrument subject to the tax, or for whose use or benefit the instrument is made, signed or issued.

(Prior code § 11-403)

The tax imposed under this chapter shall not apply to the following:

A. An instrument in writing given to secure a debt;

B. Any deed, instrument or writing to which the United States, its agency or instrumentality, or any state, territory or political subdivision is a party, when the exempt agency is acquiring title;

C. A conveyance to make effective a plan of reorganization or adjustment:

1. Confirmed under the federal Bankruptcy Act,

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.

Subdivisions (1) through (4) of this subsection only apply if the filing of instrument of transfer or conveyance occurs within five years from the date of confirmation, approval or change;

D. A conveyance to make effective an order of the Securities and Exchange Commission, as defined in subdivision (a) of Section 1083 of the Internal Revenue Code of 1954 if:

1. The order of the Securities and Exchange Commission recites that the conveyance is necessary or appropriate to carry out section 79k of Title 15 of the United States Code, relating to the Public Utility Holding Company Act of 1935,

2. The order specifies the property which is ordered to be conveyed, and

3. The conveyance is made in obedience to such order;

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

F. 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 of by any other judgment or order rendered pursuant to the Family 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. In order to qualify for this exemption, the deed, instrument, or writing shall include a written recital, signed by either spouse, stating that the deed, instrument, or other writing is entitled to the exemption;

G. Any deed, instrument or other writing whereby realty is conveyed by the state of California or any political subdivision, or agency or instrumentality of either, pursuant to an agreement whereby the purchaser agrees to immediately reconvey the realty to the exempt agency;

H. Any deed, instrument or other writing by which the state of California, any political subdivision, or agency or instrumentality of either, 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 1.103-1(b) of Title 26 of the Code of Federal Regulations;

I. 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 such inter vivos gift or by reason of the death of any person, such lands, tenements, realty or interests therein are transferred outright to, or in trust for the benefit of, any person or entity.

(Ord. 178 § 5, 2000: prior code § 11-404)

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 the partnership or other entity or otherwise, if both of the following occur:

1. The partnership or other entity is considered a continuing partnership within the meaning of Section 708 of the Internal Revenue Code of 1986; and

2. The continuing partnership or other entity continues to hold the realty concerned.

B. If there is a termination of a partnership or other entity within the meaning of Section 708 of the Internal Revenue Code 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 encumbrance remaining) all realty held by the partnership or other entity at the time of termination.

C. Not more than one tax shall be imposed pursuant to this chapter by a county, city and county or city by reason of a termination described in subsection B of this section, and any transfer pursuant thereto, with respect to the realty held by a partnership or other entity 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. 178 § 6, 2000: prior code § 11-408)

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

(Prior code § 11-409)

A claim for refund of the tax imposed is governed by Chapter 5 or Part 9 or Division 1 of the Revenue and Taxation Code of the state of California beginning with Section 5096.

(Prior code § 11-410)