Napa County Municipal Code Ch. 3.24 Documentary Transfer Tax

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Editor's note— Ord. No. 1362, § 1, adopted Sept. 20, 2011, amended Ch. 3.24 in its entirety to read as herein set out. Former Ch. 3.24, §§ 3.24.010—3.24.230, pertained to the same subject matter, and derived from Prior Code §§ 3200—3216; Ord. No. 630, § 1, adopted 1980; Ord. No. 746, §§ 1—4, adopted 1983 and Ord. No. 908, §§ 1—5, adopted 1989.

This chapter shall be known as the "documentary transfer tax chapter of the County of Napa." It is adopted pursuant to Part 6.7, commencing with Section 11901 of Division 2 of the Revenue and Taxation Code and Part 0.5, commencing with Section 60 of Division 1 of the Revenue and Taxation Code with special reference to Sections 64(c) and 64(d).

(Ord. No. 1362, § 1, 9-20-2011)

There is imposed on each deed, instrument or writing by which any lands, tenements or other realty sold within the county 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, a tax at the rate of fifty-five cents for each five hundred dollars or fractional part thereof. For purposes of this section realty sold is defined as a change of ownership as set forth in Part 0.5, commencing with Section 60 of Division 1 of the Revenue and Taxation Code with special reference to Sections 64(c) and 64(d).

(Ord. No. 1362, § 1, 9-20-2011)

The tax imposed by Section 3.24.020 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.

(Ord. No. 1362, § 1, 9-20-2011)

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

(Ord. No. 1362, § 1, 9-20-2011)

The tax imposed pursuant to this chapter shall not apply to any deed, instrument or writing by which the United States, or any agency or instrumentality thereof, any state or territory, or any political subdivision thereof, acquires title.

(Ord. No. 1362, § 1, 9-20-2011)

A. The 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, as defined in Section 101 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 Section 101 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. Subsections (A)(1) through (A)(4), inclusive, of this section shall only apply if the making, delivery or filing of instruments of transfer or conveyance occurs within five years from the date of such confirmation, approval or change.

(Ord. No. 1362, § 1, 9-20-2011)

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 part by reason of any transfer of an interest in the partnership or other entity or otherwise, if both of the following occur:

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

2. Such continuing 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 Section 708 of the Internal Revenue Code of 1986, for purposes of this part, 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 subsection (B) of this section, 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 section 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 method of holding title to the realty and in which proportional ownerships interests in realty, whether represented by stock, membership interest, partnership interest, co-tenancy interest, or otherwise directly or indirectly, remain the same immediately after the transfer.

(Ord. No. 1362, § 1, 9-20-2011)

A. The tax imposed pursuant to this chapter shall not apply to any deed, instrument or writing to a beneficiary or mortgagee, which is taken from the mortgagor or trustee 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 the accrued interest and cost of foreclosure.

B. 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.

(Ord. No. 1362, § 1, 9-20-2011; Ord. No. 1399, § 8, 3-24-2015)

A. The tax imposed pursuant to this chapter shall not apply to any deed, instrument or writing which transfers, divides or allocates community, quasi-community or quasi-marital property assets between spouses for purposes of effecting a division of the same, which is required by a judgment decreeing a dissolution or legal separation, by a judgment of nullity or by any other judgment or order rendered pursuant to the Family Code, or by a written agreement between the spouses, executed in contemplation of such judgment or order, whether or not it is incorporated in the judgment or order.

B. The deed, instrument or writing shall include a written recital, signed by either spouse, stating that it is entitled to the exemption.

(Ord. No. 1362, § 1, 9-20-2011)

The 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 of California, 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.

(Ord. No. 1362, § 1, 9-20-2011)

The tax imposed pursuant to this chapter shall not apply with respect to any deed, instrument or other writing by which the state of California, 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 government unit, within the meaning of Section 1.103-1(b) of Title 26 of the Code of Federal Regulations.

(Ord. No. 1362, § 1, 9-20-2011)

Except as otherwise provided by law, every person who records a deed, instrument or writing which he claims is exempt from the tax imposed pursuant to this chapter shall declare in writing, under penalty of perjury, in the manner and form prescribed by the recorder, the reason why it is exempt under law.

(Ord. No. 1362, § 1, 9-20-2011)

If the legislative body of any city in the county imposes a tax pursuant to Revenue and Taxation Code Section 11911 equal to one-half the amount specified in Section 3.24.020 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. 1362, § 1, 9-20-2011)

A. The county recorder shall administer this chapter and shall also administer any ordinance 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.

B. On or before the fifteenth day 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.

C. The auditor shall allocate and distribute quarterly such taxes, as follows:

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

2. All moneys which relate to transfer of real property located in a city in the county which imposes a tax pursuant to said Part 6.7 shall be allocated one-half to such city and one-half to the county.

3. All money which relates to transfers of real property located in a city which imposes a tax on transfers of real property not in conformity with Part 6.7 shall be collected and allocated entirely to the county.

4. All moneys which relate to transfer 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. 1362, § 1, 9-20-2011)

A. The recorder shall not record any deed, instrument or writing subject to the tax imposed by this chapter unless the tax is paid at the time of recording. A declaration of the amount of tax due that is signed by the party determining the tax or his agent shall appear on the face of the document. The recorder may rely on the declaration if the recorder has no reason to believe that the full amount of the tax due has not been paid. The declaration shall include a statement showing whether the consideration or value was computed on the full value of the property or on the full value of the property less liens and encumbrances at the time of sale.

B. Every document subject to tax under this chapter which is submitted for recordation shall show on the face of the document the location of the lands, tenements or other realty described in the document. If the lands, tenements or other realty are located within a city in the county, the name of the city shall be set forth. If the lands, tenements or other realty are located in the unincorporated area of the county, that fact shall be set forth.

(Ord. No. 1362, § 1, 9-20-2011; Ord. No. 1399, § 9, 3-24-2015)

A. Every deed, instrument or writing by which lands, tenements or other realty in the county is sold, granted, assigned, transferred or otherwise conveyed shall have noted upon it the assessor parcel number. The recorder shall not record any such deed, instrument or writing unless the assessor parcel number is noted on it. The person who requests that such a document be recorded shall be charged with providing the recorder with the correct assessor parcel number.

B. The number required by this section shall be used solely for administrative and procedural purposes. It shall not constitute proof of title. In the event of conflicts, the stated legal description shall govern.

C. The validity of any such deed, instrument or writing shall not be affected by the fact that the assessor parcel number noted on it is erroneous or is omitted, and no liability shall attach to any person for such an error or omission.

(Ord. No. 1362, § 1, 9-20-2011)

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. 1362, § 1, 9-20-2011)

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 therefore, 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. 1362, § 1, 9-20-2011)

A. Any person or persons who makes, signs, issues or accepts or causes to be made, signed, issued or accepted, and who submits or causes to be submitted for recordation any deed, instrument or writing subject to the tax imposed by this chapter, and makes any material misrepresentation of facts for the purpose of avoiding all or any part of the tax imposed by this chapter, shall be guilty of a misdemeanor.

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. 1362, § 1, 9-20-2011)

The amount of any tax imposed by this chapter shall be deemed a debt owed to the county. Any person owing the tax shall be liable in an action brought in the name of the county for the recovery of such debt. The provisions of this section shall not be deemed a limitation upon the right of the county to bring any other action including criminal, civil and equitable actions, based upon the failure to pay the tax imposed by this chapter or the failure to comply with any of the provisions hereof.

(Ord. No. 1362, § 1, 9-20-2011)

A. Any notice required to be given hereunder by the recorder or the board to any person shall be sufficiently given or served if it is personally served upon such person or if it is deposited, with prepaid postage, in a post office letter box addressed to the person at the address for such person given on a document or a refund claim form, or if no such address is available, to the person at the official address maintained by the treasurer-tax collector for mailing of tax bills levied against the real property that was transferred without full payment of tax or, if no such address is available, to the person at the address of said real property. Notice shall be deemed effective when it is personally served or deposited in the mail.

B. The failure of the owner or any other person to receive any notice required by this chapter to be given shall not affect the validity of any proceedings taken pursuant thereto.

(Ord. No. 1362, § 1, 9-20-2011)