Ontario Municipal Code Ch. 7 Real Property Transfer Taxes

This chapter shall be known as the “Real Property Transfer Tax Law of the City of Ontario.” It is adopted pursuant to the authority contained in Part 6.7 of Division 2 of the Revenue and Taxation Code of the State (commencing with Cal. Rev. & Tax. Code § 11901).

(§ 1, Ord. 1674, eff. December 21, 1967)

There is hereby 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 ($100.00) a tax at the rate of twenty seven and one-half cents ($.275) for each Five Hundred Dollars ($500.00) or fractional part thereof.

(§ 2, Ord. 1674, eff. December 21, 1967)

Any tax imposed pursuant to the provisions of § 3-7.02 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.

(§ 3, Ord. 1674, eff. December 21, 1967)

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

(§ 4, Ord. 1674, eff. December 21, 1967)

The United States, or any agency or instrumentality thereof, any state or territory or political subdivision thereof, or the District of Columbia shall not be liable for any tax imposed pursuant to the provisions of this chapter with respect to any deed, instrument, or writing to which it is a party, but the tax may be collected by assessment from any other party liable therefor.

(§ 5, Ord. 1674, eff. December 21, 1967)

Any tax imposed pursuant to the provisions of this chapter shall not apply to the making, delivering, or filing of conveyances to make effective any plan of reorganization or adjustment:

(a) Confirmed under the Federal Bankruptcy Act, as amended;

(b) Approved in an equity receivership proceeding in a court involving a railroad corporation, as defined in 11 USC 205(m), as amended;

(c) Approved in an equity receivership proceeding in a court involving a corporation, as defined in 11 USC 506(3), as amended; or

(d) Whereby a mere change in identity, form, or place of organization is effected.

The provisions 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.

(§ 6, Ord. 1674, eff. December 21, 1967)

Any tax imposed pursuant to the provisions of 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 Section 1083(a) of the Internal Revenue Code of 1954 (26 USC 1083(a)), 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 15 USC 79k relating to the Public Utility Holding Company Act of 1935;

(b) Such order specifies the property which is ordered to be conveyed; and

(c) Such conveyance is made in obedience to such order.

(§ 7, Ord. 1674, eff. December 21, 1967)

(a) In the case of any realty held by a partnership, no levy shall be imposed pursuant to the provisions of this chapter by reason of any transfer of an 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 (26 USC 708); 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 (26 USC 708), for the 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 the provisions of this chapter by reason of a termination described subsection (b) of this section, and any transfer pursuant thereto, with respect to the realty held by such partnership at the time of such termination.

(§ 8, Ord. 1674, eff. December 21, 1967)

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 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.

(Cal. Rev. & Tax. Code § 11926)

(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, 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 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.

(b) In order to qualify for the exemption provided in subdivision (a), 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.

(Cal. Rev. & Tax. Code § 11927)

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 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.

(Cal. Rev. & Tax. Code § 11928)

Any 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 governmental unit, within the meaning of 26 CFR 1.103-1(b).

(Cal. Rev. & Tax. Code § 11929)

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 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.

(Cal. Rev. & Tax. Code § 11930)

The County Recorder shall administer the provisions of this chapter in conformity with the provisions of Part 6.7 of Division 2 of the Revenue and Taxation Code of the State (commencing with Cal. Rev. & Tax. Code § 11901) and the provisions of any County ordinance adopted pursuant thereto.

(§ 9, Ord. 1674, eff. December 21, 1967)

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

(§ 10, Ord. 1674, eff. December 21, 1967)

The provisions of this chapter shall become operative upon the operative date of any ordinance adopted by the County pursuant to the provisions of Part 6.7 of Division 2 of the Revenue and Taxation Code of the State (commencing with Cal. Rev. & Tax. Code § 11901), or on November 21, 1967, whichever is the later.

(§ 11, Ord. 1674, eff. December 21, 1967)