Orange County Municipal Code Art. 8 Real Property Transfer Tax

This article shall be known as the "Real Property Transfer Tax Ordinance of the County of Orange." It is adopted pursuant to part 6.7 (commencing with section 11901) of division 2 of the Revenue and Taxation Code.

(Code 1961, § 14.081)

There is hereby imposed on each deed, instrument or writing by which any lands, tenements or other realty sold within the County of Orange 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 fifty-five cents ($0.55) for each five hundred dollars ($500.00) or fractional part thereof.

(Code 1961, § 14.082)

The tax imposed by section 1-4-167 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.

(Code 1961, § 14.083)

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

(Code 1961, § 14.084)

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 the tax imposed pursuant to this article when the exempt agency is acquiring title.

(Code 1961, § 14.085)

(a) Any tax imposed pursuant to this article 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 said deed, instrument or writing or stated in an affidavit or declaration under penalty of perjury for tax purposes.

(b) (1) Any tax imposed pursuant to this article 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 California 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.

(2) In order to qualify for the exemption provided in subdivision (1), 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.

(c) Any tax imposed pursuant to this article 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.

(d) Any tax imposed pursuant to this article 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 Section 1.103-1(b) of Title 26 of the Code of Federal Regulations.

(e) Any tax imposed pursuant to this article 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.

(Ord. No. 98-15, § 13, 12-8-98)

The tax imposed pursuant to this article shall not apply to the making, delivering or filing of conveyances to make effective any plan or 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 subdivision (m) of section 205 of title 11 of the United States Code, as amended;

(c) 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

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

Subsections (a) to (d), inclusive, 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.

(Code 1961, § 14.086)

The tax imposed pursuant to this article shall not apply to the making of 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.

(Code 1961, § 14.087)

(a) In the case of any realty held by a partnership, no tax shall be imposed pursuant to this article by reason of any transfer of an interest in the partnership or otherwise, if:

(1) Such partnership (or other 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 article, 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 article 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.

(Code 1961, § 14.088)

If the legislative body of any city in the County imposes a tax pursuant to part 6.7 of division 2 of the Revenue and Taxation Code equal to one-half the amount specified in section 1-4-167, a credit shall be granted against the taxes due under this article in the amount of the city's tax.

(Code 1961, § 14.089)

The County Recorder shall administer this article 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 article.

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 article and each such city ordinance. The Auditor shall allocate and distribute monthly said taxes as follows:

(a) All monies which relate to transfers of real property located in the unincorporated territory of the County shall be allocated to the County;

(b) All monies which relate to transfers of real property located in a city in the County which has imposed a tax pursuant to said part 6.7 shall be allocated one-half to such city and one-half to the County;

(c) All monies which relate to transfers of real property located in a city in the County which imposes a tax on transfers of real property not in conformity with part 6.7 shall be allocated to the County;

(d) All monies which relate to transfers 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.

(Code 1961, § 14.0811)

The Recorder shall not record any deed, instrument or writing subject to the tax imposed by this article unless the tax is paid. If the party submitting the document for recordation so requests, the amount of the tax due shall be shown on a separate paper which shall be affixed to the document by the Recorder after the permanent record is made and before the original is returned as specified in section 27321 of the Government Code.

Every document subject to tax hereunder which is submitted for recordation shall show on the face of the document, or on a separate document, a declaration of the amount of taxes due under this article signed by the party determining the tax or his agent. The said declaration shall include a statement that the consideration or value on which the tax was computed was, or was not, exclusive of the value of a lien or encumbrance remaining or the interest or property conveyed at the time of sale. The Recorder may rely on the declaration, provided he has no reason to believe that the full amount of the tax has not been paid.

(Code 1961, § 14.0812)

Each deed, instrument or writing by which lands, tenements or other realty is sold, granted, assigned, transferred or otherwise conveyed, shall have noted upon it the tax roll parcel number. The number will be used only for administrative and procedural purposes and will not be proof of title and in the event of any conflicts, the stated legal description noted upon the document shall govern. The validity of such a document shall not be affected by the fact that such parcel number is erroneous or omitted, and there shall be no liability attaching to any person for an error in such number or for omission of such number. The Recorder shall not accept any deed, instrument or conveyance for recording unless the tax roll parcel number has been noted upon it. A parcel which has been created by the division of an existing parcel and which at the time of recording has no separate parcel number shall have noted upon it the parcel number of the parcel from which it was created.

(Code 1961, § 14.0812.1)

The Recorder shall repurchase any unused documentary tax stamps sold by him prior to July 1, 1968. The Recorder shall accept in payment of the tax due under this article any such stamps affixed to a document offered for recordation and shall cancel the stamps so affixed.

The Recorder shall cancel the stamps affixed to any document by printing or stamping thereon the date of affixation or recordation.

(Code 1961, § 14.0813)

Claims for refunds of taxes imposed pursuant to this article 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.

(Code 1961, § 14.0814)

In the administration of this article, the Recorder shall interpret its provisions consistently with those Documentary Stamp Tax Regulations adopted by the Internal Revenue Service of the United States Treasury Department which relate to the tax on conveyances and identified as sections 47.4361-1, 47.4361-2 and 47.4362-1 of part 47 of title 26 of the Code of Federal Regulations, as the same existed on November 8, 1967, except that for the purposes of this article, the determination of what constitutes "realty" shall be determined by the definition or scope of that term under State law.

(Code 1961, § 14.0815)

Whenever the County Recorder has reason to believe that the full amount of tax due under this article has not been paid, he may, by notice served upon any person liable therefor, 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.

(Code 1961, § 14.0816)

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 article and makes any material misrepresentation of fact for the purpose of avoiding all or any part of the tax imposed by this article shall be guilty of a misdemeanor.

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 article.

(Code 1961, § 14.0817)