Chapter 3.04 — REAL PROPERTY TRANSFER TAX

All of the functions and duties of the City Treasurer, with regard to tax collection and of the City Clerk as ex officio assessor relating to the assessment, levy and collection of City taxes for the City, including the collection of delinquent taxes and penalties and the sales of property for nonpayment of taxes, are transferred to the County Treasurer, Tax Collector and County Assessor pursuant to the provisions of the California Statutes of 1949, Chapter 81. (Prior code 2451; Ord. 715; Ord. 07-24, 5/14/2024)

The functions and duties mentioned in Section 3.04.010 shall be taken over and performed by the County Treasurer, and Tax Collector and County Assessor for the fiscal year 1958-59 and for the succeeding years thereafter.

(Prior code 2452; Ord. 715; Ord. 07-24, 5/14/2024)

All taxes collected or received by the County Treasurer-Tax Collector and County Assessor or Auditor, for and on behalf of the City, shall be deposited with the County Treasurer to the credit of the City, and shall be remitted to the City Treasurer-Tax Collector and County Assessor, in such amount and as often as can reasonably be done, and upon receipt thereof by the City Treasurer-Tax Collector and County Assessor, the same shall be deposited and disbursed in accordance with law and the ordinances and resolutions of the City. (Prior code 2453; Ord. 715; Ord. 07-24, 5/14/2024)

All assessments made by the County Assessor and equalized or corrected by the Board of Supervisors of the County or the State Board of Equalization shall be the basis of levying City taxes, and the City taxes shall be collected when county taxes are collected. (Prior code 2454; Ord. 715)

The ordinance codified in this chapter shall be known as the Real Property Transfer Tax ordinance of the City of Orange. It 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 2460; Ord. 54-67; Ord. 469)

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 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 $100.00, a tax at the rate of 27½¢ for each $500.00 or fractional part thereof.

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City of Orange, CA

ORANGE CODE

§ 3.04.060

§ 3.04.080

(Prior code 2460.1; Ord. 54-67; Ord. 06-21, 2021)

Any tax imposed pursuant to Section 3.04.060 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 2460.2; Ord. 54-67)

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

• B. 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 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.

• C. 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 Code, as amended;

  2. Approved in an equity receivership proceeding in a court involving a railroad corporation, as defined in Section 101 of Title II 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 II of the United States Code, as amended; or

  4. Whereby a mere change in identity, form or place of organization is effected.

Subsections (1) to (4), inclusive, of this subsection shall only apply if the making, delivery or filing of instruments of transfer or conveyances occurs within five years from the date of such confirmation, approval or change.

• D. 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:

  1. 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;

  2. Such order specifies the property which is ordered to be conveyed;

  3. Such conveyance is made in obedience to such order.

• E. Realty Held by a Partnership.

  1. In the case of any realty held by a partnership or other entity treated as a partnership

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City of Orange, CA

REVENUE AND FINANCE

§ 3.04.080

§ 3.04.090

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 otherwise if both of the following occur:

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

  - b. The continuing partnership or other entity treated as a partnership continues to hold the realty concerned.

2. If there is a termination of any partnership or other entity treated as a partnership within the meaning of Section 708 of the Internal Revenue Code of 1986, for purposes of this chapter, the partnership or other entity treated as a 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 the partnership or other entity at the time of the termination.

   3. Not more than one tax shall be imposed pursuant to this chapter by reason of a termination described in subsection (E)(2), 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.

   4. 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.

• F. Revenue and Taxation Code Section 11926 (Inapplicability to deed instrument or writing to beneficiary or mortgagee taken in lieu of foreclosure; exception; notations required on deed, etc., affidavit).

• G. Revenue and Taxation Code Section 11927 (Deed, instrument or other writing which purports to transfer, divide or allocate property assets between spouses under judgment of dissolution of marriage, separation or agreement in contemplation of judgment or order).

• H. Revenue and Taxation Code Section 11928 (Deed, instrument or other writing for conveyance of realty by state, political subdivision, or agency with agreement for purchaser to reconvey).

• I. Revenue and Taxation Code Section 11929 (Deed, instrument or other writing for conveyance of realty by state, political subdivision, or agency of realty financed by obligations issued by a nonprofit corporation).

• J. Revenue and Taxation Code Section 11930 (Inter vivos gifts or death; transactions for land, tenements, or realty, or interests therein).

• (Prior code 2460.3; Ord. 54-67; Ord. 07-24, 5/14/2024)

The County Recorder shall administer this chapter in conformity with the provisions of Part 6.7

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City of Orange, CA

ORANGE CODE

§ 3.04.090

§ 3.04.110

of Division 2 of the Revenue and Taxation Code and provisions of any county ordinance adopted pursuant thereto.

(Prior code 2460.4; Ord. 54-67)

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.

(Prior code 2460.5; Ord. 54-67)

The ordinance codified in this chapter shall become operative upon the operative date of any ordinance adopted by the County, 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 the ordinance codified in this chapter, whichever is the later. (Prior code 2460.6; Ord. 54-67)

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City of Orange, CA

REVENUE AND FINANCE

§ 3.08.010

§ 3.08.020