Chapter 3.20 — REAL PROPERTY TRANSFER TAX

This chapter shall be known as the "real property transfer tax ordinance of the city." 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.

(Code 1972, § 3.20.010; Ord. No. 313, § 1, 1968)

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, by his 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 $0.275 for each $500.00 or fractional part thereof.

(Code 1972, § 3.20.020; Ord. No. 313, § 2, 1968)

Any tax imposed pursuant to section 3.20.020 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.

(Code 1972, § 3.20.030; Ord. No. 313, § 3, 1968)

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

(Code 1972, § 3.20.040; Ord. No. 313, § 4, 1968)

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.

(Code 1972, § 3.20.050; Ord. No. 313, § 5, 1968)

(a)

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 Act, as amended;

(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.

(b)

Subsections (a)(1) through (4) of this section 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.

(Code 1972, § 3.20.060; Ord. No. 313, § 6, 1968)

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.

(Code 1972, § 3.20.070; Ord. No. 313, § 7, 1968)

(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:

(1)

Such 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 (26 USC 708); 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 the purposes of this chapter, such 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 such partnership or other entity at the time of such 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 such partnership or other entity at the time of such 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.

(Code 1972, § 3.20.080; Ord. No. 313, § 8, 1968)

The county recorder shall administer this chapter in conformity with the provisions of part 6.7 of division 2 of the revenue and taxation code and the provisions of any county ordinance adopted pursuant thereto.

(Code 1972, § 3.20.090; Ord. No. 313, § 9, 1968)

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.

(Code 1972, § 3.20.100; Ord. No. 313, § 10, 1968)

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.