Petaluma Municipal Code Ch. 4.20 Real Property Transfer TAX1

1 Editor’s Note: Previous Ordinances contained herein include prior code sections 23.32 through 23.40 and

Ordinance No. 881.

This chapter shall be known as the "Real Property Transfer Tax Ordinance of the City of Petaluma" and is adopted

pursuant to the charter city authority granted to the city by the California Constitution, Article XI, sections 5 and 7.

(Ord. 1830 NCS §1, 1990.)

A. There is imposed on each deed, instrument or writing by which any lands, tenements, or other real property

within the city are sold, granted, assigned, transferred or otherwise conveyed, to, or vested in, the purchaser or

purchasers, or any other person or persons when the consideration or value of the interest or property conveyed

exceeds one hundred dollars, a tax at the rate of two dollars for each one thousand dollars or fractional part

thereof of said consideration or value.

B. As used herein, "consideration or value" means the total consideration, valued in money of the United States,

paid or delivered or contracted to be paid or delivered in return for the transfer of real property, including the

amount of any indebtedness, existing immediately prior to the transfer which is secured by a lien, deed of trust or

other encumbrance on the property conveyed and which continues to be secured by such lien, deed of trust or

encumbrance after said transfer, and also including the amount of any indebtedness which is secured by a lien,

deed of trust or encumbrance given or placed upon the property in connection with the transfer to secure the

payment of the purchase price or any part thereof which remains unpaid at the time of the transfer.

C. "Consideration or value" also includes the amount of any special assessment levied or imposed upon the

property by a public body, district or agency, where said special assessment is a lien or encumbrance on the

property and the purchaser or transferee agrees to pay such special assessment or takes the property subject to

the lien or such special assessment.

D. The value of any lien or encumbrance if a type other than those which are hereinabove speciLcally included,

existing immediately prior to the transfer and remaining after said transfer, shall not be included in determining

the value of the consideration.

E. If the consideration or value cannot be deLnitely determined, or is left open to be Lxed by future

contingencies, "consideration or value" shall be deemed to mean the fair market value of the property at the time

of transfer pursuant to above provisions of this section.

(Ord. 1942 NCS §1, 1993; Ord. 1830 NCS §1, 1990.)

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

B. Any deed, instrument or writing to which the United States or any agency of instrumentality thereof, any state

or territory, or political subdivision thereof, is a party, shall be exempt from any tax imposed pursuant to this

chapter whenever the exempt agency is acquiring title.

C. Any tax imposed pursuant to this chapter shall not apply to the making, delivering or Lling of conveyances to

make ePective any plan or reorganization or adjustment:

1. ConLrmed under the Federal Bankruptcy Act, as amended;

2. Approved in an equity receivership proceeding in a court involving a railroad corporation, as deLned 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 deLned 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 aPected.

Paragraphs 1. through 4. of this subsection shall apply if the making delivery or Lling of instruments of transfer or

conveyance occurs within Lve years from the date of such conLrmation, approval or change.

D. Any tax imposed pursuant to this chapter shall not apply to the making or delivery of conveyances to make

ePective any order of the Securities and Exchange Commission, as deLned 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 ePectuate the provisions of Section 79(k) of Title

15 of the United States Code, relating to the Public Utility Holding Company Act of 1935;

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

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

E. In the case of any realty held by a partnership, no levy shall be imposed pursuant to 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; and

2. Such continuing partnership continues to hold the realty concerned.

F. 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 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.

G. Not more than one tax shall be imposed pursuant to this chapter by reason of a termination described in

Subdivision (b), and any transfer pursuant thereto, with respect to the realty held by such partnership at the time

of such termination.

(Ord. 1830 NCS § 1, 1990.)

A. Claims for refunds of taxes imposed pursuant to this chapter shall be governed by the provisions of Chapters

1 and 2 of Title 1, Division 3.6, Part 3 of the California Government Code (commencing with section 900).

B. A claim for refund may be Lled only if a written protest is Lled with the city at the time the tax payment is

made. A claim for refund must be accompanied by a copy of the written protest.

C. No legal or equitable process shall issue in any proceeding in any court against the city or any oNcer thereof

to prevent or enjoin the collection of the tax imposed by this chapter.

(Ord. 1830 NCS § 1, 1990.)

A. The Lnance director of the city shall collect the tax hereby imposed and deposit the same to the general fund.

The collection may be delegated by agreement with the County of Sonoma to provide for payment to and through

the county recorder upon recordation of the document of transfer upon such terms and conditions as shall be

approved by the city council.

1. Penalty. The tax imposed by this chapter is due and payable at the time the deed, instrument or writing

ePecting a transfer subject to the tax is delivered, and is delinquent if unpaid at the time of recordation

thereof. In the event that the tax is not paid prior to becoming delinquent, a delinquency penalty of ten

percent of the amount of the tax due shall accrue. In the event a portion of the tax is unpaid prior to

becoming delinquent, the penalty shall only accrue as to the portion remaining unpaid. An additional penalty

of ten percent shall accrue if the tax remains unpaid on the ninetieth day following the date of the original

delinquency. Interest shall accrue at the rate of one-half of one percent a month, or fraction thereof, on the

amount of tax, exclusive of penalties, from the date the tax becomes delinquent to the date of payment.

Interest and penalty accrued shall become part of the tax.

2. Tax as Debt. The amount of any tax, penalty and interest imposed by this chapter shall be deemed a debt

to the city. Any person owing the tax to the city shall be liable to an action brought in the name of the city for

recovery of such amount. The provisions of this section shall not be deemed a limitation upon the city to

bring any other action, whether criminal, at law, or in equity arising out of the failure to pay a tax, penalty, or

interest imposed, or other failure to comply with the provisions of this chapter.

(Ord. 1830 NCS § 1, 1990.)

The tax imposed by Section 4.20.020 shall be paid by any person who makes, signs or issues any document or

instrument subject to the tax, or for whose use or beneLt the same is made, signed or issued, and such persons

shall be jointly and severally liable for payment thereof; provided, that with respect to a transfer made upon the

termination of a partnership within the meaning of section 708 of Title 26 of the United States Code, as amended,

for the purposes of this chapter, it shall be assumed that a document was executed by the partnership whereby

there was transferred for market value all realty held by such partnership at the time of such termination;

providing further, that with respect to the realty held by such partnership, not more than one tax shall be imposed

pursuant to this chapter by reason of such termination and any documents making transfer pursuant thereto.

All revenues received by the city from the levy of the tax imposed by this chapter shall be deposited and paid into

the general fund. (Ord. 1830 NCS § 1, 1990.)