Redondo Beach Municipal Code Ch. 7 Real Property Transfer Tax

This chapter shall be known as the "Real Property Transfer Tax Law of the City of Redondo Beach". 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.

(§ 1, Ord. 1957 c.s., eff. December 18, 1967; tax operative December 18, 1967)

(a) Realty sold. There is hereby imposed on each deed, instrument, or writing by which any lands, tenements, or other realty sold with 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 and no/100ths ($100.00) Dollars a tax at the rate of One and 10/100ths ($1.10) Dollars for each Five Hundred and no/100ths ($500.00) Dollars or fractional part thereof.

(b) Leasehold interests. There is hereby imposed on each instrument, or writing by which any leasehold interest for a term of 35 years (including renewal options) or more within the City shall be granted, assigned, transferred, or otherwise conveyed to, or vested in, any person or persons, by his or their direction, when the consideration or value of the interest in property conveyed (exclusive of the value of any lien or encumbrance remaining thereon at the time of transfer) exceeds One Hundred and no/100ths ($100.00) Dollars a tax at the rate of One and 10/100ths ($1.10) Dollars for each Five Hundred and no/100ths ($500.00) Dollars or fractional part thereof.

(§ 1, Ord. 1957 c.s., eff. December 18, 1967; tax operative December 18, 1967, as amended by § 1, Ord. 2206 c.s., eff. June 30, 1977, and § 1, Ord. 2549 c.s., eff. August 17, 1989)

Any person who makes a transfer which is subject to the tax imposed by Section 8-7.02 of this chapter and any person to whom such a transfer is made shall be jointly and severally liable for the payment of the tax imposed by said Section 87.02(a) or (b).

(§ 1, Ord. 1957 c.s., eff. December 18, 1967; tax operative December 18, 1967, as amended by § 1, Ord. 2206 c.s., eff. June 30, 1977, and § 1, Ord. 2549 c.s., eff. August 17, 1989)

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

(§ 1, Ord. 1957 c.s., eff. December 18, 1967; tax operative December 18, 1967)

Any deed, instrument, or writing to which the United States, or any agency or instrumentality thereof, or any state or territory, or political subdivision thereof, is a party shall be exempt from any tax imposed pursuant to the provisions of this chapter when the exempt agency is acquiring title or the leasehold interest subject to the tax imposed by Section 8-7.02(b).

(§ 1, Ord. 1957 c.s., eff. December 18, 1967; tax operative December 18, 1967; as amended by § 1, Ord. 2014 c.s., eff. February 18, 1970, and § 1, Ord. 2549 c.s., eff. August 17, 1989)

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 subsection (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 subsection (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.

The provisions 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.

(§ 1, Ord. 1957 c.s., eff. December 18, 1967; tax operative December 18, 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 subsection (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; and

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

(§ 1, Ord. 1957 c.s., eff. December 18, 1967; tax operative December 18, 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; 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 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, including any and all leasehold interests for a term of 35 years (including renewal options) or more.

(c) Not more than one tax shall be imposed pursuant to the provisions of 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 at the time of such termination.

(d) 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 said deed, instrument or writing or stated in an affidavit or declaration under penalty of perjury for tax purposes.

(e) 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 purposes 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. In order to qualify for this exemption, 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 said exemption.

(f) 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.

(g) 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 Section 1.103-1(b) of Title 26 of the Code of Federal Regulations.

(h) 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 to any person or entity.

(§ 1, Ord. 1957 c.s., eff. December 18, 1967; tax operative December 18, 1967, as amended by § 1(54), Ord. 2844 c.s., eff. November 4, 1999)

The City Treasurer, referred to in this chapter as "Treasurer," shall collect the tax imposed under this chapter and shall otherwise administer the provisions of this chapter. He may make such rules and regulations, not inconsistent with this chapter, as he may deem reasonably necessary or desirable to administer the provisions of this chapter, as well as necessary forms and receipts.

(§ 1, Ord. 1957 c.s., eff. December 18, 1967; tax operative December 18, 1967, as amended by § 2, Ord. 2206 c.s., eff. June 30, 1977, and § 1, Ord. 2836 c.s., eff. August 20, 1999)

The tax imposed under this chapter shall be due and payable at the time the deed, instrument, or writing effecting a transfer subject to the tax is delivered and shall be delinquent if unpaid at the time of the recordation thereof. In the event the tax is not paid prior to becoming delinquent, a delinquency penalty of 10% 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 10% shall accrue if the tax remains unpaid on the ninetieth (90th) day following the date of the original delinquency. Interest shall accrue at the rate of 1/2 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. The interest and penalties accrued shall become part of the tax.

(§ 1, Ord. 1957 c.s., eff. December 18, 1967; tax operative December 18, 1967, as amended by § 2, Ord. 2206 c.s., eff. June 30, 1977)

The tax imposed by this chapter shall be paid to the Treasurer by the persons referred to in Section 8-7.03 of this chapter. The Treasurer shall have the authority, as part of any rules and regulations promulgated by him as provided for by this chapter, to require that the payment shall be accompanied by a declaration of the amount of tax due signed by the person paying the tax or by his agent. The declaration shall include a statement that the value of the consideration on which the tax due was computed includes all indebtedness secured by liens, deeds of trust, or other encumbrances remaining or placed on the property transferred at the time of transfer and also includes all special assessments on the property which the purchaser or transferee agrees to pay or which remain a lien on the property at the time of transfer. The declaration shall identify the deed, instrument, or writing affecting the transfer for which the tax is being paid. The Treasurer may require the delivery to him of a copy of such deed, instrument, or writing whenever he deems such to be reasonably necessary to adequately identify such writing or to administer the provisions of this chapter. The Treasurer may rely on the declaration as to the amount of the tax due provided he has no reason to believe that the full amount of the tax due is not shown on the declaration.

Whenever the Treasurer has reason to believe that the full amount of the tax is not shown on the declaration or has not been paid, he may, by notice served upon any person liable for the tax, require such person to furnish a true copy of his records relevant to the value of the consideration or fair market value of the property transferred. Such notice may be served at any time within three years after the recordation of the deed, instrument, or writing which transferred such property.

(§ 1, Ord. 1957 c.s., eff. December 18, 1967; tax operative December 18, 1967, as amended by § 2, Ord. 2206 c.s., eff. June 30, 1977, and § 1, Ord. 2836 c.s., eff. August 20, 1999)

If, on the basis of such information as the Treasurer receives pursuant to the last paragraph of Section 8-7.11 of this chapter, and/or on the basis of such other relevant information that comes into his possession, he determines that the amount of tax due as set forth in the declaration, or as paid, is insufficient, he may recompute the tax due on the basis of such information.

If the declaration required by Section 8-7.11 of this chapter is not submitted, the Treasurer may make an estimate of the value of the consideration for the property conveyed and determine the amount of tax to be paid on the basis of any information in his possession or that may come into his possession.

One or more deficiency determinations may be made of the amount due with respect to any transfer.

(§ 3, Ord. 2206 c.s., eff. June 30, 1977, as amended by § 1, Ord. 2836 c.s., eff. August 20, 1999)

The Treasurer shall give notice to a person liable for payment of the tax imposed under this chapter of his determination made under Section 8-7.12 of this chapter. Such notice shall be given within three years after the recordation of the deed, instrument, or writing effecting the transfer on which the tax deficiency determination was made.

(§ 3, Ord. 2206 c.s., eff. June 30, 1977, as amended by § 1, Ord. 2836 c.s., eff. August 20, 1999)

Any notice required to be given by the Treasurer under this chapter may be served personally or by mail; if by mail, service shall be made by depositing the notice in the United States mail, in a sealed envelope with postage paid, addressed to the person on whom it is to be served at his address as it appears in the records of the City or as ascertained by the Treasurer. The service shall be complete at the time of the deposit of the notice in the United States mail, without an extension of time for any reason.

(§ 3, Ord. 2206 c.s., eff. June 30, 1977, as amended by § 1, Ord. 2836 c.s., eff. August 20, 1999)

Any person against whom a determination is made under this chapter or any person directly interested may petition for a redetermination within 60 days after the service upon the person of the notice thereof. If a petition for a redetermination is not filed within the 60 day period, the determination shall become final at the expiration of the period.

(§ 3, Ord. 2206 c.s., eff. June 30, 1977)

If a petition for a redetermination is filed within the 60 day period, the Treasurer shall reconsider the determination and, if the person has so requested in his petition, shall grant the person an oral hearing and shall give him 10 days' notice of the time and place of the hearing. The Treasurer may designate one or more deputies for the purpose of conducting hearings and may continue a hearing from time to time as may be necessary.

(§ 3, Ord. 2206 c.s., eff. June 30, 1977, as amended by § 1, Ord. 2836 c.s., eff. August 20, 1999)

The Treasurer may decrease or increase the amount of the determination before it becomes final, but the amount may be increased only if a claim for the increase is asserted by the Treasurer at or before the hearing.

(§ 3, Ord. 2206 c.s., eff. June 30, 1977, as amended by § 1, Ord. 2836 c.s., eff. August 20, 1999)

The order or decision of the Treasurer upon a petition for a redetermination shall become final 30 days after the service upon the petitioner of a notice thereof.

(§ 3, Ord. 2206 c.s., eff. June 30, 1977, as amended by § 1, Ord. 2836 c.s., eff. August 20, 1999)

The amount of any tax, penalty, and interest imposed under the provisions of this chapter shall be deemed a debt to the City. Any person owing money to the City under the provisions of this chapter shall be liable to an action brought in the name of the City for the recovery of such amount.

(§ 3, Ord. 2206 c.s. eff. June 30, 1977)

Whenever the amount of any tax, penalty, or interest has been overpaid, or paid more than once, or has been erroneously collected or received by the City under this chapter, it may be refunded as provided in this section provided a written claim therefor, stating under penalty of perjury the specific grounds under which the claim is founded, is filed with the Treasurer within three years after the date of payment. Such claims shall be on forms furnished by the Treasurer. The Treasurer may make such refund if he is satisfied that the claimant is entitled to the refund under the provisions of this section. No refund shall be paid under the provisions of this section unless the claimant establishes his right by written records showing entitlement thereto.

(§ 3, Ord. 2206 c.s., eff. June 30, 1977, as amended by § 1, Ord. 2836 c.s., eff. August 20, 1999)

If any provision of this chapter, or the application thereof to any person or circumstances, is held invalid, such invalidity shall not affect the other provisions or application of this chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are declared to be severable.

(§ 3, Ord. 2206 c.s., eff. June 30, 1977)