Richmond Municipal Code Ch. 13.40 Documentary Stamp Tax

This chapter shall be known as the "Real Property Transfer Tax Ordinance of the City of Richmond." It is adopted pursuant to the authority contained in the Charter of the City of Richmond and that contained in Part 6.7 (commencing with Section 11901) of Division 2 of the Revenue and Taxation Code of the State of California.

(Amended by Ordinance No. 35-90 N.S.)

The tax imposed under this chapter is solely for the purpose of raising income and revenue which is necessary to pay the usual and current expenses of conducting the municipal government of the City of Richmond.

(Added by Ordinance No. 35-90 N.S.)

The term "value of consideration" 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 encumbrances 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 transfer. "Value of consideration" 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 of such special assessment. The value of any lien or encumbrance of a type other than those which are hereinabove specifically included, existing immediately prior to the transfer and remaining after the transfer, shall not be included in determining the "value of consideration." If the "value of consideration" cannot be definitely determined, or is left open to be fixed by future contingencies, "value of consideration" shall be deemed to mean the fair market value of the property at the time of transfer, after deducting the amount of any lien or encumbrance, if any, of a type which would be excluded in determining the "value of consideration" pursuant to the above provisions of this section.

As used in this chapter, the terms "real property" and "realty" shall be deemed to mean real property as defined by and under the laws of the State of California.

(Added by Ordinance No. 35-90 N.S.)

There is hereby imposed a tax on all transfers by deeds, instruments, writings or any other document by which lands, tenements, or other interests in real property are sold, located in the City of Richmond, which are, or is, granted, assigned, transferred or otherwise conveyed to or vested in a purchaser, or purchasers thereof, or any other person or persons, by his/her or their direction, when the value of consideration exceeds $100.00. The tax shall be levied at the following rates:

(a) $30.00 for each $1,000.00 or fractional part thereof of the consideration exceeding $10,000,000.00;

(b) $25.00 for each $1,000.00 or fractional part thereof of the consideration equal to or less than $10,000,000.00 and exceeding $3,000,000.00;

(c) $12.50 for each $1,000.00 or fractional part thereof of the consideration equal to or less than $3,000,000.00 and equal to or exceeding $1,000,000.00;

(d) $7.00 for each $1,000.00 or fractional part thereof of the consideration less than $1,000,000.00.

(Amended by Ordinance No. 35-90 N.S.; Ord. No. 31-18 N.S., § 1, 11-6-2018)

The tax imposed under this chapter is due and payable at the time the deed, instrument or writing effecting 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 (10%) of the amount of 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 fifteen percent (15%) shall accrue if the tax remains unpaid on the 90th day following the date of the original delinquency. Interest (simple) shall accrue at the rate of one percent (1%) each month, or fraction thereof, on the amount of tax, exclusive of penalties, from the date the tax becomes delinquent to the date of payment or date of lien. Interest and penalty accrued shall become part of the tax. An administrative charge on each property and a release of lien fee shall be added to the amount owed for each property approved for a tax lien by the City Council. The charge and fee shall not exceed the City's costs for performing these functions.

(Added by Ordinance No. 35-90 N.S.)

Any persons who make a transfer which is subject to the tax imposed under Section 13.40.020 of this chapter, and any persons to whom such a transfer is made, shall be jointly and severally liable for payment of the tax imposed under Section 13.40.020.

(Amended by Ordinance No. 35-90 N.S.)

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

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.

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:

(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.

Subdivisions (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 years from the date of such confirmation, approval or change.

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:

(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.

(a) 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.

(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 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 thereof), all realty held by the partnership 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 subdivision (b), and any transfer pursuant thereto, with respect to the realty held by the partnership at the time of termination.

The County Recorder shall use the definition of "value of consideration" found in Section 13.40.017 of this chapter when computing the tax to be paid pursuant to this chapter. Otherwise, the County Recorder shall administer this chapter in conformity with the provisions of Part 6.7 (commencing with Section 11901) of Division 2 of the Revenue and Taxation Code and the provisions of any County ordinance adopted pursuant thereto. The County shall promptly remit to the City all funds collected pursuant to this chapter which exceed the amount the County is specifically authorized to retain pursuant to state law.

(Amended by Ordinance No. 35-90 N.S.)

The amount of tax, penalty and interest imposed under the provisions of this chapter is hereby assessed against the property upon the transfer of which the tax is imposed, and if not paid when due, such tax shall constitute an assessment against such property and shall be a lien on the property for the amount thereof, which shall continue until the amount thereof, including all penalties and interest, are paid, or until it is discharged of record. 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.

(Added by Ordinance 35-90 N.S.)

The Director of Finance shall file with the City Manager a written notice of those persons on whom the City will file liens. Upon the receipt of such notice the City Manager shall present same to the City Council, and the City Council shall forthwith, by resolution, fix a time and place for a public hearing on such notice.

The Director of Finance shall cause a copy of such resolution and notice to be served upon the transferor or transferee of property not less than five (5) days prior to the time fixed for such hearing. Such service shall be by mailing a copy of such resolution and notice to the transferor or transferee of property at his/her last known address. Service shall be deemed complete at the time of deposit in the United States mail.

(Added by Ordinance No. 35-90 N.S.)

With the confirmation of the report by the City Council, the delinquent tax charges contained therein which remain unpaid by the transferor or transferee shall constitute a special assessment against said property, and shall be collected at such time as is established by the County Assessor for inclusion in the next property tax assessment.

The Director of Finance shall turn over to the County Assessor for inclusion in the next property tax assessment the total sum of unpaid delinquent charges consisting of the delinquent transfer taxes, penalties and interest (simple) at the rate of 1% per month on the tax from the date of recordation to the date of lien.

Thereafter, the assessment may be collected at the same times and in the same manner as ordinary municipal taxes are collected, and shall be subject to the same penalties and the same procedure of sale as provided for delinquent, ordinary, municipal taxes. The assessment liens previously imposed upon the property are paramount to all other liens except for those of state, county, and municipal taxes with which it shall be upon parity. The lien shall continue until the assessment and all interest and charges due and payable thereon are paid. All taxes applicable to the levy, collection and enforcement of municipal taxes shall be applicable to the special assessments.

(Added by Ordinance No. 35-90 N.S.)

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 of California.

This chapter shall become operative upon the operative date of any ordinance adopted by the County of Contra Costa, pursuant to Part 6.7 (commencing with Section 11901) of Division 2 of the Revenue and Taxation Code of the State of California, or upon the effective date of this chapter, whichever is the later.

(Source Ordinance No. 236 N.S.)