Chapter 5.03 — COUNTY TAXES

Section

• Article I. Real Property Transfer Tax

• 5.03.001 Short title; statutory authority

• 5.03.002 Imposition of tax; amount

• 5.03.003 Persons liable for payment of tax

• 5.03.004 Exemptions

• 5.03.005 Claims of exemption

• 5.03.006 Revenue and taxation code requirements

• 5.03.007 Assessor’s parcel number requirements

• 5.03.008 [RESERVED]

• 5.03.009 Credit against tax

• 5.03.010 Tax as a debt

• 5.03.011 Administration; allocation of collected funds

• 5.03.012 Prerequisites to recordation

• 5.03.013 Refunds claims

• 5.03.014 Manner of giving notice

• 5.03.015 Records of persons liable

• 5.03.016 Unlawful activities designated; misdemeanor

• 5.03.017 Operative date

• Article II. Sales and Use Taxes

• 5.03.030 Purpose of article

• 5.03.031 Operative date; contract with state’s Board of Equalization

• 5.03.032 Sales tax generally

• 5.03.033 Use tax generally

• 5.03.034 Credit for taxes paid to cities in the county; levies under § 7202(h)

• 5.03.035 Same; levies under § 7202(i)

• 5.03.036 Application of provisions

• 5.03.037 Collection not to be enjoined

• 5.03.038 Adoption of amendments to state law

• 5.03.039 Article inoperative on failure of county to comply with state law

• Article III. Transient Occupancy Tax

• 5.03.050 Short title

• 5.03.051 Definitions

• 5.03.052 Tax imposed

• 5.03.053 Exemptions from provisions

• 5.03.054 Operator’s duties

• 5.03.055 Registration

• 5.03.056 Reports and remittances

• 5.03.057 Penalties and interest

• 5.03.058 Failure to collect and report tax; determination of tax by Tax Administrator

• 5.03.059 Appeals

• 5.03.060 Cessation of business

• 5.03.061 Records

• 5.03.062 Refunds

• 5.03.063 Suspension and revocation of permits

• 5.03.064 Closure of hotels without permits

• 5.03.065 Recording certificates; liens

• 5.03.066 Priority of liens

• 5.03.067 Warrants for the collection of tax

• 5.03.068 Seizures and sales

• 5.03.069 Successors’ liability; withholding by purchasers

• 5.03.070 Liability of purchasers; release

• 5.03.071 Notices to withhold

• 5.03.072 Extensions of time

• 5.03.073 Divulging of information forbidden

• 5.03.074 Violations; penalties

• Article IV. Business License Tax

• Subarticle I. General Provisions

• 5.03.090 Short title

• 5.03.091 Tax imposed

• 5.03.092 Purpose of article

• 5.03.093 Effect on other ordinances

• 5.03.094 Definitions

• 5.03.095 Rules and regulations

• 5.03.096 Employment of necessary personnel

• 5.03.097 Resource Management Agency

• 5.03.098 Required notices; certificate by Board as evidence

• 5.03.099 Disclosure of business affairs, operations or other information submitted in required report

• or return; authorization of examination of records

• 5.03.100 Successors to taxpayer; tax information

• 5.03.101 Effect on public access to relevant information

• Subarticle II. Business License Tax

• 5.03.120 License required

• 5.03.121 Concessioner

• 5.03.122 Classification and tax rate

• 5.03.123 Tax due and annual adjustment of tax rates

• 5.03.124 Data; previous years

• 5.03.125 Review of classification

• 5.03.126 Branch establishments

• 5.03.127 Exemptions

• 5.03.128 License non-transferable

• 5.03.129 License tax; how payable

• 5.03.130 License application; contents

• 5.03.131 County computation of amount to be paid; interest on tax determined; penalty; notice of

• determination

• 5.03.132 License tax; when payable

• 5.03.133 Terms of license

• 5.03.134 Penalties for delinquencies

• 5.03.135 License tax; debt to county

• 5.03.136 Conviction; effect on debt

• 5.03.137 Exhibition of license

• 5.03.138 Refunds

• 5.03.139 Waiver of claim for refund

• 5.03.140 Appeal

• Subarticle III. Violations; Enforcement

• 5.03.155 Violations

• 5.03.156 Enforcement

• Article V. Cannabis Business Activities Tax

• 5.03.170 Title

• 5.03.171 Authority and purpose

• 5.03.172 Intent

• 5.03.173 General tax

• 5.03.174 Definitions

• 5.03.175 Tax imposed

• 5.03.176 Exemptions

• 5.03.177 Tax, penalties, interest, and fees as a debt

• 5.03.178 Administration

• 5.03.179 Registration; change of ownership

• 5.03.180 Reporting and remittance of tax

• 5.03.181 Deficiency

• 5.03.182 Delinquency; notice not required by county

• 5.03.183 Penalties, fees, and interest

• 5.03.184 Waiver of penalties

• 5.03.185 Refunds; credits

• 5.03.186 Notice of assessment

• 5.03.187 Assessment hearing

• 5.03.188 Appeal from assessment hearing

• 5.03.189 Enforcement

• 5.03.190 Apportionment

• 5.03.191 Constitutionality and legality

• 5.03.192 Recordkeeping; audit

• 5.03.193 Other licenses, permits, taxes, fees, or charges

• 5.03.194 Payment of tax does not authorize unlawful activities

• 5.03.195 Manner of giving notice

• 5.03.196 Unlawful activities designated; misdemeanor

• 5.03.197 Violation; taxes not waived

• 5.03.198 Severability

• 5.03.199 Remedies cumulative

• 5.03.200 Amendment or repeal

• ARTICLE I. REAL PROPERTY TRANSFER TAX

This article shall be known as the “Documentary Transfer Tax Ordinance of the County of San Benito.” It is adopted pursuant to Part 6.7 (commencing with § 11901) of Division 2 of the Revenue and Taxation Code and Part 0.5 (commencing with § 60) of Division 1 of the Revenue and Taxation Code with special reference to §§ 64(c) and (d). (Ord. 969, § 3, 2018)

(A) There is hereby imposed on each deed, instrument or writing by which any lands, tenements, or other realty sold within the County of San Benito shall be granted, assigned, transferred, or otherwise conveyed to, or vested in, the purchaser(s) or any other person(s) 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, a tax at the rate of $0.55 for each $500 or fractional part thereof. (B) For purposes of this article, “realty sold” includes a change of ownership as set forth in Part 0.5 (commencing with § 60) of Division 1 of the Revenue and Taxation Code with special reference to §§ 64, (c) and (d). (C) The transfer of any mobile home installed on a foundation system, pursuant to § 18551 of the Health and Safety Code, and subject to property taxation shall be subject to this article. (Ord. 969, § 5, 2018)

The tax imposed by § 5.03.002 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. (Ord. 969, § 7, 2018)

(A) Security instruments. The tax imposed pursuant to this article shall not apply to any instrument in writing given to secure a debt. (B) Governmental entities. Any deed, instrument or writing to which the United States or any agency or instrumentality thereof, any state or territory, or political subdivision thereof, or the District of Columbia is a party acquiring titles shall be exempt from any tax imposed pursuant to this article , however the tax may be collected from any other party liable therefor. (C) Plans of reorganization and adjustment. (1) The tax imposed pursuant to this article shall not apply to the making, delivering or filing of conveyances to make effective any plan of reorganization or adjustment that is any of the following: (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 Section 101 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 Section 101 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. (2) Subdivision (A) 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. (D) Orders of securities and exchange commission. The tax imposed pursuant to this article 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 § 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; and (3) Such conveyance is made in obedience to such order. (E) Transfer of interest in partnership. (1) In the case of any realty held by a partnership (or other entity treated as a partnership for federal income tax purposes), no tax shall be imposed pursuant to this article by reason of any transfer of an interest in the partnership or other entity or otherwise, but only if: (a) Such partnership (or other entity treated as a partnership for federal income tax purposes) is considered a continuing partnership within the meaning of § 708 of the Internal Revenue Code of 1986; and (b) Such continuing partnership (or other entity treated as a partnership for federal income tax purposes) continues to hold the realty concerned. (2) If there is a termination of any partnership (or other entity treated as a partnership for federal income tax purposes)

within the meaning of § 708 of the Internal Revenue Code of 1986, for purposes of this article, such partnership (or other entity treated as a partnership for federal income tax purposes) 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 treated as a partnership for federal income tax purposes) at the time of such termination. (3) Not more than one tax shall be imposed pursuant to this article by reason of a termination described in subdivision (E)(2) of this section, and any transfer pursuant thereto, with respect to the realty held by such partnership (or other entity treated as a partnership for federal income tax purposes) at the time of such termination. (4) No tax shall be imposed pursuant to this article 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, co- tenancy interest, or otherwise, directly or indirectly, remain the same immediately after the transfer. (F) Instruments in lieu of foreclosure. (1) The tax imposed pursuant to this article shall not apply to any deed, instrument or writing to a beneficiary or mortgagee, which is taken from the mortgagor or trustee 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 the accrued interest and cost of foreclosure. (2) Consideration, unpaid debt amount, and identification of grantee as beneficiary or mortgagee shall be noted on the deed, instrument or writing, or stated in an affidavit or declaration under penalty of perjury for tax purposes. (G) Allocation of assets between spouses. (1) The tax imposed pursuant to this article shall not apply to any deed, instrument or writing which transfers, divides or allocates community, quasi-community or quasi-marital property assets between spouses for purposes of effecting a division of the same, 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 such judgment or order, whether or not it is incorporated as part of the judgment or order. (2) The deed, instrument or writing shall include a written recital, signed by either spouse, stating that it is entitled to the exemption. (H) Certain deeds with agreement for purchaser to reconvey. The tax imposed pursuant to this article 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. (I) Certain conveyances involving nonprofit corporation. The tax imposed pursuant to this article 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 government unit, within the meaning of § 1.103-1(b) of Title 26 of the Code of Federal Regulations. (J) Certain conveyances involving inter vivos gift or death. Any tax imposed pursuant to this part 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. (Ord. 969, § 9, 2018)

Except as otherwise provided by law, every person who records a deed, instrument or writing which he or she claims is exempt from the tax imposed pursuant to this article shall declare in writing, under penalty of perjury, in the manner and form prescribed by the recorder, the reason why it is exempt under law. For the County of San Benito this is defined as being placed on the first page of the deed, the Revenue and Taxation Code or in the event of a government document the Government Code shall be stated and defined as to the reason of exemption. (Ord. 969, § 11, 2018)

Every deed, instrument or writing by which lands, tenements or other realty in the County is sold, granted, assigned, transferred or otherwise conveyed shall have noted upon it the declared amount of required transfer tax with the exemption of those that are declaring “No Transfer Tax” due. The County Recorder shall not record any such deed, instrument or writing unless a correct and valid Revenue and Taxation Code for said exemption is stated on the first page, in or near the statement of declaration.

(Ord. 969, § 13, 2018)

(A) Every deed, instrument or writing by which lands, tenements or other realty in the County is sold, granted, assigned, transferred or otherwise conveyed shall have noted upon it the assessor parcel number. The number required by this section shall be used solely for administrative and procedural purposes. It shall not constitute proof of title. In the event of conflicts, the stated legal description shall govern. The validity of any such deed, instrument or writing shall not be affected by the fact that the assessor parcel number noted on it is erroneous or is omitted, and no liability shall attach to any person for such an error or omission. (B) The County Recorder shall not record any such deed, instrument or writing unless the assessor parcel number is noted on it. The person who requests that such a document be recorded shall be charged with providing the County Recorder with the correct assessor parcel number. (Ord. 969, § 15, 2018) § 5.03.008 [RESERVED.]

If the legislative body of any city located in the county imposes a tax pursuant to Revenue and Taxation Code § 11911(b), equal to one-half the amount specified in § 5.03.002, a credit shall be granted against the taxes due under this article in the amount of the city’s tax. (Ord. 969, § 19, 2018)

The amount of any tax imposed by this article shall be deemed a debt owed to the county. Any person owing the tax shall be liable in an action brought in the name of the county for the recovery of such debt. The provisions of this section shall not be deemed a limitation upon the right of the county to bring any other action including criminal, civil and equitable actions, based upon the failure to pay the tax imposed by this article or the failure to comply with any of the provisions thereof. (Ord. 969, § 21, 2018)

(A) The County Recorder shall administer this article and shall also administer any ordinance adopted by any city in the county pursuant to Part 6.7 (commencing with § 11901) of Division 2 of the Revenue and Taxation Code imposing a tax for which a credit is allowed by this article. (B) On or before the fifteenth day of the month the County Recorder shall report to the County Auditor the amounts of taxes collected during the preceding month pursuant to this ordinance and each such city ordinance. The County Auditor shall allocate and distribute monthly said taxes as follows: (1) All monies which relate to transfers of real property located in the unincorporated territory of the County shall be allocated to the county. (2) All monies which relate to transfers of real property located in a city in the county which has imposed a tax pursuant to said Part 6.7 (commencing with § 11901) of Division 2 of the Revenue and Taxation Code shall be allocated one-half to such city and one-half to the county. (3) All monies which relate to transfers of real property located in a city in the county which imposes a tax on transfers of real property not in conformity with said Part 6.7 (commencing with § 11901) of Division 2 of the Revenue and Taxation Code shall be allocated to the county. (4) All monies which relate to transfers of real property in a city in the county which does not impose a tax on transfers of real property shall be allocated to the county. (Ord. 969, § 23, 2018)

(A) The County Recorder shall not record any deed, instrument or writing subject to the tax imposed pursuant to this article unless the tax is paid at the time of recording. A declaration of the amount of tax due, signed by the party determining the tax or their agent, shall appear on the face of the document in compliance with Subdivision (B) of this section. The County Recorder may rely on said declaration if they have no reason to believe that the full amount of the tax due has not been paid. The declaration shall include a statement showing that the consideration or value on which the tax due was computed based on either: (1) The full value of the property at the time of sale; or

(2) The full value of the property, less the value of any lien(s) and/or encumbrance(s) remaining on the interest or property conveyed at the time of sale. (B) Every document subject to tax hereunder which is submitted for recordation shall show on the face of the document, the amount of taxes due under this article and the incorporated or unincorporated location of the lands, tenements, or other realty described in the document, and the recorder may rely thereon. If said lands, tenements or other realty are located within a city in the county, the name of the city shall be set forth. If said lands, tenements or other realty are located in the unincorporated area of the county, that fact shall be set forth. (Ord. 969, § 25, 2018)

Claims for refunds of taxes imposed pursuant to this article shall be governed by the provisions of Chapter 5 (commencing with § 5096) of Part 9 of Division 1 of the Revenue and Taxation Code. (Ord. 969, § 27, 2018)

(A) Any notice required to be given hereunder by the County Recorder or the Board of Supervisors, to any person shall be sufficiently given or served if it is personally served upon such person or if it is deposited, postage prepaid, in a post office letter box addressed to the person at the address for such person given on a document or a refund claim form, or if no such address is available, to the person at the official address maintained by the County Treasurer-Tax Collector for mailing of tax bills levied against the real property that was transferred without full payment of tax or, if no such address is available, to the person at the address of said real property. Notice shall be deemed effective when it is deposited in the mail. (B) The failure of the owner or any other person to receive any notice required by this article to be given shall not affect the validity of any proceedings taken pursuant thereto. (Ord. 969, § 29, 2018)

Whenever the County Recorder has reason to believe that the full amount of tax due under this article has not been paid, they may, by notice served upon any person liable therefor, require them to furnish a true copy of their records relevant to the amount of the consideration or value of the interest or property conveyed. (Ord. 969, § 31, 2018)

(A) Any person or persons who makes, signs, issues or accepts or causes to be made, signed, issued or accepted and who submits or causes to be submitted for recordation any deed, instrument or writing subject to the tax imposed by this ordinance and makes any material misrepresentation of fact for the purpose of avoiding all or any part of the tax imposed by this article shall be guilty of a misdemeanor. (B) No person or persons shall be liable, either civilly or criminally, for any unintentional error made in designating the location of the lands, tenements or other realty described in a document subject to the tax imposed by this article. (Ord. 969, § 33, 2018)

This ordinance shall become operative 30 days after its adoption. (Ord. 969, § 35, 2018)