San Diego County Municipal Code Ch. 3 Real Property Transfer Tax

---

*Note--Added by Ord. No. 3140 (N.S.), effective 1-1-68. Title added, not included in Code.

---

This chapter shall be known as the “Real Property Transfer Tax Ordinance of the County of San Diego.” It is adopted pursuant to Part 6.7 (commencing with Section 11901) of Division 2 of the Revenue and Taxation Code.

(Amended by Ord. No. 9889 (N.S.), effective 10-26-07)

This chapter imposes a tax on each deed, instrument or writing by which any lands, tenements, or other realty sold within the County of San Diego 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 encumbrance remaining thereon at the time of sale) exceeds $100. The tax shall be at the rate of 55 cents for each $500 or fractional part thereof.

(Amended by Ord. No. 9889 (N.S.), effective 10-26-07)

The tax imposed by Section 22.302 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.

(Amended by Ord. No. 9889 (N.S.), effective 10-26-07)

The tax imposed pursuant to this chapter shall not apply to any instrument in writing given to secure a debt. 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 the deed, instrument or writing or stated in an affidavit or declaration under penalty of perjury for tax purposes.

(Amended by Ord. No. 4220 (N.S.), effective 1-17-74; amended by Ord. No. 4479 (N.S.), effective 4-3-75; amended by Ord. No. 9889 (N.S.), effective 10-26-07)

Any deed, instrument or writing to which the United States or any agency or instrumentality thereof, any state, or territory, or political subdivision thereof, is a party shall be exempt from any tax imposed pursuant to this chapter when the exempt agency is acquiring title.

(Amended by Ord. No. 3475 (N.S.), effective 3-26-70; amended by Ord. No. 9889 (N.S.), effective 10-26-07)

(a) The 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 that is any of the following:

(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 section 101 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 section 101 of Title 11 of the United States Code, as amended;

(4) Whereby a mere change in identity, form or place of organization is effected.

(b) Subdivision (a) shall only apply if the making, delivery or filing of instruments of transfer or conveyances occurs within five years from the date of the confirmation approval or change.

(Amended by Ord. No. 9889 (N.S.), effective 10-26-07; amended by Ord. No. 10511 (N.S.), effective 1-4-18)

The 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 the conveyance is made recites that the conveyance is necessary or appropriate to effectuate the provisions of Section 79k of Title 15 of the United States Code, relating to the Public Utilities Holding Company Act of 1935;

(b) The order specifies the property which is ordered to be conveyed;

(c) The conveyance is made in obedience to the order.

(Amended by Ord. No. 9889 (N.S.), effective 10-26-07)

(a) In the case of any realty held by a partnership or other entity treated as a partnership for federal income purposes, no tax shall be imposed pursuant to this chapter by reason of any transfer of an interest in the partnership or otherwise, if both of the following occur:

(1) The 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; and

(2) The continuing partnership or other entity treated as a 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, the 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 the partnership or other entity at the time of the 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 a partnership or other entity at the time of the termination.

(d) No tax 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 the proportional ownership interests in the realty, whether represented by stock, membership interest, cotenancy interest, or otherwise, directly or indirectly, remain the same immediately after the transfer.

(Amended by Ord. No. 9889 (N.S.), effective 10-26-07)

If the legislative body of any city in the County of San Diego imposes a tax pursuant to Part 6.7 of Division 2 of the Revenue and Taxation Code equal to one-half the amount specified in Section 22.302 of this chapter, a credit shall be granted against the taxes due under this ordinance in the amount of the city's tax. No credit shall be allowed against any county tax for a city tax which is not in conformity with that part.

(Amended by Ord. No. 9889 (N.S.), effective 10-26-07; amended by Ord. No. 10511 (N.S.), effective 1-4-18)

The County Recorder shall administer and enforce this chapter and shall also administer any ordinance adopted by any city in the County pursuant to part 6.7 (commencing with Section 11901) of Division 2 of the Revenue and Taxation Code, imposing a tax for which a credit is allowed by this chapter. On or before the fifteenth day of the month the Recorder shall report to the County Auditor the amounts of taxes collected during the preceding month pursuant to this chapter and each applicable city ordinance. The Auditor shall allocate and distribute monthly said taxes as follows:

(a) All monies which relate to transfers of real property located in the unincorporated territory of the County shall be allocated to the County.

(b) 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 shall be allocated one-half to the city and one-half to the County.

(c) 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 shall be allocated to the County.

(d) 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.

(Amended by Ord. No. 3205 (N.S.), effective 7-1-68; amended by Ord. No. 9889 (N.S.), effective 10-26-07)

(a) The Recorder shall not record any deed, instrument or writing subject to the tax imposed by this chapter 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 the party's agent, shall appear on the face of the document, in compliance with (c), and the Recorder may rely on the declaration unless the Recorder has reason to believe that the full amount of the tax due has not been paid. The declaration shall include a statement of the consideration or value on which the tax due was computed. The declaration shall also state whether or not the consideration or value on which the tax was computed was exclusive of the value of a lien or encumbrance remaining on the interest or property conveyed at the time of sale. Failure to collect the tax due shall not affect the constructive notice otherwise imparted by recording a deed, instrument, or writing.

(b) If the Recorder has reason to believe the amount of tax tendered with the document submitted for recording is not the full amount of the tax due, the Recorder may request additional information before recording the document.

(c) Every document subject to the tax imposed by this chapter which is submitted for recording shall show on the face of the document the amount of the tax due and the location of the lands, tenements, or other realty described in the document. If the lands, tenements or other realty are located within a city in the County, the name of the city shall be set forth. If the lands, tenements or other realty are located in the unincorporated area of the County, that fact shall be set forth.

(Amended by Ord. No. 3205 (N.S.), effective 7-1-68; amended by Ord. No. 4479 (N.S.), effective 4-3-75; amended by Ord. No. 9889 (N.S.), effective 10-26-07; amended by Ord. No. 10511 (N.S.), effective 1-4-18)

Each deed, instrument, or writing by which lands, tenements, or other realty is sold, granted, assigned, transferred, or otherwise conveyed, shall have noted upon it the tax roll parcel number. The number will be used only for administrative and procedural purposes. The number will not be proof of title and in the event of any conflicts the legal description noted upon the document shall govern. The validity of a document shall not be affected by the fact that a parcel number is erroneous or omitted, and there shall be no liability attaching to any person for an error in the parcel number or for omitting the parcel number. The Recorder shall not accept any deed, instrument, or conveyance for recording unless the tax roll parcel number has been noted upon it. A parcel which has been created by the division of an existing parcel and which at the time of recording has no separate parcel number shall have noted upon it the words "portion of" and the parcel number of the parcel from which it was created.

(Added by Ord. No. 3801 (N.S.), effective 1-1-72; amended by Ord. No. 9889 (N.S.), effective 10-26-07)

Claims for refunds 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.

(Amended by Ord. No. 9889 (N.S.), effective 10-26-07)

State law reference(s)--Claims for refunds, Revenue and Taxation Code, § 5096 et seq.

The Recorder shall interpret this chapter consistently with the Documentary Stamp Tax Regulations adopted by the Internal Revenue Service of the United States Treasury Department which relate to the Tax on Conveyances and identified as Sections 47.4361-1, 47.4361-2 and 47.4362-1 of Part 47 of Title 26 of the Code of Federal Regulations, as the regulations existed on November 8, 1967, except that for the purposes of this chapter, the determination of what constitutes "realty" shall be determined by the definition or scope of that term under State law.

(Amended by Ord. No. 9889 (N.S.), effective 10-26-07)

It shall be unlawful for any person, for the purpose of evading the tax imposed by this chapter, to:

(a) Willfully prepare a deed, instrument or other writing subject to the tax imposed by this chapter, that contains false information;

(b) Submit a deed, instrument or other writing subject to the tax imposed by this chapter for recording, that the person knows contains false information;

(c) Willfully make a material misrepresentation of fact to the County Recorder; or

(d) Willfully assist a person in committing any of the acts in subsections (a)-(c) above.

(Amended by Ord. No. 5200 (N.S.), effective 8-10-78; amended by Ord. No. 9889 (N.S.), effective 10-26-07)

(a) Whenever the Recorder has reason to believe after a deed, instrument or writing was recorded, that the full amount of the tax due under this chapter has not been paid the Recorder may by written notice:

(1) Require any person who may be liable for the tax to furnish affidavits, true copies of relevant records or other documents that establish the amount of consideration or value of any property or interest conveyed or vested and the amount any lien or encumbrance remaining on property or interest conveyed or at the time of sale.

(2) Require any person who claimed that the tax imposed by this chapter did not apply to a deed, instrument or writing recorded, or that the person was exempt from the tax, to furnish affidavits, true copies of relevant records or other documents that establish that the tax did not apply or that the person was exempt.

(b) The Recorder's notice shall state that the person to whom the notice is directed is required to furnish the requested information within 30 days from the date of the notice.

(c) From the information available, the Recorder may make a determination whether any tax is due under this chapter and if so, the amount of tax due and any person who may be liable for the tax. After the Recorder makes a determination under this section the Recorder shall serve a written notice of delinquency on any person liable for the tax that includes the following information:

(1) A description of the property or interest that was conveyed or vested without the full payment of tax;

(2) The amount of tax due;

(3) That unless the tax is paid within 30 days from the date of the notice or the person makes a written request to the Recorder for a conference to dispute the determination the Recorder will record a certificate of taxes due against the person named in the notice, which will become a lien against the property or interest for which the deed, instrument or writing referred to in subsection (1) above was recorded and any other real property located in San Diego County the person owns or acquires until the tax is paid.

(4) If the person does not make a written request for a conference, within 30 days, the Recorder's determination shall be deemed to be a final determination of delinquency for which there is no appeal to the County.

(d) If a person to whom the Recorder serves a written notice under subsection (c) above requests a conference, the Recorder shall schedule a conference within 30 days of the request. Following the conference the Recorder shall serve a notice of final determination of tax due on any person who may be liable for the tax. If the Recorder determines any person is liable for unpaid taxes under this chapter, the final determination of delinquency shall state the amount of tax due, a description of the property or interest conveyed or vested without the full payment of tax, the name of any person liable for the tax and that unless the tax is paid in full within 30 days of the notice, the Recorder intends to record a certificate of taxes due against the person named in the notice which will become a lien against the property or interest referred to in subsection (c)(1) and any other real property located in San Diego County the person owns or acquires until the tax is paid. The notice shall also state that it is a final determination of delinquency for which there is no appeal to the County.

(Added by Ord. No. 9889 (N.S.), effective 10-26-07)

(a) Unless the full amount of tax determined by the Recorder to be due as provided in the notice under section 22.316 has been paid, the Recorder may record a certificate of taxes due against any person liable for the tax as determined by the Recorder under section 22.316. The certificate shall state the property or interest that was conveyed or vested for which the full amount of tax has not been paid, the full name and last known address of the person liable for the tax, the amount of tax due and that the Recorder has determined the amount due under this ordinance. From the time the certificate is recorded the amount due at the time the certificate is recorded constitutes a lien upon the property or interest conveyed or vested without full payment of tax and all real property located in San Diego County owned by any person named in the certificate. The lien also attaches to any property the person acquires after the certificate is recorded until the lien is paid.

(b) After the Recorder has recorded a certificate under subsection (a) above the Recorder may issue a warrant for the enforcement of any lien and for the collection of any amount required to be paid to the County under this chapter. The warrant shall be directed to any sheriff and shall have the same effect as a writ of execution. The warrant shall be levied and sale made pursuant to it in the same manner and with the same effect as a levy of and a sale pursuant to a writ of execution. The Recorder may pay or advance to the sheriff the same fees, commissions and expenses for his services as are provided by law for similar services pursuant to a writ of execution.

(Added by Ord. No. 9889 (N.S.), effective 10-26-07)

The tax imposed by this chapter shall be deemed to be a debt owed to the County. Any person owing the tax shall be liable in a civil action brought by the County to recover the debt. At the Recorder's request, the County Counsel may initiate a civil action against any person who fails to pay the tax imposed by this chapter. Filing a civil action under this section does not limit the County's right to bring any other action or use any other means authorized by this code to enforce the failure to pay the tax imposed by this chapter.

(Added by Ord. No. 9889 (N.S.), effective 10-26-07)

(a) No person shall file an action for injunctive relief, writ of mandate or other legal or equitable action against the County or a County officer or employee to prevent or enjoin the collection of taxes imposed pursuant to this chapter.

(b) No person shall file an action seeking judicial relief against the County or a County officer or employee to dispute the obligation to pay any tax imposed pursuant to this chapter unless the person has paid the tax in full and has exhausted all administrative remedies including filing a claim for a refund.

(c) No person shall file an action as a representative of a class of persons to dispute the obligation to pay any tax imposed pursuant to this chapter.

(Added by Ord. No. 10187 (N.S.), effective 1-5-12)