San Francisco County Municipal Code Art. 12 C

REAL PROPERTY TRANSFER TAX Sec. 1101. Short Title. Sec. 1101.1. Definitions. Sec. 1102. Tax Imposed. Sec. 1102.1. Assessor's Parcel Numbers. Sec. 1102.2. Domestic Partners. Sec. 1103. Payment of Tax; Due Dates and Delinquency Dates. Sec. 1104. Instrument to Secure Debt. Sec. 1105. Exemptions. Sec. 1106. Exceptions. Sec. 1107. Orders of Securities and Exchange Commission. Sec. 1108. Application to Partnerships. Sec. 1108.1. Exemption; Dissolution of Marriage, Etc. Sec. 1108.2. Exemption; Deeds in Lieu of Foreclosure, Etc. Sec. 1108.3. Application to Leasehold Instruments. Sec. 1108.4. Exemption; Certain Conversions of Stock Cooperatives to Condominium Units. Sec. 1108.5. Exemption; Transfers between Spouses and Transfers between Domestic Partners. Sec. 1108.6. Exemptions for Rent-Restricted Affordable Housing. Sec. 1108.7. Exemption for Conversion to Residential Use. Sec. 1108.8. Partial Exemption for Transfers of Residential Rental Properties Built and Financed by Certain Labor Organizations. Sec. 1108.10. Exemption for Certain Port Leasehold Instruments. Sec. 1109. Title Changes Not Affecting Ownership. Sec. 1110. Administration by County Recorder. Sec. 1111. Recording Payment of Tax. Sec. 1111.1. Records; Investigation; Subpoenas. Sec. 1113. Claims for Refunds. Sec. 1113.1. Refunds Permissible Without a Claim. Sec. 1113.2. Refunds; Interest. Sec. 1113.3. Exhaustion of Administrative Remedies; Presentation of Claim for Refund as Prerequisite to Suit; Payment of Disputed Amount and Petition for Refund; Limitations. Sec. 1114. Administration and Interpretation. Sec. 1115. Deficiency Determinations; Jeopardy Determinations. Sec. 1115.1. Lien Proceedings. Sec. 1115.2. Penalties and Interest. Sec. 1115.3. Manner of Giving Notice. Sec. 1115.4. Tax as Debt. Sec. 1115.5. Summary Judgment. Sec. 1115.6. Collection of Tax from Third Party. Sec. 1116. Misdemeanors. Sec. 1117. Remedies Cumulative. Sec. 1118. Confidentiality. Sec. 1119. Amendment of Article.

SEC. 1101. SHORT TITLE. This Article shall be known as the "Real Property Transfer Tax Ordinance." 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 of California. (Ord. 315-67, App. 12/12/67; amended by Ord. 352-84, App. 8/8/84; Ord. 377-84, App. 8/31/84)

Except where the context otherwise requires, the terms used in this Article 12-C shall have the meanings given to them in Sections 6.2- 2 et seq. of the Business and Tax Regulations Code. (Added by Ord. 176-17, File No. 170703, App. 7/27/2017, Eff. 8/26/2017) SEC. 1102. TAX IMPOSED. There is hereby imposed on each deed, instrument or writing by which any lands, tenements, or other realty sold within the City and County of San Francisco 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 her or their direction, when the consideration or value of the interest or property conveyed (not excluding the value of any lien or encumbrances remaining thereon at the time of sale) (a) exceeds $100 but is less than or equal to $250,000, a tax at the rate of $2.50 for each $500 or fractional part thereof; or (b) more than $250,000 and less than $1,000,000, a tax at the rate of $3.40 for each $500 or fractional part thereof for the entire value or consideration, including, but not limited to, any portion of such value or consideration that is less than $250,000; or (c) at least $1,000,000 and less than $5,000,000, a tax at the rate of $3.75 for each $500 or fractional part thereof for the entire value or consideration, including, but not limited to, any portion of such value or consideration that is less than $1,000,000; or (d) at least $5,000,000 and less than $10,000,000, a tax at the rate of $11.25 for each $500 or fractional part thereof for the entire value or consideration, including, but not limited to, any portion of such value or consideration that is less than $5,000,000; or (e) at least $10,000,000 and less than $25,000,000, a tax at the rate of $27.50 for each $500 or fractional part thereof for the entire value or consideration, including but not limited to, any portion of such value or consideration that is less than $10,000,000; or (f) at least $25,000,000, a tax at the rate of $30 for each $500 or fractional part thereof for the entire value or consideration, including but not limited to, any portion of such value or consideration that is less than $25,000,000. (Ord. 315-67, App. 12/12/67; amended by Ord. 377-84, App. 8/31/84; Ord. 357-90, App. 10/17/90; Ord. 337-94, App. 9/8/94; Ord. 338-94, Eff. 10/4/94; Proposition N, 11/4/2008; Proposition N, 11/2/2010; Proposition W, 11/8/2016; Proposition I, 11/3/2020, Eff. 12/18/2020, Oper. 1/1/2021; Proposition C, 3/5/2024, Eff. 4/12/2024)

Every document pertaining to real property that is submitted for recordation shall show on the face of the document the Assessor's current parcel number, or numbers, and the commonly-known situs and/or street name and number of the real property described therein. (Ord. 315-67, App. 12/12/67; amended by Ord. 579-85, App. 12/27/85; Ord. 201-01, File No. 011242, App. 9/28/2001)

"Domestic partnerships" shall mean a domestic partnership created pursuant to Chapter 62 of the Administrative Code, Division 2.5 of the California Family Code, or the laws of another state or political subdivision thereof, and for which a Declaration of Domestic Partnership or similar official record acknowledging the domestic partnership has been filed with the County Clerk pursuant to Chapter 62, or with the public official responsible for the registration of domestic partnerships pursuant to the laws of the jurisdiction under which the domestic partnership was created. (Added by Ord. 108-04, File No. 040493, App. 6/21/2004)

SEC. 1103. PAYMENT OF TAX; DUE DATES AND DELINQUENCY DATES. (a) Any tax imposed pursuant to this Article 12-C 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. (b) The tax imposed by this Article 12-C 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 30 days later. (c) The County Recorder may accept partial payments of taxes due. The difference between the amount paid by the person liable for the tax and the total amount due shall be treated as a delinquent tax and shall be subject to penalties and interest on the unpaid balance under Section 1115.2. Partial payments shall be applied first to administrative collection costs, interest, penalties, and other costs and charges, in that order, and the balance, if any, shall be applied to the taxes due. (Ord. 315-67, App. 12/12/67; amended by Ord. 377-84, App. 8/31/84; Ord. 176-17, File No. 170703, App. 7/27/2017, Eff. 8/26/2017) SEC. 1104. INSTRUMENT TO SECURE DEBT. Any tax imposed pursuant to this ordinance shall not apply to any instrument in writing given to secure a debt. (Ord. 315-67, App. 12/12/67; amended by Ord. 377-84, App. 8/31/84) SEC. 1105. EXEMPTIONS. 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 ordinance when the exempt agency is acquiring title. Any deed, instrument or writing shall be exempt from up to one-third (1/3) of any tax imposed pursuant to this ordinance if: (1) it transfers an interest in real property used as a residence; and (2) after January 1, 2009, the transferor has installed an active solar system, as that term is defined in Revenue & Taxation Code § 73(b), or has made seismic retrofitting improvements or improvements utilizing earthquake hazard mitigation technologies, as those terms are defined in Revenue & Taxation Code § 74.5(b), and the transferor has claimed and the Assessor has approved an exclusion from reassessment for the value of that system or those improvements. This partial exemption shall only apply to the initial transfer by the person who installed the active solar system or made the seismic safety improvements. The amount of this partial exemption shall not exceed the transferor's cost of seismic retrofitting improvements or the active solar system. Multi-family residential properties are eligible for this partial exemption. (Ord. 315-67, App. 12/12/67; amended by Ord. 377-84, App. 8/31/84; Proposition N, 11/4/2008) SEC. 1106. EXCEPTIONS. Any tax imposed pursuant to this ordinance shall not apply to the making, delivering or filing of conveyances to make effective any plan of reorganization or adjustment: (a) Confirmed under Title 11 of the United States Code; (b) Whereby a mere change in identity, form or place or organization is effected. Subdivisions (a) and (b), 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. (Ord. 315-67, App. 12/12/67; amended by Ord. 377-84, App. 8/31/84; Ord. 20-09, File No. 081450, App. 2/5/2009) SEC. 1107. ORDERS OF SECURITIES AND EXCHANGE COMMISSION. Any tax imposed pursuant to this ordinance 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. (Ord. 315-67, App. 12/12/67; amended by Ord. 377-84, App. 8/31/84) SEC. 1108. APPLICATION TO PARTNERSHIPS. (a) In the case of any realty held by a partnership or other entity treated as a partnership for federal income tax purposes, no levy shall be imposed pursuant to this Article by reason of any transfer of an interest in a partnership or other entity treated as a partnership for federal income tax purposes or otherwise, if: (1) Such partnership or other entity treated as a partnership (or another 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, as amended; and (2) Such 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, as amended, for purposes of this Article, such partnership or other entity shall be treated as having executed an instrument whereby there was conveyed, for fair market value, all realty held by such partnership or other entity at the time of such termination. (c) Not more than one tax shall be imposed pursuant to this Article by reason of a termination described in Subdivision (b), 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. (d) Notwithstanding any other language in this Section 1108, nothing in this Section shall exempt from the tax imposed under this Article 12-C any “realty sold” as described in Section 1114(b). (Ord. 315-67, App. 12/12/67; amended by Ord. 377-84, App. 8/31/84; Ord. 28-95, App. 2/3/95; Ord. 20-09, File No. 081450, App. 2/5/2009; Proposition W, 11/8/2016)

(a) Any tax imposed pursuant to this Article shall not apply with respect to any transfer of real property, instrument, or other writing which purports to transfer, divide, or allocate community, quasi-community, or quasi-marital property assets between spouses for the purpose 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 Divisions 4, 6 and 7 of the Family Code, or by 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. (b) Any tax imposed pursuant to this Article shall not apply with respect to any transfer to transfer, divide, or allocate assets held as joint tenants or as tenants-in-common between domestic partners for the purpose of effecting a division of assets upon the dissolution of a domestic partnership. (c) In order to qualify for the exemption provided in subsections (a) or (b), the deed, instrument or other writing effecting the transfer shall include a written recital, signed by either spouse or domestic partner, stating that the transfer is entitled to the exemption. (d) Individuals of the same sex who obtain a certificate of marriage or other official government document of any state or political subdivision thereof acknowledging their union in marriage shall be deemed to be or have been in a "domestic partnership" that qualifies for the exemption under subsection (b) in the event such individuals are denied the legal status of spouses or former spouses for purposes of the exemption in subsection (a), or the marriage certificate or other official government document acknowledging their marriage is invalidated in a final judgment or by operation of law because such individuals are of the same sex, if: (i) the transfer is for the purpose of effecting a division of assets between such individuals upon the dissolution of their union; (ii) they hold the real property or interest therein as joint tenants or tenants-in-common before the transfer; (iii) the union, regardless of its characterization as an invalid marriage or an informal or unregistered domestic partnership, has been dissolved; and (iv) the written recital signed by either individual pursuant to Subsection (c) states the particulars that exempt the transfer under this Subsection (d). (Ord. 315-67, App. 12/12/67; amended by Ord. 377-84, App. 8/31/84; Ord. 236-94, App. 6/16/94; Ord. 108-04, File No. 040493, App. 6/21/2004)

Any tax imposed pursuant to this ordinance shall not apply with respect to any deed, instrument, or writing to a beneficiary or mortgagee, which is taken from the mortgagor, trustor 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 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 for tax purposes. (Ord. 315-67, App. 12/12/67; amended by Ord. 352-84, App. 8/8/84; Ord. 377-84, App. 8/31/84)

Any tax imposed pursuant to this ordinance shall not apply with respect to any deed, instrument or writing which creates, terminates, or transfers a leasehold interest having a remaining term (including renewal options) of less than 35 years. (Ord. 315-67, App. 12/12/67; amended by Ord. 377-84, App. 8/31/84; Proposition N, 5, 11/4/2008)

COOPERATIVES TO CONDOMINIUM UNITS. Any tax imposed pursuant to this Article shall not apply with respect to any deed, instrument, or writing in connection with the conversion to condominium units of the following kind of stock cooperative project: a stock cooperative project (a) which is entitled to an exemption from the annual limitation imposed on the number of conversions and the annual condominium conversion lottery pursuant to Section 1396 of the San Francisco Subdivision Code; and (b) wherein 80 percent or more of the condominium units serve as security for loans in favor of the City and County of San Francisco, pursuant to the Homeownership Assistance Loan Fund (under San Francisco Administrative Code Section 10.100 – 08) or its predecessor program, as identified by the Mayor's Office of Housing, prior to the conversion. (Added by Ord. 473-96, App. 12/13/96; amended by Ord. 20-09, File No. 081450, App. 2/5/2009)

TRANSFERS BETWEEN DOMESTIC PARTNERS. (a) The tax imposed under this Article shall not apply to transfers of real property between spouses or between domestic partners. (b) Individuals of the same sex who obtain a certificate of marriage or other official government document of any state or political subdivision thereof acknowledging their union in marriage shall be deemed to be in a "domestic partnership" that qualifies for the exemption under subsection (a) in the event such individuals are denied the legal status of marriage or the legal rights, privileges and obligations of spouses, or the marriage certificate or other official government document acknowledging their marriage is invalidated or revoked in a final judgment or by operation of law, because such individuals are of the same sex. (c) In order to qualify for the exemption provided in this Section, the deed, instrument or other writing effecting the transfer of real property shall include a written recital, signed by either spouse or domestic partnership, stating that the transfer is entitled to the exemption for spouses and domestic partners. (Added by Ord. 108-04, File No. 040493, App. 6/21/2004)

HOUSING. (a) Definitions. For purposes of this Section 1108.6: “Low Income Threshold” means the greatest of the following:

(1) 80% of the MOHCD Area Median Income; (2) 80% of the area median income for the County of San Francisco, adjusted for household size, as published by the California Tax Credit Allocation Committee or its successor entity; (3) “Lower Income” for the County of San Francisco, adjusted for household size, as published by the California Department of Housing and Community Development, or its successor agency, under the California Code of Regulations and pursuant to California Health and Safety Code Section 50079.5, as amended from time to time; (4) “Low Income” for the County of San Francisco within the “San Francisco, CA HUD Metro FMR Area,” adjusted for household size, as published by the United States Department of Housing and Urban Development, or its successor agency; or (5) The maximum household income for a unit to receive the welfare exemption under California Revenue and Taxation Code Section 214(g), as amended from time to time. “MOHCD” means the Mayor’s Office of Housing and Community Development, or its successor agency, department, or office. “MOHCD Area Median Income” means the median income as published annually by MOHCD for the City and County of San Francisco, derived in part from the income limits and area median income determined by the United States Department of Housing and Urban Development, or its successor agency, for the San Francisco County metro fair market rent area, adjusted solely for household size, but not for high housing cost area. “Recorded Restriction” means a document, agreement, or instrument, recorded with the County Recorder, that restricts the use of the property against which the document, agreement, or instrument is recorded. “Rent-Restricted Affordable Housing” means a property described under either of the following subsections (1) or (2): (1) A property transferred under Section 41B.6 of the Administrative Code, as that Section 41B.6 existed as of June 3, 2019; or (2) A Residential Rental Property that satisfies both of the following subsections (2)(A) and (2)(B): (A) Meets the requirements of one or more of the following subsections (2)(A)(i), (2)(A)(ii), or (2)(A)(iii): (i) Prior to and up to the time of the transfer for which an exemption is claimed under this Section 1108.6, was granted a welfare exemption by the County Assessor under California Revenue and Taxation Code Section 214 for at least 90% of all residential units in the property; (ii) Prior to and up to the time of the transfer for which an exemption is claimed under this Section 1108.6, was unoccupied, uninhabited, or unused for residential or commercial purposes and contained no structures for which such uses were legally permissible; or (iii) Meets the requirements of the following subsection (2)(A)(iii)a. and is the subject of the certification in the following subsection 2(A)(iii)b. a. Prior to and up to the time of the transfer for which an exemption is claimed under this Section 1108.6, was wholly-owned, directly or indirectly, by one or more organizations that are exempt from income taxation under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, which organization(s) transfer a portion of their ownership interest(s) solely to one or more persons or legal entities who intend to hold the ownership interests in compliance with the welfare exemption under California Revenue and Taxation Code Section 214(g) for at least 90% of all residential units in the property. b. The transferor(s) of the ownership interest(s) must certify to MOHCD that an application for the welfare exemption under California Revenue and Taxation Code Section 214(g) for at least 90% of all residential units in the property will be submitted to the County Assessor within the time limits specified in California Revenue and Taxation Code Section 271(a), and that such application will be substantially complete and valid within nine months of the date of the transfer. (B) At the time of the transfer for which an exemption is claimed under this Section 1108.6 is, or concurrently with such transfer becomes, subject to a Recorded Restriction with an original term of at least 55 years from the date the property becomes available for residential rental use under such Recorded Restriction, and a remaining term of at least 35 years from the date of the transfer, provided that such Recorded Restriction, at a minimum: (i) limits the maximum household income for each residential rental unit at initial occupancy to no more than 120% of MOHCD Area Median Income; and (ii) sets a maximum household income limit applicable at initial occupancy for each residential rental unit (“Unit Maximum Income”) such that the average of all Unit Maximum Incomes in the property does not exceed the Low Income Threshold; and (iii) limits the maximum monthly rent for each residential rental unit to no more than either: a. the tenant-paid portion of the contract rent as determined by the San Francisco Housing Authority for residential ten- ants holding Section 8 vouchers or certificates; or b. one-twelfth of 30% of the Unit Maximum Income; or c. if the household income of the residential tenants in a residential rental unit exceeds the Unit Maximum Income after initial occupancy, one-twelfth of 30% of the household income of the residential tenants; and (iv) provides for the regulation, monitoring, and enforcement of the restrictions in this subsection (2)(B) by a governmental

agency. For purposes of this subsection (2)(B) only, a “residential rental unit” does not include a unit for an onsite property manager. “Residential Rental Property” means a property that may only be used to rent to residential tenants, including an onsite property manager, and excluding travelers, vacationers, or other similarly transient individuals, except that it may include: (1) up to 30% of the square footage of all floors other than the ground floor for non-profit space serving residents and/or the community, such as childcare centers, health clinics, or job training centers; and (2) any amount of square footage of the ground floor for non-residential space. “Section 41B.6 of the Administrative Code, as that Section 41B.6 existed as of June 3, 2019” means the text of Section 41B.6 in Ordinance No. 79-19, on file with the Clerk of the Board of Supervisors in File No. 181212. (b) Exemptions from Tax. (1) The tax imposed under Section 1102 shall not apply with respect to any deed, instrument, or writing that effects a transfer of Rent-Restricted Affordable Housing under subsections (2)(A)(i) and (2)(A)(iii) of the definition of Rent-Restricted Affordable Housing in Section 1108.6(a) that are or have been delivered on or after April 12, 2024. (2) The increased tax rates imposed by subsections (d), (e), and (f) of Section 1102 shall not apply with respect to any deed, instrument, or writing that effects a transfer of Rent-Restricted Affordable Housing not fully exempt under subsection (b)(1) of this Section 1108.6. Instead, the lower tax rate imposed by subsection (c) of Section 1102 shall apply to the entire consideration or value of the interest or property conveyed by a deed, instrument, or writing that effects any transfer of Rent-Restricted Affordable Housing not fully exempt under subsection (b)(1) of this Section 1108.6. (c) Requirements for Exemption. (1) Every person claiming an exemption under subsection (b) must: (A) Obtain from MOHCD a certificate confirming that the deed, instrument, or writing effects a transfer of Rent-Restricted Affordable Housing. Such certificate shall specify eligibility for the requested exemption by indicating the applicable subsection(s) of the definition of Rent-Restricted Affordable Housing in Section 1108.6 for the interest or property conveyed by the deed, instrument, or writing effecting the transfer. (B) Submit the certificate described in subsection (c)(1)(A) of this Section 1108.6 to the County Recorder at the time such person submits the affidavit described in subsection (c) or (d) of Section 1111. (2) Notwithstanding the requirements in subsection (c)(1), every person claiming the exemption under subsection (b)(1) for a deed, instrument, or writing that effects a transfer of Rent-Restricted Affordable Housing, when that deed, instrument, or writing is delivered on or after April 12, 2024, but prior to December 31, 2025, may do the following in lieu of the procedures described in subsection (c)(1): (A) Obtain from MOHCD a certificate confirming that the deed, instrument, or writing effected a transfer of Rent-Restricted Affordable Housing that contains the information specified in subsection (c)(1)(A). (B) By June 30, 2026, submit the certificate described in subsection (c)(2)(A) of this Section 1108.6 to the County Recorder, along with a request for a refund of the tax paid on, or the cancellation or reduction of any deficiency assessed with respect to, the transfer subject to the certificate. The County Recorder may authorize the Controller to refund these amounts, without interest, without the need for a refund claim. (3) Failure to timely satisfy the requirements in this subsection (c) renders the transfer ineligible for the exemption. (d) Revocation of Exemption. (1) If a transfer of Rent-Restricted Affordable Housing was granted an exemption under Section 1108.6(b) on the basis that the property satisfied subsection (iii) of the definition of Rent-Restricted Affordable Housing in Section 1108.6(a)(2)(A) and the property did not satisfy subsection (i) or (ii) of that definition, the person claiming such exemption must, within the later of 25 months of the transfer and the date such person submits any request for refund, cancellation, or reduction under Section 1108.6(c)(2)(B), submit proof to the County Recorder that the property was granted a welfare exemption by the County Assessor under California Revenue and Taxation Code Section 214(g) for at least 90% of all residential units in the property within two years from the date of the transfer. The County Recorder may grant a one-year extension to the 25-month and two-year periods in this subsection (d)(1) if the welfare exemption application submitted to the County Assessor was substantially complete within nine months of the date of the transfer and the person claiming the exemption was diligently pursuing the required welfare exemption but was unable to obtain such welfare exemption within the two-year period. (2) If the County Recorder determines that a transfer of Rent-Restricted Affordable Housing was granted an exemption under Section 1108.6(b) on the basis that that property satisfied subsection (iii) of the definition of Rent-Restricted Affordable Housing in Section 1108.6(a)(2)(A) and the property did not satisfy subsection (i) or (ii) of that definition, and that the property was not granted a welfare exemption by the County Assessor under California Revenue and Taxation Code Section 214(g) for at least 90% of all residential units in the property within two years from the date of the transfer (or the extended date under Section 1108.6(d)(1)), the County Recorder may revoke the exemption and issue a deficiency determination for the amount of tax exempted upon the basis of any information within the County Recorder’s possession or that may come

evenue and Taxation Code Section 214(g) for at least 90% of all residential units in the property within two years from the date of the transfer (or the extended date under Section 1108.6(d)(1)), the County Recorder may revoke the exemption and issue a deficiency determination for the amount of tax exempted upon the basis of any information within the County Recorder’s possession or that may come into the County Recorder’s possession. Such deficiency determination shall bear interest at the rate of 1% per month, or fraction thereof, on the amount of tax exempted, from the date the tax would have become delinquent had the exemption in Section 1108.6 not applied, and shall be subject to a penalty of 35% of the amount of tax exempted. Such deficiency determinations and the amounts paid pursuant to such deficiency determinations shall be subject to the procedures otherwise applicable in Article 12-C of the Business and Tax Regulations Code, except for the provisions in Section 1115.2, and except that, if the County Recorder grants the one-year extension under Section 1108.6(d)(1), the time period in Section 1115(b) of

the Business and Tax Regulations Code for the County Recorder to serve notice of the deficiency determination under this Section 1108.6(d)(2) shall also be extended by one year. (e) Operative Dates. (1) This Section 1108.66 shall apply to all deeds, instruments, or writings that effect a transfer of Rent-Restricted Affordable Housing other than deeds, instruments, or writings that effect a transfer under Section 41B.6 of the Administrative Code, as that Section 41B.6 existed as of June 3, 2019, that are or have been delivered on or after January 1, 2017, but on or before the sunset date in subsection (f). (2) This Section 1108.6 shall apply to all deeds, instruments, or writings that effect a transfer under Section 41B.6 of the Administrative Code, as that Section 41B.6 existed as of June 3, 2019, that are or have been delivered on or after June 3, 2019, but on or before the sunset date in subsection (f). (f) Sunset Date. This Section 1108.6 shall expire by operation of law on December 31, 2030, and shall not apply to any deeds, instruments, or writings that are delivered on or after January 1, 2031. (g) Penalty Waiver. The County Recorder shall waive all penalties and interest imposed on transfers qualifying for the exemption in Section 1108.6 (b) for deeds, instruments, or writings that effected a transfer of Rent-Restricted Affordable Housing under subsection (2) of the definition of Rent-Restricted Affordable Housing in Section 1108.6 (a), when the deed, instrument, or writing was delivered on or after January 1, 2017, but prior to January 15, 2024. The waiver in this subsection (g) shall include penalties and interest on the portion of the transfer tax not subject to the exemption in Section 1108.6(b). (h) Severability. If any section, subsection, sentence, clause, phrase, or word of this Section 1108.6 , or any application thereof to any person or circumstance, is held to be invalid or unconstitutional by a decision of a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions or applications of this Section 1108.6 . The Board of Supervisors hereby declares that it would have enacted this Section 1108.6 and each and every subsection, sentence, clause, phrase, and word not declared invalid or unconstitutional without regard to whether any other portion of this Section 1108.6 or application thereof would be subsequently declared invalid or unconstitutional. (i) Undertaking for the General Welfare. In enacting and implementing this Section 1108.6 , the City is assuming an undertaking only to promote the general welfare. It is not assuming, nor is it imposing on its officers and employees, an obligation for breach of which it is liable in money damages to any person who claims that such breach proximately caused injury. (Added by Ord. 79-19, File No. 181212, App. 5/3/2019, Eff. 6/3/2019; amended by Ord. 205-21, File No. 210937, App. 11/12/2021, Eff. 12/13/2021, Retro. 1/1/2021; Ord. 8- 24, File No. 231007, App. 12/15/2023, Eff. 1/15/2024, Retro. 1/1/2017; Ord. 208-25, File No. 250890, App. 10/31/2025, Eff. 12/1/2025, Retro. 4/12/2024)

(a) Definitions. For purposes of this Section 1108.7, the following terms have the following meanings: “Converted Residential Property” has the meaning set forth in subsection (b) of this Section 1108.7. “Development Application” means any application for a building permit, site permit, conditional use authorization, variance, or for any other authorization of a conversion of a property or portion thereof from a Nonresidential Property to a Residential Property required to be approved by the Planning Department, Zoning Administrator, Planning Commission, or Historic Preservation Commission. “Exemption Certificate” means a certificate issued by the Planning Department showing: (1) the square feet of gross floor area being transferred that is a First Transfer of Converted Residential Property that falls within the 5,000,000 square foot limitation in subsection (c) of this Section 1108.7; and (2) the total square feet of gross floor area being transferred. “Final Approval” means: (1) approval of a conversion’s first Development Application, unless such approval is appealed; (2) if subsection (1) does not apply and a conversion only requires a site or building permit, issuance of the first site or building permit, unless such permit is appealed; or (3) if the first Development Application or first site or building permit is appealed, then the final decision upholding the Development Application, or first site or building permit, on the appeal by the relevant City board or commission. “First Certificate of Occupancy” means the earlier of a certificate of final completion and occupancy, or a temporary certificate of occupancy, as those terms are used in Section 109A of the Building Code, as may be amended from time to time. “First Construction Document” means the first building permit, building permit addendum, or other document that authorizes construction of the conversion, not including permits or addenda for demolition, grading, shoring, pile driving, or site preparation work. “First Transfer” means the first transfer of a Converted Residential Property following issuance of its First Certificate of Occupancy if such transfer would have been subject to the tax imposed under this Article 12-C absent the exemption in this Section 1108.7. For

Converted Residential Properties transferred in part, the first taxable transfer of each portion of a Converted Residential Property following issuance of its First Certificate of Occupancy constitutes a “First Transfer,” but subsequent transfers of the same portion do not constitute “First Transfers.” Notwithstanding the prior sentence, a “First Transfer” does not include any transfer of all or a portion of a Converted Residential Property after a transfer subject to the exemption in this Section 1108.7 where the tax on such transfer would have been imposed on the fair market value of the entire Converted Residential Property absent the exemption in this Section 1108.7. “Nonresidential Property” means any property or portion of a property, other than a Residential Property and other than a property that contains no buildings or other structures. “Qualifying Certificate” means a certificate issued by the Planning Department showing the square feet of gross floor area that is proposed to qualify as Converted Residential Property within the 5,000,000 square foot limitation in subsection (c) of this Section 1108.7. “Residential Property” means a property or portion of a property with a structure or structures or portion thereof that may only be used for housing individuals, excluding travelers, vacationers, or other similarly transient individuals, for greater than 30 consecutive days (including permitted incidental uses). It includes, but is not limited to, dwelling units, student housing, group housing, residential hotels, senior housing, nursing homes, homeless shelters, and residential care facilities, regardless of how such uses would be considered under the Planning Code. “Residential Property” includes 100% of the gross floor area of a live/work unit. In properties with mixed residential and non-residential uses, “Residential Property” includes mechanical space and common areas including but not limited to circulation, lobbies, storage rooms, balconies, roof terraces, laundry rooms, and other resident amenity spaces, and including parking spaces or garages, in the proportion that such areas serve the residential uses to the total square feet of gross floor area served by such areas. (b) Converted Residential Property. (1) For purposes of this Section 1108.7, “Converted Residential Property” means a property or portion thereof that has received a First Certificate of Occupancy following conversion from a Nonresidential Property to a Residential Property, including conversions involving the demolition of Nonresidential Property to construct new Residential Property, and that meets all of the following requirements for such conversion: (A) received a Final Approval before January 1, 2030; (B) a Qualifying Certificate was requested with respect to the property or portion thereof on or after the effective date of this Section 1108.7, but before January 1, 2030; (C) within three years of the later of receiving Final Approval or the effective date of this Section 1108.7, but not before the effective date of this Section, received a First Construction Document; and (D) at the time of the transfer for which the exemption in this Section 1108.7 is claimed, the square feet of gross floor area of the improvements on the property divided by the lot area of that property is at least one. (2) New square feet of Residential Property gross floor area in excess of the square feet of gross floor area of the original Nonresidential Property shall constitute Converted Residential Property only up to the new square feet of gross floor area that equals 10% of the square feet of gross floor area that was converted from Nonresidential Property to Residential Property. (3) For demolitions of Nonresidential Property to construct new Residential Property, “Converted Residential Property” includes only the square feet of gross floor area of Residential Property in the new building that exceeds the square feet of gross floor area of Residential Property in the demolished building, up to a maximum square feet of gross floor area of Converted Residential Property equal to the total gross floor area of Non-Residential Property in the demolished building plus 10%. (c) Exemption from Tax. Any deed, instrument, or writing that effects a First Transfer of Converted Residential Property, up to the first 5,000,000 square feet of gross floor area of Converted Residential Property, shall be exempt from the tax imposed under this Article 12-C, except as otherwise provided in this Section 1108.7. For purposes of this subsection (c), the “first 5,000,000 square feet of gross floor area” shall be determined in the order that the Planning Department receives each request for a Qualifying Certificate and shall be aggregated across all Qualifying Certificates issued and outstanding. If a deed, instrument, or writing effects a transfer of property only a portion of which is a First Transfer of Converted Residential Property, or only a portion of which is within the 5,000,000 square foot limitation, the tax shall apply to the proportion of the consideration or value that the square feet of gross floor area transferred that is not a First Transfer of Converted Residential Property or that is not within the 5,000,000 square foot limitation bears to the total square feet of gross floor area transferred, with the rate in Section 1102 determined based solely on that proportional consideration or value. Land associated with gross floor area qualifying for the exemption in this subsection (c) shall also be exempt in the proportion that the square feet of gross floor area transferred that is exempt under this subsection (c) bears to the total square feet of gross floor area transferred. (d) Requirements for Exemption. Every person claiming the exemption under this Section 1108.7 must do all of the following: (1) Request, at any time after Fin

xemption in this subsection (c) shall also be exempt in the proportion that the square feet of gross floor area transferred that is exempt under this subsection (c) bears to the total square feet of gross floor area transferred. (d) Requirements for Exemption. Every person claiming the exemption under this Section 1108.7 must do all of the following: (1) Request, at any time after Final Approval and in the form and manner required by the Planning Department, a Qualifying Certificate from the Planning Department. At any time after receiving a Qualifying Certificate, a request to confirm or adjust the square feet of gross floor area that is proposed to qualify as Converted Residential Property may be submitted to the Planning Department in the form and manner required by the Planning Department. Any increase in the square feet of gross floor area requested under this subsection (d)(1) that exceeds the qualifying square feet of gross floor area stated on the Qualifying Certificate or any amendment thereto shall qualify for the exemption in this Section 1108.7 only to the extent that the 5,000,000 square foot limitation in subsection (c) has not been exceeded at the time the Planning Department approves the requested increase. (2) After receiving the First Certificate of Occupancy and in the form and manner required by the Planning Department, request an Exemption Certificate from the Planning Department for each transfer for which the person intends to claim the exemption in this Section 1108.7. Any increase in the square feet of gross floor area requested under this subsection (d)(2) that exceeds the qualifying

square feet of gross floor area stated on the Qualifying Certificate or any amendment thereto shall qualify for the exemption in this Section 1108.7 only to the extent that the 5,000,000 square foot limitation in subsection (c) has not been exceeded at the time the Planning Department issues the Exemption Certificate. (3) For each transfer for which the exemption in this Section 1108.7 is claimed, submit the Exemption Certificate to the County Recorder at the time such person submits the affidavit described in subsection (c) or (d) of Section 1111. (4) Failure to timely satisfy the requirements of this subsection (d) renders the transfer ineligible for the exemption in this Section 1108.7. (e) Effect of Exemption on Other Taxes. Any tax exempted under this Section 1108.7 shall be deemed to have been paid for purposes of Section 954(d) of Article 12-A-1 of the Business and Tax Regulations Code. (f) Regulations. The Planning Department and the County Recorder may each issue rules, regulations, and interpretations of this Section 1108.7 consistent with the provisions of this Section and Article 12-C of the Business and Tax Regulations Code as may be necessary or appropriate to carry out and enforce the exemption in this Section. (g) Sunset Date. This Section 1108.7 shall expire by operation of law at the end of the day on December 31, 2054, and shall not apply to any deeds, instruments, or writings delivered on or after January 1, 2055. (Added by Proposition C, 3/5/2024, Eff. 4/12/2024)

RENTAL PROPERTIES BUILT AND FINANCED BY CERTAIN LABOR ORGANIZATIONS. (a) Definitions. For purposes of this Section 1108.8: “Certificate of Final Completion and Occupancy” means a certificate of final completion and occupancy or an amended certificate of final completion and occupancy as those terms are used in Section 109A of the Building Code, as may be amended from time to time. “First Construction Document” means the first building permit, building permit addendum, or other document that authorizes construction of a Newly-Constructed Building, not including permits or addenda for demolition, grading, shoring, pile driving, or site preparation work. “Labor Organization” means any organization of any kind, or any agency or employee representation committee or plan, in which employees participate and which exists for the purpose, in whole or in part, of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work. “MOHCD” means the Mayor’s Office of Housing and Community Development, or its successor agency, department, or office. “MOHCD Area Median Income” means the median income as published annually by MOHCD for the City and County of San Francisco, derived in part from the income limits and area median income determined by the United States Department of Housing and Urban Development, or its successor agency, for the San Francisco County metro fair market rent area, adjusted solely for household size, but not for high housing cost area. “Newly-Constructed Building” means a building that has never before been used or occupied for any purpose. “OLSE” means the Office of Labor Standards Enforcement, or its successor agency, department, or office. “Qualified Investment Manager” means any of the following that manages or invests assets on behalf of one or more Qualified Pension Plans, as defined in this Section 1108.8(a): (1) An investment adviser registered under the U.S. Investment Advisers Act of 1940, as amended from time to time, or an investment adviser exempt from registration pursuant to Section 203(l) or Section 203(m) of the U.S. Investment Advisers Act of 1940, as amended from time to time; (2) An investment company registered under the U.S. Investment Company Act of 1940, as amended from time to time; or (3) An insurance company pooled separate account of a state or District of Columbia regulated life insurance company. “Qualified Pension Plan” means either subpart (1) or (2), as stated below: (1) A pension plan that has all of the following elements: (A) Constitutes a qualified trust under Section 401(a) of the Internal Revenue Code of 1986, as amended from time to time; (B) Is either: (i) A multiemployer plan collectively bargained and maintained by more than one employer and a Labor Organization; or (ii) A plan collectively bargained and maintained by a Labor Organization; and

(C) Its beneficiaries may not decide individually whether to participate or share in the profits and losses of such plan’s investments; or (2) An annuity plan that meets the requirements for the deduction of the employer’s contribution under Section 402(a)(2) of the Internal Revenue Code of 1986, as amended from time to time, and that has beneficiaries who are represented by a Labor Organization and the assets of which are managed without the direct intervention or control of the plan’s beneficiaries. “Qualified Residential Rental Property” means a Residential Rental Property, whether or not the property is subject to a condominium map recorded with the County Recorder, that meets all of the requirements in subparts (1) through (4), as stated below: (1) At the time of the transfer for which an exemption is claimed under this Section 1108.8, no less than 12% of the residential units on the property, which percentage shall be calculated by excluding any density bonus units permitted through Planning Code Section 206.3, California Government Code Section 65915, or any other density bonus program, are, or concurrently with such transfer become, subject to a Recorded Restriction that: (A) limits the maximum household income for each residential rental unit to no more than 110% of MOHCD Area Median Income; and (B) limits the maximum monthly rent for each residential rental unit to no more than one-twelfth of 30% of 110% of the MOHCD Area Median Income; and (C) provides for the regulation, monitoring, and enforcement of the restrictions in this subpart (1) by a governmental agency; and (D) has a remaining term of no less than 55 years from the date of the transfer. (2) On or after June 3, 2014, received a Certificate of Final Completion and Occupancy for a Newly-Constructed Building. (3) All on-site construction of the Newly-Constructed Building, from the date of the First Construction Document through the date of the Certificate of Final Completion and Occupancy for the Newly-Constructed Building, was performed by workers represented by a Labor Organization and paid not less than the Prevailing Rate of Wages as defined in Section 6.1 of the San Francisco Administrative Code, as amended from time to time, for such on-site construction work. (4) At least one year before and through the date of the transfer for which an exemption is claimed under this Section 1108.8, one or more Qualified Pension Plans, either directly or through a Qualified Investment Manager, collectively held a $25 million debt or equity investment, directly or indirectly, in the single property being transferred, and each such investor maintained and enforced a Responsible Contractor Policy with respect to that investor’s portion of the $25 million investment. “Recorded Restriction” means a document, agreement, or instrument, recorded with the County Recorder, that restricts the use of the property against which the document, agreement, or instrument is recorded. “Residential Rental Property” means a property that may only be used to rent to residential tenants, including an onsite property manager, and excluding travelers, vacationers, or other similarly transient individuals, except that it may include: (1) up to 30% of the square footage of all floors other than the ground floor for non-profit space serving residents and/or the community, such as childcare centers, health clinics, or job training centers; and (2) any amount of square footage of the ground floor for non-residential space. “Responsible Contractor Policy” means a policy that requires all on-site construction work be performed by workers represented by a Labor Organization. (b) Exemption from Increased Tax Rate. As authorized by Section 1119, the tax rates imposed by subsections (e) and (f) of Section 1102 shall be reduced with respect to any deed, instrument, or writing that effects a transfer of an entire building that constitutes a Qualified Residential Rental Property, or an undivided interest in such entire building that constitutes a Qualified Residential Rental Property. For such transfers, the tax rate shall be $15 for each $500 or fractional part thereof for the entire value or consideration, including but not limited to, any portion of such value or consideration that is less than $10,000,000. If the exemptions in both Sections 1108.6(b) and this Section 1108.8 (b) apply with respect to any deed, instrument, or writing, the lower of the two rates in those two sections shall apply. (c) Requirements for Exemption. Every person claiming the exemption under subsection (b), above, must meet all of the following requirements: (1) Maintain all records necessary to prove that they are entitled to the exemption in this Section 1108.8; (2) Obtain from OLSE a certificate confirming that the deed, instrument, or writing effects a transfer of a Qualified Residential Rental Property; and (3) Submit the certificate under subsection (c)(2), above, to the County Recorder at the time such person submits the affidavit described in subsection (c) or (d) of Section 1111. Failure to timely satisfy the requirements in this subsection (c) renders the transfer ineligible for the exemption. (d) Operative Date. The exemption in Section 1108.8(b) shall apply to all deeds, instruments, or writings that effect transfers of Qualified Residential Rental Properties that are or have been delivered on or after the effective date of the ordinance adding this Section 1108.8, but on or before the sunset date in subsection (e). (e) Sunset Date. (1) The exemption in Section 1108.8(b) shall expire by operation of law at the end of the day on December 31, 2033, and shall not

apply to any deeds, instruments, or writings that are delivered on or after January 1, 2034. (2) Notwithstanding subsection (e)(1), above, with respect to a transfer of property that received a Certificate of Final Completion and Occupancy before the effective date of the ordinance adding this Section 1108.8, the exemption in Section 1108.8(b) shall expire by operation of law at the end of the day on June 30, 2029, and shall not apply to any deeds, instruments, or writings that are delivered on or after July 1, 2029. (f) Non-Severability. If any part or application of this Section 1108.8 is found in a final decision by a court of competent jurisdiction to be invalid or unconstitutional, this Section in its entirety shall have no force or effect. (g) Undertaking for the General Welfare. In enacting and implementing this Section 1108.8, the City is assuming an undertaking only to promote the general welfare. It is not assuming, nor is it imposing on its officers and employees, an obligation for breach of which it is liable in money damages to any person who claims that such breach proximately caused injury. (Added by Ord. 225-24, File No. 240728, App. 9/20/2024, Eff. 10/21/2024)

INSTRUMENTS. (a) Definitions. “Eligible Tenant” means a tenant to which the Port Commission conveys a leasehold interest in real property under the Port Commission’s jurisdiction, where such tenant was the tenant under a Prior Port Lease with respect to the same real property immediately preceding the effective date of the new leasehold interest, and the direct and indirect ownership interests in the tenant were identical under the Prior Port Lease at the time of termination and under the lease for which an exemption under this Section 1108.10 is being sought upon its effective date. “Exempt Port Lease” means any deed, instrument, or writing pursuant to which the Port Commission conveys to an Eligible Tenant a leasehold interest in real property under the Port Commission’s jurisdiction, where such leasehold interest has an effective date that immediately follows the termination of a Prior Port Lease with respect to the same real property. For purposes of this Section 1108.10, real property is the “same real property” under a Prior Port Lease if the real property was subject to the Prior Port Lease immediately preceding the effective date of the deed, instrument, or writing for which an exemption under this Section is being sought. “Prior Port Lease” means any deed, instrument, or writing pursuant to which the Port Commission granted a leasehold interest in real property under its jurisdiction with an effective date on or before December 31, 1979, without regard to subsequent amendments. (b) Exemption. Any Exempt Port Lease with an effective date on or after November 1, 2024 and on or before December 31, 2034, shall be exempt from the tax imposed under this Article 12-C if the requirements for exemption in subsection (c) are satisfied. (c) Requirements for Exemption. (1) Except as provided in subsection (c)(2), every person claiming the exemption under subsection (b) must: (A) Obtain from the Port a certificate confirming that the deed, instrument, or writing for which the person is claiming the exemption is an Exempt Port Lease; and (B) Submit the certificate described in subsection (c)(1)(A) to the County Recorder at the time such person submits the affidavit described in subsection (c) or (d) of Section 1111. (2) Notwithstanding the requirements in subsection (c)(1), every person claiming the exemption under subsection (b) for an Exempt Port Lease with an effective date on or after November 1, 2024, but prior to July 1, 2025, may do the following in lieu of the procedures described in subsection (c)(1): (A) Obtain from the Port a certificate confirming that the deed, instrument, or writing for which the person is claiming the exemption is an Exempt Port Lease. (B) By December 31, 2025, submit the certificate described in subsection (c)(2)(A) to the County Recorder, along with a request for a refund of the tax paid on, or the cancellation or reduction of any deficiency assessed with respect to, the transfer subject to the certificate. The County Recorder may authorize the Controller to refund these amounts, without interest, without the need for a refund claim. (3) Failure to timely satisfy the requirements in this subsection (c) will render the transfer ineligible for the exemption under subsection (b). (d) Sunset Date. This Section 1108.10 shall expire by operation of law on December 31, 2034. (Added by Ord. 299-24, File No. 241084, App. 12/19/2024, Eff. 1/19/2025)

SEC. 1109. TITLE CHANGES NOT AFFECTING OWNERSHIP. The tax imposed under this Article shall not apply where the deed, instrument, or other writing transferring title to real property between an individual or individuals and a legal entity or between legal entities results solely in a change in the method of holding title and in which the proportional ownership interests in the real property, whether represented by stock, membership interest, partnership interest, cotenancy interest, or otherwise, directly or indirectly, remains exactly the same before and after the transfer. (As Sec. 1108(d), established by Ord. 315-67, App. 12/12/67; amended by Ord. 377-84, App. 8/31/84; Ord. 28-95, App. 2/3/95; Ord. 20-09, File No. 081450, App. 2/5/2009; amended and redesignated as Sec. 1109 by Proposition W, 11/8/2016) (Former Sec. 1109 set forth by Ord. 315-67, App. 12/12/67; amended by Ord. 377-84, App. 8/31/84; repealed by Ord. 20-09, File No. 081450, App. 2/5/2009) SEC. 1110. ADMINISTRATION BY COUNTY RECORDER. The County Recorder shall administer this ordinance. 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 ordinance. (Ord. 315-67, App. 12/12/67; amended by Ord. 352-84, App. 8/8/84; Ord. 377-84, App. 8/31/84) SEC. 1111. RECORDING PAYMENT OF TAX. (a) The County Recorder shall collect the tax hereby imposed and deposit the same to the General Fund. The County Recorder shall not record any deed, instrument or writing subject to the tax imposed by this Article 12-C unless the tax is paid. (b) A declaration of the amount of the tax due, signed by the party determining the tax or his or her agent, shall appear on the face of every document subject to tax hereunder which is submitted for recordation. The declaration shall include a statement that the consideration or value on which the tax due was computed was not exclusive of the value of liens or encumbrances remaining on the interest or property conveyed at the time of sale. (c) With every document subject to tax hereunder which is submitted for recordation, there shall also be submitted a separate affidavit stating all relevant information that is necessary for the determination of the proper transfer tax. A form for such affidavit shall be prepared by the County Recorder. The affidavit form shall include the following notice: “NOTICE: Any material misrepresentation of fact in this affidavit is a misdemeanor under Section 1116 of the Real Property Transfer Tax Ordinance. Any person who makes such a misrepresentation is subject to prosecution for such offense.” (d) If the deed, instrument or writing by which any lands, tenements, or other realty sold within the City and County of San Francisco is granted, assigned, transferred, or otherwise conveyed is not recorded with the County Recorder’s Office, the person who makes, signs, or issues such document or for whose benefit such document was made, signed, or issued, shall submit to the County Recorder an affidavit stating all relevant information that is necessary for the determination of the proper transfer tax, on the form described in Section 1111(c). Such affidavit must be filed within 30 days from the date the document effecting the transfer is delivered. Such affidavit must be filed regardless of whether any transfer tax is due or paid. Filing an affidavit that the County Recorder determines to be incomplete in any material aspect may be deemed to be a failure to file this affidavit for purposes of the statute of limitations in Section 1115. (e) In accepting a document for recordation, the County Recorder may rely upon the declaration of the amount of tax due and upon the affidavit of relevant information accompanying the document if the County Recorder has no reason to believe that the full amount of the tax due has not been paid. (f) Every document subject to tax hereunder which is submitted for recordation shall show on the face of the document, or in a separate document, the location of the lands, tenements, or other realty described in the document. (Ord. 315-67, App. 12/12/67; amended by Ord. 377-84, App. 8/31/84; Ord. 201-13 , File No. 130276, App. 10/3/2013, Eff. 11/2/2013; Ord. 111-15 , File No. 150495, App. 7/2/2015, Eff. 8/1/2015; Ord. 176-17, File No. 170703, App. 7/27/2017, Eff. 8/26/2017)

(a) Every person liable for the tax imposed by this Article 12-C shall keep and preserve records as may be necessary to determine the amount of tax for which the person may be liable, or whether the person is exempt from the tax. Upon request of the County Recorder, a person liable for the tax imposed by this Article 12-C shall produce such records to the County Recorder. Additionally, the County Recorder may order any person or persons, whether liable for the tax imposed by this Article 12-C or not, to furnish affidavits and

produce all books, papers, documents, or any other records that the County Recorder believes may have relevance to enforcing compliance with this Article 12-C. (b) The County Recorder may order the attendance before the County Recorder of any per- son or persons, whether liable for the tax imposed by this Article 12-C or not, whom the County Recorder believes may have information relevant to enforcing compliance with this Article 12-C. (c) If the taxpayer does not maintain records that are adequate to determine liability under this Article 12-C, or following a request by the County Recorder fails to produce such records in a timely fashion, the County Recorder may determine the person’s liability based upon any information in the County Recorder’s possession, or that may come into the County Recorder’s possession. Such determination shall be prima facie evidence of the person’s liability in any subsequent administrative or judicial proceeding. (d) The County Recorder may issue and serve subpoenas to carry out these provisions, and may adopt and implement necessary and appropriate audit procedures. (Added by Ord. 176-17, File No. 170703, App. 7/27/2017, Eff. 8/26/2017) (Former Sec. 1111.1 added by Ord. 377-84, App. 8/31/84; repealed by Ord. 176-17, File No. 170703, App. 7/27/2017, Eff. 8/26/2017) SEC. 1113. CLAIMS FOR REFUNDS. (a) Except as otherwise provided in subsection (d) of this Section 1113 or as provided in Section 1113.1, the Controller shall refund or cause to be refunded the amount of any tax, interest, or penalty imposed under this Article 12-C that has been overpaid or paid more than once, or has been erroneously or illegally collected or received by the City, provided the person that paid such amount files a claim in writing with the Controller within the later of one year of payment of such amount or the date the tax was due. The claim must state: (1) the specific amount claimed to have been overpaid or paid more than once, or erroneously or illegally collected or received by the City; (2) the date of transfer; and (3) the grounds upon which the claim is founded, with specificity sufficient to enable the responsible City officials to understand and evaluate the claim. (b) Claims for refund shall be made according to California Government Code, Title 1, Division 3.6, Part 3. The Controller shall furnish a form to be used for these claims. The Controller shall enter the claim in the register, and shall forthwith forward it to the City Attorney. The City Attorney is designated to take such actions on claims as authorized by California Government Code, Title 1, Division 3.6, Part 3, Chapter 2, except that the City Attorney's authority with regard to rejecting or allowing claims shall be as provided in this Section 1113. The City Attorney may reject the claim, and shall notify the claimant of such rejection. Except as provided in subsection (c), allowance or compromise and settlement of claims under this Section 1113 in excess of $25,000 shall require the written approval of the City Attorney and approval of the Board of Supervisors by resolution. The City Attorney may allow or compromise and settle such claims if the amount is $25,000 or less. No claim may be paid until the Controller certifies that monies are available from the proper funds or appropriations to pay the claim as allowed or as compromised and settled. If the City approves the claim, the City may refund the excess amount collected or paid, or may credit such amount toward any amount due and payable to the City from the person from whom it was collected or by whom it was paid, and the balance may be refunded to such person, or the person's administrator or executor. For purposes of this Section 1113, a claim shall be deemed to accrue on the later of the date the tax was due or the date the tax was paid. (c) Notwithstanding the $25,000 limitation on the City Attorney’s authority in subsection (b) of this Section 1113, the City Attorney, with the approval of the County Recorder but without the approval of the Board of Supervisors, may allow or compromise and settle claims under this Section 1113, and suits for refund following the denial of claims under this Section 1113, for any amount up to the amount of transfer tax, penalties, and interest paid that exceeds the amount of transfer tax, penalties, and interest that would have been due on a transaction if the amount of transfer tax, penalties, and interest due had been calculated using the value of the real property on the date of the transaction as finally determined by the Assessment Appeals Board of the City and County of San Francisco plus statutory interest under Section 1113.2. (d) The City Attorney, in the City Attorney’s discretion and upon good cause shown, prior to the expiration of the one-year limitations period, may waive the requirement set forth in subsection (a) of this Section 1113 that a taxpayer file a written claim for a refund in any case in which the County Recorder and City Attorney determine on the basis of the evidence that: (1) an amount of tax, interest, or penalty has been overpaid or paid more than once, or has been erroneously or illegally collected or received by the City; and (2) all other conditions precedent to the payment of a refund to the taxpayer have been satisfied. (e) If a refund claim is allowed under this Section 1113 or a refund request is allowed under Section 1113.1, the Controller will not pay the refund unless the taxpayer first records a document that reflects payment of tax in an amount reduced by the amount of the refund. (Ord. 315-67, App. 12/12/67; amended by Ord. 377-84, App. 8/31/84; Ord. 20-09, File No. 081450, App. 2/5/2009 ; Ord. 111-15 , File No. 150495, App. 7/2/2015, Eff. 8/1/2015; Ord. 154-15 , File No. 150730, App. 8/6/2015, Eff. 9/5/2015; Ord. 111-20, File No. 200399, App. 7/17/2020, Eff. 8/17/2020)

The County Recorder may authorize the Controller to refund transfer tax payments, without the need for a refund claim, if the County Recorder determines: (a) the tax was paid more than once; (b) the amount paid exceeds the amount due as a result of an arithmetic or clerical error; or (c) the tax was paid on a type of transaction that is exempt from the tax. The County Recorder may authorize such a refund no later than one year after payment of the tax. The statute of limitations for filing a claim for refund under Section 1113(a) shall not be tolled and shall continue to run while a person’s request for refund under this Section 1113.1 is pending. (Added by Ord. 20-09, File No. 081450, App. 2/5/2009; amended by Ord. 176-17, File No. 170703, App. 7/27/2017, Eff. 8/26/2017)

(a) Any amounts refunded prior to entry of a final judgment in a judicial proceeding shall bear interest at the rate for prejudgment interest on refunds of local taxes or fees provided by section 3287(c) of the California Civil Code, as amended from time to time, and shall be computed from the date of payment to the date of refund. (b) If the Controller offsets overpayments for a particular transfer against another liability or liabilities owed to the City, or against penalties or interest on the other liability or liabilities owed to the City, the taxpayer will be credited with interest on the amount so applied at the rate of interest set forth above, computed from the date of payment. (c) If a taxpayer elects to apply all or part of a refund, inclusive of any interest accrued up to the date of the taxpayer's election, against a future San Francisco tax liability, the taxpayer will not be credited with interest on the amount so applied from the date of the taxpayer's election. (Added by Ord. 154-15 , File No. 150730, App. 8/6/2015, Eff. 9/5/2015)

PRESENTATION OF CLAIM FOR REFUND AS PREREQUISITE TO SUIT; PAYMENT OF DISPUTED AMOUNT AND PETITION FOR REFUND; LIMITATIONS. (a) Persons claiming they are aggrieved under the Business and Tax Regulations Code must prior to seeking judicial relief: (1) pay the amount of the disputed tax, penalty, and interest; and (2) present a claim for refund to the Controller and allow action to be taken on such claim, pursuant to Section 1113. (b) The person who paid the tax, his or her guardian or conservator, the executor of his or her will, or the administrator of his or her estate may bring an action in Superior Court against the City and County of San Francisco to recover taxes, interest, or penalties that the City has refused to refund on a claim for refund pursuant to Section 1113. No other person may bring such an action; but if another person should do so, judgment shall not be rendered for the plaintiff. Any suit for refund of taxes, interest, or penalties shall be commenced within the time provided by California Government Code section 945.6, as amended from time to time. Persons claiming they are aggrieved under the Business and Tax Regulations Code may not file any type of judicial action other than a refund action. Notwithstanding any other section of this Code, no claim or defense that, for any reason, a tax is not due or cannot be applied under this Code may be raised in any judicial proceeding except in an action for refund of the disputed tax. (Added by Ord. 154-15 , File No. 150730, App. 8/6/2015, Eff. 9/5/2015) SEC. 1114. ADMINISTRATION AND INTERPRETATION.

(a) In the administration of this ordinance the recorder shall interpret its provisions consistently with those Documentary Stamp Tax Regulations adopted by the Internal Revenue Service of the United States Treasury Department which relate to the Tax on Conveyances and are 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 same existed on November 8, 1967, except that for the purposes of this ordinance, the determination of what constitutes “realty” shall be determined by the definition or scope of that term under state law. (b) Notwithstanding subsection (a), “realty sold” includes any acquisition or transfer of ownership interests in a legal entity that would be a change of ownership of real property under California Revenue and Taxation Code Section 64. In such cases, there shall be deemed to have been an instrument executed whereby there was conveyed, for fair market value, all real property that experienced a change of ownership under California Revenue and Taxation Code Section 64. (Ord. 315-67, App. 12/12/67; amended by Ord. 377-84, App. 8/31/84; Proposition N, 4, 11/4/2008; Proposition W, 11/8/2016) SEC. 1115. DEFICIENCY DETERMINATIONS; JEOPARDY DETERMINATIONS. (a) Deficiency Determinations. Whenever the County Recorder has reason to believe that a person has failed to pay or has underpaid the tax imposed by this Article 12-C, the County Recorder may compute and determine any tax, penalty, or interest deficiency upon the basis of any information within the County Recorder’s possession or that may come into the County Recorder’s possession. The County Recorder may make one or more deficiency determinations for the same deed, instrument or writing by which any lands, tenements, or other realty sold within the City and County of San Francisco is granted, assigned, transferred, or otherwise conveyed. (b) Deficiency Determinations; Notice. Upon making a determination pursuant to this Section 1115, the County Recorder shall record the notice of deficiency determination, and shall give to the person or persons liable for the tax, and to the owner or owners of the real property described in the notice, as said owners are shown on the records of the County Assessor, written notice of the County Recorder’s determination. Except in the case of fraud, intent to evade the tax imposed by this Article 12-C , or the failure to either record the deed, instrument or writing effecting a transfer subject to the tax or file the affidavit required under Section 1111(d), in which case there is no statute of limitations, and unless the person liable for the tax has agreed in writing to extend the period for service of a notice of deficiency determination prior to such period expiring, every notice of a deficiency determination shall be served, in the manner provided by Section 1115.3, within three years after the later of: (1) The date the tax became delinquent; (2) The date the person liable for the tax recorded the deed, instrument or writing effecting a transfer subject to the tax with the County Recorder’s Office, if such document was recorded; or (3) The date the person liable for the tax furnished to the County Recorder the affidavit required under Section 1111(d), if the deed, instrument or writing effecting a transfer subject to the tax was not recorded with the County Recorder’s Office. (c) Deficiency Determinations; Content. The County Recorder’s notice of deficiency determination shall include the following information: (1) The amount of delinquent tax; (2) The interest that has accrued and shall continue to accrue on the delinquent tax; (3) The delinquency penalty then due; (4) The additional penalty that shall accrue if the tax is not paid by the date the deficiency determination is due and payable; (5) A description of the lands, property, or other realty sold that was transferred without full payment of tax; and (6) A notice that if the tax, penalties, and interest are not paid within 30 days after service of the notice of deficiency determination upon the person liable for the tax, the County Recorder may commence collection actions for the tax, including, but not limited to, the lien proceedings under Section 1115.1. (d) Deficiency Determinations; Due and Payable. The County Recorder’s deficiency determination shall be due and payable 30 days after service of the notice of deficiency determination upon the person liable for the tax. (e) Jeopardy Determinations. (1) Duty of County Recorder. If the County Recorder believes that the collection of any tax imposed by this Article 12-C will be jeopardized, in whole or in part, by delay, the County Recorder shall serve notice upon the person determined to be liable therefor of his or her determination of jeopardy and of the tax required to be paid to the City, and demanding immediate payment thereof, together with any interest and penalty determined to be due. The County Recorder may consider all facts and circumstances relevant to determining whether the collection of any tax will be jeopardized by delay, including but not limited to indications that the person liable for the tax intends or is taking action to discontinue business activities in the City, dissipate or otherwise remove assets from the City, or sell, exchange, assign, or otherwise dispose of personal or business income or property. The County Recorder also may consider whether the person liable for the tax is insolvent or likely to become insolvent after the taxes at issue are assessed or collected; and whether the person liable for the tax is or has been uncooperative or unresponsive in connection with any investigation, examination, audit,

deficiency determination, assessment, or collection action or procedure undertaken by the County Recorder or Tax Collector. (2) When Due and Payable. A jeopardy determination of tax, interest, or penalty is immediately due and payable upon the service of the notice of jeopardy determination on the person determined to be liable therefor. Prior to service of such notice, the County Recorder or Tax Collector may, notwithstanding the provisions of Section 1115.4, record a lien in the amount due as set forth in the notice of jeopardy determination. Immediately upon service of such notice, the Tax Collector may, notwithstanding the provisions of Section 1115.4, commence lien proceedings under Section 1115.1, seek summary judgment pursuant to Section 1115.5, and/or may commence a collection action in any court having jurisdiction over the matter. (3) Service of Notice. Service of notice of a jeopardy determination shall be provided in the manner set forth in Section 1115.3. (4) Effect of Non-Payment. If the amount specified in the jeopardy determination is not paid within 15 days after service of notice thereof upon the person against whom the determination is made, the additional 10% penalty provided in 1115.2(a)(1) shall attach to the tax or the amount of the tax required to be collected, regardless of the number of days that have passed since the date of the original delinquency. (f) Effect of County Recorder’s Determination. The County Recorder’s issuance of a notice of deficiency determination or a notice of jeopardy determination with respect to any document or transaction, or the County Recorder’s failure to issue such a notice, may not be treated as precedent for the treatment of any future document or transaction. The County Recorder’s issuance of a deficiency determination or a jeopardy determination to a person for a document or transaction shall not bar the County Recorder from making further determinations regarding the liability of the person for that document or transaction. (Ord. 315-67, App. 12/12/67; amended by Ord. 377-84, App. 8/31/84; Ord. 20-09, File No. 081450, App. 2/5/2009; Ord. 201-13 , File No. 130276, App. 10/3/2013, Eff. 11/2/2013; Ord. 176-17, File No. 170703, App. 7/27/2017, Eff. 8/26/2017; Ord. 250-18, File No. 180002, App. 11/2/2018, Eff. 12/3/2018)

(a) Initiating Lien Proceedings. If the full amount of the delinquent tax, penalties, and interest is not paid within 30 days after service of the notice of deficiency determination, the County Recorder, within one year of the deficiency determination becoming due and payable, may report the delinquency to the Board of Supervisors (“the Board”) and request the Board to initiate proceedings to impose a lien for the total unpaid balance against the real property that was transferred by the document delivered without full payment of tax. Said report shall, for each delinquent account, contain the names of the persons liable for the tax, the total amount due, including delinquent taxes, penalties, and interest, a description of the lands, tenements, or other realty sold that was transferred by the document delivered without full payment of tax, and the date on which the County Recorder served its notice of deficiency determination. Upon receipt of such report the Board shall fix a time and place for hearing the report and any protests or objections thereto and shall cause notice of the hearing to be mailed not less than 10 days prior to the date of hearing to each person liable for the tax and to the owner or owners of the real property described in the recorded notice of deficiency determination. (b) Hearing. At the time so fixed, the Board shall meet to hear the report and any protests or objections thereto. The Board may make such revisions, corrections, or modifications of the report as it may deem just; and in the event that the Board is satisfied with the correctness of the report (as submitted or as revised, corrected, or modified), it shall be confirmed. The decision of the Board on the report and on all protests or objections thereto shall be final and conclusive; provided, however, any delinquent account may be removed from the report by payment in full at any time prior to confirmation of the report. The Clerk of the Board shall cause the confirmed report to be verified in a form sufficient to meet recording requirements. (c) Special Assessment Lien. Upon confirmation of the report by the Board, the unpaid balance reported therein, including tax, penalties, and interest, shall constitute a special assessment against the real property that was transferred by the document delivered without full payment of tax; provided, however, that the special assessment, and the lien created thereby, shall attach only to interests in the property that were held, on the date the notice of deficiency determination was recorded, by persons liable for the tax. Each such assessment shall be subordinate to all existing special assessment liens previously imposed upon such parcels and paramount to all other liens except those for State, County, and municipal taxes with which it shall be in parity. The lien shall continue until the assessment and all interest and penalties due and payable thereon are paid. All laws applicable to the levy, collection, and enforcement of municipal taxes shall be applicable to said special assessment. The Clerk of the Board shall give notice of the confirmation of the report to each person liable for the tax and to the owner or owners of the real property described in the recorded notice of deficiency determination and shall cause the confirmed and verified report to be recorded in the County Recorder’s office and the special assessment lien on each parcel of property described in the report shall thereupon secure an additional charge for administrative expenses of $50 or 10% of the unpaid balance, whichever is higher. An action to set aside the special assessment and the lien created thereby shall be commenced within one year from and after the date that notice of the confirmation of the report was given to the persons liable for the tax and to the property owners. (d) Filing with Controller and Tax Col- lector. The Clerk of the Board shall file a certified copy of each confirmed report with the Controller and Tax Collector within 10 days after confirma- tion of the report, whereupon it shall be the duty of said officers to add the amount of each special assessment to the next regular bill for taxes levied for municipal purposes against the respective par- cels of property described in the confirmed report. (e) Payment of Special Assessment. On payment to the Tax Collector of the special assessment, including delinquent taxes, accrued penalties, interest, and the administrative expense charge authorized by Section 1115.1(c) above, the Tax Collector shall cause a Release of Lien to be recorded with the County Recorder and shall pay the statutory recording fee from the administrative expense charge.

Except for the fee paid to record the Release of Lien, all sums collected by the Tax Collector pursuant to this Article 12-C shall be deposited to the General Fund. (Ord. 377-84, App. 8/31/84; amended by Ord. 20-09, File No. 081450, App. 2/5/2009; Ord. 201-13 , File No. 130276, App. 10/3/2013, Eff. 11/2/2013; Ord. 176-17, File No. 170703, App. 7/27/2017, Eff. 8/26/2017)

(a) Penalties. (1) Delinquency Penalties. If any tax is not paid prior to becoming delinquent, a delinquency penalty of 25% of the amount of tax due shall accrue. In the event only a portion of the tax is unpaid prior to becoming delinquent, the penalty shall accrue only as to the portion remaining unpaid. An additional penalty of 10% shall accrue if the tax remains unpaid on the ninetieth day following the date of the original delinquency. (2) Penalties for Fraud or Intent to Evade Tax. When the County Recorder determines that the failure of any person to timely pay any tax due under this Article 12-C was attributable to fraud or an intent to evade this Article 12-C, the County Recorder shall impose a penalty in the amount of 50% of the amount of the unpaid tax. This penalty shall be in addition to the penalty imposed under Section 1115.2(a)(1) and any other fines, penalties, or other charges imposed by law. (b) Interest. Interest shall accrue at the rate of 1% a month, or fraction thereof, on the amount of delinquent tax, exclusive of penalties and interest, from the date the tax becomes delinquent to the date of payment. (c) Penalties and Interest Part of Tax. Interest and penalties accrued shall become part of the tax. (Added by Ord. 176-17, File No. 170703, App. 7/27/2017, Eff. 8/26/2017) (Former Ord. 377-84, App. 8/31/84; amended by Ord. 17-98, App. 1/16/98; Ord. 20-09, File No. 081450, App. 2/5/2009; repealed by Ord. 201-13 , File No. 130276, App. 10/3/2013, Eff. 11/2/2013)

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 an affidavit described in Sections 1111(c) or (d), a deed, instrument or writing subject to the tax, a refund claim form, or written protests or objections to a report of delinquency filed for or on behalf of the person or, if no such address is available, to the person at the official address maintained by the County Assessor 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. In the case of service by mail, the service is complete at the time of deposit with the United States Postal Service. (Added by Ord. 377-84, App. 8/31/84; amended by Ord. 20-09, File No. 081450, App. 2/5/2009; Ord. 201-13 , File No. 130276, App. 10/3/2013, Eff. 11/2/2013; Ord. 176-17, File No. 170703, App. 7/27/2017, Eff. 8/26/2017)

(a) The amount of any tax, penalty, or interest imposed by this Article 12-C shall be deemed a debt owed to the City and County of San Francisco. Any person owing the tax shall be liable in an action brought in the name of the City and County of San Francisco for the recovery of such debt. In such action a reasonable attorney’s fee shall be awarded the plaintiff. The provisions of this Section 1115.4 shall not be deemed a limitation upon the right of the City and County of San Francisco to bring any other action, whether criminal, legal, or equitable, based upon the failure to pay the tax, penalty, or interest imposed by this Article 12-C or the failure to comply with any of the provisions hereof. (b) (1) If a deficiency determination made against any person remains unpaid, and the delinquent taxes, penalties, interest, and fees have been referred to the Tax Collector’s Bureau of Delinquent Revenue under Section 10.38 of the Administrative Code, the Tax Collector may bring an action in the courts of this State, or any other state, or of the District of Columbia, or of the United States and its territories or possessions, or any other forum where permitted by law to recover in the name of the City any amount of the unpaid taxes, together with penalties, interest, and costs, including reasonable attorneys’ fees. (2) In any action filed pursuant to this Section 1115.4(b), the complaint shall attach a certificate executed by the Tax Collector or his or her representative that contains the following information: (A) the name of the person liable for the tax;

(B) a description of the lands, property, or other realty sold that was transferred without full payment of tax; (C) the amount of the tax, penalty, and interest remaining unpaid as of the last day of the month prior to the month in which the complaint is filed; and (D) the fact that the City has complied with all provisions of this Article 12-C in the computation and the levy of the tax, penalty, or interest. (3) In prosecuting such actions, the Tax Collector shall be entitled to all of the provisional remedies provided by law. Any such action shall be commenced within 3 years from the date the deficiency determination issued under Section 1115 became due and payable. (c) If a deficiency determination made against any person remains unpaid, and the delinquent taxes, penalties, interest, and fees have been referred to the Tax Collector’s Bureau of Delinquent Revenue under Section 10.38 of the Administrative Code, the Tax Collector may record a tax lien with the County Recorder, thereby creating a tax lien on all of the assessee’s property and rights to property, including realty, personalty, and intangibles. The Tax Collector may record or file such tax lien in the office of the Recorder of any California county, with the California Secretary of State, and with any other California public entity that is otherwise authorized by law to record liens. The Tax Collector may record or file such tax liens in any other office of any other jurisdiction as permitted by law. The tax lien shall identify the Tax Collector as the lienor, and the amount of the lien. Simultaneously with the recording, a copy of the tax lien shall be mailed to or personally served upon the person determined to be liable for the tax at said person’s last known address based upon the information contained in the County Assessor records. The tax lien after recordation has the force, effect, and priority of a judgment lien and continues for 10 years from the date of recording, unless sooner released or otherwise discharged. (Added by Ord. 377-84, App. 8/31/84; amended by Ord. 176-17, File No. 170703, App. 7/27/2017, Eff. 8/26/2017)

(a) Notice; Certificate. If a deficiency determination made against any person remains unpaid, and the delinquent taxes, penalties, interest, and fees have been referred to the Tax Collector’s Bureau of Delinquent Revenue under Section 10.38 of the Administrative Code, the Tax Collector may file, no sooner than 20 days after the mailing of the notice required in Section 1115.5(a)(1), in the office of the Clerk of the Court, without fee, a certificate specifying as follows: (1) That a notice of intent to file the certificate has been sent, by certified mail, to the person determined to be liable for the tax at the person’s last known address, not less than 20 days prior to the date of the certificate; (2) That the notice required in subsection (a)(1) set forth the following information: (A) The name and address of the person determined to be liable for the tax; (B) The description of the lands, property, or other realty sold that was transferred without full payment of tax; (C) That judgment will be sought in the amount of the tax, penalty, interest, and fees remaining unpaid at the time of the filing of the certificate, and costs as permitted by law; (D) That, upon issuance and recordation of the judgment, additional interest will continue to accrue at the rate prescribed by the Enforcement of Judgments Law in Title 9 of Part 2 of the California Code of Civil Procedure, and that any bond premium posted or other costs to enforce the judgment shall be an added charge; and (E) That a recording fee in the amount set forth in Section 27361.3 of the California Government Code will be required to be paid for the purpose of the recordation of any release of the judgment lien; (3) The name of the person determined to be liable for the tax; (4) The amount for which judgment is to be entered; (5) That the City has complied with all provisions of Article 12-C of the Business and Tax Regulations Code in the computation and the levy of the tax, penalty, interest, and fees; and (6) That a request is therein made for issuance and entry of judgment against the person determined to be liable for the tax. (b) Filing of Certificate; Entry of Judgment. The Clerk of the Court, immediately upon the filing of the certificate, shall enter a judgment for the City and County against the person determined to be liable for the tax in the amount of the tax, penalty, interest, and fees set forth in the certificate. The Clerk of the Court may file the judgment in a loose-leaf book entitled “City and County Summary Tax Judgments.” (c) Recording of Judgment; Lien. An abstract or copy of the judgment shall be recorded, without fee, in the County Recorder’s Office, and may be recorded in any other office in which such filing is permitted by law. The summary judgment shall be enforceable pursuant to the Enforcement of Judgments Law, located in Title 9 of Part 2 of the California Code of Civil Procedure. (d) Additional Penalty. In addition to any penalty or fee imposed under this Article 12-C of the Business and Tax Regulations Code, a penalty equal to the costs incurred to enforce the judgment entered pursuant to this Section 1115.5, including reasonable attorneys’ fees and costs, and the City’s cost of salary and benefits for City staff to enforce the judgment, shall be imposed.

(e) Extension of Lien. Within 10 years from the date of the recording or the date of the last extension of the lien in the manner provided for in this Section 1115.5, the lien may be extended by recording in the County Recorder’s Office an abstract or copy of the judgment. From the time of the recording, the lien extends to the property for 10 years unless sooner released or otherwise discharged. (f) Execution Upon the Judgment. Execution shall issue upon the judgment upon request of the Tax Collector in the same manner as execution may issue upon other judgments, and sales shall be held under such execution as prescribed by law. (g) Satisfaction of Judgment; Removal of Lien. (1) The judgment is satisfied and the lien removed when, but not before, the certificate of release or discharge from the judgment lien is filed with the Clerk of Court and recorded in the County Recorder’s Office. In addition to the judgment amount, and any additional penalty, interest, fee, cost or other amount authorized by the Business and Tax Regulations Code, the Tax Collector shall collect the recording fee in the amount required by Section 27361.3 of the California Government Code, and shall transmit the amount of the recording fee to the County Recorder together with the documents for release or discharge. (2) The judgment is also satisfied and the lien removed when, but not before, the tax is legally canceled and a release or discharge from the judgment lien is recorded in the County Recorder’s Office. A recording under this Section 1115.5(g)(2) shall be made without fee. (Added by Ord. 176-17, File No. 170703, App. 7/27/2017, Eff. 8/26/2017)

If a deficiency determination made against any person remains unpaid, and the delinquent taxes, penalties, interest, and fees have been referred to the Tax Collector’s Bureau of Delinquent Revenue under Section 10.38 of the Administrative Code, the Tax Collector may, not later than three years after the payment became delinquent or the notice of deficiency determination became due and payable, whichever is later, give notice thereof by mail or by personal service to any persons in the State of California having in their possession or under their control any credits or other personal property belonging to the delinquent person, or owing any debts to the delinquent person. After receiving such notice, the persons so notified shall, within five days of the receipt of the notice, advise the Tax Collector by sworn writing of all such credits, personal property, or debts. Further, the persons so notified shall neither transfer nor make any other disposition of the credits, other personal property, or debts in their possession or under their control at the time they receive the notice until the Tax Collector consents to a transfer or disposition or until 30 days elapse after the person has advised the Tax Collector in a sworn writing of all such credits, personal property, or debts. Unless otherwise required by law, if persons so notified transfer such assets in violation of the provisions of this Section 1115.6, they shall become indebted to the City for the value of the property transferred, or the amount owed to the City by the delinquent person, whichever is less. (Added by Ord. 176-17, File No. 170703, App. 7/27/2017, Eff. 8/26/2017) SEC. 1116. MISDEMEANORS. (a) Any person or persons shall be guilty of a misdemeanor who: (1) Makes any oral misrepresentation to any employee of the County Recorder’s office of: (A) The consideration for, the value of, or the liens upon the lands, tenements, or other realty sold that is transferred by any deed, instrument or writing that is subject to the tax imposed by this Article 12-C; or (B) Any material fact which supports a claim that any deed, instrument or writing by which any such lands, tenements, or other realty sold is not subject to the tax imposed by this Article 12-C; or (2) Makes any written misrepresentation of a material fact in any affidavit, declaration, or other writing that is required or may be required by this Article 12-C; or (3) Furnishes to the County Recorder’s office any false record or documentary proof which misrepresents: (A) The consideration for, the value of, or the liens upon the lands, tenements, or other realty sold that is transferred by any deed, instrument or writing that is subject to the tax imposed by this Article 12-C; or (B) Any material fact which supports a claim that any deed, instrument or writing by which any such lands, tenements, or other realty sold is not subject to the tax imposed by this Article 12-C. (b) No person or persons shall be liable, either civilly or criminally, for any unintentional error made in designating the location of the land, tenements, or other realty described in a document subject to the tax imposed by this Article 12-C. (Ord. 315-67, App. 12/12/67; amended by Ord. 377-84, App. 8/31/84; Ord. 176-17, File No. 170703, App. 7/27/2017, Eff. 8/26/2017)

SEC. 1117. REMEDIES CUMULATIVE. The remedies, procedures, penalties, interest, collection costs, and other costs and charges, including reasonable attorneys’ fees, provided in this Article 12-C are cumulative, and may be pursued alternatively, concurrently, or consecutively as the County Recorder and/or the Tax Collector determine. (Added by Ord. 176-17, File No. 170703, App. 7/27/2017, Eff. 8/26/2017) SEC. 1118. CONFIDENTIALITY. (a) Unless otherwise required by law, the information in a person’s affidavit filed under Sections 1111(c) or (d) is confidential, as is any information the County Recorder learns about a person from the person or in response to the County Recorder’s request for information made under Section 1111.1. Information regarding the County Recorder’s investigation of a particular person or transaction, including the fact that the County Recorder has sent a request for information to a particular person or is investigating a particular person or transaction, is also confidential. Except as permitted by this Section 1118 or as otherwise required by law, neither the County Recorder nor his or her staff, nor any other of the City’s current or former employees or agents may disclose confidential information to any person. (b) At the discretion of the County Recorder or Tax Collector, otherwise confidential information may be disclosed in any judicial proceeding or administrative proceeding pertaining to tax administration, determination, assessment, collection, or enforcement, of any civil or criminal liability arising under this Article 12-C if the information concerns a person who is a party to the proceeding, or the proceeding arose out of, or in connection with determining that person’s civil or criminal liability, or the collection of that person’s liability with respect to any tax imposed thereunder. (c) At the discretion of the County Recorder or Tax Collector, disclosure of otherwise confidential information may be made to the extent such disclosures are reasonably necessary to obtaining information bearing a direct relationship to the determination, assessment, collection, or enforcement of any civil or criminal liability arising under this Article 12-C. (d) At the discretion of the County Recorder or Tax Collector, the County Recorder or Tax Collector may disclose otherwise confidential information to employees or agents of the County Recorder or Tax Collector or other City employees who are engaged in matters preparatory to any judicial or administrative proceeding pertaining to the administration or enforcement of any civil or criminal liability arising out of this Article 12-C. (e) If the County Recorder or Tax Collector determines that a liability owing from a person may be collected from another person, the County Recorder or Tax Collector may disclose to such other person information relevant to the determination and collection of tax due or owing from the person owing the liability. (f) The taxpayer, the taxpayer’s successors, receivers, trustees, executors, administrators, assignees, and guarantors, and their duly authorized legal representatives if directly interested, may be given information regarding the items included in the measure and amount of any unpaid tax or amounts of tax required to be collected, interest, and penalties. (g) Notwithstanding any other provision of the Business and Tax Regulations Code or of any City ordinance, the County Recorder and Tax Collector are authorized to enter into agreements with other public taxing agencies providing for the exchange of information for official purposes of said agencies, and to implement any such agreement through the exchange of information. (h) Notwithstanding, any other provision of the Business and Tax Regulations Code or of any City ordinance, the County Recorder and Tax Collector shall provide any and all information to the Assessor and Controller that is needed to fulfill the Assessor’s responsibilities under Section 6.101 of the Charter or the Controller’s responsibilities under Section 3.105 of the Charter. With regard to all such information provided by the County Recorder or Tax Collector, the Assessor and Controller shall be subject to the confidentiality provisions of subsection (a) of this Section 1118. (i) The County Recorder or Tax Collector may disclose to any City employee or agent for official purposes any information described in Section 1118(a) in aggregate or other form that does not disclose the identity of particular taxpayers. (j) Nothing in this Section 1118 shall impose any liability upon the Tax Collector or the County Recorder, or any employee or agent thereof, for any disclosures of confidential information made in the performance of his or her duties. (Added by Ord. 176-17, File No. 170703, App. 7/27/2017, Eff. 8/26/2017) SEC. 1119. AMENDMENT OF ARTICLE. The Board of Supervisors may amend or repeal this Article 12-C by ordinance without a vote of the people except as limited by the California Constitution.

(Added by Proposition C, 3/5/2024, Eff. 4/12/2024)