Chapter 4.62

REAL PROPERTY TRANSFER TAX*

Sections:

*Editor’s note— Ord. 16335, adopted July 17, 1972, provided:

• "That the provisions of Article XV of the San José Municipal Code (the 'Real Property Transfer Tax Ordinance of the City of San José') shall be suspended on and after July 1, 1972 and shall remain suspended and thereafter be of no force and effect so long as the provisions of Article

• 4.62.010 Title of chapter provisions - Statutory authority.

• 4.62.020 Persons on whom tax is imposed.

• 4.62.030 Exemptions - Government entities.

• 4.62.040 Exemptions - Security for debt.

• 4.62.050 Exemptions - Conveyances and plans of reorganization and adjustment.

• 4.62.060 Exemptions - Conveyances for securities and exchange commission orders.

• 4.62.070 Exemptions - Transfer of interests in partnerships.

• 4.62.080 Imposition - Rate.

• 4.62.090 Administration - County recorder duties.

• 4.62.100 Refund claims.

The ordinance codified in this chapter shall be known as the "Real Property Transfer Tax Ordi-

XVIII of the San José Municipal Code (the 'San José Real Property Conveyance Tax Ordinance') are effective and operative; provided, however, that in the event the provisions of said Article XVIII are for any reason declared invalid, then and in that event said provisions of said Article XV shall not be deemed to have been suspended but shall be deemed to have been in full force and effect continuously on and after July 1, 1972. Nothing in this ordinance shall be construed as relieving any person of the obligation to pay to the City of San José any tax accrued and owing to the City of San José under the provisions of said Article XV in force and effect prior to and including June 30, 1972." Article XV is codified as Chapter 4.62 of the 1978 code; Article XVIII is codified as Chapter 4.58.

State law reference— For statutory provisions authorizing cities to impose a documentary stamp tax on transfers of real property within the city, see Rev. and Tax. Code § 11901 et seq.

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§ 4.62.070

nance of the City of San José." 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. (Prior code § 15000.)

Any tax imposed pursuant to Section 4.62.080 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.

(Prior code § 15000.2.)

The United States or any agency or instrumentality thereof, any state or territory or political subdivision thereof, or the District of Columbia, shall not be liable for any tax imposed pursuant to this chapter with respect to any deed, instrument, or writing to which it is a party, but the tax may be collected by assessment from any other party liable therefor.

(Prior code § 15000.4.)

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

(Prior code § 15000.3.)

• A. Any tax imposed pursuant to this chapter shall not apply to the making, delivering or filing of conveyances to make effective any plan of reorganization or adjustment:

  1. Confirmed under the Federal Bankruptcy Act, as amended;

  2. Approved in an equity receivership proceeding in a court involving a railroad corporation, as defined in subdivision (m) of Section 205 of Title 11 of the United States Code, as amended;

  3. Approved in an equity receivership proceeding in a court involving a corporation, as defined in subdivision (3) of Section 506 of Title 11 of the United States Code, as amended; or

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

• B. Subdivisions 1 through 4, 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.

• (Prior code § 15000.5.)

Any tax imposed pursuant to this chapter shall not apply to the making or delivery of conveyances to make effective any order of the Securities and Exchange Commission, as defined in subdivision (a) of Section 1083 of the Internal Revenue Code of 1954; but only if:

• A. The order of the Securities and Exchange Commission in obedience to which such conveyance is made recites that such conveyance is necessary or appropriate to effectuate the provisions of Section 79k of Title 15 of the United States Code, relating to the Public Utility Holding company Act of 1935;

• B. Such order specifies the property which is ordered to be conveyed;

• C. Such conveyance is made in obedience to such order.

(Prior code § 15000.6.)

• A. In the case of any realty held by a partnership, no levy shall be imposed pursuant to this chapter by reason of any transfer of an interest in a partnership or otherwise, if:

  1. Such partnership (or another partnership) is considered a continuing partner-

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§ 4.62.070

ship within the meaning of Section 708 of the Internal Revenue Code of 1954; and

2. Such continuing partnership continues to hold the realty concerned.

• B. If there is a termination of any partnership within the meaning of Section 708 of the Internal Revenue Code of 1954, for purposes of this chapter, such partnership shall be treated as having executed an instrument whereby there was conveyed, for fair market value (exclusive of the value of any lien or encumbrance remaining thereon), all realty held by such partnership at the time of such termination.

• C. Not more than one tax shall be imposed pursuant to this chapter by reason of a termination described in subsection B of this section, and any transfer pursuant thereto, with respect to the realty held by such partnership at the time of such termination.

(Prior code § 15000.7.)

There is hereby imposed on each deed, instrument or writing by which any lands, tenements, or other realty sold within the city shall be granted, assigned, transferred or otherwise conveyed to, or vested in, the purchaser or purchasers, or any other person or persons, by his or their direction, when the consideration or value of the interest or property conveyed (exclusive of the value of any lien or encumbrances remaining thereon at the time of sale) exceeds one hundred dollars, a tax at the rate of twenty-seven and one-half cents for each five hundred dollars or fractional part thereof. (Prior code § 15000.1.)

Claims for refund of taxes imposed pursuant to this chapter shall be governed by the provisions of Chapter 5 (commencing with Section 5096) of Part 9 of Division 1 of the Revenue and Taxation Code of the state.

(Prior code § 15000.9.)