Chapter 2-3 — REAL PROPERTY TRANSFER TAX

Article 1 General(Legislative History: Ordinance No. 89-018, 8/7/89; Ordinance No. 90-010, 5/7/90 (Sections 2-3-105, 2-3-156, 2-3-166, 2-3-196; Ordinance No. 93-09, 5/3/93; Ordinance No. 04-008, 5/3/04 (Section 2-3-157); Ordinance No. 2020-008, 12/14/20 (Section 2-3-105))

Note: Editor's Note: Chapter 3, previously contained herein, was repealed in its entirety by Ordinance No. 89-018. Prior ordinance history includes Ordinance Nos. 67-59, 82-029 and 87-027.

This Chapter may be cited as the "City of San Leandro Real Property Transfer Tax Ordinance." The tax imposed under this Chapter is solely for the purpose of raising revenue for the usual and current expenses of the City. This Chapter is not enacted for regulatory purposes. This Chapter is adopted pursuant to Section 130 of the Charter of the City of San Leandro.

A tax is hereby imposed on each transfer by deed, instrument or writing, by which any lands, tenements or other real property located in the City, are sold or granted, assigned, transferred or otherwise conveyed to, or vested in, a purchaser or purchasers thereof, or any other person or persons at or by the direction of said purchaser or purchasers, when the value of the consideration exceeds One hundred dollars, said tax is to be at the rate of Eleven dollars for each One thousand dollars or fractional part of One thousand dollars or the value of the consideration.

As used herein, "value of the consideration" means the total consideration, paid or delivered or contracted to be paid or delivered in return for the transfer or any lands, tenements or other real property, including the amount of any indebtedness, existing immediately prior to the transfer which is secured by a lien, deed of trust or other encumbrance on the property conveyed and which continues to be secured by such lien, deed or trust or encumbrance after said transfer, and also including the amount of any indebtedness which is secured by a lien, deed of trust or encumbrance given or placed upon the property in connection with the transfer to secure the payment of the purchase price or any part thereof which remains unpaid at the time of the transfer. "Value of the consideration" also includes the amount of any special assessment levied or imposed upon the lands, tenements or other real property by a public body, district or agency, where said special assessment is a lien or encumbrance on the property and the purchaser or transferee agrees to pay such special assessment or takes the property subject to the lien of such special assessment. The value of any lien or encumbrance of a type other than those which are hereinabove specifically included, existing immediately prior to the transfer and remaining after said transfer, shall not be included in determining the value of the consideration. If the value of the consideration cannot be definitely determined, or is left open to be fixed by future contingencies, "value of the consideration" shall be deemed to mean the fair market value of the property at the time of transfer after deducting the amount of any lien or encumbrance if any of a type which would be excluded in determining the value of the consideration pursuant to the above provisions of this section.

Any tax imposed pursuant to Section 2-3-105 hereof 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.

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

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

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 confirmed under the Federal Bankruptcy Act, as amended if the making, delivery or filing of instruments of transfer or conveyances occurs within five years from the date of such confirmation approval or change.

Any tax imposed pursuant to this Chapter shall not apply to the making or delivery of conveyances to make effective any order of the Securities Exchange Commission, 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 the Public Utility Holding Company Act of 1935;

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

(c) Such conveyance is made in obedience to such order.

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

(1) Such partnership (or another partnership) is considered a continuing partnership
within the meaning of Section 708 of the Internal Revenue Code; and

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

(b) If there is a termination of any partnership within the meaning of the Internal Revenue
Code 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.

Any tax imposed pursuant to this Chapter shall not apply with respect to any transfer to a beneficiary or mortgagee which is taken in lieu of foreclosure.

(a) Any tax imposed pursuant to this Chapter shall not apply with respect to any deed, instrument or other writing which purports to transfer, divide or allocate community, quasi- community or quasi-marital property assets between spouses for the purposes of effecting a division of community, quasi-community or quasimarital 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 Part 5 (commencing with Section 4000) of Division 4 of the Civil Code, or by a 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) In order to qualify for the exemption provided in subsection (a), the deed, instrument, or other writing shall include a written recital, signed by either spouse, stating that the deed, instrument, or other writing is entitled to the exemption.

REALTY BY STATE OR POLITICAL SUBDIVISION OR AGENCY WITH AGREEMENT FOR PURCHASER TO RECONVEY.

Any tax imposed pursuant to this Chapter shall not apply with respect to any deed, instrument, or other writing by which realty is conveyed by the State of California, any political subdivision thereof, or agency or instrumentality of either thereof, pursuant to an agreement whereby the purchaser agrees to immediately reconvey the realty to the exempt agency.

REALTY BY STATE, POLITICAL SUBDIVISION OR AGENCY OF REALTY FINANCED BY OBLIGATIONS ISSUED BY NONPROFIT CORPORATION.

Any tax imposed pursuant to this Chapter shall not apply with respect to any deed, instrument, or other writing by which realty is conveyed by the State of California, any political subdivision thereof, or agency or instrumentality of either thereof, conveys to a nonprofit corporation realty the acquisition, construction, or improvement of which was financed or refinanced by obligations issued by the nonprofit corporation on behalf of a government unit, within the meaning of Section 1.103-1(b) of Title 26 of the Code of Federal Regulations.

The tax imposed pursuant to this Chapter shall apply to the transfer of only one property in the instance of an exchange pursuant to Section 1031 of the Internal Revenue Code of like kind properties held for productive use in a trade or business or for an investment. For purposes of this section, the exchange of properties must be completed within 180 days following the date on which the taxpayer transfers and pays the tax on one of the properties relinquished in the exchange.

Any tax imposed by this Chapter will not apply to the transfer of a historic resource, as that term is defined in Section 4-26-200(p) of this Code, where a deed restriction has been recorded on the historic resource that requires the owner of the historic resource to comply with Chapter 4-26 of the San Leandro Municipal Code. This deed restriction must be in a form approved by the City Attorney, and must have a term of at least five years. This deed restriction must be recorded on the historic resource as part of the transaction to transfer the historic resource.

The Finance Director of the City or designee (hereinafter in this Chapter referred to as "Tax Collector") shall collect the tax imposed under this Chapter and shall otherwise administer this Chapter. He or she may make such rules and regulations, not inconsistent with the Chapter, as he or she may deem reasonably necessary or desirable to administer this Chapter. In the administration of this Chapter, the Tax Collector 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, except that for purposes of this Chapter:

(a) The term "realty" as used in said regulations, shall be deemed to mean "real property" as such term is defined by and under the laws of the State;

(b) Those provisions of said regulations providing for deduction of the value of any lien or encumbrance existing before the sale and not removed thereby shall not apply;

(c) Those provisions of said regulations relating to the rate or the tax shall not apply;

(d) Those provisions of said regulations which conflict with the provisions of this Chapter shall not apply.

The tax imposed under this Chapter is due and payable at the time the deed, instrument or writing effecting a transfer subject to the tax is delivered, and is delinquent if unpaid at the time of recordation thereof. In the event that the tax is not paid prior to becoming delinquent, a delinquency of 10% of the amount of tax due shall accrue.

In the event a portion of the tax is unpaid prior to becoming delinquent, the penalty shall only accrue as to the portion remaining unpaid. An additional penalty of 10% shall accrue if the tax remains unpaid on the ninetieth day following the date of the original delinquency. Interest shall accrue at the rate of one-half of one percent (.5%) a month or fraction thereof, on the amount of tax, exclusive of penalties, from the date the tax becomes delinquent to the date of payment. Interest and penalty accrued shall become a part of the tax.

Delinquent taxes (including penalties and interest) shall be made a lien upon the real property transferred and such lien shall continue until the taxes thereon are fully paid. During July of each year, the Tax Collector shall submit to the City Council a report of delinquent taxes. A time, date and place for hearing of the report and any objections or protests thereto shall be fixed by the City Clerk. Not less than 10 days prior to the date of such hearing, the Tax Collector shall mail written notice thereof to the owner of each of the properties affected thereby, using for this purpose the names and addresses which appear on the last equalized tax assessment roll.

(a) At said hearing the City Council shall hear any objections or protests of owners of property
liable to be assessed for delinquent taxes. The City Council may make such revision or
corrections to the report as it deems just, after which the report shall be confirmed by
resolution. The delinquent taxes set forth in the report as confirmed shall constitute special
assessments against the respective property and are a lien on the property for the amounts
of such delinquent taxes.

(b) Prior to August 10, a certified copy of the confirmed report shall be filed with the County
Auditor, who shall enter each assessment on the tax roll against the respective premises.
Said assessment shall be collected at the same time in the same manner as ordinary
municipal ad valorem taxes and shall be subject to the same penalties and the same
procedure and sale in case or delinquency as provided for such taxes. All laws applicable
to the levy, collection and enforcement of municipal ad valorem property taxes shall be
applicable to such assessments.

(c) The lien created attaches upon recordation of a certified copy of the confirmed report in the
office of the County Recorder and shall continue until the charges and fees are fully paid.

The tax imposed by this Chapter shall be paid to the Tax Collector by the persons referred to in Section 2-3-175. Payment shall be accompanied by a declaration of the amount of tax due signed by the person paying the tax or by his or her agent. The declaration shall include a statement that the value of the consideration on which the tax due was computed includes all indebtedness secured by liens, deed of trust, or other encumbrances remaining or placed on the property transferred at the time of transfer, and also includes all special assessments on the property which the purchaser or transferee agrees to pay or which remain a lien on the property at the time of transfer. The declaration shall identify the deed, instrument or writing effecting the transfer for which the tax is being paid. The Tax Collector may require delivery to him or her of a copy of such deed, instrument or writing whenever he or she deems such to be reasonably necessary to adequately identify such writing or to administer the provisions of this Chapter. The Tax Collector may rely on the declaration as to the amount of the tax due, provided he or she has no reason to believe that the full amount of the tax due is not shown on the declaration.

Whenever the Tax Collector has reason to believe that the full amount of tax due is not shown on the declaration or has not been paid, he or she may, by notice served upon any person liable for the tax, require him or her to furnish a true copy of his or her records relevant to the value of the consideration or fair market value of the property transferred. Such notice may be served at any time within three years after recordation of the deed, instrument or writing which transfers such property.

If on the basis of such information as he or she receives pursuant to the last paragraph of Section 2-3-170 and/or on the basis of such other relevant information that comes into his or her possession, he or she determines that the amount of tax due as set forth in the declaration, or as paid, is insufficient, the Tax Collector may recompute the tax due on the basis of such information.

If the declaration required by Section 2-3-170 is not submitted, the Tax Collector may make an estimate of the value of the consideration for the property conveyed and determine the amount of tax to be paid on the basis of any information in his or her possession or that may come into his or her possession.

One or more deficiency determinations may be made of the amount due with respect to any transfer.

The Tax Collector shall give notice to a person liable for payment of the tax imposed under this Article of his or her determination made under Section 2-3-175. Such notice shall be given within three years after the recordation of the deed, instrument or writing effecting the transfer on which the tax deficiency determination was made.

Any notice required to be given by the Tax Collector under this Chapter may be served personally or by mail; if by mail, service shall be made by depositing the notice in the United States mail, in a sealed envelope with postage paid addressed to the person on whom it is to be served at his or her address as it appears in the records of the City or as ascertained by the Tax Collector. The service is complete at the time of the deposit of the notice in the United States mail, without extension of time for any reason.

Any person against whom a determination is made under this Chapter or any person directly interested may petition for a redetermination within 60 days after service upon the person of notice thereof. If a petition for redetermination is not filed within the 60 day period, the determination becomes final at the expiration of the period.

If a petition for redetermination is filed within the 60 day period, the Tax Collector shall reconsider the determination and, if the person has so requested in his or her petition, shall grant the person an oral hearing, and shall give him or her 10 days' notice of the time and place of the hearing. The Tax Collector may designate one or more deputies for the purpose of conducting hearings and may continue a hearing from time to time as may be necessary.

Any action brought under this Chapter shall be commenced within six months from and after the date that the City rejects a claim for refund in whole or in part. No action shall be commenced or maintained under this Chapter unless a claim for refund has first been filed in accordance with regulations duly adopted by the Tax Collector.