San Marcos Municipal Code Ch. 3.12 Documentary Transfer Tax

This chapter shall be known as the "Real Property Transfer Tax Ordinance of the City of San Marcos." It is adopted pursuant to the authority content in Part 6.7, commencing with Section 11901 of Division 2 of the Revenue and Taxation Code of the State.

The County Recorder shall administer this chapter in conformity with the provisions of Part 6.7 of Division 2 of the State Revenue and Taxation Code and the provisions of any county ordinance adopted pursuant thereto.

The Recorder shall not record any deed, instrument or writing subject to the tax imposed by this chapter unless the tax is paid at the time of recording. A declaration of the amount of tax due, signed by the party determining the tax or his agent, shall appear on the face of the document or on a separate paper, and the recorder may rely thereon; provided he has no reason to believe that the full amount of the tax due has not been paid. The declaration shall include a statement that the consideration or value on which the tax due was computed was, or that it was not, exclusive of the value of a lien or encumbrance remaining on the interest or property conveyed at the time of sale. If the party submitting the document so requests, the amount of tax due shall be shown on a separate paper which shall be affixed to the document by the recorder after the permanent record is made and before the original is returned as specified in Section 27321 of the Government Code.

Every document subject to the 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 are located within a City in the county, the name of the City shall be set forth. If said lands, tenements or other realty are located in the unincorporated area of the county, that fact shall be set forth.

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 any other person, by his direction, when the consideration or value of the interest or property conveyed, exclusive of the value of any lien or encumbrances remaining thereon at the time of sale, exceeds $100.00, a tax at the rate of $0.275 for each $500.00 or fractional part thereof.

The tax imposed by this chapter 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 document is made, signed or issued.

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 the tax imposed by 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 therefore.

(a)

The tax imposed by this chapter shall not apply to any instrument in writing given to secure a debt. The tax imposed pursuant to this chapter shall not apply with respect to any deed, instrument, or writing to a beneficiary or mortgagee, which is taken from the mortgagor or trustor as a result of or in lieu of foreclosure; provided, that such tax shall apply to the extent that the consideration exceeds the unpaid debt, including accrued interest and cost of foreclosure. Consideration, unpaid debt amount and identification of grantee as beneficiary or mortgagee shall be noted on said deed, instrument or writing or state in an affidavit or declaration under penalty of perjury for tax purposes.

(b)

The tax imposed by this chapter shall not apply to the making, delivering or filing of conveyances to make effective any plan or 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 any equity receivership proceeding in a court involving a railroad corporation, as defined in subdivision (m) of Section 506 of Title 11 of the United States Code, as amended;

(4)

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

Paragraphs (b)(1) to (4), inclusive, of this subsection 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.

(c)

The tax imposed by 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:

(1)

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

(2)

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

(3)

The conveyance is made in obedience to such order.

(a)

In the case of any realty held by a partnership, no levy shall be imposed by this chapter by reasons of any transfer of an interest in a partnership or otherwise, if:

(1)

The partnership, or another partnership is considered a continuing partnership within the meaning of Section 708 of the Internal Revenue Code of 1954; and

(2)

The 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 the purposes of this chapter, the 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 the partnership at the time of the termination.

(c)

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

Claims for a refund of taxes paid 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.