San Mateo Municipal Code Ch. 3.48 Real Property Document Transfer Tax

For the statutory provisions regarding the document transfer tax see West's Cal. Rev. & T.C.A. §§ 11901 et seq.

There is imposed on each deed, instrument or writing by which any lands, tenements, or other real property within the City are sold, granted, assigned, conveyed or otherwise transferred to, or vested in, the purchaser or purchasers, or any other person or persons when the consideration or value of the interest or property conveyed exceeds one hundred dollars, a tax at the rate of one-half of one percent of said consideration or value.As used herein, "consideration or value" means the total consideration, valued in money of the United States, paid or delivered or contracted to be paid or delivered in return for the transfer of 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 of 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."Consideration or value" also includes the amount of any special assessment levied or imposed upon the 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 consideration or value cannot be definitely determined, or is left open to be fixed by future contingencies, "consideration or value" 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 consideration or value pursuant to above provisions of this section.The terms "real property" and "realty" shall be deemed to mean real property as defined by and under the laws of the state.

prior code § 34.01

The tax imposed by Section 3.48.010 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, and such persons shall be jointly and severally liable for payment thereof; provided, that with respect to a transfer made upon the termination of a partnership within the meaning of Section 708 of Title 26 of the United States Code, as amended, for the purposes of this chapter, it shall be assumed that a document was executed by the partnership whereby there was transferred for market value all realty held by such partnership at the time of such termination; providing further, that with respect to the realty held by such partnership, not more than one tax shall be imposed pursuant to this chapter by reason of such termination and any documents making transfer pursuant thereto.All revenues received by the City from the levy of the tax imposed by this chapter shall be deposited and paid into the general fund.

prior code § 34.02

The tax imposed pursuant to Section 3.48.010 shall not apply to:

(1) Any document given to secure a debt, or a transfer to a beneficiary or mortgagee when it is taken in lieu of foreclosure;

(2) Any document to which the United States or any agency or instrumentality thereof; any state or territory, or political subdivision thereof; or the District of Columbia is a party; provided, that the tax may be collected by assessment from any other party liable therefor;

(3) Any document of transfer executed to make effective any plan of reorganization or adjustment which is:

(A) Confirmed under the Federal Bankruptcy Act, as amended,

(B) Approved in any equity receivership proceeding in a court involving either:

(i) A railroad corporation as defined in subdivision (m) of Section 205 of Title 11 of the United States Code, as amended.

(ii) A corporation as defined in subdivision (3) of Section 506 of Title 11 of the United States Code, as amended, or

(C) A mere change in identity, form or place of organization, provided that, subsection (A) and (B) above shall only apply if the making, delivery or filing of such document of transfer or conveyance occurs within five years from the date of such confirmation, approval or change;

(4) Any document of transfer executed pursuant to and to effectuate any order of the Securities and Exchange Commission, as defined in subdivision (a) of Section 1083 of Title 26 of the United States Code, as amended; provided, that the order of the Securities and Exchange Commission in obedience to which such transfer is made:

(A) Recites that such transfer is necessary or appropriate to effectuate the provisions of Section 79K of Title 15 of the United States Code, as amended, relating to the Public Utility Holding Company Act of 1935; and

(B) Specifies the property which is ordered to be transferred;

(5) Any document making a transfer of an interest in a partnership or otherwise when the partnership (or another partnership) is considered a continuing partnership within the meaning of Section 708 of Title 26 of the United States Code, as amended, and such continuing partnership continues to hold the realty concerned.

(6) Any document making a transfer of community property, or interest among joint tenants or tenants in common provided that:

(A) The participating owners have held their respective interest for at least 5 years, or all participating owners acquired their respective interests in the same transaction, however recent; and

(B) No grantor receives any consideration beyond a release from any indebtedness secured by the property interest being transferred.

(7) Any document of interspousal transfer including: (a) transfer to a trustee for the beneficial use of a spouse or the surviving spouse of a deceased transferor, or by the trustee of such a trust to the spouse of the trustor; (b) transfers which take place upon the death of a spouse; (c) transfer to a spouse or former spouse in connection with a property settlement agreement or decree of dissolution of marriage or legal separation; (d) the creation, transfer, or termination, solely between spouses, of any co-owner's interest.

(8) Any document of transfer between parents and children of a single family residence or of property zoned single family residential. The term "children" shall include natural and adopted children, as well as stepchildren if they are legally stepchildren at the time of transfer, and any son-in-law-or daughter-in-law if they are legally in such relationship at the time of transfer.

prior code § 34.03

The fiscal director of the City shall collect the tax hereby imposed and deposit the same to the general fund. The collection may be delegated, in part, by agreement with the county of San Mateo to provide for payment to and through the county recorder upon recordation of the document of transfer upon such terms and conditions as shall be approved by the City Council.

(1) Penalty. The tax imposed by 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 penalty of ten percent 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 ten percent 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 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 part of the tax.

(2) Tax as Debt. The amount of any tax, penalty and interest imposed by this chapter shall be deemed a debt to the City. Any person owing the tax to the City shall be liable to an action brought in the name of the City for the recovery of such amount. The provisions of this section shall not be deemed a limitation upon the City to bring any other action, whether criminal, at law, or in equity arising out of the failure to pay a tax, penalty, or interest imposed, or other failure to comply with the provisions of this chapter.

prior code § 34.04

This chapter, as amended, shall become operative on July 1, 1977.

prior code § 34.06