Saratoga Municipal Code Art. 5-15 Real Property Transfer Tax

This Article shall be known as the "Real Property Transfer Tax Act" of the City and 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.

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, 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.

The tax imposed by this Article 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.

The tax imposed by this Article shall not apply to any of the following:

(a) Instruments to secure debts. Any instrument in writing given to secure a debt.

(b) Public agencies. Any deed, instrument or writing to which the United States or any agent or instrumentality thereof, or any state or territory or political subdivision thereof, or the City, is a party, but the tax may be collected from any other party liable for payment.

(c) Plans of reorganization or adjustment. Any conveyance made pursuant to a plan of reorganization or adjustment:

(1) Confirmed under the Federal Bankruptcy Act, as amended; or

(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; or

(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.

The foregoing exemptions in Paragraphs (1) through (4) shall only apply if the filing of instruments of transfer or conveyance occurs within five years from the date of such confirmation, approval or change.

(d) Orders of Securities and Exchange Commission. 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, and

(2) Such order specifies the property which is ordered to be conveyed, and

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

(e) Partnership interest. Any transfer of an interest in a partnership if the partnership is a continuing partnership within the meaning of Section 708 of the Internal Revenue Code of 1954 and the continuing partnership continues to hold the realty concerned; provided, however:

(1) 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 Article, 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.

(2) Not more than one tax shall be imposed pursuant to this Article by reason of a termination described in subsection (1) above, and any transfer pursuant thereto, with respect to the realty held by such partnership at the time of such termination.

(f) County exemptions. Any conveyances not described in this Section as may be exempted from a real estate transfer tax by the County under its own ordinance adopted pursuant to Part 6.7 of Division 2 of the Revenue and Taxation Code of the State, without subsequent or further amendment of this Article to include such exemptions.

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

Claims for refund of taxes imposed pursuant to this Article 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.

Notwithstanding Section 5-15.060, the limitations period for the filing of a refund pursuant to this Article shall be the period set forth in Section 2-50.010 of this Code.

(Ord. 71-162 § 2, 1996)