Vallejo Municipal Code Ch. 3.10 Real Property Conveyance Tax

This chapter shall be known and may be cited as the "real property conveyance tax ordinance of the city of Vallejo." The tax imposed under this chapter is solely for the purpose of raising revenue and this chapter is not enacted for regulatory purposes except insofar as regulations are necessary or convenient to the administration of the tax imposed under this chapter.

(Ord. 207 N.C.(2d) § 2, 1974: Ord. 197 N.C.(2d) § 1 (part), 1973.)

A tax is imposed on each transfer, by deed, instrument or writing, by which any lands, tenements, or other real property sold, located in the city, are, or is, granted, signed, transfer or otherwise conveyed to, or vested in, a purchaser or purchasers thereof, or any other person or persons at or by the direction of the purchaser or purchasers, when the value of the consideration exceeds one hundred dollars, the tax to be at the rate of one dollar and sixty-five cents for each five hundred dollars, or fractional part of five hundred dollars, of the value of the consideration.

As used herein, 'value of the consideration' means the total consideration, valued in money of the Unite 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 encumbrance after the transfer, and also including the amount of any indebtedness which is secured by a lien, deed of trust of 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 property by a public body, district or agency, where the special assessment is a lien or encumbrance on the property and the purchaser or transferee agrees to pay such special assessment or takes the pro 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 the 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 above provisions of this section.

(Ord. 1276 N.C.(2d) § 1, 1993: Ord. 1162 N.C.(2d) § 1, 1991: Ord. 197 N.C.(2d) § 1 (part), 1973.)

Every person who makes a transfer which is subject to the tax imposed under Section 3.10.020, and every person to whom such a transfer is made, shall be jointly and severally liable for payment of the tax imposed under Section 3.10.020.

(Ord. 197 N.C.(2d) § 1(part), 1973.)

As used in this chapter, the terms "real property" and "realty" shall be deemed to mean real property as defined by and under the laws of the state of California.

(Ord. 197 N.C.(2d) § 1(part), 1973.)

Any tax imposed pursuant to this chapter shall not apply to any transfer made solely to secure a debt; provided, however, that nothing herein contained shall be deemed to exclude the amount of any such indebtedness from being included in the "value of the consideration," pursuant to the second paragraph of Section 3.10.020, in connection with transfers which are not made solely to secure a debt.

(Ord. 197 N.C.(2d) § 1 (part), 1973.)

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 a foreclosure.

(Ord. 197 N.C.(2d) § 1 (part), 1973.)

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

(Ord. 197 N.C.(2d) § 1 (part), 1973.)

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:

A. Conformed under the Federal Bankruptcy Act, as amended;

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

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

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

Subdivisions (A) to (D), 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.

(Ord. 197 N.C.(2d) § 1(part), 1973.)

Any tax imposed pursuant to this chapter shall not apply to the making or delivery of conveyance 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.

(Ord. 197 N.C.(2d) § 1(part), 1973.)

A. In the case of any realty held by a partnership, no levy of tax 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 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 transferred, for fair market value, 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 subdivision (B) of this section, and any transfer pursuant thereto, with respect to the realty held by such partnership at the time of such termination.

(Ord. 197 N.C.(2d) § 1 (part), 1973.)

The director of finance of the city (hereinafter in this chapter referred to as the "director") shall collect the tax imposed under this chapter and shall otherwise administer this chapter. The city manager and the director are authorized to negotiate with the county of Solano for its aid in the collection of the tax imposed by this chapter. Any agreement so negotiated shall be submitted to the city council for its final approval. The director may make such rules and regulations, not inconsistent with the provisions of this chapter, as he may deem reasonably necessary or desirable to administer this chapter. In the administration of this chapter, the director 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 and identified as Sections 47.4361-1, 47.4361-2 and 47.4362-1 of Part 47, Title 26 of the Code of Federal Regulations, as the same existed on November 8, 1967, except that for the purposes of this chapter:

A. The term "realty" as used in the regulations shall be deemed to mean "real property" as such term is defined by and under the laws of the state of California;

B. Those provisions of the 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 the regulations relating to the rate of the tax shall not apply; and

D. Those provisions of the regulations which conflict with the provisions of this chapter shall not apply.

(Ord. 200 N.C.(2d) § 1, 1973; Ord. 197 N.C.(2d) § 1 (part), 1973.)

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 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 one hundred eightieth 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.

(Ord. 197 N.C.(2d) § 1 (part), 1973.)

The tax imposed by this chapter shall be paid to the director by the persons refer to in Section 3.10.030. Whenever the director has reason to believe that the full amount of tax due has not been paid, he may, by written notice served upon any person liable for the tax, require him to furnish a true copy of his 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.

(Ord. 197 N.C.(2d) § 1(part), 1973.)

If on the basis of such information as he receives pursuant to Section 3.10.120 and/or on the basis of such other information that comes into his possession, the director determines that the amount of tax paid is insufficient, he may recompute the tax due on the basis of such information.

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

(Ord. 197 N.C.(2d) § 1 (part), 1973.)

The director shall give notice to a person liable for payment of the tax imposed under this chapter of his determination made under Section 3.10.130. 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.

(Ord. 197 N.C.(2d) § 1(part), 1973.)

Any notice required to be given by the director 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 address as it appears in the records of the city or as ascertained by the director. 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.

(Ord. 197 N.C.(2d) § 1(part), 1973.)

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

(Ord. 197 N.C.(2d) § 1(part), 1973.)

If a petition for redetermination is filed within the ninety day period, the director shall reconsider the determination and, if the person has so requested in his petition, shall grant the person an oral hearing, and shall give him at least ten days' written notice of the time and place of such hearing. The director 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.

(Ord. 197 N.C.(2d) § 1(part), 1973.)

The director may decrease or increase the amount of the determination before it becomes final, but the amount may be increased only if a claim for the increase is asserted by the director at or before the hearing.

(Ord. 197 N.C.(2d) § 1(part), 1973.)

The order of decision of the director upon a petition for redetermination becomes final thirty days after service upon the petitioner of notice thereof.

(Ord. 197 N.C.(2d) § 1 (part), 1973.)

The amount of any tax, penalty, and interest imposed under the provisions of this chapter shall be deemed a debt to the city. Any person owing money to the city under the provisions of this chapter shall be liable to an action brought in the name of the city for the recovery of such amount.

(Ord. 197 N.C.(2d) § 1 (part), 1973.)

Whenever the amount of any tax, penalty, or interest has been overpaid, or paid more than once, or has been erroneously collected or received by the city under this chapter, it may be refunded as hereinafter provided in this section, provided a written claim therefor stating under penalty of perjury the specific grounds under which the claim is founded is filed with the director within three years of the date of payment. The claim shall be on a form furnished for this purpose by the director. The director may make such refund if he is satisfied that the claimant is entitled to the refund under the provisions of this section. No refund shall be paid under the provisions of this section unless the claimant establishes his right thereto by written records or other competent evidence showing entitlement thereto.

(Ord. 197 N.C.(2d) § 1 (part), 1973.)

All of the taxes collected under this chapter shall, subject to the provisions hereinafter set forth, be expended for the acquisition, construction, reconstruction, replacement, remodeling, modification, alteration, enlargement, renovation, furnishing, and refurnishing of the following improvements (hereinafter referred to as "property conveyance tax improvements"), namely:

A. City public library facilities, including land and interests in land, library buildings, furniture, books, furnishings, equipment, parking areas and other works, properties, structures and facilities necessary or convenient for the public library system of the city;

B. City fire and police protection facilities, including land and interests in land, fire stations, police buildings, fire engines and trucks, police vehicles, other motorized and unmotorized fire fighting and police equipment, and other works, properties, structures and facilities necessary or convenient for the fire and police protection of the city;

C. City public park, playground and recreation facilities, including land and interests in land, swimming pools, tennis and volleyball and basketball courts, baseball fields, childrens' play areas, turf, sprinkler systems, community center buildings, recreation buildings, and other works, properties, structures and facilities necessary or convenient for public park, playground and recreation purposes; and also including any of the above described facilities constructed or installed within or upon any public school grounds where city is given a right to use the same for public playground or recreation purposes;

D. City maintenance yards for park, playground and recreation facilities, including land and interests in land, buildings, and other structures or works necessary or convenient for the maintenance of city's parks, playgrounds, and recreation facilities;

E. City public works maintenance facilities, including land and interests in land, buildings, and other structures and works necessary or convenient for the maintenance of the city's public works;

F. Communication facilities, including land and interests in land, buildings, structures, radio and other equipment, and other works, properties, or structures necessary or convenient for the communication facilities of the city.

All taxes collected pursuant to this chapter shall be deposited in the capital outlay fund of the city and shall be expended only for such general capital acquisitions and improvements hereinabove set forth as are authorized from time to time by the city council, or as may be described in the annual city budget finally adopted by the city council.

(Ord. 197 N.C.(2d) § 1 (part), 1973.)

All taxes collected pursuant to this chapter from and after July 1, 1979, shall be deposited in the general fund of the city and used for the financial support of general municipal operations and the capital acquisitions and improvements of the city as the city council may, from time to time, specifically authorize, or as the same may be described in the annual city budget approved by the city council. Taxes collected prior to July 1, 1979, shall continue to be deposited in the capital outlay fund to be expended only for those purposes authorized in Section 3.10.230.

(Ord. 477 N.C.(2d) § 1, 1979.)

Anything in Section 3.10.230 of this chapter to the contrary notwithstanding, the moneys placed in the capital outlay fund of the city as a result of collections of the tax may be expended for the purpose of paying the costs of collecting the tax imposed under this chapter and of otherwise administering this chapter.

(Ord. 197 N.C.(2d) § 1 (part), 1973.)