Villa Park Municipal Code Art. 4-7 Real Property Transfer Tax

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For statutory provisions regarding the Documentary Transfer Tax Act, see Rev. & T. Code § 11901 et seq.

This section shall be known as the "Real Property Transfer Tax Ordinance of the City of Villa Park." It 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 of California.

(Ord. #67-90, § 1)

There is hereby imposed on each deed, instrument or writing by which any lands, tenements, or other realty sold within the City of Villa Park shall be granted, assigned, transferred, or otherwise conveyed to, or vested in, the purchaser or purchasers, or any other person or persons, by his or their 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 one hundred dollars ($100.00), a tax at the rate of twenty-seven and one-half cents ($0.275) for each five hundred dollars ($500.00) or fractional part thereof.

(Ord. #67-90, § 2)

Any tax imposed pursuant to subsection 4-7.2 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.

(Ord. #67-90, § 3)

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

(Ord. #67-90, § 4)

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 the tax imposed pursuant to this section when the exempt agency is acquiring title.

(Ord. #67-90, § 5; Ord. #69-115, § 1)

Any tax imposed pursuant to this section shall not apply to the making, delivering or filing of conveyances to make effective any plan of reorganization or adjustment:

a. Confirmed 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 11 of the United States Code, as amended;

c. Approved in any equity receivership proceeding in a court involving a railroad corporation, as defined in subdivision (3) of Section 506 of Title 11 of the United States Code, as amended; or

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

Paragraphs a to d, inclusive, of this subsection shall only apply if the making, delivery of filing of instruments of transfer or conveyances occurs within five (5) years from the date of such confirmation, approval or change.

(Ord. #67-90, § 6)

Any tax imposed pursuant to this section 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:

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. #67-90, § 7)

a. In the case of any realty held by a partnership, no levy shall be imposed pursuant to this section 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 section, such partnership shall be treated as having executed an instrument thereby 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 section by reason of a termination described in paragraph b, and any transfer pursuant thereto, with respect to the realty held by such partnership at the time of such termination.

(Ord. #67-90, § 8)

The County Recorder shall administer this section 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.

(Ord. #67-90, § 9)

Claims for refund of taxes imposed pursuant to this section 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 of California.

(Ord. #67-90, § 10)

This section shall become operative upon the operative date of any ordinance adopted by the County of Orange, pursuant to Part 6.7 (commencing with Section 11901) of Division 2 of the Revenue and Taxation Code of the State of California, or upon the effective date of this section, whichever is the later.

(Ord. #67-90, § 11)