Waterford Municipal Code Ch. 3.16 Real Property Transfer Tax

There is imposed on each instrument or writing by which land, tenement or other realty sold within the city is transferred or conveyed to the purchaser or other grantee when the consideration or value of the interest conveyed (exclusive of the value of an encumbrance remaining at the time of sale) exceeds one hundred dollars, a tax at the rate of $0.275 for each five hundred dollars or fractional part of five hundred dollars.

(Ord. 70-1 §1, 1970)

The tax imposed under Section 3.16.010 shall be paid by the person who makes, signs or issues the instrument subject to the tax, or for whose use or benefit the instrument is made, signed or issued.

(Ord. 70-1 §2, 1970)

The tax imposed does not apply to the following conveyances:

A. A conveyance to make effective a plan of reorganization or adjustment:

1. Confirmed under the federal Bankruptcy Act;

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. Whereby a mere change in identity, form or place or organization is effected. This subsection only applies if the filing of instrument of transfer or conveyance occurs within five years from the date of confirmation, approval or change.

B. The tax does not apply to the making of conveyances to make effective an order of the Securities and Exchange Commission, as defined in subdivision (a) of Section 1083 of the Internal Revenue Code of 1954 if:

1. The order of the Securities and Exchange Commission recites that the conveyance is necessary or appropriate to carry out Section 79K of Title 15 of the United States Code, relating to the Public Utility Holding Company Act of 1935; and

2. The order specifies the property which is ordered to be conveyed.

C. 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 any tax imposed pursuant to this chapter when the exempt agency is acquiring title.

D. Partnership Interest.

1. In the case of realty held by a partnership, no levy is imposed by reason of transfer of an interest in a partnership if:

a. The partnership is a continuing partnership within the meaning of Section 708 of the Internal Revenue Code of 1954, and

b. The continuing partnership continues to hold the realty concerned;

2. If there is a termination of a partnership within the meaning of Section 708 of the Internal Revenue Code of 1954, for 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 an encumbrance remaining) all realty held by the partnership at the time of termination;

3. Not more than one tax may be imposed by reason of a termination described in subdivision 2, any transfer pursuant to it, with respect to the realty held by the partnership at the time of termination.

E. Any 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 stated in an affidavit or declaration under penalty of perjury for tax purposes.

(Ord. 70-1 §5, 1970; Ord. 79-6 Art. III §D, 1979)

The tax imposed does not apply to an instrument in writing given to secure a debt.

(Ord. 70-1 §3, 1970)

The United States or its agency or instrumentality, a state or territory, or political subdivision, or the District of Columbia is not liable for the tax imposed with respect to the instrument or writing to which it is a party, but the tax may be collected from any other party liable for it.

(Ord. 70-1 §4, 1970)

A claim for refund of the tax imposed is governed by Chapter 5 of Part 9 of Division 1 of the Revenue and Taxation Code of the state beginning with Section 5096.

(Ord. 70-1 §7, 1970)

The county recorder shall administer this chapter in conformity with Part 6.7 of Division 2 of the Revenue and Taxation Code and a county ordinance adopted pursuant to it.

(Ord. 70-1 §6, 1970)

This chapter becomes operative upon the operative date of any ordinance adopted by the county under Part 6.7 of Division 2 of the Revenue and Taxation Code of the state beginning with Section 11901, or upon the effective date of this chapter whichever is later.

(Ord. 70-1 §8, 1970)

Upon its adoption, the city clerk shall file two copies of the ordinance codified in this chapter with the county recorder.

(Ord. 70-1 §9, 1970)