Yuba County Municipal Code Ch. 5.10 Documentary Transfer Tax

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State Law reference— Documentary transfer tax, Revenue and Taxation Code § 11901 et seq.

This Chapter shall be known as the "Real Property Documentary Transfer Tax Ordinance of the County of Yuba." It is adopted pursuant to Revenue and Taxation Code Div. 2, Pt. 6.7 (Revenue and Taxation Code § 11901 et seq.).

(Prior Code, § 5.10.010; Ord. No. 325; Ord. No. 334)

There is hereby imposed on each deed, instrument, or writing by which any lands, tenements, or other realty sold within the County of Yuba 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 encumbrance remaining thereon at the time of sale) exceeds one hundred dollars ($100.00), a tax at the rate of fifty-five cents ($0.55) for each five hundred dollars ($500.00) or fractional part thereof.

(Prior Code, § 5.10.020; Ord. No. 325)

State Law reference— Tax authorized, Revenue and Taxation Code § 11911.

Any tax imposed by Section 5.10.010 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.

(Prior Code, § 5.10.030; Ord. No. 325)

State Law reference— Similar provisions, Revenue and Taxation Code § 11912.

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

(Prior Code, § 5.10.040; Ord. No. 325)

State Law reference— Similar provisions, Revenue and Taxation Code § 11921.

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.

(Prior Code, § 5.10.050; Ord. No. 325; Ord. No. 887)

State Law reference— Similar provisions, Revenue and Taxation Code § 11922.

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 that is any of the following:

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

(2) Approved in an equity receivership proceeding in a court involving a railroad corporation, as defined in Section 101 of Title 11 of the United States Code, as amended.

(3) Approved in an equity receivership proceeding in a court involving a corporation, as defined in Section 101 of Title 11 of the United States Code, as amended.

(4) Whereby a mere change in identify, form, or place of organization is effected.

Subsections (1) to (4), 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 the confirmation, approval, or change.

(Prior Code, § 5.10.060; Ord. No. 325)

State Law reference— Similar provisions, Revenue and Taxation Code § 11923.

Any tax imposed pursuant to this Chapter shall not apply to the making or delivery of conveyances to make effective any order of the Securities and Exchange Commission, as defined in Section 1083(a) 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;

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

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

(Prior Code, § 5.10.070; Ord. No. 325)

State Law reference— Similar provisions, Revenue and Taxation Code § 11924.

(a) In the case of any realty held by a partnership or other entity treated as a partnership for federal income tax purposes, no tax shall be imposed pursuant to this Chapter by reason of any transfer of an interest in the partnership or other entity or otherwise, if both of the following occur:

(1) The partnership or other entity treated as a partnership is considered a continuing partnership within the meaning of Section 708 of the Internal Revenue Code of 1986.

(2) The continuing partnership or other entity treated as a partnership continues to hold the realty concerned.

(b) If there is a termination of any partnership or other entity treated as a partnership for federal income tax purposes within the meaning of Section 708 of the Internal Revenue Code of 1986, for purposes of this Chapter, the partnership or other entity 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 the partnership or other entity at the time of the termination.

(c) Not more than one tax shall be imposed pursuant to this Chapter by reason of a termination described in Subsection (b), and any transfer pursuant thereto, with respect to the realty held by such partnership or other entity treated as a partnership at the time of the termination.

(d) No levy shall be imposed pursuant to this Chapter by reason of any transfer between an individual or individuals and a legal entity or between legal entities that results solely in a change in the method of holding title to the realty and in which proportional ownership interests in the realty, whether represented by stock, membership interest, partnership interest, cotenancy interest, or otherwise, directly or indirectly, remain the same immediately after the transfer.

(Prior Code, § 5.10.080; Ord. No. 325)

State Law reference— Similar provisions, Revenue and Taxation Code § 11925.

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.

(Prior Code, § 5.10.083; Ord. No. 887)

State Law reference— Similar provisions, Revenue and Taxation Code § 11926.

(a) Any tax imposed pursuant to this Chapter shall not apply with respect to any deed, instrument, or other writing which purports to transfer, divide, or allocate community, quasi-community, or quasi-marital property assets between spouses for the purpose of effecting a division of community, quasi-community, or quasi-marital property which is required by a judgment decreeing a dissolution of the marriage or legal separation, by a judgment of nullity, or by any other judgment or order rendered pursuant to the Family Code, or by a written agreement between the spouses, executed in contemplation of any such judgment or order, whether or not the written agreement is incorporated as part of any of these judgments or orders.

(b) In order to qualify for the exemption provided in Subsection (a), the deed, instrument, or other writing shall include a written recital, signed by either spouse, stating that the deed, instrument, or other writing is entitled to the exemption.

(Prior Code, § 5.10.087; Ord. No. 887)

State Law reference— Similar provisions, Revenue and Taxation Code § 11927.

• Exception; conveyance of realty by State or political subdivision or agency with agreement for purchaser to reconvey.

Any tax imposed by this Chapter shall not apply with respect to any deed, instrument, or other writing by which realty is conveyed by the State of California, any political subdivision thereof, or agency or instrumentality of either thereof, pursuant to an agreement whereby the purchaser agrees to immediately reconvey the realty to the exempt agency.

State Law reference— Similar provisions, Revenue and Taxation Code § 11928.

• Exception; conveyance by State, political subdivision or agency of realty financed by obligations issued by nonprofit corporation.

Any tax imposed by this Chapter shall not apply with respect to any deed, instrument, or other writing by which the State of California, any political subdivision thereof, or agency or instrumentality of either thereof, conveys to a nonprofit corporation realty the acquisition, construction, or improvement of which was financed or refinanced by obligations issued by the nonprofit corporation on behalf of a governmental unit, within the meaning of Section 1.103-1(b) of Title 26 of the Code of Federal Regulations.

State Law reference— Similar provisions, Revenue and Taxation Code § 11929.

• Exception; inter vivos gifts or death; transactions for lands, tenements, or realty, or interests therein.

Any tax imposed by this Chapter shall not apply to any deed, instrument, or other writing which purports to grant, assign, transfer, convey, divide, allocate, or vest lands, tenements, or realty, or any interest therein, if by reason of such inter vivos gift or by reason of the death of any person, such lands, tenements, realty, or interests therein are transferred outright to, or in trust for the benefit of, any person or entity.

State Law reference— Similar provisions, Revenue and Taxation Code § 11930.

If the legislative body of any city in the County imposes a tax pursuant to Revenue and Taxation Code § 11911(b) equal to one-half the amount specified in Section 5.10.020 of this Chapter, a credit shall be granted against the taxes due under this Chapter in the amount of the city tax if the city's tax conforms to the Documentary Transfer Tax Act (Revenue and Taxation Code § 11931). All money which relates to transfers of real property located in a city which imposes a tax on transfers of real property not in conformity with the Documentary Transfer Tax Act (Revenue and Taxation Code § 11931) shall not be credited against the County tax and the entire amount collected by the County shall be allocated entirely to the County. All money which relates to transfers of real property located in unincorporated areas of the County which imposes a tax on transfers of real property shall be allocated entirely to the County.

(Prior Code, § 5.10.090; Ord. No. 325)

The County recorder shall administer this Chapter and shall also administer any ordinance adopted by any city in the County pursuant to the Documentary Transfer Tax Act (Revenue and Taxation Code § 11901 et seq.) imposing a tax for which a credit is allowed by this Chapter.

(Prior Code, § 5.10.110; Ord. No. 325)

(a) The recorder shall not record any deed, instrument or writing subject to the tax imposed by this Chapter unless the tax is paid at the time of recording. If the party submitting the document for recordation so requests, the amount of tax due shall be shown on a separate paper which shall be affixed to the document by the recorder after the permanent record is made and before the original is returned as specified in Government Code § 27321.

(b) Every document subject to tax which is submitted for recordation shall show on the face of the document or in a separate document the amount of taxes due under this Chapter.

(c) Every document subject to tax hereunder which is submitted for recordation shall show on the face of the document the location of the lands, tenements or other realty described in the document. If said lands, tenements or other realty are located within a city in the County, the name of the city shall be set forth. If said lands, tenements or other realty are located in the unincorporated area of the County, that fact shall be set forth.

(d) Whenever an exemption is claimed from the tax imposed by this Chapter, the specific exemption relief upon shall be noted on the face of the deed, instrument or writing. The constructive notice otherwise imparted by recording such document shall not be affected by the fact that such exemption is erroneous or omitted, but the willful omission or falsification of such exemption shall be a violation of this Chapter.

(e) A declaration of the amount of tax due, signed by the party determining the tax or his agent, shall appear on the face of the document or on a separate paper in compliance with Revenue and Taxation Code 11932, and the recorder may rely thereon; provided he or she has no reason to believe that the full amount of the tax due has not been paid. The declaration shall include a statement that the consideration or value on which the tax due was computed was, or that it was not, exclusive of the value of a lien or encumbrance remaining on the interest or property conveyed at the time of sale.

(Prior Code, § 5.10.120; Ord. No. 325; Ord. No. 334; Ord. No. 887)

State Law reference— Similar provisions as to Subsections (a)—(c), Revenue and Taxation Code §§ 11932, 11933.

Claims for refunds of taxes imposed pursuant to this Chapter shall be governed by the provisions of Revenue and Taxation Code Div. 1, Pt. 9, Ch. 5 (Revenue and Taxation Code § 5096 et seq.).

(Prior Code, § 5.10.130; Ord. No. 325)

State Law reference— Similar provisions, Revenue and Taxation Code § 11934.

Whenever the County recorder has reason to believe that the full amount of tax due under this Chapter has not been paid, he or she may, upon any person liable therefor, require him to furnish a true copy of his records relevant to the amount of the consideration or value of the interest or property conveyed.

(Prior Code, § 5.10.150; Ord. No. 325)

Pursuant to the authority of Revenue and Taxation Code § 11911.1, each deed, instrument or writing by which lands, tenements, or other realty is sold, granted, assigned, transferred, or otherwise conveyed, shall have noted upon it the tax roll parcel number. The number will be used only for administrative and procedural purposes and will not be proof of title and in the event of any conflicts, the stated legal description noted upon the document shall govern. The validity of such a document shall not be affected by the fact that such parcel number is erroneous or omitted, and there shall be no liability attaching to any person for an error in such number or for omission of such number.

(Prior Code, § 5.10.160; Ord. No. 729)

(a) Any person or persons who makes, signs, issues or accepts or causes to be made, signed, issued or accepted and who submits or causes to be submitted for recordation any deed, instrument or writing subject to the tax imposed by this Chapter and makes any material misrepresentation of fact for the purposes of avoiding all or any part of the tax imposed by this Chapter shall be guilty of a misdemeanor.

(b) No person or persons shall be liable, either civilly or criminally for any unintentional error made in designating the location of the lands, tenements or other realty described in a document subject to the tax imposed by this Chapter.

(Prior Code, § 5.10.170; Ord. No. 325)

If any section, subsection, sentence, clause, phrase, provision or portion of this Chapter, or the application thereof to any person or circumstances, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions or provisions of this Chapter or their applicability to distinguishable situations or circumstances. In enacting this Chapter, it is the desire of the Board of Supervisors to validly regulate to the full measure of its legal authority in the public interest, and to that end, the Board of Supervisors declares that it would have adopted this Chapter and each section, subsection, sentence, clause, phrase, provision, or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or portions thereof might be declared invalid or unconstitutional in whole or in part, as applied to any particular situation or circumstances, and to this end the provisions of this Chapter are intended to be severable.

State Law reference— Similar provisions, Government Code § 23.