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HomeMy WebLinkAbout06 ORDINANCE NO. AN ORDINANCE OF THE CITY OF DANVILLE IMPOSING A DOCUMENTARY TRANSTER TAX ON TRANSFERS OF REAL PROPERTY LOCATED WITHIN THE CITY OF DANVILLE The City Council of the City of Danville does ordain as follows: Section 1. SHORT TITLE. This ordinance shall be known as, and for all purposes may be referred to as, the "Real Property Transfer Tax Ordinance of the City of Danville". Section 2. DECLARATION. Pursuant to the authority of Section 11901 et seq. of the Revenue and Taxation Code, there is hereby imposed on each deed, instrument or writing by which any lands, tenements, or other realty sold within the City of Danville 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, a tax at the rate of Twenty-Seven and One-Half Cents for each Five Hundred Dollars or fractional part thereof. Section 3. MOBILE HOMES. A. The transfer of any mobile home installed on a foundation system pursuant to Section 18551 of the Health & Safety Code and subject to local property taxation shall be subject to the tax imposed pursuant to Section 2 hereof. B. The purchaser of a new mobile home which is sold and installed for occupancy as a residence in accordance with Section 18613 of the Health & Safety Code, shall be subject to the tax imposed pursuant to Section 2 hereof. Mobile homes held in the mobile home dealer's inventory shall be exempt from the provisions of this Ordinance. Section 4. PAYMENT. The tax imposed 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. Section 5. EXEMPTIONS. Any tax imposed pursuant to Section 2 hereof shall not apply to: A. Any instrument in writing given to secure a debt; B. The United States or any agency or instrumentality thereof, any state or territory, or political subdivision thereof, or the District of Columbia, with respect to any deed, instrument, or writing to which it is a party, but the tax may be collected by assessment from any other party liable therefor; C. The making, delivering or filing of conveyances to make effective any plan or reorganization or adjustment: (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 subdivision (m) of S205 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 subdivision (3) of S506 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. Subdivisions 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 such confirmation, approval or change; D. The making or delivery of conveyances to make effective any order of the Securities and Exchange Commission, as defined in subdivision (a) of S1083 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 S79k 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. E. Any realty held by a partnership by reason of any transfer of an interest in a partnership or otherwise, if: (1) Such partnership (or another partnership) is con- sidered a continuing partnership within the meaning of S708 of the Internal Revenue Code of 1954; and (2) Such continuing partnership continues to hold the realty concerned. If there is a termination of any partnership within the meaning of S708 of the Internal Revenue Code of 1954, for pur- poses of this ordinance, 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 partner- ship at the time of such termination. Nor more than one tax shall be imposed pursuant to this ordinance by reason of a termination described in the preceding paragraph, and any transfer pursuant thereto, with respect to the realty held by such partnership at the time of such termina- tion. F. 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. Section 6. ADMINISTRATION. Pursuant to the provisions of Part 6.7 of Division 2 of the Revenue and Taxation Code, this Ordinance shall be administered by the County Recorder of the County of Contra Costa. Section 7. REFUNDS. Claims for refund of taxes imposed pursuant to this ordinance 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. Section 8. SUPERSESSION OF COUNTY ORDINANCE. It is the intention of the City Council of the City of Danville that as of the effective date of this Ordinance, it shall supersede the effectiveness of the real property transfer tax article of the County of Contra Costa County Ordinance Code regarding real property transfer taxes in the City of Danville as implemented and adopted by Ordinance No. 1 of the City of Danville. However, it is not intended that this Ordinance shall supersede any portion of the Contra Costa County Ordinance Code, _ insofar as said provisions are consistent with the Ordinance. Section 9. OPERATIVE DATE. This Ordinance relates to taxes for the usual and current expenses of the City of Danville and shall take effect immediately. PASSED, APPROVED AND ADOPTED this ,qth day of July, 1982 by vote as follows: AYES: LANE, MAY, MC NEELY, OFFENHARTZ, SCHLENDORF NOES: NONE ABSENT: NONE i ' :: e