This chapter shall be known as the "Real Property Transfer Tax Code of the City of Lawndale." It is adopted pursuant to the authority contained in Section 11901 et seq. of the Revenue and Taxation Code of the State of California.
(Prior code § 19-16)
The county recorder shall administer this chapter in conformity with the provisions of Section 11901 et seq. of the Revenue and Taxation Code, and the provisions of any county ordinance adopted pursuant thereto.
(Prior code § 19-17)
There is imposed on each deed, instrument or writing by which any lands, tenements or other realty sold within the city shall be granted, assigned, transferred or otherwise conveyed to, or vested in, the purchaser, or any other person by the purchaser's 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.
(Prior code § 19-18)
Any tax imposed pursuant to Section 3.16.030 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 § 19-19)
A. 
Security Instruments. Any tax imposed pursuant to this chapter shall not apply to any instrument in writing given to secure a debt.
B. 
Governmental Entities. 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.
C. 
Bankruptcies, Arrangements, Etc.
1. 
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 which is confirmed under the Federal Bankruptcy Act, as amended; 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; approved in an equity receivership proceeding in a court involving a corporation, as defined in subdivision (3) of Section 506 of Title 11 of the United States Code, as amended; or whereby a mere change in identity, form or place of organization is effected.
2. 
The exemptions of this subsection shall only apply if the making, delivering or filing of instruments of transfer or conveyances occurs within five years from the date of such confirmation, approval or change.
D. 
Conveyances Making Effective Orders of Securities and Exchange Commission. 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 subdivision (a) of Section 1083 of the Internal Revenue Code of 1954 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; and
3. 
Such conveyance is made in obedience to such order.
E. 
Partnership Transfers.
1. 
In the case of any realty held by a partnership or any other entity treated as a partnership for federal income tax purposes, no levy 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:
a. 
The continuing 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; and
b. 
The continuing partnership or other entity treated as a partnership continues to hold the realty concerned.
2. 
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.
3. 
Not more than one tax shall be imposed pursuant to this chapter by a county, city and county or city by reason of a termination described in paragraph b. of this subsection, and any transfer pursuant thereto, with respect to the realty held by a partnership or other entity treated as a partnership at the time of the termination.
4. 
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 interest in the realty, whether represented by stock, membership interest, partnership interest, co-tenancy interest, or otherwise, directly or indirectly, remains the same immediately after the transfer.
F. 
Instruments Taken as a Result or in Lieu of Foreclosure. 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.
G. 
Instruments Dividing Marital Property. 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 purposes 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 those judgments or orders. In order to qualify for the exemption provided by this subsection, 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.
H. 
Realty Reconveyance With State. Any tax imposed pursuant to 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.
I. 
Realty Conveyed by State to Nonprofit Corporation. Any tax imposed pursuant to 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.
J. 
Transfers by Inter Vivos Gift or Death. Any tax imposed pursuant to 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.
(Prior code § 19-20; Ord. 569-88 §§ 1, 2; Ord. 812-96 § 10; Ord. 913-02 §§ 12, 13)
Claims for refund of taxes imposed pursuant to this chapter shall be governed by the provisions of Section 5096 et seq. of the Revenue and Taxation Code.
(Prior code § 19-21)