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)