Chapter 3.08
DOCUMENTARY TRANSFER TAX1
Sections:
3.08.040 Exemptions – Instrument to secure debt.
3.08.050 Exemptions – Instruments of governmental agencies.
3.08.060 Exemptions – Conveyances to effectuate plan of reorganization.
3.08.070 Exemptions – Conveyances to effectuate Securities and Exchange Commission order.
3.08.080 Exemptions – Realty held by partnership.
3.08.010 Title.
The ordinance codified herein shall be known as the “Documentary Transfer Tax Ordinance of the City of Cotati.” It is adopted pursuant to the authority contained in Part 6.7 (commencing with Section 11901) of Division 2 of the Revenue and Taxation Code of the State of California. (Ord. 833 § 1(part), 2011: Ord. 84 § 1, 1967).
3.08.020 Tax imposed.
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 purchasers, or any other person or persons, by his, her or their direction, when the consideration or value of the interest or property conveyed (exclusive of the value of any lien or encumbrances remaining thereon at the time of sale) exceeds one hundred dollars, a tax at the rate of fifty-five cents for each one thousand dollars or fractional part thereof. (Ord. 833 § 1(part), 2011: Ord. 545 § 1, 1991: Ord. 84 § 2, 1967).
3.08.030 Payable by whom.
Any tax imposed pursuant to Section 3.08.020 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. (Ord. 84 § 3, 1967).
3.08.040 Exemptions – Instrument to secure debt.
Any tax imposed pursuant to this chapter shall not apply to any instrument in writing given to secure a debt. (Ord. 84 § 4, 1967).
3.08.050 Exemptions – Instruments of governmental agencies.
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. (Ord. 123 § 1, 1970: Ord. 84 § 5, 1967).
3.08.060 Exemptions – Conveyances to effectuate plan of reorganization.
A. 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:
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 Section 205 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 Section 506 of Title 11 of the United States Code, as amended, or
4. Whereby a mere change in identity form or place or organization is effected;
B. Subdivisions A. 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. (Ord. 84 § 6, 1967).
3.08.070 Exemptions – Conveyances to effectuate Securities and Exchange Commission order.
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; but only if:
A. 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;
B. Such order specifies the property which is ordered to be conveyed;
C. Such conveyance is made in obedience to such order. (Ord. 84 § 7, 1967).
3.08.080 Exemptions – Realty held by partnership.
A. In the case of any realty held by a partnership, no levy shall be imposed pursuant to this chapter by reason of any transfer of an interest in a partnership or otherwise, if:
1. Such partnership (or another partnership) is considered a continuing partnership within the meaning of Section 708 of the Internal Revenue Code of 1954; and
2. Such continuing partnership continues to hold the realty concerned.
B. If there is a termination of any 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 any lien of encumbrance remaining thereon), all realty held by such partnership 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 subdivision B. and any transfer pursuant thereto, with respect to the realty held by such partnership at the time of the termination. (Ord. 84 § 8, 1967).
3.08.090 Administration.
The county recorder shall administer this chapter in conformity with the provisions of Part 6.7 of Division 2 of the Revenue and Taxation Code and the provisions of any county ordinance adopted pursuant thereto. (Ord. 84 § 9, 1967).
3.08.100 Refund claims.
Claims for refund of taxes imposed pursuant to this chapter shall be governed by the procedures specified in Section 3.28.040 of this code. (Ord. 84 § 10, 1967: Ord. 732 § 2, 2002).
For statutory provisions authorizing cities to impose a documentary stamp tax on the sale of real property within the city limits, see Rev. & Tax. Code § 11901 et seq.