Chapter 3.08
REAL PROPERTY TRANSFER TAX

Sections:

3.08.010    Short title and authority.

3.08.020    Tax imposed.

3.08.030    Who pays tax.

3.08.040    Security agreement excepted.

3.08.050    Exemption of public agencies.

3.08.055    Exemptions.

3.08.060    Exceptions.

3.08.070    Special exception—Order of S.E.C.

3.08.080    Partnership interest.

3.08.090    Administration.

3.08.100    Refunds.

3.08.110    Operative date.

3.08.010 Short title and authority.

This chapter may be cited as the “real property transfer tax ordinance of the city of Marina.” It is adopted under the authority of Part 6.7 of Division 2 of the Revenue and Taxation Code of the state, beginning with Section 11901. (Ord. 76-3 § 1, 1976)

3.08.020 Tax imposed.

There is imposed on each instrument of writing by which land, tenement, or other realty sold within the city is transferred or conveyed to the purchaser or other grantee when the consideration or value of the interest conveyed (exclusive of the value of an encumbrance remaining at the time of sale) exceeds one hundred dollars, a tax at the rate of $0.275 for each five hundred dollars or fractional part of five hundred dollars. (Ord. 76-3 § 2, 1976)

3.08.030 Who pays tax.

The tax imposed under Section 3.08.020 shall be paid by the person who makes, signs or issues the instrument subject to the tax, or for whose use or benefit the instrument is made, signed or issued. (Ord. 76-3 § 3, 1976)

3.08.040 Security agreement excepted.

The tax imposed does not apply to an instrument in writing given to secure a debt. (Ord. 76-3 § 4, 1976)

3.08.050 Exemption of public agencies.

The United States or any agency or instrumentality thereof, any state, territory or political subdivision thereof, shall be exempt from any tax imposed pursuant to this chapter with respect to any deed, instrument or writing to which it is a party, when the exempt agency is acquiring title. (Ord. 96-25 § 1(6), 1996: Ord. 76-3 § 5, 1976)

3.08.055 Exemptions.

A.    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.

B.    1.    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 judgment or order, whether or not the written agreement is incorporated as part of any of those judgments or orders.

2.    In order to qualify for the exemption provided in subdivision 1 of this subsection, the deed, instrument or other writing shall include a written recital, signed by either spouse, stating the deed, instrument or other writing is entitled to the exemption.

C.    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.

D.    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. (Ord. 96-25 § 1(7), 1996)

3.08.060 Exceptions.

The tax imposed does not apply to a conveyance to make effective a plan of reorganization or adjustment:

A.    Confirmed under the federal Bankruptcy Act;

B.    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;

C.    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

D.    Whereby a mere change in identity, form or place of organization is effected.

Subsections A through D of this section only apply if the filing of instrument of transfer or conveyance occurs within five years from the date of confirmation, approval or change. (Ord. 76-3 § 6, 1976)

3.08.070 Special exception—Order of S.E.C.

The tax does not apply to the making of conveyances to make effective an order of the Securities and Exchange Commission, as defined in subdivision (a) of Section 1083 of the Internal Revenue Code of 1954 if:

A.    The order of the Securities and Exchange Commission recites that the conveyance is necessary or appropriate to carry out Section 79k of Title 15 of the United State Code, relating to the Public Utility Holding Company Act of 1935; and

B.    The order specifies the property which is ordered to be conveyed. (Ord. 76-3 § 7, 1976)

3.08.080 Partnership interest.

A.    In the case of realty held by a partnership, no levy is imposed by reason of transfer of an interest in a partnership if:

1.    The partnership is a continuing partnership within the meaning of Section 708 of the Internal Revenue Code of 1954; and

2.    The continuing partnership continues to hold the realty concerned.

B.    If there is a termination of a 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 an encumbrance remaining) all realty held by the partnership at the time of termination.

C.    Not more than one tax may be imposed by reason of a termination described in subsection B of this section, any transfer pursuant to it, with respect to the realty held by the partnership at the time of termination. (Ord. 76-3 § 8, 1976)

3.08.090 Administration.

The county recorder shall administer this chapter in conformity with Part 6.7 of Division 2 of the Revenue and Taxation Code and county ordinance adopted pursuant to it. (Ord. 76-3 § 9, 1976)

3.08.100 Refunds.

A claim for refund of the tax imposed is governed by Chapter 5 of Part 9 of Division 1 of the Revenue and Taxation Code of the state beginning with Section 5096. (Ord. 76-3 § 10, 1976)

3.08.110 Operative date.

The ordinance codified in this chapter becomes operative upon the operative date of any ordinance adopted by the county under Part 6.7 of Division 2 of the Revenue and Taxation Code of the state beginning with Section 11901, or upon the effective date of this chapter, whichever is the later. (Ord. 76-3 § 11, 1976)