Chapter 3.12
DOCUMENT TRANSFER TAX*

Sections:

3.12.010    Title—Authority.

3.12.020    Imposed—Rate.

3.12.030    Applicability.

3.12.040    Exception—Instrument to secure debt.

3.12.050    Exemption—Government instruments or transactions.

3.12.060    Exemption—Conveyances of reorganization or adjustment.

3.12.070    Exemption—Order of Securities and Exchange Commission.

3.12.080    Exemption—Transfer of interest in partnership.

3.12.090    Administration.

3.12.100    Claim for refund.

3.12.110    Operative date.

*    Code Reviser’s Note: The title of this chapter has been changed from “real property transfer tax” to “document transfer tax” at the request of the city.

3.12.010 Title—Authority.

The ordinance codified in this chapter shall be known as the “document transfer tax ordinance of the town of Atherton.” 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. (Ord. 278 § 1, 1967)

3.12.020 Imposed—Rate.

There is imposed on each deed, instrument or writing by which any lands, tenements or other realty sold within the town 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 encumbrances remaining thereon at the time of sale) exceeds one hundred dollars, a tax at the rate of twenty-seven and one-half cents ($0.275) for each five hundred dollars or fractional part thereof. (Ord. 278 § 2, 1967)

3.12.030 Applicability.

Any tax imposed pursuant to Section 3.12.020 of this chapter 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. 278 § 3, 1967)

3.12.040 Exception—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. 278 § 4, 1967)

3.12.050 Exemption—Government instruments or transactions.

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 by this chapter when the exempt agency is acquiring title. There shall be exempt from the tax imposed by this chapter those instruments and transactions described in Sections 11926 and 11927 of the California Revenue and Taxation Code, subject to the limitations specified in said sections. (Ord. 417 § 14, 1985: Ord. 278 § 5, 1967)

3.12.060 Exemption—Conveyances of reorganization or adjustment.

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 of organization is effected.

B. Subsections A1 through A4, 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. 278 § 6, 1967)

3.12.070 Exemption—Order 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; 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. 278 § 7, 1967)

3.12.080 Exemption—Transfer of interest in 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, 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 partnership at the time of such termination.

C. Not more than one tax shall be imposed pursuant to this chapter by reason of a termination described in subsection B, and any transfer pursuant thereto, with respect to the realty held by such partnership at the time of such termination. (Ord. 278 § 8, 1967)

3.12.090 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. 278 § 9, 1967)

3.12.100 Claim for refund.

Claims for refund of taxes imposed pursuant to this chapter 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. (Ord. 278 § 10, 1967)

3.12.110 Operative date.

This chapter shall become operative upon the operative date of any ordinance adopted by the county, pursuant to Part 6.7 (commencing with Section 11901) of Division 2 of the Revenue and Taxation Code of the state, or upon the effective date of the ordinance codified in this chapter, whichever is later. (Ord. 278 § 11, 1967)