Chapter 3.24
REAL PROPERTY TRANSFER TAX1
Sections:
3.24.040 Exemption – Instruments to secure debts.
3.24.050 Exemption – Federal and State agencies.
3.24.060 Exemption – Conveyance to effect reorganization or adjustment.
3.24.070 Exemptions – Conveyance to effect orders of the Securities and Exchange Commission.
3.24.080 Exemption – Partnership transfers or terminations.
3.24.090 Administration authority.
3.24.010 Short title.
This chapter shall be known as the “Real Property Transfer Tax Ordinance of the City of Lake Elsinore.” 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. 452 § 1, 1967. Code 1987 § 3.16.010].
3.24.020 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 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 $100.00, a tax at the rate of $0.275 for each $500.00 or fractional part thereof. [Ord. 452 § 2, 1967. Code 1987 § 3.16.020].
3.24.030 Who must pay tax.
Any tax imposed pursuant to LEMC 3.24.020 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. 452 § 3, 1967. Code 1987 § 3.16.030].
3.24.040 Exemption – Instruments to secure debts.
Any tax imposed pursuant to this chapter shall not apply to any instrument in writing given to secure a debt. [Ord. 452 § 4, 1967. Code 1987 § 3.16.040].
3.24.050 Exemption – Federal and State agencies.
The United States or any agency or instrumentality thereof, any State or Territory, or political subdivision thereof, or the District of Columbia shall not be liable for any tax imposed pursuant to this chapter with respect to any deed, instrument, or writing to which it is a party, but the tax may be collected by assessment from any other party liable therefor. [Ord. 452 § 5, 1967. Code 1987 § 3.16.050].
3.24.060 Exemption – Conveyance to effect reorganization or adjustment.
Any tax imposed pursuant to this chapter shall not apply to the making, delivering or filing of conveyances to make effective any plans of reorganization or adjustment:
A. Confirmed under the Federal Bankruptcy Act, as amended;
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), 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. 452 § 6, 1967. Code 1987 § 3.16.060].
3.24.070 Exemptions – Conveyance to effect orders of the 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. 452 § 7, 1967. Code 1987 § 3.16.070].
3.24.080 Exemption – Partnership transfers or terminations.
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 in 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 a 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) of this section, and any transfer pursuant thereto, with respect to the realty held by such partnership at the time of such termination. [Ord. 452 § 8, 1967. Code 1987 § 3.16.080].
3.24.090 Administration authority.
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. 452 § 9, 1967. Code 1987 § 3.16.090].
3.24.100 Claims for refunds.
Claims for refund of taxes imposed pursuant to this chapter shall be governed by the provisions of Chapter 5 (commencing with Section 1596) of Part 9 of Division 1 of the Revenue and Taxation Code of the State. [Ord. 452 § 10, 1967. Code 1987 § 3.16.100].
3.24.110 Operative date.
The ordinance codified in 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 the later. [Ord. 452 § 11, 1967. Code 1987 § 3.16.110].
For statutory provisions requiring the transfer of the functions of assessment and collection of city taxes to the county, see Government Code § 51500 et seq.; for provisions authorizing cities to impose a documentary stamp tax on the sale of real property within the city, see Revenue and Taxation Code § 11901 et seq.