HomeMy WebLinkAbout3982l
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Ordinance No. ;3982.
AN ORDIN~~NCE UPDATING DOCUMENTARY TRANSFER TAX PROVISIONS
The Board of Supervisors of the County of Butte ordains as follows:
Section 1.
Existing Article III of Chapter 21 of the Butte County Code is repealed in its entirety.
Section 2.
Article III is added to Chapter 21 of the Butte County Code to read as follows: "Article III.
Documentary Transfer Tax
21-18 Authorization, Title
Pursuant to authority granted by the Documentary Transfer Tax Act, Part 6.7,
{commencing with Section 11901) Div. 2 of the Revenue and Taxation Code, the Board
of Supervisors hereby adopts this Article III and imposes a tax on any document
transferring, for consideration, an ownership interest in real property located, in whole
or in part, within this county. This Article III shall be known, and may be cited, as the
Documentary Transfer Tax Ordinance, and the tax imposed hereby shall be known as the
Documentary Transfer Tax.
21-19 Rate
Documentary Transfer Tax shall be payable at the rate offifty-five cents {$0.55) per Five
Hundred Dollars {$500.00} or fraction thereof, of net value transferred. ~s used in this
ordinance, "net value transferred" shall mean the value of total consideration for the
interest transferred, less the amount of any liens and encumbrances remaining thereon at
the time of transfer. When the value of consideration cannot be determined, the value of
the interest transferred shall be used in lieu of consideration in determining the amount
of tax.
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21-20 Properties extending Beyond County
If real property described in a document that is subject to this Article 111 is located both
within and without this county, Documentary Transfer Tax shall apply only to that
portion of the real property located within this county, and the equity transferred shall be
adjusted accordingly in determining the amount of Documentary Transfer Tax.
21-21 Assessor's Parcel Number
Every document described in Section 21-1$ that is presented to the Recorder for
recordation shall have noted thereon the tax roll parcel number of the real property that
is the subject of the transfer. This number shall be used only for administrative and
procedural purposes, shall not be deemed to be proof of title, and, in the event of any
conflicts, the legal description set forth upon the document shall govern. The validity of
such a document shall not be affected by the fact that such parcel number is erroneous or
omitted, and there shall be no liability attaching to any person for an error in such number
or for omission of such number.
Sec. 21-22 Statement of Location of Property
Every document described in Section 21-18 that is presented for recordation shall state
on its face whether the real property described therein is located within an incorporated
or unincorporated area of the county, and shall further state the name of the incorporated
area, if applicable.
21-23 Transfer Tax Declaration
(a} Every document described in Section 21-18 and presented for recordation shall
contain, or be submitted with, a Transfer Tax Declaration. This Declaration shall set
forth the amount of the tax due, shall indicate whether the amount of tax due was based
upon the full value of the consideration paid (or value of the interest transferred) or the
full value thereof less remaining liens and encumbrances, and shall be signed by the party
determining the amount of tax due, or that party's agent.
(b) if the party submitting the document for recordation so elects, the information
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requu•ed in the Transfer Tax Declaration may be set forth in a separate writing, which
shall be affixed to the recorded document after the permanent record is made and before
the recorded document is returned as specified in Section 27321 of the Gavermnent
Code. If a party elects to submit a separate Transfer Tax Declaration pursuant to this
paragraph, said Declaration shall not be recorded, and the information contained therein
shall be treated as confidential information by the recorder.
21-2~ Additional Information/Statement of Exemption
(a) The Recordex may rely upon information contained in the Transfer Tax Declaration,
without further investigation. If it appears to the Recorder that there are grounds to
believe that the full amount of tax due is other than the amount set forth in the Transfer
Tax Declaration, the Retarder may request, and shall be entitled to receive, any and all
additional information reasonably deemed necessary to determine the correct amount of
tax due, Tht Recorder shall decline to record the document presented far recordation
until all such additional information has been provided, and the Recorder has determined
the correct amount of tax due.
(b} If a party seeking to record a document described in Section 21-1$ believes that
there is no Documentary Transfer Tax due, the Transfer Tax Declaration shall sa state,
and shall further briefly state the reason for such Claimed exemption, In such cases, the
Recorder may require the party, or the party's agent, to Complete and sign a Statement of
Exemption, containing such information as may be reasonably required. by the recorder
to evidence the fart that the document is exempt from Transfer Tax pursuant to this
article.
21-25 Payment of Tax
(a) The Recorder shall not record any document subj ect to the payment of Documentary
Transfer Tax unless the tax is paid, in full, at the time of recordation. However, failure
to collect the tax shall not affect the constructive notice otherwise imparted by recording
said document.
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{b} Documentary Transfer'hax shall be paid by anSr person who makes, signs or issues
an_y document subject to the tax, or for whose benefit said document is made, signed or
issued.
21-26 Mobile I-Tomes
A transfer of a mobile home installed on a foundation system, pursuant to Section 18551
of the Health and Safety Cade, and subject to local property taxation shall be deemed a
transfer of an ownership interest in real property under Section 21-18.
21-27 Leases
(a) A leasehold interest with an original term ofthirty-five (35) years or more, including
all renewal options, shall be deemed to be an ownership interest in real property under
Section 21-18, and the creation, transfer or termination of any such leasehold interest
shall constitute a transfer of an ownership interest in real property under Section 21-18.
{b} Upon the transfer of a leasehold interest described in Paragraph (a), only leasehold
liens and encumbrances shall be considered in determining the net value transferred under
Section 21-19.
21-28 Standing Timber & Mineral Rights
The right to harvest standing timber and the right to produce or extract oil, gas or other
minerals from real property shall be deemed to be ownership interests in such real
property under Section 21-18, and any transfer of any such interest shall constitute a
transfer of an ownership interest in real property under Section 21-18.
21-29 Transfers Ancillary to Financing
Except as provided in Section 21-32, any transfer of an interest in real property made
primarily for the purpose of enabling any party to obtain a loan secured by such real
property shall be deemed to be a transfer far consideration for purposes of this Article III.
In such cases, the amount of consideration shall be deemed to be the same as the amount
of the loan so obtained, or to be obtained.
21-30 Terminating Partnerships
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{a) For purposes of this ordinance, if a partnership {or other entity treated as a
partnership for federal income tax purposes} is considered terminated under the
provisions of Section 708 of the Internal Revenue Code, such partnership, or other entity
shall be deemed to have executed and delivered a document described in Section 21-18,
conveying all real property owned by the partnership, or other entity, at the time of
termination to its partners, in proportion to their ownership interest in the partnership, or
other entity.
(b} The provisions of paragraph (a} shall not apply to the extent that a terminating
partnership, or other entity, executes and delivers a deed, or other document, conveying
its real property upon termination.
21-31 Exemption; Minimal Value Transactions
No Documentary Transfer Tax shall be due upon any document where the net value
transferred thereunder equals One Hundred Dollars {$100.00) or less.
21-32 Exemption; Documents Securing Debt
No Documentary Transfer Tax shall be due upon any mortgage or deed of trust given to
secure a debt, or upon a release of mortgage or deed of reconveyance upon satisfaction
of such debt.
21-33 Exemption; Gifts and Transfers by Reason of Death
No Documentary Transfer Tax shall be due upon any document transferring an interest
in real property by reason of the death of any person, or a transfer by inter vivos gift,
whether the interest conveyed is transferred outright or in trust for the benefit of any
person or entity.
21-34 Exemption; Agent Transfers
No Documentary Transfer Tax shall be due upon any document transferring an interest
in real property from a principal to his agent or from an agent to his principal.
21-35 Exemption, Transfers in Connection with Dissolution of Marriage
(a} No Documentary Transfer Tax shall be due upon any document transferring an
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interest in community, quasi-community or quasi-marital property between spouses,
when such transfer is made to effectuate the division or allocation of such property
pursuant to a judgment of dissolution, separation or nullity of marriage, or any other order
or judgment rendered pursuant to the Family Code, or pursuant to a written agreement
between the spouses executed in contemplation of any such order or judgment.
(b) To qualify for this exemption, the document described in paragraph {a} shall contain
a statement, signed by either spouse, indicating that it is entitled to this exemption.
21-3b 1xemption; Transfers in Connection with I'oreelosure
{a) No Documentary Transfer Tax shall be due on any document transferring an interest
in real property from a mortgagor to a mortgage, or from a trustor to a beneficiary under
a deed of trust, where the underlying mortgage or deed of trust encumbers the property
being transferred, and where the interest is being transferred as a result of, or in lieu of,
foreclosure.
(b} The exemption provided in paragraph {a) applies only to the extent that
cansideration far such transfer does not exceed the unpaid indebtedness (including
accrued interest and costs of foreclosure), and Documentary Transfer Tax shall be due
to the extent that the consideration exceeds the indebtedness.
(c) In order to qualify for this exemption, a document described in paragraph (a) shall
state, on its face, the amount of cansideration paid, the amount of the unpaid
indebtedness, and shall identify the grantee as the mortgagee or beneficiary under the
deed of trust. In the alternative, this information may be set forth in a separate affidavit
or declaration signed under penalty or perjury.
21-37 Exemption; Transfers Without a Change in Proportional Ownership
No Documentary Transfer Tax shall be due upon any document transferring an interest
in real property between an individual or individuals and a legal entity, or between legal
entities, if such transfer results solely in a change in the method of holding title, and in
which proportional ownership interests in the real property {whether represented by stack,
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membership interest, partnership interest, cotenancy interest, or otherwise} directly or
indirectly, remain the same immediately after the transfer.
21-38 Exemption; Transfers Confirming Title
No Documentary Transfer Tax shall be due upon any document confirming the grantee's
vested, legal interest in real property.
21-39 Exemption; Partitions
No Documentary Transfer Tax shall be due upon documents partitioning real property
betweenlamong the owners thereof, provided all of the following conditions are met:
(a} All pre-partition owners must continue as owners of the partitioned property;
(b) No one shall be named as a grantee who was not apre-partition owner; and,
(c) The grantees' respective interests in the partitioned property must be approximately
equal in value {remain in the same proportion).
21-40 Exemption; Transfers for the Benefit of Creditors
No Documentary Transfer Tax shall be due upon any document transferring an interest
in real property in trust for the benefit of the grantor's creditors.
21-41 Exemption; Transfers Involving Public Entities
(a) No Documentary Transfer Tax shall be due upon any document pursuant to which
a public entity acquires title to real property. As used in this Article III, "public entity"
shall include any entity described in Section 811.2 of the Government Code, and, for
purposes of this paragraph only, shall also include the United States, any state therein or
territory thereof, and any agency ar instrumentality of the foregoing.
(b) No Documentary Transfer Tax shall be due upon any document transferring an
interest in real property from a public entity, where such transfer is made pursuant to an
agreement requiring the grantee to immediately reconvey the interest to such public
entity.
(c) No Documentary 'T'ransfer Tax shall be due upon any document transferring an
interest in real property from a public entity to anon-profit corporation, when the
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acquisition, construction or improvement of such property was financed or refinanced by
obligations issued by such non-profit corporation on behalf of a governmental unit,
within the meaning of Section 1.1 03-1(b) ofTitle 26 ofthe Code of Federal Regulations.
21-42 Exemption; Plans of Reorganization and Adjustment
(a} No Documentary Transfer Tax shall be due upon any document made to effectuate
a plan or reorganization or adjustment:
{1) Confirmed in a bankruptcy proceeding under Title 11 of the United States
Cade, as amended;
(2) Approved by a court in an equity receivership proceeding involving a
corporation or a railroad, as defined in Sections 101 (9} and 101 (44}, respectively, of
Title 11 of the United States Code; or
(3) Whereby a mere change in identity, farm or place of organization is effected.
(b) This exemption shall apply only if the document is recorded within five (5) years
of the date of such confirmation, approval or change.
21-43 Exemption; Transfers Pursuant to SEC Qrders
No Documentary Transfer Tax shall be due upon any document transferring an interest
in real property to effectuate an order of the Securities Exchange Commission (as defined
in Section 1083 of the Internal Revenue Code}, provided all of the following conditions
are met:
(1 }The order states 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) The order specifies the property which is ordered to be conveyed; and,
(3}The transfer is made in obedience to such order.
21-44 Credit for City Transfer Taxes
The Recorder shall collect all taxes due under this Article and, in addition, all taxes due
under any separate transfer tax ordinance adopted by any city within the county. If a city
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adopts a conforming city transfer tax ordinance, Documentary Transfer Tax due pursuant
to this Article III in connection with the transfer of an interest in real property located
within such city shall be reduced by means of a fifty percent (50%} tax credit. No credit
shall be allowed in the case of any city ordinance that is not a conforming city transfer
tax ordinance, For purposes of this Article III, "conforming city transfer tax ordinance"
shall mean an ordinance adopted pursuant to the provisions of paragraph (b} of Section
11911 of the Revenue and Taxation Cade.
21-45 Allocation of Taxes Collected
The Auditor-Controller shall allocate all taxes collected by the Recorder under this
Article III and by city transfer tax ordinance, as fallows~
(a) Amounts relating to transfers of real property heated in unincorporated areas of the
county shall be allocated entirely to the county;
(b} Amounts relating to transfers of real property located in a city that has adopted a
conforming city transfer tax ordinance shall be allocated one-half to such city and one-
half to the county;
(c} Amounts relating to transfers of real property located in a city that has adopted a city
transfer tax ordinance that does not qualify as a conforming city transfer tax ordinance
shall be allocated between the city and the county by crediting all Documentary Transfer
Tax collected to the county and all city transfer tax collected to the city;
(d} Amounts relating to transfers of real property located within a city that has not
adopted a city transfer tax ordinance shall be allocated entirely to the county,
21-46 Refunds
Claims for refunds of Documentary Transfer Tax shall be governed by the provisions of
Chapter 5 (commencing with Section 5096} of Part 9af Division 1 of the Revenue and
Taxation Code and by Resolution of the Board of Supervisors.
21-47 Notice of Nonpayment of Full Tax
Vdhenever the Recorder has reason to believe that the full amount of tax due under this
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Article III has nat been paid, the Recorder may, by notice served upon any person liable
therefor, require him to furnish a true copy of his records relevant to the amount of the
consideration or value of the interest or property conveyed. I'or the purpose of this
Article III, "person" means any natural or artificial person, including, but not limited to
any business entity of any form, any association of any form, any organization of any
form andlor any officer, employee, agent andlor representative of any of the above.
21-48 Avoidance of Tax Unlawful
(a} It shall be unlawful for any person, far the purpose of evading the tax imposed by
this Article III, to:
(b} Willfully prepare a deed, instrument or other writing subject to the tax imposed by
this Article III, that contains false information;
(c} Submit a deed, instrument or other writing subject to the tax imposed by this Article
III for recording, which the person knows contains false information;
(d) Make, sign, issue or accept or cause to be made, signed, issued or accepted any
deed, instrument or writing subject to the tax imposed by this Article III for the purpose
of recording said deed, instrument or writing, which the person knows contains false
information;
(e} Willfully make a material misrepresentation of fact to the Recorder under
circumstances in which a reasonable person would conclude that the material
misrepresentation of fact was made for the purpose of avoiding all or any part of the tax
imposed by this Article III; or
(f) Willfully assist a person in committing any of the acts in subsections (a)-{e} above.
21-49 Determination of Delinquency
(a) Whenever the Recorder has reason to believe after a deed, instrument or writing was
recorded, that the full amount of the tax due under this Article III has not been paid the
Recorder may by written notice:
(1) Require any person who may be liable for the tax to furnish affidavits, true
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copies of relevant records or other documents that establish the amount of consideration
or value of any property or interest conveyed or vested and the amount any lien or
encumbrance remaining on property or interest conveyed or at the time of sale.
(2) Require any person who claimed that the tax imposed by this ~rtiele III did
not apply to a deed, instrument or writing recorded, or that the person was exempt from
the tax, to furnish affidavits, true copies of relevant records or other documents that
establish that the tax did not apply or that the person was exempt.
{b} The Recorder's notice shall state that the person to whom the notice is directed is
required to furnish the requested information within 30 days from the date of the notice.
(c) From the information available, the Recorder may make a determination whether
any tax is due under this Article III, and if so, determine the amount of tax due and
identify any person who may be liable for the tax. After the Recorder makes
determination{s) under this section, the Recorder shall serve a written notice of
delinquency an any person liable for unpaid tax that includes the following information:
(1) A description of the property or interest that was conveyed or vested without
the full payment of tax;
(2) The amount of tax due;
(3} A statement indicating that unless the tax is paid within 30 days from the date
of the notice or the person makes a written request to the Recorder for a conference to
dispute the determination, the Recorder will record a certificate oftaxes due against the
person named in the notice, which will become a lien against the property or interest for
which the deed, instrument or writing referred to in subsection (a} above was recorded
and any other real property located in Butte County the person owns or acquires, until the
tax is paid.
(4) If the person does not make a written request for a conference within 30 days,
the Recorder's determination shall be deemed to be a final determination of delinquency
from which there is no appeal to the County.
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(d} If a person to whom the Recorder has served a written notice under subsection (c}
above requests a conference, the Recorder shall schedule a conference within 30 days of
the request. Following the conference, the Recorder shall serve a notice of final
determination of delinquency on any person who may be liable for the tax. If the
Recorder determines any person is liable for unpaid taxes under this Article lll, the notice
of final determination of delinquency shall state the amount of tax due, a description of
the property or interest conveyed or vested without the full payment of tax, the name of
any person liable for the tax and a statement that unless the tax is paid in full within 30
days of the notice, the Recorder intends to record a certificate of taxes due against the
person named in the notice, vtithieh will become a lien against the property or interest
referred to in subsection (c}(1) and any other real property located in Butte County the
person owns or acquires until the tax is paid. The notice shall also state that it is a final
determination, from which there is no appeal to the Counter.
21-49.1 Recording Certificate of Taxes Due
(a) Unless the full amount of tax determined by the Recorder to be due as provided in
the notice under section 21-49 has been paid within 30 days, the Recorder may record a
certificate of taxes due against any person liable for the tax as determined by the Kecorder
under section 21-49. The certificate shall state the property or interest that was conveyed
or vested for which the full amount of tax has not been paid, the full name and last known
address of the person liable for the tax and the amount of tax that the Recorder has
determined is due under this Article III. From the time the certificate is recorded, the
amount due at the time the certificate is recorded constitutes a lien upon the property or
interest conveyed or vested without full payment of tax and all real property located in
Butte Count~~ owned by any person named in the certificate. The lien also attaches to any
property the person acquires after the certificate is recorded, until such time as the lien
is paid in full.
(b) After the Recorder has recorded a certificate under subsection (a) above, the
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Recorder may issue a warrant for the enforcement of any lien and for the collection of any
amount required to be paid to the County under this Article III. The warrant shall be
directed to any sheriff and shall have the same effect as a writ of execution. The warrant
shall be levied and sale made pursuant to it in the same manner and with the same effect
as a levy and a sale pursuant to a writ of execution. The Recorder may pay or advance to
the sheriff the same fees, commissions and expenses for his services as are provided by
law for similar services, pursuant to a writ of execution.
21-49.2 Tax as a debt
The tax imposed by this Article III shall be deemed to be a debt owed to the County. Any
person owing the tax shall be liable in a civil action brought by the County to recover the
debt, At the Recorder's request, the County Counsel may initiate a civil action against
any person who fails to pay the tax imposed by this chapter. Filing a civil action under
this section does not limit the County's right to bring any other action or use any other
means authorized by this code to enforce the failure to pay the tax imposed by this Article
III. The provisions of this Article III are to be supplementary and complementary to all
of the provisions of this Code, state law, and any law cognizable at common law or in
equity; and nothing herein shall be read, interpreted or construed in any manner so as to
bar or limit the county from seeking any remedy to which it may otherwise be entitled.
Section 3. Severability.
If any provision of this Ordinance or the application thereof to any person or circumstances is for
any reason held to be invalid by a court of competent jurisdiction, such provision shall be deemed
severable, and the invalidity thereof shall not affect the remaining provisions or other applications of the
Ordinance which can be given effect without the invalid provision or application thereof.
Section 4. Effective Date and Publication.
This Ordinance shall take effect thirty (30} days after the date of its passage. The Clerk of the
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Board of Supervisors is authorized and directed to publish this ordinance before the expiration of fifteen
(15} days after its passage. This Ordinance shall be published once, with the names of the members of
the Board of Supervisors voting for and against it, in the Chico Enter~ris ; a newspaper of general
circulation published in the County of Butte, State of Califonzia,
PASSED AND ADOP"I~ED by the Board of Supervisors of the County of Butte, State of
California, on the 25th day of I~a~rch , 200$, by the following vote:
AYES: ~U~E'I'v1SOr.~i ~OnT12i.L'~ 1)rJlcn~ iT£1P,t~~€,UClli, K1rk, anQ LI1I1T J'C?S1tluSE'n
NOES: ~rre
ABSENT: tdon:~
NOT VOTING: 11~o~~e
b~
~. .
Curt Jasiassen, Chairman of the
Butte County Board of Supervisors
ATTEST:
C. Brian Haddix, Chief
Administrative,Officer
and Clerk of the Board ,'~
,~ r ~
f,
By _ r Y , ~
t
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