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HomeMy WebLinkAbout1237 - Sale of Real Property Transfer TaxTHSomec 11/7/67 ORDINANCE NO. 1237 AN ORDINANCE OF THE CITY OF NEWPORT BEACH ADDING CHAPTER 3.22 TO THE NEWPORT BEACH MUNICIPAL CODE IMPOSING A REAL PROPERTY TRANSFER TAX ON THE SALE OF REAL PROPERTY The City Council of the City of Newport Beach does ordain as follows-, SECTION 1. Chapter 3.22 is added to the Newport Beach Municipal Code to read-, "Chapter 3.22 REAL PROPERTY TRANSFER TAX Sections.- 3.22.010 Short Title o- Adoption Authority. 3.22.020 Tax Imposed. 3.22.030 Persons Liable for Tax. 3.22.040 Exemption =m Security Instruments. 3022.050 Exemption Governmental Agencies. 3022.060 Exemption mm Insolvency or Bankruptcy. 3.22.070 Exemption Orders of Securities and Exchange Commission. 3.22.080 Exemption d- Certain Partnership Transfers. 3.22.090 Administration. 3.22.100 Refunds. • 3.22.110 Operative Date. 3.22.010 Short Title m® Adoption Authority. This Chapter shall be known as the 'Real Property Transfer Tax Ordinance of the City of Newport Beach. It is adopted pursuant to the authority contained in Part 6.7 (commencing with Section 11901) of Division 2 of the Revenue and Taxa- tion Code of the State of California. 3.22.020 Tax Imposed. There is hereby imposed on each deed, instrument or writing by which any lands, tene- ments, or other realty sold within the City shall be granted, assigned, transferred or otherwise conveyed tog or vested in, the purchaser or purchasers, or any other person or persons, by his or their direction, when the con- sideration or value of the interest or property conveyed (exclusive of the value of any lien or encumbrances remain- ing thereon at the time of sale) exceeds one hundred dollars ($100), a tax at the rate of twenty -seven and one-half cents ($0.275) for each five hundred dollars ($500) or fractional part thereof. 3.22,030 Persons Liable for Tax. The tax imposed by 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. 3.22.040 Exemption -- Security Instruments. The tax imposed by this Chapter shall not apply to any instru- ment in writing given to secure a debt. 3.22.050 Exemption -- Governmental 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 by this Chapter with respect to any deed, instrument, 3.22.060 Exemption -- Insolvency or Bankruptcy. The tax imposed by this Chapter shall not apply to the making, delivering or filing of conveyances to make effective any plan 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 2. or writing to which it is a party, but the tax may be col- lected by assessment from any other party liable therefor. 3.22.060 Exemption -- Insolvency or Bankruptcy. The tax imposed by this Chapter shall not apply to the making, delivering or filing of conveyances to make effective any plan 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 2. (d) Whereby a mere change in identity, form or place of organization is effected, Subsections (a) to (d), inclusive, of this section shall only apply if the making, delivery or filing of in- struments of transfer or conveyances occurs within five (5) years from the date of such confirmation, approval or change, 30220070 Exemption -- Orders of Securities and Exchange Commission, The tax imposed by 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 0 V 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. 3,22,080 Exemption -- Certain Partnership Transfers. 1, In the case of any realty held by a partnership, no tax shall be imposed pursuant to this Chapter by reason of any transfer of an interest in a partnership or otherwise, if- (a) Such partnership (or another partnership) is con- sidered a continuing partnership within the meaning of Sec- tion 708 of the Internal Revenue Code of 1954; and (b) Such continuing partnership continues to hold the realty concerned, -'O 20 If there is a termination of any partnership within the meaning of Section 708 of the Internal Revenue Code of 30 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. 3. Not more than one tax shall be imposed pursuant to this Chapter by reason of a termination described in subsection 2, and any transfer pursuant thereto, with respect to the realty held by such partnership at the time of such termination. 3.22.090 Administration. The County Recorder shall ad- minister 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. 3.22.100 Refunds. 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 of California. 3.22.110 Operative Date. This Chapter shall not be- come operative unless the County of Orange has adopted an ordinance imposing a tax on transfers of real property pur- suant to the provisions of Part 6.7 of Division 2 of the Revenue and Taxation Code of the State of California. If the County of Orange has adopted such an ordinance which has become operative at 12001 A.M. on January 1, 1968, or on any later date, then this Chapter shall become operative simultaneously with the operative date of said County ordi- nance." SECTION 2. Upon its adoption, the City Clerk shall file two copies of this ordinance with the County Recorder of Orange County. 4. n U _� SECTION 3. This ordinance shall be published once in the official newspaper of the City, and the same shall be effec- tive 30 days after the date of its adoption. This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 13th day of November , 1967, and was adopted on the 27th day of November , 1967, by the following vote, to wit: 5.