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HomeMy WebLinkAboutNS-901ORDINANCE NS-901 AMENDING THE SANTA ANA MUNICIPAL CODE BY ADDING PA~T 4 TO CHAPTER 4, ARTICLE II THEREOF TO PROVIDE FOR IMPOSING A DOCUMENTARY STAMP TAX ON THE SAT,F. OF REAL PROPERTY WHEREAS, the Federal Government has discontinued the collec - tion of the tax upon transfers of interest in real property; and WHEREAS, this avenue of taxation is available to the City of Santa Ana in the event the County of Orange institutes a correlative tax upon such transfers of real property; and WHEREAS, it is the desire of the City of Santa Aha that additional tax revenues be gained; NOW, THEP~EFORE, THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: SECTION 1: That the Santa Ana Municipal Code is hereby amended by adding to Chapter 4, Article II thereof a new Part 4 to read in words and figures as follows: Part 4 -- Documentary Stamp Tax Section 2440. Authority. This Part shall be known as the "Real Property Transfer Tax Ordinance of the City of Santa Aha". 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 of California. Section 2441. Imposition and Rate of Tax. There is hereby imposed on each deed, instrument, or writing by which any lands, tenements, or other realty sold within the City of Santa Ana 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 ($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. Section 2442. Persons Subject to Tax. Any tax imposed pursuant to Section 2441. hereof 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. Section 2443. Security Instruments Excluded. Any tax imposed pursuant to this Part shall not apply to any instrument in writing given to secure a debt. Section 2444. Governmental Agencies Exempt. 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 Part 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. -1- Section 2445. Exemptions. Any tax imposed pursuant to this Part 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 (d) Whereby a mere change in identity, form, or place of organization is effected. Subdivisions (a) to (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. Section 2446. Exemptions. Any tax imposed pursuant to this Part 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 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. Section (b) (c) 2447. Partnership Transactions. In the case of any realty held by a partnership, no levy shall be imposed pursuant to this Part by reason of any transfer of an interest in a partnership or otherwise in the event the following conditions obtain: (1) Such partnership (or another partnership) is con- sidered 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. 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 Part, 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. Not more than one tax shall be imposed pursuant to this Part by reason of a termination described in subdivision ~), and any transfer pursuant thereto, with respect to the realty held by such partnership at the time of such termination. -2- Section 2448. Administration. The County Recorder shall administer this ordinance 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. Section 2449. Claims for Refund. Claims for refund of taxes imposed pursuant to this Part 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. SECTION 2: That this Ordinance shall take effect thirty days from and after the date of its adoption and shall become operative upon the operative date of any ordinance adopted by the County of Orange, pursuant to Part 6.7 (commencing with Section 11901) of Division 2 of the Revenue and Taxation Code of the State of California, or upon the effective date of this Ordinance, whichever is the later. PASSED AND ADOPTED by the City Council of the City of Santa Ana at its regular meeting held on the 4th day of December, 1967. ATTEST: STATE OF CALIFORNIA) COUNTY OF ORANGE ) SS CITY OF SANTA ANA ) I, DORIS M. BROWN, do hereby certify that I am the Clerk of the Council of the City of Santa Ana; that the foregoing Ordinance was introduced at a regular meeting of the City Council of the City of Santa Ana held on the 20th day of November, 1967, and was again considered by said Council at its regular meeting held on the 4th day of December, 1967, and at said meeting was regularly passed and adopted by the following vote, to wit: AYES, NOES, ABSENT, COUNCILMEN: Nerrin, Brooks, McMichael COUNCILMEN: None COUNCILMEN: None Carlson, Griset~ Markel, Thurman, CLERK OF THE COUNCIL -3-