MEMORANDUM OF UNDERSTANDING
BETWEEN
COUNTY OF LOS ANGELES
REGISTRAR-RECORDER/COUNTY CLERK
AND
CITY OF REDONDO BEACH
FOR
DOCUMENTARY TRANSFER TAX (DTT) COLLECTION
MOU #: 21-008
Prepared by:
Department of the
Registrar-Recorder/County Clerk
Finance and Management Division/Contracts Section
12400 Imperial Highway, Room 5115
Norwalk, CA 90650
www.lavote.net
[email protected]
TABLE OF CONTENTS
SECTION PAGE
1.0 PURPOSE........................................................................................................................... 1
2.0 SCOPE................................................................................................................................ 1
3.0 GENERAL TERMS AND CONDITIONS ............................................................................. 2
4.0 AMENDMENTS AND CHANGE NOTICES......................................................................... 2
5.0 RR/CC RESPONSIBILITIES............................................................................................... 2
6.0 CITY RESPONSIBILITIES .................................................................................................. 3
7.0 INDEMNIFICATION ............................................................................................................ 4
8.0 FISCAL PROVISIONS ........................................................................................................ 4
9.0 ELECTRONIC SIGNATURES............................................................................................. 4
EXHIBITS
1 Exhibit 1 - DTT Primary Contacts
MOU # 21-008 for Documentary Transfer Tax (DTT) Collection 1
MEMORANDUM OF UNDERSTANDING
BETWEEN
COUNTY OF LOS ANGELES
DEPARTMENT OF REGISTRAR-RECORDER/COUNTY CLERK
AND
CITY OF REDONDO BEACH
FOR DOCUMENTARY TRANSFER TAX (DTT) COLLECTION
This Memorandum of Understanding (“MOU”) for Documentary Transfer Tax (“DTT”) collection is entered into this 19th day of April, 2022 by and between the County of Los Angeles, a political subdivision of the State of California ("County"), through its Department of RegistrarRecorder/County Clerk (“Department” of "RR/CC"), and the City of Redondo Beach (“City”).
County, Department and City are sometimes hereinafter collectively referred to as the "Parties" and each individually as a "Party."
WHEREAS, the Board of Supervisors (“Board”) has authorized the RR/CC or designee to enter into and execute MOUs with various non-County governmental agencies for DTT collection for transfers of real property located in the City.
WHEREAS, on May 31, 1977, City adopted an ordinance providing for the imposition of a tax upon transfers of real property located in the City; and WHEREAS, beginning April 19, 2022, the County and the City desire to have the County collect the real estate transfer tax for the City as established in its ordinance, and under the terms and conditions hereinafter provided for in this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants herein set forth and the mutual benefits to be derived therefrom, the Parties agree as follows:
1.0 PURPOSE
The purpose of this MOU is to provide DTT collection for the City in accordance with Redondo Beach Municipal Code (“RBMC”) section 8-7.02.
2.0 SCOPE
The City desires to enter into an agreement with the County for County to collect the tax as provided in said City Municipal Code section.
3.0 GENERAL TERMS AND CONDITIONS
3.1 This MOU shall take effect upon the execution hereof by the Parties and shall expire ten (10) years thereafter ("Initial Term"), unless sooner terminated or extended, in whole or in part, as provided in this MOU.
Upon expiration of the Initial Term, and upon mutual agreement executed by the Parties, City and Department may renew this MOU for two (2) additional 2-year periods followed by a one (1) year period (“Extended Term”).
The aggregate term of this MOU shall not exceed fifteen (15) years.
MOU # 21-008 for Documentary Transfer Tax (DTT) Collection 2
3.2 Unless otherwise provided herein, either Party may terminate this MOU for cause, or for convenience, by giving fifteen (15) days prior written notice thereof to the other Party.
3.3 In the event any provision of this MOU contradicts with Board policies or any applicable laws, rules and regulations, the Department may terminate this MOU, which shall be effective immediately upon written notice.
3.4 This MOU may be modified or amended only upon the mutual written consent of the Parties as described in Paragraph IV (Amendments and Change Notices).
3.5 Each Party will appoint a person or person(s) to serve as the official contact(s) and coordinate the activities of the respective Party in carrying out this MOU. Unless otherwise provided under this MOU, all notices, submissions or deliveries to be made to Department and City under this MOU shall be directed as indicated in Exhibit 1 (Primary Contacts).
4.0 AMENDMENTS AND CHANGE NOTICES
4.1 It is mutually agreed that this MOU may be modified or amended by either Party and modification shall become effective upon the written mutual consent of the Parties hereto.
4.2 For any revision which materially affects the scope of work, terms, or any term or condition included in this MOU, a negotiated Amendment to the MOU shall be executed by the City’s Designee and the RR/CC or designee.
4.3 For any change to the MOU which is clerical or administrative in nature (e.g., staff changes) and/or does not affect any term or condition of the MOU, a “Change Notice” shall be prepared and signed by either Party (e.g. Authorizing Manager or designee) on respective letterhead.
5.0 RR/CC RESPONSIBILITIES
5.1 Beginning April 19, 2022, the Registrar-Recorder/County Clerk, hereinafter referred to as "RR/CC," agrees to collect for City a tax imposed in accordance with Revenue and Taxation Code 11911 - 11933, which states in part “A declaration of the amount of tax due, signed by the party determining the tax or his or her agent, shall appear on the face of the document in compliance with Revenue and Taxation Section 11932, and the recorder may rely on that declaration if the recorder has no reason to believe that the full amount of the tax due has not been paid. The declaration shall include a statement that the consideration or value on which the tax due was computed either was, or was not, exclusive of the value of a lien or encumbrance remaining on the interest or property conveyed at the time of sale.”
5.2 County agrees to provide information on County Website with references to the calculation of the tier structure and contact information regarding the calculation of taxes pursuant to the City Municipal Code section.
MOU # 21-008 for Documentary Transfer Tax (DTT) Collection 3
5.3 The July 1,1977 agreement is superseded and shall have no further force and effect after April 19, 2022, except as to the collection of any real property transfer tax on real property sales in the City that were finalized prior to April 19, 2022.
5.3 If for any reason County is unable to collect the tax when the instrument or writing is presented for recordation, the County will reject the instrument.
5.4 Upon the identification of a collection error, the County will refer to City for disposition any dispute regarding payment of the City Real Property Transfer Tax for settlement.
5.5 County will refer any requests for refund of the tax paid to City for disposition.
5.6 All City Real Property Transfer Taxes collected by County shall be transmitted to City monthly beginning on the last day of the second calendar month following the effective date of this agreement and on the last day of each month thereafter for each preceding calendar month.
5.7 County agrees to permit authorized personnel of City to examine the documents and tax declarations as presented to the County Recorder concerning the collection of the City Real Property Transfer Tax.
5.8 County shall use the same procedure as presently followed for collection of the County Documentary Transfer Tax:
A. The County will collect and receipt taxes based off of what is presented on the face of the document on the tax declaration pursuant to R&T Code § 11933.
B. The tax applies only to property transferred within the City limits of the City.
6.0 CITY RESPONSIBILITIES
6.1 City hereby agrees to indemnify and hold harmless County in connection with any claim or suit filed arising out of the collection or non-collection of said real property transfer tax by County for City.
6.2 City agrees to work with County on obtaining informational access to the RR/CC Your Online Document Archive (YODA) to access and view documents for determining and verify DTT calculations are accurately calculated pursuant to the City Municipal Code section, including liens and encumbrances, excluding any exceptions to low income housing (insert)
6.3 City agrees to pay County an administrative fee for tax collection of $4.00 per recorded transaction. The amount deducted for administrative costs shall not exceed 10 percent of the taxes paid pursuant to this section. The administrative fee shall be subtracted from monthly distribution.
7.0 INDEMNIFICATION
MOU # 21-008 for Documentary Transfer Tax (DTT) Collection 4
7.1 City shall indemnify, defend and hold harmless County, its trustees, elected and appointed officers, agents, employees, and volunteers from and against any and all liability, including, but not limited to, claims for injury or damages , demands, actions, fees, loss, costs and expenses (including reasonable attorney and expert witness fees) arising out of or incurred in connection with the performance of this MOU, but only in proportion to and to the extent such liability, loss, demands, actions, fees, costs and expenses are caused by or result from the negligent or intentional acts or omissions of the City, its trustees, officers, agents, employees, or volunteers.
7.2 County shall indemnify, defend and hold harmless City, its trustees, officers, agents, employees, and volunteers from and against any and all liability, including, but not limited to, claims for injury or damages , demands, actions, fees, loss, costs and expenses (including reasonable attorney and expert witness fees) arising out of or incurred in connection with the performance of this MOU, but only in proportion to and to the extent such liability, loss, demands, actions, fees, costs and expenses are caused by or result from the negligent or intentional acts or omissions of the County, its trustees, officers, agents, employees, or volunteers.
8.0 FISCAL PROVISIONS
City agrees to pay County an administrative fee for tax collection of $4.00 per recorded transaction. The administrative fee may be adjusted annually, effective July 1, to insure full recovery of the County's cost to administer the tax. Any adjustment in the fee shall be reviewed and approved by the Los Angeles County Auditor-Controller. The administrative fee shall be subtracted from monthly distribution. The amount deducted for administrative costs shall not exceed 10 percent of the taxes paid pursuant to this section pursuant.
9.0 ELECTRONIC SIGNATURES
9.1 The Parties hereby agree facsimile and electronic scanned versions of original signatures of authorized signatories of each party have the same force and effect as original signatures such that the parties need not follow up facsimile or electronic transmissions of executed documents with original wet-signature versions. /
/
/
MOU # 21-008 for Documentary Transfer Tax (DTT) Collection 5
MEMORANDUM OF UNDERSTANDING
BETWEEN
COUNTY OF LOS ANGELES
DEPARTMENT OF REGISTRAR-RECORDER/COUNTY CLERK
AND
CITY OF REDONDO BEACH
FOR DOCUMENTARYTRANSFER TAX (DTT) COLLECTION
IN WITNESS WHEREOF, and executed as the date first above written above, the Parties to this MOU do hereby agree and consent to all terms and conditions provided herein.
COUNTY OF LOS ANGELES CITY OF REDONDO BEACH
DEAN C. LOGAN William C. Brand
Registrar-Recorder/County Clerk Mayor
APPROVED AS TO FORM:
MICHAEL W. WEBB
City Attorney
____________________________
By: Michael W. Webb
City Attorney
ATTEST:
___________________________
By: Eleanor Manzano
City Clerk
APPROVED AS TO FORM:
Dawyn Harrison
Acting County Counsel
By: JASON C. CARNEVALE
Deputy County Counsel
DTT PRIMARY CONTACTS
Date: April 19, 2022 MOU#: 21-008
RR/CC
Communications, payments and notices sent to County shall be addressed to:
Recorder Division: Name: Jaime Pailma
Title: Manager, Recorder Division
Address: 12400 Imperial Highway, Room 5001A
Norwalk, CA 90650
Phone: (562) 462-2889
Contract’s Administrator: Name: Veronica Williams
Title: Contracts Manager
Address: 12400 Imperial Highway, Room 5115
Norwalk, CA 90650
Phone: (562) 462-2905
Financial Services Manager: Name:
Title:
Address: 12400 Imperial Highway, Room
Norwalk, CA 90650
Phone: (562) 462-
CITY
Communications, payments and notices to City shall be addressed to:
City Authorizing Manager(s): Name: Mike Witzansky
Title: City Manager
Division/Section: City Manager’s Office
Address: 415 Diamond Street
Redondo Beach, CA 90027
Phone: 310-372-1171
Email:[email protected]
Contract’s Administrator: Name: Steven Diels
Title: City Treasurer
Division/Section: Treasury Department
Address: 415 Diamond Street
Redondo Beach, CA 90027
Phone: 310-318-0652
Email: [email protected]
Financial Services Manager: Name: Jennifer Paul
Title: Finance Director
Address: 415 Diamond Street
Redondo Beach CA 900