Draft 7/20/2022 _________
RESOLUTION NO. ____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SUNNYVALE CALLING A GENERAL MUNICIPAL
ELECTION TO BE HELD IN THE CITY OF SUNNYVALE
ON TUESDAY, NOVEMBER 8, 2022, FOR THE PURPOSE
OF SUBMITTING TO CITY VOTERS A MEASURE TO
ENACT A REAL PROPERTY TRANSFER TAX AT A RATE
OF .75% ON TRANSFERS GREATER THAN $3,999,999;
REQUESTING CONSOLIDATION WITH THE
STATEWIDE GENERAL ELECTION AND ELECTION
SERVICES FROM SANTA CLARA COUNTY; DIRECTING
THE CITY ATTORNEY TO PREPARE AN IMPARTIAL
ANALYSIS; AND SETTING PRIORITIES FOR BALLOT
ARGUMENTS
WHEREAS, the City Council is interested in submitting to the voters a measure concerning real property transfer taxes; and
WHEREAS, whenever two or more elections of any legislative or congressional district, public district, city, county or other political subdivision are called to be held on the same day, in the same territory, or in territory that is in part the same, such elections may be either completely or partially consolidated pursuant to Part 3 (commencing with Section 10400) of Division 10 of the Elections Code, and Section 5342 of the Education Code; and WHEREAS, Elections Code Section 10002 empowers the City Council to request the assistance of the County Registrar of Voters to provide election services to the City; the City Council intends to call a General Municipal Election on November 8, 2022, and wishes to consolidate that election with the statewide election.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SUNNYVALE THAT:
1. GENERAL ELECTION. A General Municipal Election hereby is called to be held in and for the City of Sunnyvale on Tuesday, November 8, 2022, for the purpose of submitting to the voters of the City the below-designated measure.
Attachment 1
(See Corrected Attachment 1, posted 20220725)
2. MEASURE. The City Council hereby submits to the voters of the City, at the General Municipal Election called for November 8, 2022, the following measure:
CITY OF SUNNYVALE MEASURE __
To protect and maintain essential city services, such as police, fire, 9-1-1 emergency response; park and fire station maintenance; addressing homelessness; and other services, shall the City of Sunnyvale adopt an ordinance enacting a real property transfer tax only for sales $4,000,000 or greater (paid by buyers and sellers of property upon sale), at .75% and generating approximately $6,600,000 annually, until ended by voters, requiring audits, with all funds used locally?
YES
NO
3. ADOPTION OF MEASURE. In the event a majority of the electors voting on the measure set forth above vote in favor thereof, the Sunnyvale Municipal Code shall be amended to read as set forth in Exhibit "A," attached hereto and incorporated herein, effective upon the date of filing.
4. NOTICE OF ELECTION. Notice of the time and place of holding the election is given, and the City Clerk hereby is authorized, instructed and directed to coordinate with the County of Santa Clara Registrar of Voters to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election.
5. CONSOLIDATION REQUEST. Pursuant to the requirements of Part 3 (Consolidation of Elections; §§10400 et seq.) of Division 10 of the Elections Code, the City Council hereby requests the governing body of any other political subdivision, or any officer otherwise authorized by law, to partially or completely consolidate such elections, and to further provide that, upon consolidation, the consolidated election shall be held and conducted, election officers appointed, voting precincts designated, ballots printed, polls and vote centers opened and closed, ballots opened and returned, returns canvassed, and all other proceedings in connection with the election shall be regulated and done by anybody or official authorized to perform such functions and canvass the returns of the elections; and that this City Council consents to such consolidation.
6. REQUEST FOR COUNTY SERVICES. Pursuant to Section 10002 of the California Elections Code, the City Council hereby requests the Board of Supervisors of the County of Santa Clara to permit the Registrar of Voters to render services to the City of Sunnyvale relating to the conduct of Sunnyvale's Special Municipal Election to be held on Tuesday, November 8, 2022.
Services shall be of the type normally performed by the Registrar of Voters in assisting the clerks of municipalities in the conduct of elections including, but not limited to, those certain services set forth in Sections 4 and 5 hereof, assignment of a ballot measure letter, printing the full text of the measure as set forth in Exhibit A in the County’s Voter Information Guide (CVIG), and other matters as may be necessary for the City Clerk to coordinate under the authority provided in Section 4 of this Resolution.
Attachment 1
(See Corrected Attachment 1, posted 20220725)
7. ELECTION COSTS. Subject to the approval of the Board of Supervisors of the foregoing requests, the City Clerk is hereby authorized to engage the services of the Registrar of Voters of the County of Santa Clara to aid in the conduct of the election. The City Director of Finance is authorized and directed to pay the costs of services, provided that no payment shall be made for services which the Registrar of Voters is otherwise required by law to perform.
8. BALLOT AND REBUTTAL ARGUMENTS FOR MEASURE. Primary and rebuttal arguments for the measure may be filed consistent with Elections Code Section 9282, et seq.
9. BALLOT ARGUMENT IN FAVOR OF [AGAINST] MEASURE. The Council hereby selects the following course of action regarding arguments in favor of the measure:
[IN FAVOR] OR [AGAINST] MEASURE. The Council hereby selects the following course of action regarding arguments [in favor] or [against] the measure: [Council to select one of the following concurrent with adoption of resolution]:
a. Authorizes the City Council as a body to submit a written argument [in favor] or [against] the measure, and in the event an argument is filed for the measure, a rebuttal argument.
b. Authorizes __[#]___ member(s) of the City Council to submit a written argument [in favor] or [against] the measure:_[one or more name(s)]_. At [Name(s)] discretion, the argument may also be signed by other members of the City Council, bona fide associations, or individual voters who are eligible to vote on the measure.
In the event that an argument is filed for the measure, [Name(s)] is also authorized to submit a rebuttal argument on behalf of the City Council, which, at [Name(s)] discretion, may also be signed by members of the City Council, bona fide associations, or individual voters who are eligible to vote on the measure.
Signatures on the rebuttal argument may be different from those who signed the primary argument.
OR
c. Takes no action with regard to authorizing the Council, or member or members of the Council to submit a written argument [in favor] or [against] the measure; in which case the City Clerk shall select an argument against the measure in accordance with the priority order set forth in Elections Code section 9287.
10. IMPARTIAL ANALYSIS. Pursuant to Elections Code Section 9280, the City Council hereby directs the City Attorney to prepare an impartial analysis of the measure.
11. DEADLINES FOR ARGUMENTS. The deadlines for arguments, rebuttals and impartial analysis are:
(a) Arguments: August 11, 2022, 5:00 p.m.
Attachment 1
(See Corrected Attachment 1, posted 20220725)
(b) Rebuttals: August 22, 2022, 5:00 p.m.
(c) Impartial Analysis: August 22, 2022, 5:00 p.m.
12. TRANSMITTAL OF RESOLUTION. The City Clerk is hereby directed to file an original copy of this resolution with the Board of Supervisors and a certified copy with the County Registrar of Voters.
13. EXEMPTION FROM CEQA. The City Council finds, pursuant to Title 14 of the California Code of Regulations, Sections 15378(b)(4) and 15378 (b)(5), that this resolution is exempt from the requirements of the California Environmental Quality Act (CEQA) in that it involves fiscal and administrative activities that will not result in a potentially significant impact on the environment.
Adopted by the City Council at a regular meeting held on July ___, 2022, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
RECUSAL:
ATTEST: APPROVED:
__________________________________ _________________________________ City Clerk Mayor
(SEAL)
APPROVED AS TO FORM:
_____________________________________
JOHN A. NAGEL
City Attorney
Attachment 1
(See Corrected Attachment 1, posted 20220725)
EXHIBIT "A" TO
RESOLUTION NO. ____
A-1
The provisions of the Sunnyvale Municipal Code proposed to be deleted are printed in strike out type, and the new provisions are printed in underlined type. ***START HERE***
***END HERE***
Attachment 1
(See Corrected Attachment 1, posted 20220725)
1 ***START HERE***
Chapter 3.08
REAL PROPERTY TRANSFER TAX
3.08.010. Title and Purpose.
3.08.020. Imposition of Tax—Rate.
3.08.030. PaymentWho Must Pay Tax.
3.08.040. Exemptions- Written instrument to secure debt exempt.
3.08.050. Exemptions- Public agencies exempt.
3.08.060. Exemptions- Reorganization or adjustment plans—Exemptions.
3.08.070. Exemptions-Securities and Exchange Commission orders—Exemptions.
3.08.080.Exemptions-Partnership Issues. interest transfers—Exemptions—Effect of partnership termination.
3.08.090. Exemptions- Exemptions Decree of Dissolution or Property Settlement.
3.08.100. Exemptions- Domestic Partners.
3.08.110. Exemptions- Loans Cosigned by Family Members.
3.08.120. Exemptions- Court Ordered Foreclosure.
3.08.130. Exemptions-Instruments in Lieu of Foreclosure.
3.08.140. Exemptions- Title Changes Not Affecting Ownership.
3.08.090150. Administration.
3.08.160. Due Dates, Delinquency, Penalties and Interest.
3.08.170. Payment, Declaration, and Records May Be Required.
3.08.180. Determination of Deficiency.
3.08.190. Notice of Determination
3.08.200. Manner of Giving Notice.
3.08.210. Petition for Redetermination.
3.08.220. Consideration of Petition for Redetermination and Hearing.
3.08.230. Modification of Determined Amount.
3.08.240. Finality of Determination.
3.08.250. Tax Deemed a Debt to City.
3.08.100260. Refunds.
3.08.270. Tax a Lien.
3.08.280. Notice of Public Hearing on Lien.
3.08.290. Public Hearing-Liens.
3.08.300. Recording of Lien.
3.08.310. Collection of Delinquent Taxes as a Special Assessment.
3.08.010. Title and Purpose.
(a) This chapter shall be known as the “Real Property Transfer Tax of the City of Sunnyvale.” 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. (b) The tax imposed under this chapter is solely for the purpose of raising revenues for the general Attachment 1
(See Corrected Attachment 1, posted 20220725)
2 governmental purposes of the city. All of the proceeds from the tax imposed by this chapter shall be placed in the city's general fund and used for any city purpose. This chapter is not enacted for regulatory purposes.
3.08.020. Imposition of Tax—Rate.
There is hereby imposed on each deed, instrument, or writing by which any lands, tenements, or other realty sold within the city of Sunnyvale 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, a tax at the rate of twenty-seven and one-half cents for each five hundred dollars, or fractional part thereof.
(a) A general tax is hereby imposed on each transfer, by deed, instrument or writing, by which any lands, tenements, or other real property sold, located in the City, are or is granted, assigned, transferred or otherwise conveyed to, or vested in, a purchaser or purchasers thereof, or any other person or persons at or by the direction of said purchaser or purchasers, when the total value of the consideration exceeds $3,999,999.99 (the "Exemption Threshold"). When the total value of the consideration is $4,000,000 or greater,the tax rate imposed on the total value of the consideration, including but not limited to the value of the consideration equal to or less than $3,999,999.99, shall be 0.75%.
(b) The Exemption Threshold above shall automatically be adjusted, commencing July 1, 2028, and every five (5) years thereafter, if the average price change for a single family detached home in the City has increased over the preceding five (5) year base period as shown by the Federal Housing Finance Agency House Price Index-Purchase Only-for the San Jose-Sunnyvale-Santa Clara Area. For purposes of this Section, the base period for the first adjustment period commencing on July 1, 2028 shall be the average price change reported for the quarter ending March 31, 2023. The base period for each subsequent adjustment period thereafter shall beMarch to March, unless otherwise determined by the Director. The Director shall publish the Exemption Threshold as adjusted no later than April 30 prior to the July 1 date on which the adjustment to the Exemption Threshold becomes effective.
(c) In the event the Federal Housing Finance Agency House Price Index-Purchase Only-for the San Jose-Sunnyvale-Santa Clara Area is no longer available, the Director shall use as a reference another index published by either the State of California or a federal department or agency that is charged with the responsibility of measuring theaverage price change for a single family detached home in the geographical area that includes the City, County of Santa Clara or the San Francisco Bay Area, as applicable. In the event that the State of California or a federal department or agency that is charged with the responsibility of measuring the average price change for a single family detached home commences publication of an index specific to the geographical area that includes the City or the County of Santa Clara, the Director shall be authorized to use this index to calculate the adjustment to the Exemption Threshold. For ease of administration, adjustments to the Exemption Threshold shall be rounded to the nearest $100,000. (d) Where the Federal Housing Finance Agency House Price Index-Purchase Only-for the San Attachment 1
(See Corrected Attachment 1, posted 20220725)
3 Jose-Sunnyvale-Santa Clara Area shows a reduced price change for the average single family detached home in the City, the Exemption Threshold (as adjusted) shall be automatically reduced commensurate therewith, but in no event shall the Exemption Threshold (as adjusted) be reduced to an amount lower than $3,999,999.99.
(e) Nothing contained in this Section shall prevent the City Council, at any time, from increasing the Exemption Threshold to an amount greater than $3,999,999.99 or to an amount greater than the Exemption Threshold as adjusted by the Federal Housing Finance Agency House Price Index- Purchase Only-for the San Jose-Sunnyvale-Santa Clara Area. (f) As used herein, "value of the consideration" means the total consideration, valued in money of the United States, paid or delivered or contracted to be paid or delivered in return for the transfer of real property, including the amount of any indebtedness, existing immediately prior to the transfer which is secured by a lien, deed of trust or other encumbrance on the property transferred and which continues to be secured by such lien, deed of trust or encumbrance after said transfer, and also including the amount of any indebtedness which is secured by a lien, deed of trust or encumbrance given or placed upon the property in connection with the transfer to secure the payment of the purchase price or any part thereof which remains unpaid at the time of the transfer. "Value of the consideration" also includes the amount of any special assessment levied or imposed upon the property by a public body, district or agency, where said special assessment is a lien or encumbrance on the property and the purchaser or transferee agrees to pay such special assessment or takes the property subject to the lien of such special assessment. The value of any lien or encumbrance of a type other than those which are hereinabove specifically included, existing immediately prior to the transfer and remaining after said transfer, shall not be included in determining the value of the consideration. If the value of the consideration cannot be definitely determined, or is left open to be fixed by future contingencies, "value of the consideration" shall be deemed to mean the fair market value of the property at the time of transfer after deducting the amount of any lien or encumbrance, if any, of a type which would be excluded in determining the value of the consideration pursuant to above provisions of this Section.
3.08.030. Who Must Pay Taxment.
Any tax imposed pursuant to Section 3.08.020 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. Any persons who make a transfer which is subject to the tax imposed under Section 3.08.020, and any persons to whom such a transfer is made, shall be jointly and severally liable for payment of the tax imposed under Section 3.08.020.
3.08.040. Exemptions-Written instrument to secure debt exempt.
Any tax imposed pursuant to this chapter shall not apply to any instrument in writing given to secure a debt. transfer made solely to secure a debt; provided, however, that nothing herein contained shall be deemed to exclude the amount of any such indebtedness from being included in the "value of the consideration," pursuant to Section 3.08.020(f), in connection with transfers which are not made solely to secure a debt.
3.08.050. Exemptions- Public agencies exempt.
Attachment 1
(See Corrected Attachment 1, posted 20220725)
4 Any deed, instrument or writingtransfer to which the United States or any agency or instrumentality thereof, any state or territory, or political subdivision thereof, is a party shall be exempt from any tax imposed pursuant to this chapter when the exempt agency is acquiring title.
3.08.060. Exemptions- Reorganization or adjustment plans—Exemptions.
Any tax imposed pursuant to this chapter shall not apply to the making, delivering, or filing of conveyances transfers 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.
3.08.070. Exemptions- Securities and Exchange Commission orders—Exemptions.
Any tax imposed pursuant to this chapter shall not apply to the making or delivery ofconveyances transfers 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 transfer 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 conveyedtransferred; and (c) Such conveyance transfer is made in obedience to such order.
3.08.080. Exemptions- Partnership Issues interest transfers—Exemptions—Effect of partnership termination.
(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 of 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.
Attachment 1
(See Corrected Attachment 1, posted 20220725)
5 (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 conveyedtransferred, 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.
(c) Not more than one tax shall be imposed pursuant to this chapter by reason of a termination described in subdivision (b), and any transfer pursuant thereto, with respect to the realty held by such partnership at the time of such termination.
(d) Notwithstanding any other language in this Section 3.08.080, nothing in this Section shall exempt from the tax imposed under this Chapter any "realty sold" as described in Section
3.08.150(1).
3.08.090. Exemptions- Exemptions Decree of Dissolution or Property Settlement.
Any tax imposed pursuant to this Chapter shall not apply to any transfer of property from one spouse to the other in accordance with the terms of a decree of dissolution or in fulfillment of a property settlement incident thereto; provided, however, that such property was acquired by one spouse or both spouses prior to the final decree of dissolution.
3.08.100. Exemptions- Domestic Partners.
(a) The tax imposed pursuant to this Chapter shall not apply to any transfer of real property between domestic partners during the term of their domestic partnership, if the requirements of Section 3.08.100(d) are satisfied.
(b) The tax imposed pursuant to this Chapter shall not apply to any transfer of real property between domestic partners for the purposes of effecting a division of assets upon the termination of their domestic partnership, provided that such property was acquired by either or both of the domestic partners prior to the termination of the domestic partnership, if the requirements of Section 3.08.100(e) are satisfied.
(c) For purposes of this Section, "domestic partners" means two (2) individuals who have a current declaration of domestic partnership on file with the California Secretary of State pursuant to the Domestic Partner Registration Act, California Family Code Section 297, et. seq., identifying themselves as each other's domestic partner.
(d) Domestic partners transferring real property to one another during the term of their domestic partnership shall be exempt from paying the tax imposed under this Chapter if they provide a certified copy of their declaration of domestic partnership to the County Recorder, or other evidence deemed sufficient by the Director showing that they have a current declaration of domestic partnership on file with the California Secretary of State, at the time the instrument transferring the real property is recorded.
(e) Domestic partners transferring real property to one another for purposes of effecting a division of assets after the termination of their domestic partnership shall be exempt from paying the tax imposed under this Chapter if they provide a certified copy of their notice of termination of Attachment 1
(See Corrected Attachment 1, posted 20220725)
6 domestic partnership filed with the California Secretary of State pursuant to the Domestic Partner Registration Act, California Family Code Section 297 et. seq., to the County Recorder, or other evidence deemed sufficient by the Director showing that they have a current notice of termination on file with the California Secretary of State, at the time the instrument transferring the real property is recorded.
3.08.110. Exemptions- Loans Cosigned by Family Members. (a) The tax imposed pursuant to this Chapter shall not apply to any reconveyance of real property from a family member who obtained a legal interest in the real property solely to satisfy a lender's requirement in qualifying for a loan to purchase or refinance that property; and the property is the principal residence of the transferee.
(b)For purposes of this Section, the following terms shall have the following meanings:
(1) The phrase "real property" shall mean that real property used by the grantor or transferor of the real property (i) as the grantor's or transferor's principal residence, and (ii) to secure the loan; and
(2) The phrase "lender's requirement" shall mean a loan condition imposed by a lender that the cosigner on the loan share an equal ownership interest in the real property; and (3) The term "loan" shall mean a loan of money that is needed by the grantor or transferor of the real property to purchase or refinance that real property; and (4) The term "family member" shall mean, with respect to any individual, only:
(i) A lineal ancestor of such individual; or
(ii) The spouse of such individual; or
(iii) A lineal descendant of such individual, of such individual's spouse, or of the parent of such individual; or
(iv) The spouse of any lineal descendant described in subparagraph (iii).; or (v) A legally adopted child of the individual or of any family member described in subparagraphs (i), (ii), (iii), or (iv).
(5) The term "principal residence" shall mean a dwelling for which a homeowner's exemption or a disabled veteran's residence exemption has been granted in the name of the eligible grantor or transferor. "Principal residence" includes only that portion of the land underlying the principal residence that consists of an area of reasonable size that is used as a site for the residence.
The term "principal residence" shall also include any such definition as may be provided in California Revenue and Taxation Code Section 63.1(b)(1).
3.08.120. Exemptions- Court Ordered Foreclosure.
Any tax imposed pursuant to this Chapter shall not apply to any transfers made pursuant to any order by the court in any note, deed of trust or lien foreclosure proceeding or upon execution of a judgment.
3.08.130. Exemptions-Instruments in Lieu of Foreclosure.
Any tax imposed pursuant to this Chapter shall not apply to any transfer to a beneficiary or mortgagee which is taken in lieu of a foreclosure. The term "in lieu of foreclosure" means any transfer made with respect to any deed, instrument, or writing to a beneficiary or mortgagee, which is taken from the mortgagor or trustor to prevent the sale of property given as security for performance of an obligation.
3.08.140. Exemptions- Title Changes Not Affecting Ownership.
Attachment 1
(See Corrected Attachment 1, posted 20220725)
7 The tax imposed under this Chapter shall not apply where the deed, instrument, or other writing transferring title to real property between an individual or individuals and a legal entity or between legal entities resulting solely in a change in the method of holding title and in which the proportional ownership interests in the real property, whether represented by stock, membership interest, partnership interest, cotenancy interest, or otherwise, directly or indirectly, remains exactly the same before and after the transfer.
3.08.090150. Administration.
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.
The Director of Finance shall collect the tax imposed under this chapter and shall otherwise administer this chapter. The Director of Finance may make rules and regulations, not inconsistent with the chapter, as they may deem reasonably necessary or desirable to administer this chapter.
In the administration of this chapter, the Director of Finance shall interpret its provisions consistently with those Documentary Stamp Tax Regulations adopted by the Internal Revenue Service of the United States Treasury Department which relate to the Tax on Conveyances and identified as Sections 47.4361-1, 47.4361-2 and 47.4362-1 of Part 47 of Title 26 of the Code of Federal Regulations, as the same existed on November 8, 1967, except that for the purposes of this chapter:
(1) The term “realty,” as used in said regulations, shall be deemed to mean “real property” as such term is defined by and under the laws of the State of California. Notwithstanding the preceding sentence, "realty sold" includes any acquisition or transfer of ownership interests in a legal entity that would be a change of ownership of the entity's real property under California Revenue and Taxation Code Section 64. In such cases, there shall be deemed to have been an instrument executed whereby there was transferred, for fair market value, all real property that experienced a change of ownership under California Revenue and Taxation Code Section 64;
(2) Those provisions of said regulations providing for deduction of the value of any lien or encumbrance existing before the sale and not removed thereby shall not apply; (3) Those provisions of said regulations relating to the rate of tax shall not apply; and (4) Those provisions of said regulations which conflict with the provisions of this Chapter shall not apply.
3.08.160. Due Dates, Delinquency, Penalties and Interest.
The tax imposed under this Chapter is due and payable at the time the deed, instrument or writing effecting a transfer subject to the tax is delivered, and is delinquent if unpaid at the time of recordation thereof. If the deed, instrument, or writing effecting a transfer subject to the tax is not recorded, the tax imposed under this Chapter is due and payable at the time the deed, instrument or writing effecting the transfer is executed by the parties and is delinquent if unpaid 30 days thereafter unless otherwise specified by the Director. If the tax is not paid prior to becoming delinquent, a delinquency penalty of ten percent (10%) of the amount of tax due shall accrue. In the event a portion of the tax is unpaid prior to becoming delinquent, the penalty shall only accrue Attachment 1
(See Corrected Attachment 1, posted 20220725)
8 as to the portion remaining unpaid. Interest shall accrue at the rate of one half of one percent (0.5%) a month, or fraction thereof, on the amount of tax, exclusive of penalties, from the date the tax becomes delinquent to the date of payment. Interest and penalty accrued shall become part of the tax.
3.08.170. Payment Declaration and Records May Be Required. (a) The tax imposed by this Chapter shall be paid to the Director by the persons referred to in Section 3.08.030. As part of the Director’s authority to promulgate rules and regulations promulgated, they may require that the payment shall be accompanied by a declaration of the amount of tax due signed by the person paying the tax or by his or her agent. The declaration shall include a statement that the value of the consideration on which the tax due was computed includes all indebtedness secured by liens, deeds of trust, or other encumbrances remaining or placed on the property transferred at the time of transfer, and also included all special assessments levied or imposed on the property by a public body, district agency which the purchaser or transferee agrees to pay or which remains a lien on the property at the time of transfer. The declaration shall identify the deed, instrument or writing effecting the transfer for which the tax is being paid. The Director may require delivery of a copy of the deed, instrument or writing whenever the Director deems such to be reasonably necessary to adequately identify the writing or to administer the provisions of this Chapter. The Director may rely on the declaration as to the amount of the tax due provided the Director has no reason to believe that the full amount of the tax due is not shown on the declaration.
(b) If the deed, instrument or writing by which any lands, tenements, or other realty sold within the City is granted, assigned, transferred, or otherwise conveyed is not recorded with the County Recorder's Office, the person who makes, signs, or issues such document or for whose benefit such document was made, signed, or issued, shall submit to the Director a declaration stating all relevant information that is necessary for the determination of the proper transfer tax, on a form or forms prescribed by the Director or as otherwise directed by the Director pursuant to rules and regulations promulgated pursuant to Section 3.08.150. The declaration for unrecorded transfers must be submitted to the Director within thirty (30) days from the date the document affecting the transfer is executed by the parties. The declaration must be submitted to the Director regardless of whether any transfer tax is due or paid. Submitting a declaration that the Director determines to be incomplete in any material aspect may be deemed to be a failure to file this declaration for purposes of the statute of limitations set forth below.
(c) Whenever the Director has reason to believe that the full amount of tax due is not shown on the declaration or has not been paid, the Director may, by notice served upon any person liable for the tax, require the person to furnish a true copy of their records relevant to the value of the consideration or fair market value of the property transferred. Except in the case of fraud, intent to evade the tax, or the failure to either record the deed, instrument or writing effecting a transfer subject to the tax or failure to submit the declaration for unrecorded transfers, this notice may be served at any time within three (3) years after recordation of the deed, instrument or writing which transfers such property or for unrecorded transfers, within three (3) years of the later of the receipt by the Director of the declaration for unrecorded transfers described above or the date on which the unrecorded transfer occurred.
Attachment 1
(See Corrected Attachment 1, posted 20220725)
9 3.08.180. Determination of Deficiency.
If on the basis of information the Director receives pursuant to Section 3.08.170 and/or other relevant information that comes into the City’s possession, the Director determines that the amount of tax due as set forth in the declaration, or as paid, is insufficient, the Director may recompute the tax due on the basis of such information.
If the declaration required by Section 3.08.170 is not submitted, the Director may make an estimate of the value of the consideration for the property transferred and determine the amount of tax to be paid on the basis of any information in their possession or that may come into the City’s possession.
One or more deficiency determinations may be made of the amount due with respect to any transfer.
3.08.190. Notice of Determination.
The Director shall give notice to a person liable for payment of the tax imposed under this Chapter of the City’s determination made under Section 3.08.180. Such notice shall be given within three (3) years after the recordation of the deed, instrument or writing effecting the transfer on which the tax deficiency determination was made or within the later of three (3) years after receipt by the Director of the declaration for unrecorded transfers or three (3) years after the date on which the unrecorded transfer occurred, as applicable.
3.08.200. Manner of Giving Notice.
Any notice required to be given by the Director under this Chapter may be served personally or by mail; if by mail, service shall be made by depositing the notice in the United States mail, in a sealed envelope with postage paid, addressed to the person on whom it is to be served at such person's last known address as ascertained by the Director. The service is complete at the time of the deposit of the notice in the United States mail, without extension of time for any reason.
3.08.210. Petition for Redetermination.
Any person against whom a determination is made under this Chapter or any person directly interested may petition for a redetermination within sixty (60) days after service upon the person of notice thereof. If a petition of redetermination is not filed within the sixty (60)-day period, the determination becomes final at the expiration of the period.
3.08.220. Consideration of Petition for Redetermination and Hearing.
If a petition for redetermination is filed within the sixty (60)-day period, the Director shall reconsider the determination and, if the person has so requested in their petition, shall grant the person an oral hearing, and shall give ten (10) days' notice of the time and place of hearing. The Director may designate one (1) or more deputies for the purpose of conducting hearings and may continue a hearing from time to time as may be necessary.
3.08.230. Modification of Determined Amount.
Attachment 1
(See Corrected Attachment 1, posted 20220725)
10 The Director may decrease or increase the amount of the determination before it becomes final, but the amount may be increased only if a claim for the increase is asserted by the Director at or before the hearing.
3.08.240. Finality of Determination.
The order or decision of the Director upon a petition for redetermination becomes final thirty (30) days after service upon the petitioner of notice thereof.
3.08.250. Tax Deemed a Debt to City.
The amount of any tax, penalty, and interest imposed under the provisions of this Chapter shall be deemed a debt to the City. Any person owing money to the City under the provisions of this Chapter shall be liable to an action brought in the name of the City for the recovery of such amount.
3.08.100260. Refunds; Claim Required.
Whenever the amount of any tax, penalty or interest has been overpaid, paid more than once, or has been erroneously, or illegally collected or received by the City under this Chapter, it may be refunded to the person who paid the tax provided that a written claim for refund is filed with the Director, and the provisions of Chapter 2.04.030. 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.
3.08.270. Tax a Lien.
The amount of tax, penalty and interest imposed under the provisions of this Chapter is hereby assessed against the property upon the transfer of which the tax is imposed, and if not paid when due, such tax shall constitute an assessment against such property and shall be a lien on the property for the amount thereof, which lien shall continue until the amount thereof including all penalties and interest are paid, or until it is discharged of record. Any person owing money to the City under the provisions of this Chapter shall be liable to an action brought by the City for the recovery of such amount.
3.08.280. Notice of Public Hearing on Lien.
The Director shall file with the City Manager a written report covering those properties on which the City intends to file and record liens by reason of failure to pay any tax imposed pursuant to this Chapter. Said report shall contain names of the transferor and transferee of such property, location of affected property, the amount of the lien opposite each property and other relevant data. Upon the receipt of such report the City Manager shall present same to the City Council, and the City Council shall, by resolution, fix a time and place for a public hearing on such report.
The Director shall cause a written notice to be served upon the transferor and transferee of affected property not less than ten (10) days prior to the time fixed for such hearing. Service of the notice shall be by mailing a copy to the transferor and/or transferee of property at their address as shown on the last equalized county assessment roll or as known to the Director. Service shall be deemed complete at the time of deposit in the United States mail.
Attachment 1
(See Corrected Attachment 1, posted 20220725)
11 3.08.290. Public Hearing-Liens.
Any transferor and transferee of real property which is subject to a lien pursuant to Sections
3.08.270 and 3.08.280 may appear before the City Council at a public hearing and offer evidence why the report should not be confirmed and the lien filed and recorded. The City Council may make revisions, corrections or modifications of the report as it may deem just. If the City Council is satisfied with the correctness of the report (as submitted or as revised, corrected or modified), it shall confirm or reject the report by resolution and order the lien to be filed and recorded. The decision shall be final and conclusive.
3.08.300. Collection of Delinquent Taxes as a Special Assessment.
With the confirmation of the report by the City Council, the delinquent tax charges contained therein which remain unpaid by the transferor or transferee shall constitute a special assessment against said property, and shall be collected at such time as is established by the County Assessor for inclusion in the next property tax assessment.
The Director of Finance shall turn over to the County Assessor for inclusion in the next property tax assessment the total sum of unpaid delinquent charges consisting of the delinquent transfer taxes, penalties and interest. Thereafter, the assessment may be collected at the same time and in the same manner as ordinary municipal taxes are collected, and shall be subject to the same penalties and the same procedure of sale as provided for delinquent, ordinary, municipal taxes.
The assessment shall be subordinate to all existing special assessment liens previously imposed upon the property and paramount to all other liens except those for state, county, and municipal taxes with which it shall be on parity. The lien shall continue until all delinquent taxes due and payable thereon are paid. All laws applicable to the levy, collection, and enforcement of municipal taxes shall be applicable to special assessments imposed pursuant to this Chapter. *** END HERE***
Attachment 1
(See Corrected Attachment 1, posted 20220725)