HomeMy WebLinkAboutOrdinance 1830 N.C.S. 11/05/1990.~
6VE SATE
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NOV 5 1990
ORDINANCE NO. 1830 N.C.S.
Introduced by Councilman Seconded by Councilman
Lynn Woolsey John Balshaw
AN ORDINANCE TO TAKE EFFECT IMMEDIATELY OF THE CITY OF PETALUMA,
STATE OF CALIFORNIA,
AMENDING CHAPTER 4.20 TO THE PETALUMA MUNICIPAL CODE
RELATING TO REAL PROPERTY TRANSFER TAX
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PETALUMA
AS FOLLOWS
Section 1. Chapter 4.20 of the Petaluma Municipal Code is
amended to read as follows:
CHAPTER 4.20
Sections
4.20.010 Title -Adoption Authority
4.20.020 Imposed -Rate
4.20.030 Exemptions
4.20.040 Refunds
4.20.050 Collection
4.20..060 Payment
4.20.010 Title -Adoption Authority.
This chapter shall be known as the "real property transfer tax
ordinance of the City of Petaluma" and is adopted pursuant to the
charter city authority granted to the City by the California
Constitution, Article XI, sections 5 and 7.
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4.20.020 Imposed -Rate.
There is imposed on each deed, instrument or writing by which
3 any lands, tenements, or other real property within the City are sold,
4 granted, assigned, transferred or otherwise conveyed, to, or vested
5 in, the purchaser or purchasers, or any other person or persons when
6 the consideration or value of the interest or property conveyed exceeds
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one hundred dollars, a tax at the rate of $1.15 for each one thousand
$ dollars or fractional part thereof of said consideration or value.
9 As used herein, "consideration or value" means the total
10 consideration, valued in money of the United States, paid or delivered
11 or contracted to be paid or delivered in return for the transfer of real
12 property, including the amount of any indebtedness, existing immedi-
13 ately prior to the transfer which is secured by a lien, deed of trust or
14 other encumbrance on the property conveyed and which continues to be
15 secured by such lien, deed of trust or encumbrance after said transfer,
16 and also including the amount of any indebtedness which is secured by
17 alien, deed of trust or encumbrance given or placed upon the property
18 in connection with the transfer to secure the payment of the purchase
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price or any part thereof which remains unpaid at the time of the
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transfer.
21 "Consideration or value" also includes the amount of any special
22 assessment levied or imposed upon the property by a public body,
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district or agency, where said special assessment is a lien or encum-
24 brance on the property and the purchaser or transferee agrees to pay
25 such special assessment or takes the property subject to the lien or
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such special assessment.
27 The value of any lien or encumbrance if a type other than those
28 which are hereinabove specifically included, existing immediately prior
29 to the transfer and remaining after said transfer., shall not be included
30 in determining the value of the consideration.
31 If the consideration or value cannot be definitely determined, or is
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left open to be fixed by future contingencies, "consideration or value"
33 shall be deemed to mean the fair market value of the property at the
34 time of transfer after deducting the amount of any lien or encumbrance,
35 if any, of a type which would be excluded in determining the
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consideration or value pursuant to above provisions of this section.
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4.20.030 Exemptions.
A. Any tax imposed pursuant to this chapter shall not apply to
any instrument in writing given to secure a debt.
B . Any deed, instrument or writing to which the United States
or any agency of instrumentality thereof, any state or territory, or
political subdivision thereof, is a party, shall be exempt from any tax
imposed pursuant to this chapter whenever the exempt agency is
acquiring title.
C. Any tax imposed pursuant to this chapter shall not apply to
the making, delivering or filing of conveyances to make effective any
plan or reorganization or adjustment:
1. Confirmed under the Federal Bankruptcy Act, as
amended;
2. 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;
3. 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
4. Whereby a mere change in identity, form or place of
organization is affected.
Subdivisions (1) through (4) of this subsection shall apply if the
making delivery or filing of instruments of transfer or conveyance
occurs within five years from the date of such confirmation, approval or
change .
D. Any tax imposed pursuant to 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:
1. The order of the Securities and Exchange Commission in
obedience to which such conveyance is made recites that such convey-
ance is necessary or appropriate to effectuate the provisions of Section
79(k) of Title 15 of the United States Code, relating to the Public
Utility Holding Company Act of 1935;
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2. Such order specifies the property which is ordered to be
conveyed;
3. Such conveyance is made in obedience of such order.
E. 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.
F. 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 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 .
G. 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. (Prior code §8.306. )
4.20.040 Refunds .
(a) Claims for refunds of taxes imposed pursuant to this chapter
shall be governed by the provisions of Chapters 1 and 2 of Title 1,
Division 3.6, Part 3 of the California Government Code (commencing
with section 900) .
(b) A claim for refund may be filed only if a written protest is
filed with the City at the time the tax payment is made . A claim for
refund must be accompanied by a copy of the written protest.
(c) No legal or equitable process shall issue in any proceeding in
any court against the City or any officer thereof to prevent or enjoin
the collection of the tax imposed by this chapter.
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4.20.050 Collection.
The finance director of the City shall collect the tax hereby
imposed and deposit the same to the general fund. The collection may
be delegated by agreement with the County of Sonoma to provide for
payment to and through the County Recorder upon recordation of the
document of transfer upon such terms and conditions as shall be
approved by the City Council.
1. Penalty. The tax imposed by 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. In the event that the tax is not paid prior to
becoming delinquent, a delinquency penalty of ten percent of the
amount of the tax due shall accrue . In the event a portion of the tax
is unpaid prior to becoming delinquent, the penalty shall only accrue as
to the portion remaining unpaid. An additional penalty of ten percent
shall accrue if the tax remains unpaid on the ninetieth day following the
date of the original delinquency. Interest shall accrue at the rate of
one-half of one percent 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 .
2. Tax as Debt. The amount of any tax, penalty and interest
imposed by this chapter shall be deemed a debt to the City. Any
person owing the tax to the City shall be liable to an action brought in
the name of the City for recovery of such amount.. The provisions of
this section. shall not be deemed a limitation upon the City to bring any
other action, whether criminal, at law, or in equity arising out of the
failure to pay a tax, penalty, or interest imposed, or other failure to
comply with the provisions of this chapter.
4.20.060 Payment.
The tax imposed by section 4.20.020 shall be paid by any person
who makes, signs or issues any document or instrument subject to the
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tax, or for whose use or benefit the same is made, signed or issued,
and such persons shall be jointly and severally liable far payment
thereof; provided, that with respect to a transfer made upon the
termination of a partnership within the meaning of section 708 of Title
26 of the United States Code, as amended, for the purposes of this
chapter, it shall be assumed that a document was executed by the
partnership whereby there was transferred for market value all realty
held by such partnership at the time of such termination; providing
further, that with respect to the realty held by such partnership, not
more than one tax shall be imposed pursuant to this chapter by reason
of such termination. and any documents making transfer pursuant
thereto .
All revenues received by the City from the levy of the tax imposed
by this chapter shall be deposited and paid into the general fund.
Section 2. Severability. If any section, subsection or portion of
this ordinance is for any reason held to be invalid or unconstitutional
by the decision of any court of competent jurisdiction, such decision
shall not affect the validity of the remaining portion of this ordinance.
The City Council hereby declares that it would have adopted this
ordinance and each section, subsection or portion thereof, irrespective
of the fact that any one or more sections, subsections or portions be
declared invalid or unconstitutional. In the event that the tax rate
established by this ordinance is invalid, the provisions of Chapter 4.20
of the Petaluma Municipal Code as they existed immediately prior to the
effective date of this ordinance shall be in full force and effect and
shall apply to any transfer of property to which the provisions of this
ordinance do not validly apply.
Section 3. Findings. This ordinance relates to taxes for the
usual and current expenses of the City and shall take effect and be in
force upon its passage by a majority vote of the members of the City
Council present at the time of its adoption. The State of California has
enacted Chapter 466 of the Statutes of 1990 which will reduce the estimated
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general fund revenues and increase public safety expenses in the
adopted fiscal year 1990-91 City budget. This tax increase is
necessary to obtain the revenues to continue the usual and current
expenses required to provide City services not only required by law
but also for the preservation of the public peace, health and safety of
the City .
Section 4. Effective Date. This ordinance is effective on and
after November 5 , 1990 .
Section 5. Publish/Posting. The City Clerk shall, and she is
hereby directed to, post/publish this ordinance for the period and in
the manner as required by law.
INTRODUCED and ordered published this 29th day of October, 1990.
ADOPTED this ~~_ day of
November 1990.
AYES: Balshaw, Davis, Woolsey, Mayor~Hilligoss
NOES: Sobel, Tencer, Vice Mayor C
ABSENT: None
ATTEST:
Ci y C ler
ordinance 34
ORD1
10/16/90
10/25/90pb
12/5/90
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