§ 4.08.100. Exemptions.

Exemptions from the documentary transfer tax are set out below in subsections A. through J. Except for any exemption claimed under subsection G. below (when the deed, instrument or other writing includes the written recital described in subsection G.) and except for any exemption claimed under subsection F. below (when the deed, instrument, or other writing notes the consideration, unpaid debt amount and identification of grantee as beneficiary or mortgagee within the meaning of subsection F.), each person who claims an exemption from the tax shall declare in writing (under penalty of perjury) the essential facts that support the claim for exemption (in the manner and form prescribed by the recorder). The recorder may require any person claiming an exemption from the tax to furnish reasonable documentation that is relevant to determining the person's eligibility for the claimed exemption.

A.

Conveyances to secure a debt under California Revenue and Taxation Code Section 11921. The tax imposed by this chapter shall not apply to any instrument in writing given to secure a debt.

B.

Conveyances to governmental entities under California Revenue and Taxation Code Section 11922. Any deed, instrument, or writing 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 part when the exempt agency is acquiring title.

C.

Conveyances under reorganization or adjustment plans under California Revenue and Taxation Code Section 11923.

(1)

The tax imposed pursuant to 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 Code, as amended;

(B)

Approved in an equity receivership proceeding in a court involving a railroad corporation, as defined in Section 101 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 Section 101 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.

(2)

Section 4.08.100 C.(1)(A)—(D) shall only apply if the making, delivery, or filing of instruments of transfer or conveyances occurs within five (5) years from the date of such confirmation, approval, or change.

D.

Conveyances under order of the Securities and Exchange Commission under California Revenue and Taxation Code Section 11924. The Tax imposed by this Ordinance 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 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;

(2)

Such order specifies the property which is ordered to be conveyed;

(3)

Such conveyance is made in obedience to such order.

E.

Transfer of Certain Partnership Property under California Revenue and Taxation Code Section 11925.

(1)

In the case of any realty held by a partnership or other entity treated as a partnership for federal income tax purposes, no tax shall be imposed pursuant to this Ordinance by reason of any transfer of an interest in a partnership or other entity or otherwise, if both of the following occur:

(A)

Such partnership or other entity treated as a partnership is considered a continuing partnership within the meaning of Section 708 of the Internal Revenue Code of 1986.

(B)

The continuing partnership or other entity treated as a partnership continues to hold the realty concerned.

(2)

If there is a termination of any partnership or other entity treated as a partnership for federal income tax purposes, within the meaning of Section 708 of the Internal Revenue Code of 1986, for purposes of this Ordinance, the partnership or other entity 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 the partnership or other entity at the time of the termination.

(3)

Not more than one tax shall be imposed pursuant to this chapter by a county, city and county or city by reason of a termination described in the subdivision (b), and any transfer pursuant thereto, with respect to the realty held by a partnership or other entity treated as a partnership at the time of such termination.

(4)

No levy shall be imposed pursuant to this part by reason of any transfer between an individual or individuals and a legal entity or between legal entities that results solely in a change in the method of holding title to the realty and in which proportional ownership interests in the realty, whether represented by stock, membership interest, partnership interest, co-tenancy interest, or otherwise, directly or indirectly, remain the same immediately after the transfer.

F.

Conveyances taken in lieu of foreclosure and exception to exemption under California Revenue and Taxation Code Section 11926. Any tax imposed by this chapter shall not apply with respect to any deed, instrument, or writing to a beneficiary or mortgagee, which is taken from the mortgagor or trustor as a result of or in lieu of foreclosure; provided, that such tax shall apply to the extent that the consideration exceeds the unpaid debt, including accrued interest and cost of foreclosure. Consideration, unpaid debt amount and identification of grantee as beneficiary or mortgagee shall be noted on said deed, instrument, or writing or stated in an affidavit or declaration under penalty of perjury for Tax purposes.

G.

Conveyances in dissolution of marriage under California Revenue and Taxation Code Section 11927.

(1)

Any tax imposed by this chapter shall not apply with respect to any deed, instrument, or other writing which purports to transfer, divide, or allocate community, quasi-community, or quasi-marital property assets between spouses for the purpose of effecting a division of community, quasi-community, or quasi-marital property which is required by a judgment decreeing a dissolution of the marriage or legal separation, by a judgment of nullity, or by any other judgment or order rendered pursuant to the Family Code or by a written agreement between the spouses, executed in contemplation of any such judgment or order, whether or not the written agreement is incorporated as part of any of those judgments or orders.

(2)

In order to qualify for the exemption provided in preceding paragraph, the deed, instrument, or other writing shall include a written recital, signed by either spouse, stating that the deed, instrument, or other writing is entitled to the exemption.

H.

Conveyances by governmental entities with agreements by purchasers to reconvey under California Revenue and Taxation Code Section 11928. Any tax imposed by this chapter shall not apply with respect to any deed, instrument, or other writing by which realty is conveyed by the State of California, any political subdivision thereof, or any agency or instrumentality of either thereof, pursuant to an agreement whereby the purchaser agrees to immediately reconvey the realty to the exempt agency.

I.

Conveyances by governmental entities to certain nonprofit corporations under California Revenue and Taxation Code Section 11929. Any tax imposed by this chapter shall not apply with respect to any deed, instrument, or other writing by which the State of California, any political subdivision thereof, or any agency or instrumentality of either thereof, conveys to a nonprofit corporation realty the acquisition, construction, or improvement of which was financed or refinanced by obligations issued by the nonprofit corporation on behalf of a government unit, within the meaning of Section 1.103-1(b) of Title 26 of the Code of Federal Regulations.

J.

Conveyances by inter vivos gifts or death under California Revenue and Taxation Code Section 11930. Any tax imposed by this chapter shall not apply to any deed, instrument, or other writing which purports to grant, assign, transfer, convey, divide, allocate, or vest lands, tenements, or realty, or any interest therein, if by reason of such inter vivos gift or by reason of the death of any person, such lands, tenements, realty or interests therein are transferred outright to, or in trust for the benefit of, any person or entity.

(Ord. No. 516.4, § 1(10), 2-4-2014)