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Home My WebLink AboutORD 2398.... • ORDINANCE NO. 2398 • ----- ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO ADDING CHAPTER 2.34 TO TITLE 2 OF THE PALO ALTO MUNICIPAL CODE IMPOSING A DOCUMENTARY STAMP TAX ON THE SALE OF REAL PROPERTY ·The Council of the City of Palo Alto does OROAl~ as follows: . l:1EC'rION 1. Chapter 2. 34 is. ad.ded to ~itle 2 of the Palo Alto Municipal Code to' read: Sections: 2.34.010· 2.34.020 2.34.030 2.34.040 2.34.050 2.34.060 2.34.070 2.34.080 2.34.Q90 2.34.100 CHAPTER 2.34 REAL PROPERTY TRANSFER TAX Short title. Imposition of tax Persons on whom tax imposed. Security for debt. Exemptions. Conveyances not subject to tax -· Plans for reorganization or adjustment. Conveyances not subj~ct to tax -Securities and· Exchange Commission Orders. . .. Conveyances not subject to tax -Transfer or termination of partnership. Administration by county Recorder. ClaiN• for refund. 2.34.010 Short title. This chapter shall be known as the 0 keal Propt;rty Transfer Tax Ordinance of the City of Palo Alto 11 • It is adopted pursuant. ;to the authority contained I in . Part 6. 7 (commencing with Section 11901) of ·Division 2 of the Revenue and taxation Code of the State of California. 2.34 .. 020 Imposition of tax. There is hereby imposed on each .deed, instrwnent or writing by which any lands, tenements, or other realty sold within the City of Palo Alto shall be .granted, assigned, transferred or other-Wis'e· conveyed to, or vested in, the purchaser or purchasers, or any other person·or persons, by his or their direc tion, when the consideratio:r;i or value of th9· int~rest .or property conveyed (exclusive of the v"-lue of any lien or encumbrance!> re""'. maining thereon at the time\ of sale) exceeds. one ···hundred dollars ($10'l), a tax at the rate·of twer.lty-s~ve~_a>ld_one-half cents ($0 .275) for each five hundred dolla.fs ($500) or fractional part thereof. · · 2.34~:·o~o . Persons pn .whom t·ax ~posed. 'Any ~ax' imposed pur~uant to Section';2 hereof shall. be ·paid by any· p~rson who makes, signs or iih3ues any document or. instrument subject to the. ta.X, or for whose use or b~J1efit, the :same is .made, signed: or iss~ed~· · · ·· · 2 .3 •• 040 $ecur.j.t§.:fq?f df!bt. · An·i tax imposed. pursuailt. to . this ordinance shall not apply ·to any instrument in writing given.·. to secure a debt. . ! '·· • • 2.34.050 Exemptions.. The United States or any agency or instrumentality""tnereof, any state or territory, or political subdivision thereof, or the District of Columbia shall not be liable for any tax im1;>osed pursuant ,to this ordinance with respect to any deed, instx·ument, or writing to which it is "" party, but the tax may be collected by assessment from any other party liable therefor. 2.34.060 Conve~ances not subject to tax -Plans for reorganizatIOn or aOJUStment. Any tax Imposed pursuant to this ordinance shall not apply to the making, delivering or filing of· conveyances to make effecti.ve any plan of reorganization~or adjustment-- ( a) Confirmed under the Federal Bankruptcy Act, as amended; . . (b) Approved in cm· equity receivership proceeding in a court involving a railroad corporation, as defined in subdivisiun' (rn) of Section 205 of Titie 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 0:€ the United States Code, ·as amended; or (d) Whereby a mex'e 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 f,iling of instrwnents of transfer or conveyances occurs within five years from the date of such confirmation, approval or change. 2.34.070 Conveiances not subject to tax -Securities and Exchange Commisilon Ordei.•s. · Any tax imposed pursuant. to this ordinance shall not apply to the making or delivery of conveyances to make effective any order of the Securities and Exchange Com mission, as defined.in subdivision (a) of Section 1083 of the Internal Revenue Code of 1954; but only if-- (a) The order~oi the Securities and Exchange Commission in obedience to which-~bch conveyance is made-recites that: such con veyance is necessary or appropriate to effectuate the provisions of Section 79k of Title lS 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. 2.34.!.oeo . coe.veyartces not subject _t:,o tax -Transfer or termination of;. ·pa·rtner~:tdp ~. . {a) ·In ·the· case of any. realty· held by a part-'lership, no levy shall be· imposed pursuant to this ordinance by z:.aason of any 'transfer of an . inter1~'st in a partner ship o+ otherwise, if-- . fl) . Such partnership (or another partrt~rship) ·is con- sidered. a continuing partn'ership withhl the meaning of Oection 708 .of the Internal Revenue Code of 1954.; and (2). suc~i. cOritinuing partnership ·continues to. hold the . realty. concerned. (b) ~ If· there. is a t~'~.i.'nation .of any partnership within the mean\ng of Section708 of the Internaf ]3.evenue Code of 1954, for - 2 - \ " \ . . ! • • purposes of this ordinance, 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 su~h partnership at the time of such terminat1on. (c) Not more than one tax shall be imposed pursuant to th~s ordinance by reason of a termination d~soribed in subdivision (b), and any transfer pursuant thereto, with respect to the realty held by such partnership at the time of such termination. 2.34.090 Administration by County Recorder. The County Recoraer sliiil administer tfiis 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. 2.34.100 Claims for refund. Claims for refund of taxes imposed pursuant to this ordinance shall be governed by the pro v is ions 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. This ordinance shall become operative upon the operative date of any ·ordinance adopted by the county of Santa Clara, 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. SECTION 3. Upon its adoption the City Clerk shall file two copies of this ordinance with the County Recorder of Santa Clara Coun-~y. SECTION 4. This ordinance, inasmuch as it provides for a tax levy for the usual and .·current expenses of the City, shall take effect immediately. INTRODUCED ANO PASSED: November 27, 1967 ·AYES: NOES: Arnold, Berwald, Cl~tk, Comstock, Dias, Pearson~ Spaeth, Wheatley Nolie Beahrs; .Cooley, Gill lagher IMA~~~~AP~Pz~.·· ·. &2 / &tl~~~::::::.;:=:l.d~::__:.-------. . 'Mayo~ .·. ~PROVED: · - l ... \