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Ordinance 1921CITY OF ALAMEDA ORDINANCE NO. 1921 New Series AMENDING THE ALAMEDA MUNICIPAL CODE BY SUSPENDING SECTIONS 3 -1111 THROUGH 3- 11113, AS ADDED BY ORDINANCE N0. 1561 N.S., AND ADDING A NEW CHAPTER 11 TO TITLE III THEREOF, CONSISTING OF SECTIONS 3 -1111 THROUGH 3- 11118, RELATING TO A REAL PROPERTY CONVEYANCE TAX AND PROVIDING FOR THE ADMINISTRATION THEREOF BE IT ORDAINED BY THE COUNCIL OF THE CITY OF ALAMEDA that: Section 1 ordinance No. 1561 N.S., consisting of Sections 3 -1111 through 3 -11113 of the Alameda Municipal Code, is hereby suspended until this ordinance is repealed. Section 2 Chapter 11 of Title III of the Alameda Municipal Code is hereby amended by adding Article 1 consisting of Sections 3 -1111 through 3 -11118 thereto, to read as follows: CHAPTER 11 REAL PROPERTY TRANSACTION TAXES Article 1. Establishing Regulations for Real Property C nveyance Is Sec. 3 -1111 Title and Purpose This Article may be cited as the A1 d Re 1 P P YtY Conveyance T ax'Ordi- nance The tax imposed under this Article is solely for the purpose of raising revenue. This Article is not enacted for regulatory purposes. Sec. 3 -1112 Imposition of' Tax. A tax is hereby im- posed on each transfer, by deed, instrument or writing, by which any lands, tenements, or other rout property cold, located in the City of Alameda, are or is granted, assigned, -1- transferred or otherwise conveyed to, or vested in, a pur- chaser or purchasers thereof, or any other person or persons at or by the direction of said purchaser or purchasers, when the value of the consideration exceeds one Hundred Dollars ($100.00), said tax to be at the rate of Two Dollars and Twenty Cents ($2.20) for each Five Hundred Dollars ($500.00) or fractional part of Five Hundred Dollars ($500.00) of the value of the consideration. 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 conveyed and which con- tinue. to b® secured by Inch ien, deed of trust 0r 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 -2- 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 con- sideration. 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. S ec. 3 -1113 Liability for Paym Any tax imposed pursuant to Section 3 -1112 hereof shall he paid by any person who makes, signs or issues any document or instru- ment subject to the tax, or for whose use or benefit the same is made, signed or issued. Sec. 3 -1 114. Exemption, Written Security Instrument Any tax imposed pursuant to this Article shall not apply to any instrument in writing given to secure a debt. Sec. 3 -1115 Exemption, United States St at s Political subdivision Any deed, instrument or writing to which the United States or any agency or instrumentality thereof, any state or territory, or political subdivision CRD thereof, is a party shall be exempt from any tax imposed pursuant to this Article when the exempt agency is acquir- ing title. Sec. 3 -1a16 Exemption Bankruptcy Proceeding Any tax imposed pursuant to this Article shall not apply to the making, delivering or filing of conveyances to make effec- tive 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) or 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 sub- division (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. -4- Sec. 3 -1117 Exemption, instruments Pursuant to S.E.C. Order Any tax imposed pursuant to this Article 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: (a) 'Phe 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. (b) Such order specifies the property which is ordered to be conveyed. (e) Such conveyance is made in obedience to such order. Sec. 3- 1.11.A Exemption, Parknersh5.ps (a) In the case of any realty held by a partnership, no levy shall be imposed pursuant to this Article by reason of any transfer of an interest in a partner- ship 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 concernef.. -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 Article, 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. (c) Not more than one tax shall be imposed pursuant to this Article 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. Sec. 3 -1119 Instruments in Lieu of Foreclosure Any tax imposed pursuant to this Article shall not apply with respect in any transfer to a heneficiary or mortgagee which is taken in lieu of a foreclosure. Sec. 3- 11110 Administration of Tax The Tax Col- lector of the City of Alameda (hereinafter in this Article referred to as "Tax Collector shall collect the tax im- posed under this Article and shall otherwise administer this Article. He may make such rules and regulations, not inconsistent with the Article, as he may deem reasonably necessary or desirable to administer this Article. In the administration of this Article, the Tax Collector shall interpret its provisions consistently with those Documen- tary Stamp Tax Regulations adopted by the Internal Revenue -6- 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 0, 1967, except that for the purposes of this Article: (a) 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. (b) 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. (c) Those provisions of said regulations relating to the rate of the tax shall not apply. (d) Those provisions of said regulations which conflict with the provisions of this Article shall not apply. Sec. 3- 11.111 Due Dates,llelin uenc Penalties interest The tax imposed under this Article is due and payable at the time the deed, instrument or writing effect- ing 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 (10 of the amount of tax due shall accrue. In the event a portion of the tax is unpaid prior to becoming delinquent, the -7- yu„ui1y 11 Y accrue as to the portion remaining Un- paid. An additional penalty of ten percent (10' shall accrue if the tax remains unpaid on the 90th 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. Sec. 3- 11112 Declaration Required The tax imposed by this Article shall be paid to the Tax Collector by the persons referred to in Section 3 -1113. Payment shall be accompanied by a Declaration of the amount of tax due signed by the person paying the tax or by his agent. The Declaration shall include a statement that the value of the consideration on which the tax due was computed in- cludes 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 includes all special assessments on the property which the purchaser or transferee agrees to pay or which remain 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 Tax Col- lector may require delivery to him of a copy of such deed, instrument or writing whenever he deems such to be reason- ably necessary to adequately identify such writing or to administer the provisions of this Article. The Tax ME Collector may rely on the Declaration as to the amount of the tax due provided he has no reason to believe that the full amount of the tax due is not shown on the Declaration. Whenever the Tax Collector has reason to believe that the full amount of tax due is not shown on the Declaration or has not been paid, he may, by notice served upon any person liable for the tax, require him to furnish a true copy of his records relevant to the value of the considera- tion or fair market value of the property transferred. Such notice may be served at any time within three (3) years after recordation of the deed, instrument or writing which transfers such property. Sec. 3- 11113 Determination of Deficiency If on the basis of such information as he receives pursuant to the last paragraph of Section 3 -11112 and /or on the basis of auch other relevant information that comes into his possession, he determines that the amount of tax due as .set forth in the Declaration, or as paid, is insufficient, he may recompute the tax due on the basis of such information. If the Declaration required by Section 3 -11112 is not submitted, the Tax Collector may make an estimate of the value of the consideration for the property conveyed and determine the amount of tax to be paid on the basis of any information in his possession or that may come into his possession. One or more deficiency determinations may be made of th, amount due with respect to any trarsfer. -9- Sec. 3- 11114 Notice of Determination The Tax Collector shall give notice to a person liable for payment of the tax imposed under this Article of his determination made under Section 3- 11113. 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. Sec. 3- 11115 Manner of Giving Notice Any notice required to be given by the Tax Collector under this Article 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 his address as it appears in the records of the City or as ascertained by the Tax Collector. 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. Sec. 3- 11116 Petition for Redetermination Any person against whom a determination is made under this Article 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 for redetermi- nation is not filed within the sixty (60) day period, the determination becomes final at the expiration of the period. Sec. 3- 11117 Cons ideration of Petition. Bea ing If a petition for redetermination is filed within the -10- sixty (60) day period, the Tax Collector shall reconsider the determination and, if the person has so requested in his petition, shall grant the person an oral hearing, and shall give him ten (10) days notice of the time and place of hearing. The Tax Collector may designate one or more deputies for the purpose of conducting hearings and may continue a hearing from time to time as may be necessary. Sec. 3- 11118 Severability If any provision of this Article, or application thereof to any person or circumstances, is held invalid, such invalidity shall not affect other provisions or applications of this Article which can be given effect without the invalid provision or application, and to this and the provisions of this Article are declared to be severable. Section 3 This ordinance provides for, and fixes the rate of, a tax levy for the usual and current expenses of the City, and pursuant to Section 3 -12 of the Charter of the City of Alameda shall be in full force and effect at 11:00 p.m. on Tune 30, 1978. Provided, however, this ordinance shall be of no force and effect in the event that Proposition 13 is not adopted E 1 at the Tune 6, 1976 Primary Sleet ion of the State of California. u Section 4. It is the intent of this Council, in the event a that Proposition 13 is either held unconstitutional or the State n I u. provides revenues lost through the passage thereof, to repeal N Z ordinance thereafter. n Actes t: 2 _G smu. Peas id' Offie�r of the Council t; 7 -11- I, the undersigned, hereby certify that the foregoing Ordinance was duly and regularly adopted and passed by the Council of the City of Alameda in adjourned regular meeting assembled on the 23rd day of May, 1978, by the following vote, to wit: AYES: Councilmen Diament, Sherratt, Tillman, and President Corica, (4). NOES: None. ABSENT: Councilman Beckam, (1). IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of said City this 24th day of May, 1978. r, City Clerk of the City of Alameda