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Resolution 14245CITY OF ALAMEDA RESOLUTION NO. 14245 SUBMITTING TO THE ELECTORS AT THE CONSOLIDATED MUNICIPAL ELECTION IN THE CITY OF ALAMEDA ON NOVEMBER 4, 2008, A PROPOSAL TO AMEND THE CITY OF ALAMEDA MUNICIPAL CODE TO INCREASE THE REAL PROPERTY TRANSFER TAX WHEREAS, pursuant to Resolution No. 14215, the City Council of the City of Alameda has called a Consolidated Municipal Election to be held on November 4, 2008; and WHEREAS, the City Council of the City of Alameda hereby proposes to submit to the voters at said election a measure to increase the real property transfer tax imposed under § 3-58.2 of the Alameda Municipal Code; and NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ALAMEDA THAT: 1. At the Consolidated Municipal Election to be held on November 4, 2008, there shall be submitted to the qualified voters of the City of Alameda an ordinance amending § 3-58.2 of the Alameda Municipal Code. 2. The text of the measure, labeled as Measure YYY, which may be redesignated by the County Clerk, is attached hereto as Exhibit A, and incorporated herein by this reference. 3. The procedures for voting for and against said question shall be those established by Alameda County and the question shall be printed in substantially the following form: MEASURE YYY. CITY OF ALAMEDA REAL PROPERTY TRANSACTION TAX MEASURE. To maintain essential City services such as keeping existing fire stations open; maintaining neighborhood policing programs; improving traffic flow and pedestrian and bicycle safety; preventing recreation program cutbacks; and restoring previously reduced library hours; shall the City of Alameda increase the City real property transfer tax, charged when a property is sold, from $5.40 to $12.00 per $1,000.00 of value, limited to 20 years and subject to audits? YES NO 4. The City Council adopts the provisions of subdivision (a) of section 9285 of the Elections Code to permit rebuttal arguments, if arguments have been filed in favor of or against Measure YYY. 5. Pursuant to California Elections Code Section 9280, the City Council hereby directs the City Clerk to transmit a copy of the measure to the City Attorney. The City Attorney shall prepare an impartial analysis of the measure, not to exceed 500 words in length, showing the effect of the measure on the existing law and the operation of the measure, and transmit such impartial analysis to the City Clerk within ten (10) days of the adoption of this Resolution. 6. The City Clerk is hereby directed to file a certified copy of this resolution with the Alameda County Clerk of the Board of Supervisors and the County Registrar of Voters in sufficient time so that the measure may be included in the November 4, 2008, Consolidated General Municipal' Election ballot. 7. The measure proposes a general tax and shall be approved if a majority of those voting on the measure approve it. * EXHIBIT A MEASURE YYY — TEXT OF PROPOSED ORDINANCE CITY OF ALAMEDA ORDINANCE NO. New Series AMENDING SECTION 3 -58 OF DIVISION I OF ARTICLE II OF CHAPTER III OF THE ALAMEDA MUNICIPAL CODE, THE REAL PROPERTY TRANSACTION TAX THE PEOPLE OF THE CITY OF ALAMEDA DO ORDAIN AS FOLLOWS: Section 1. Code Amendment. Subsection 3 -58.2 of the Alameda Municipal Code is hereby amended to read as follows: 3 -58.2 Imposition of Tax. A 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 thereof, or any other person at or by the direction of the purchaser, when the value of the consideration exceeds one hundred ($100.00) dollars, the tax to be fivo twelve dollars ($12.00) and forty conts ($540) for each one thousand ($1,000.00) dollars or fractional part of one thousand ($1,000.00) dollars of the value of the consideration. As used herein, value of the consideration shall mean 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 or trust or other encumbrance on the property conveyed and which continues to be secured by such lien, deed of trust or encumbrance after the transfer, and also including the amount of any indebtedness which is secured by a lien, deed or 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 the special assessment is a lien or encumbrance on the property and the purchaser or transferee agrees to pay 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 consideration shall 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 subsection." Section 2. Code Amendment. Subsection 3 -58.4 of the Alameda Municipal Code is hereby amended to read as follows: 3 -58.4 Exemption. The tax imposed pursuant to section 3 -58.2 shall not apply to any transaction that is exempt from taxation pursuant to Chapter 3 of Part 6.7 of Division 2 of the California Revenue and Taxation Code as it now reads or may hereafter be amended: a. Written Security instrument. Any ax imposed pursuant to this section confirmation, approval or change. Holding Company Act of 1935. 3. Such conveyance' is made in obedience to such order, e. Partnerships. in a partnership or otherwise, if: Internal Revenue Code; and (b) Such continuing partnership continues to hold the r alty concerned. Internal Revenue Code for purposes of this section, such partnership the time of such termination. reason of a termination described in subparagraph 2., and any transfer the time of such termination." Section 3. Repeal. Subsection 3-58.5 of the Alameda Municipal Code is hereby repealed, but transfers in lieu of foreclosure shall remain exempt from tax as provided in subsection 3-58.4 of that Code. Section 4. Code Amendment. Subsection 3-58.6 of the Alameda Municipal Code is hereby amended to read as follows: 3-58.6 Administration of Tax. The Collector) County Recorder shall collect the tax imposed under this section 3- 58.2 and shall otherwise administer this section such tax in conformity with the provisions of Part 6.7 of Division 2 of the California Revenue and Taxation Code and the provisions of any county ordinance adopted pursuant thereto . i=tel-sheNotwithstanding the preceding sentence, the City Tax Collector may make such rules and regulations, not inconsistent with the subsection 3-58.2, as he/she may deem reasonably necessary or desirable to administer this- the tax imposed under that section. In the administration of this section such tax, the City Tax Collector 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 except that for the purposes of this section: a. Realty, as used in the regulations, shall mean real property as such term is defined by and under the laws of the State of California. b. Those provisions of the 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 the regulations relating to the rate of the tax shall not apply. d. Those provisions of the regulations which conflict with the provisions of this section shall not apply." 'Section 5. Amendment of Ordinance. The tax imposed under Alameda Municipal Code § 3-58.2, as amended by this Ordinance, may be repealed or amended by the City Council without a vote of the people except as follows: as required by Proposition 218, any amendment that increases the amount or rate of tax beyond the levels authorized by this Ordinance may not take effect unless approved by a vote of the people. The City Council may impose the tax in any amount or rate which does not exceed the rate approved by the voters of the City. Section 6. Severability. If any section, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be invalid or unenforceable by a court of competent jurisdiction, the remaining sections, sentences, clauses, phrases, or portions of this ordinance shall nonetheless remain in full force and effect. The people of the City of Alameda hereby declare that they would have adopted each section, sentence, clause, phrase, or portion of this Ordinance, irrespective of the fact that any one or more sections, sentences, clauses, phrases, or portions of this Ordinance be declared invalid or unenforceable and, to that end, the provisions of this Ordinance are severable. Section 7. Majority Approval; Effective Date. This Ordinance shall be effective only if approved by a majority of the voters voting thereon and shall go into effect ten (10) days after the vote is declared by the City Council. Presiding Officer of the Council ATTEST: Lara Weisiger, City Clerk I, the undersigned, hereby certify that the foregoing Resolution was duly and regularly adopted and passed by the Council of the City of Alameda during the Regular Meeting of the City Council on the 15th day of July, 2008, by the following vote to wit: AYES: Councilmembers deHaan, Gilmore, Matarrese, Tam and Mayor Johnson - 5. NOES: None. ABSENT: None. ABSTENTIONS: None. IN WITNESS, WHEREOF, 1 have hereunto set my hand and affixed the official seal of said City this 16th day of July, 2008. Lara Weisiger, City City of Alameda