Ordinance 1738ORDINANCE 1738
AMENDING THE ALAMEDAMUNICIPAL CODE BY REPEALING
SECTIONS 3-1111 THROUGH 3-11113AND ADDING A NEW CHAPTER TO TITLE III THEREOF, CONSIST-ING OF SECTIONS 3-111 THROUGH11118, RELATING TO A REALPROPERTY CONVEYANCE TAXAND PROVIDING FOR THE AD-
MINISTRATiON THEREOF
BE IT ORDAINED BY THE COUNCil OF THE CITY OF ALAMEDA:Section 1. That Article 1 of Chapter11, Title III, consisting ot Sections
1111 through 3-11113, of the AlamedaMunicipal Code is hereby repealed.
Section 2. That Chapter 11 of Title IIIot the Alameda Municipal Code ishereby amended by adding. Article
consisting of Sections 3-1111 through
11118 thereto, to read as follows:
CHAPTER 11. REALPROPERTY TRANSACTION
TAXESArticle 1. Establishing Regula-tions for Real Property Con.veyance Tax
Sec. 3-1111. Tile and Purpose.This Article may be cited as the
Alameda Real Property Con-veyance Tax Ordintmce." The taximposed under this Article is
solely for the purpose of raisingrevenue. This Article is notenacted tor regulatory purposes.
Sec. 3-1112. Imposition of Tax.A tax is hereby imposed on each
transfer, by deed, instrument orwriting, by which any lands,tenements, or other real property
sold, located in the City ofAlamedo, are or is gronted, as-signed, transferred or otherwiseconveyed to, or vested in, apurchaser or purchasers thereof,
or any other person or persons at
or by the direction of Soid
purchaser or purchasers,whenthe value of the consideration ex-ceeds One Hundred Dollors
($100.00), said tax to beat the roteof One Dollar and Sixty-Five
Cents ($1.65) tor each FiveHundred Dollors ($500.00) ortractional part ot Five Hundred
Dollars ($500.00) of the value ofthe considerotion.As used herein, "volue of theconsideration" means the total
consideration, valued in money ofthe United States, paid or
delivered or contracted to be paid
or delivered in return for thetransfer of real property, includ-ing the amount of any indebted-ness, existing immediately prior
to the.. transfer.. whi ch is. securedby a lien, deed of trust or other
encum brance on the property
conveyed and which continues tobe secured by such lien, deed oftrust Or encumbrance after saidtransfer, and also including theamounf of any indebtedness
which is secured by a lien, deed of
trustor encumbrance given or
placed upon the property in con-nection with the transfer tosecure the payment of the
purchase price or any partthereof which remains unpaid at
the time of the transfer. "Value of
the consideration " also includesthe amount af any special assess-
ment levied or imposed upon the
property by a public body, districtor agency, where said special as-
sessment is a lien or en-cumbrance on the property andthe purchaser or transfereeagrees to pay such special as-
sessment or takes the property
subiect to the lien of such specialassessmenL The yalue of any lienor encumbrance of a type otherthan those which are hereinabove
specifically included, existing
immediatelY prior to the transfer
and remaining after said transfer,shall not be included in determin-
ing the value of the.consideration.
If the value of the considerationcannot be definitely determined,
or is left open to be fixed by future
contingencies, "value of fhe con'siderotion " shall be deemed tomean thefair market value of theproperty at the time of transfer
after deductingtheamount of anylienor encumbrance if anv, of a
type which would be excluded in
determining the value of the con-sideration . pursuant to aboveprovisions of this section.See. 3.1113. Liability forPayment. Any tax imposed pur-suant to Section 3.1112 hereofshall be paid by any person whomakes, signs or issues . anydocument or instrument subject
to the tax, or for whose use orbenefit the some is made, signed
or issued.
Sec. 3-1114. Exemption, WrittenSecurity Instrument. Any tox im.posed pursuant to this Article
shall not apply to any instrument
in writing given to secure a debL
Sec. 3-1115. Exemption, United
States, State or Political Sub-
division. Any deed ,. instr umentorwriting to Whi ch the United States
or any agency or instrumentalitythereof. any state or territory, orpoliticalsubdivisionthereoL is aparty sholl be exempt from any
tax imposed pursuant to this Ar-ticle when the exempt agencv is
acquiring title.Sec. 3-1116. Exemption,Bankruptcy Proceedings. Any
tax imposedpursuanf to this Ar-ticle shall not apply to the
making,delivering or filing ofconveyances to make effective
any plan of reorganization or ad-justment:
(0) Confirmed under theFederal Bankruptcy Act, as
amended.(b) Approved in on equityreceivership. proceeding in 0
court. involving ()railroadcorporation, as defined in sub.;
division (m) otSection 205 of
Title 11 ot the United States
Code, as amended.( c) ApprovedinoncQuityreceivership proceeding in acourt involving a corporation, as
defined in subdivision (3) of Sec-
tion 506 of Title 110tthe UnitedStates Code, as arnended; or
(d) Whereby a mere change inidentity, form or place of or-
ganization. is effected.
Subdivisions (0) to (d),
inclusive, of this section shall
onlY applY it the making,
delivery or filing ot instrumentsof transfer or conveyances oc'curs wi1hin five years from the
dote of such confirmation,
approval or change.
Sec. 3-1117. exemplion, Ins-
truments P ursuanl 10 S. IE. C,
Order. Anv tax imposed pursuant
to this Article shall not applY tothe making or delivery of conv€vances to make etfecjive any
order of the Securities andExchange Commission, as
defined in subdivision (0) of Sec-
tion 1083 of the Internol Revenue
Code of 1954; but only ij'
(0) The order of the Securities
and Exchange Commlssian in
obedience to which such con-vevance is made recites that
such conveyance is necessarY orappropriate to effectuate the
provisions at Section 79k ot Title
15 of the United States Code,relating to the Public Utility
Holding Company Act at 1935.
(b) Such order specifies the
property which is ordered to be
conveyed,(c) Such conveyonce is made
in obedience to such order.
See. 3-1118. Exemption, port-
nerships.
(0) In the case ot ony realty
held by a partnership, no levy
sholl be imposed pursuant to thisArticle by reason of ony Iransfer
of an interest in a partnership or
otherwise, if:
(1) Such parlnership (oronotherparinership) is con-
sidered a continuing partnership
wilhinthe meoning ot Section 708
of the Interna! Revenue Code of
1954; and(2) Such conil
nership continuesrealtv concerned.
(b) If there is 0 termination of
onv partnership within the meon
~~~~~
of this Article, such.portnership
sholl be treated as having execut-ed an instrumentwherebvtherewas conveyed, for fairrnarket
volue (exclusive ot the value ot
any lien or encumbrance remain-ingthereonL all realty held bvsuch partnership at the time ot
such termination.(c) Not more than one tax shall
be imposed pursuant tothis Ar-
ticleby reason of a terminationdescribed in subdivision (bL andany transfer pursuant thereto,with respecl to the realty held by
such partnership at the time of
such terml nati on.
Sec. 3-1119. Instruments in Lieu
of Foreclosure. Any tax imposedpursuant to this Article shall not
?gP
y b
~~~~~~~~~~~~~
which is taken in lieu of aforeclosure.
Sec. 3-11110. Administration ot
Tax. The Tax Collector of the Cityot Alamedo (hereinafter in thisArt! c Ie referr edto as "Tax
Collector ) shall collecl the tax
imposed under this Article andsholl otherwise administer thisArticleHernav make such rules
and regulations, not inconsistentwith the Article, as he may deem
reasonablY necessary or desi rable to administer this Article. Inthe administration of this Article,the Tax Collector sholl interpretits provisions consistently withthose Documentarv Stamp Tax
n9 parl-
hold the
Ordinance No . I 7'J 8
New Series
Regulati ons adopted by the Inter-
nai Revenue Service ot the Unitedstates Treasury Deportmentwhich reiate to the Tax on Can-
veyonce and identitied as Sec.
tions 47A36J1, 47, 4361.2 and 47,
4362-1 of Port 47 of Title 26 ot the
Code at Federal Regulations, as
the same existed on November 8,
1967, e)(cept that tor the purposes
of this Article:
See. 3-11111 Due Dotes,
Delinquency, Penalties, Interest.
The tax imposed underthisA
ticle is due ond payable at thelime the deed, instrument or
writing effectipg a transfer sub-ject to the taxis delivered, andis
delinauent it unpaid at the time ot
recordation thereof. In the eventthat the tax is not paid pri or tobecoming delinquent, a
delinauency penalty ot ten per
cen'! (10% )of the amountoi' tox
due sholl accrue. In the event aportion af the tax IS unpaid priorto bprnrnino rtpl;nnIIPnt,.the
penalty shall oniy accrue as to the
portion renloining unpaid. An additional penoltv ot ten per cent
(10%)
) .
5holl accrue .if .111e1ax
remai ns unpaid on the 90th day
tollowing the date ot the originaldelinauenCy Interest sholl
LKcrue at the rate of one holt of
one per cent amon1h,or froc 110n
thereot, on the amounl af tax,exclusive of nenalties, trom the
date t!letaxbecomes delinquentto the dote otpayment. Interestand penoltv accrued sholl
become pari of tile fax.Sec. 3-11112. Declaration
Required. The tax imposed bytllis Articie sholl be paid to theTox Collector. bv the persons
reierredtoln Section 3-1113.
Payment shall be accompanied
bY a Declaration of the amount of
tax due signed by the person paY-Ingthe tax orbv hisogenL The
Declaration shall include astatement that the vaiue of the
consideration on which the taxdue was computed includesal\indebtedness secured by liens,deeds ot trust, or other en.
cumbrances remainjngorplaCed
on the proper tv transferred at the
time of transfer ,and also includes
all .speciaLassessrnentsonthe
propertvvvhich the purchaser : or
transferee agrees to payor which
remain a lien oni'he property 01
the iime ot transfer. The
Declaration sholl identify the
deed, . i nst runient .. wri1ing. ef
fecting thetronsfer for-which the
tax is being paid. The Tax Collec.
tor may reauire delivery to him ot
a copy of sUch deed, instrument
or writingwhenever.he.decms
such to be reasonablY. necessaryto adeauatelY identity SUc\1 writ-
ing or to administer the
provlSionsofthi 5 Arti ele. The
Tax Collector may reiy on theDeclaration as to the amount otthe tax due provided 11e has nn
Ordinance No . I 7.j 8'
New Series
reason to believe that the fullamount of the tax due is not
shown on the Declaration.Whenever the Tax Collector
has reason to bel ieve that the fu II
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 turnish a true copy
of his records relevant to the
value of the consideration or fairmarket value of the propertytransferred. Such notice may be
served at any time within three
(3) years after recordation of the
deed, instrument or writing which
transfers such proper tv
Sec. 3-11113. Determination of
Deficiency. If on the basis of such
information as he receives pur-suant to th last. onraaranh of
Scdion 3.11112 andlor on the basis
of such other relevant jnformationthat comes into his possession, he
determines that the amount of tax
due as set torth in the Declara-
tion, or as paid, is insufficient, he
may recompute the tax due on the
basis of such information.If the Declaration reauired by
Section 3.11112 Is not submitted,the Tax Collector may make on
estimate of the value of the con-sideration for the propertvcon-
veyed and determine the amount
of tax to be paid on the basis ot
any information in his possessionor that may come into his posses-
sion.
One or more deficiency deter-minations may be mode of theamount due with respect to any
transfer.
Sec. 3.11114. Noiice of Deler-
mination. The Tax Collector shollgive notice to a person liable for
payment of the tax imposed underthis Article of his determination
mode under Section 3-11113. Suchnotice shall be given within three
(3) years after the recordation of
the deed, instrument or writing
effecting the transfer on whichthe fax deficiency determination
was mode.
Sec. 3-11115. Manner 01 Giving
NoNce. Any notice required to be
given by the Tax Colledor underthis Article may be served per-sonally or by moil; if by moil,
service shall be mode by deposit-
ing the notice in the United States
moil, in a sealed envelope with
postage paid, addressed to the
person on whom it is to be servedat his address as it oppearsintherecords of the City or as ascer-
tained by the Tax Collector. The
service is complete at the time of
the deposit of the notice in the
United States mail, without ex-
tension of time for any reason.
Sec. 3-11116. Petition for Rede-termination. Any person againstwhom adeterm Inotlon is madeunder this Article or any person
di rectly interested mav petitionfor a redetermination within sixty(60) days after service upon the
person of notice thereof. If a peti-tion for redetermination is notfiled within the sixty (60) dayperiod, the determinationbecomes final at the expiration of
the period.
Sec. 3-11117. Consideration ofPelilion. Hearing. If a petition forredetermination is filed withinthe sixty (60) day period, the Tax
Collector sholl reconsider the de.
terminatjon and, if the person has
so requested in his petition, shollgrant the person on oral hearing,
and shall give hjm ten (10) daysnotice ot the time and place ofhearing. The Tax Collector may
designate one or more deputies
for the purpose of conductinghearings andmav.continue a
hearing from time to time as may
be necessary"
Sec. 3-11118. Severability. If anvprovision 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 giveneffect without the invalidprovision or application, and to
this end the provisions of this Ar-
ticle are declared to be severa-
ble.
Section 3. All taxes collected under
this Ordinance sholl be deposited in the
Capitol Outlay Fund for expenditure oncapital improyements andmaintenance of capital improvements.
Section 4. This ordinance sholl be ef-fective thirty (30) days from and offer
the date of its final passage except that
the tax imposed by this ordinance shall
not become effective until a contract
with the County Recorder - for lhecollection of this tax IS executed. Thisordinance sholl not repeal Ordinance
No. 1561 N.S. until said contract isexecuted.
TERRY LA CROI X, JR.
Presiding Officer
of the Coun ci IAltest:
ETHEL M. PITT
City Clerk
I. tile undersigned, hereby certifythat tile foregoing Ordinance was duly
and regularly adopted and passed by
the Council of the City of Alameda in
reQulor rneetina assembJedon the 15th
day of October, 1974, by the followingvote, to wit:
AYES: Councilmen B ckal1, Corica,Hurwitz, and President La Croix, Jr.,
OES: Councilman McCall, (1).
ABSENT: NonIN\VJTNF;;'vVHEREQF, J havehel eunro se1 my hand and affixed the
otficial seal of said Lity this 16m aay or
October, 1974.
(SEAl)
ETHEL M. PITT
City Clerk of the
City of AlamedaLegol No. 806 Publish: Oct. 18,
1974.