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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Article 1 of Chapter11, Title III, consisting ot Sections 1111 through 3-11113, of the AlamedaMunicipal Code is hereby repealed.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.