Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2014
 

Revenue and Taxation Code

Other Taxes

Part 6.7. Documentary Transfer Tax Act

Chapter 2. Authorization for Tax

Section 11911

11911. Authorization; counties and cities; rates; credit. (a) The board of supervisors of any county or city and county, by an ordinance adopted pursuant to this part, may impose, on each deed, instrument, or writing by which any lands, tenements, or other realty sold within the county shall be granted, assigned, transferred, or otherwise conveyed to, or vested in, the purchaser or purchasers, or any other person or persons, by his or their direction, when the consideration or value of the interest or property conveyed (exclusive of the value of any lien or encumbrance remaining thereon at the time of sale) exceeds one hundred dollars ($100) a tax at the rate of fifty-five cents ($0.55) for each five hundred dollars ($500) or fractional part thereof.

(b) The legislative body of any city which is within a county which has imposed a tax pursuant to subdivision (a) may, by an ordinance adopted pursuant to this part, impose, on each deed, instrument, or writing by which any lands, tenements, or other realty sold within the city shall be granted, assigned, transferred, or otherwise conveyed to, or vested in, the purchaser or purchasers, or any other person or persons, by his or their direction, when the consideration or value of the interest or property conveyed (exclusive of the value of any lien or encumbrance remaining thereon at the time of sale) exceeds one hundred dollars ($100), a tax at the rate of one-half the amount specified in subdivision (a) for each five hundred dollars ($500) or fractional part thereof.

(c) A credit shall be allowed against the tax imposed by a county ordinance pursuant to subdivision (a) for the amount of any tax due to any city by reason of an ordinance adopted pursuant to subdivision (b). No credit shall be allowed against any county tax for a city tax which is not in conformity with this part.

Construction.—A city incorporated after the effective date of Article XIIIA and complying with the requirements of the section may share in documentary transfer tax revenues collected by the county. City of Cathedral City v. Riverside County, 163 Cal.App.3d 960.

Leasehold interests.—While leases of real property are generally not taxable as "realty sold" under this section, a lease which is of sufficient longevity to approximate a transfer in fee may be taxed. The operative time period is that specified in Revenue and Taxation Code Section 61(c)(1), 35 years or more. Thrifty Corp. v. Los Angeles County, 210 Cal.App.3d 881.

Condemnation order.—Although a final order of condemnation is a type of instrument which is encompassed by this section the State, for whose benefit the instrument is made, is exempt from the tax pursuant to section 11922; furthermore, the condemnee does not qualify as an "other party liable therefor." Thus there is no document subject to tax and the county recorder cannot refuse to record the transfer document at the request of the exempt entity. People ex rel. Department of Public Works v. Santa Clara County, 275 Cal.App.2d 372.