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INTRODUCED Y COUNCILMEM ER _
Ordinance No.
C.M.S.
AUTHORIZING THE
AMENDMENT OF
CERTAIN SECTIONS OF
ARTICLE 20, CHAPTER 4, OF THE OAKLAND MUNICIPAL CODE
PROVIDING FOR CERTAIN CLARIFICATIONS AND MODIFICATIONS
TO
THE CITY
OF OAKLAND
REAL PROPERTY
TAX
WHEREAS
the Council
of
the City
of Oakland adopted Art i c l e
20,
Chapter
4,
of
the Oakland
Municipal Code prov id ing fo r the
taxat ion of the
t r ans fe r
of r e a l
property w ith in the
City o f
Oaklandi and
WHEREAS
the exis t ing provis ions
of
Art ic le
20,
Chapter 4,
of
the
Oakland Municipal
Code r eq uir e m o dific atio ns
to
remove
any ambiguit ies
t h a t
may e x i s t
to
de le te any por t ions t he reof
tha t are no longer
re l evan t and
to more c l e a r ly
s t a t e
those
t ransact ions t h a t are subjec t to the t x
WHEREAS
the
proposed
modif ica t ion
of
language w ill n e i th e r
increase the tax ra te
nor
inc rease the number
of
ca teg or ies o r
persons
subjec t
to the r ea l e st ate t ra n sf er t x
Now
t he re fo re
the
Council
of the
City
of
Oakland does orda in
as fo l lows:
SECTION 1. Sect ion 4.20.020 i s hereby amended to
read:
SEC
4.20 .020.
IMPOSITION OF
TAX There
i s
imposed
a tax
on
a l l
t rans fe rs
by
deeds,
ins t ruments
wri t ings o r
any
o ther
document by which any lands,
tenements
o r o th e r
i n t e re s t s
in
rea l proper ty loca ted in the c i ty
are
o r i s
granted
ass igned ,
t r ans fe r red
o r otherwise
conveyed
to o r inves ted in a
t r ans fe ree
or
t r ans fe rees
thereof which s ha l l be
l ev ied
a t the
ra t e of one and one ha l f 1.50
percent o f the
va lue
of
cons idera t ion .
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Said
tax
sha l l be
adminis tered
to conform to
th e
s ta tewide ru les
governing the documentary t r ans f e r tax as s t a t ed
in
Cal i fo rn ia
Revenue
Taxat ion Code
11911
through 11930, as cod i f ied on
th e date of passage
of
t h i s
ord inance ,
inc lud ing
the
exemptions
from
tax
t h a t
are i temized
the re in , except where the exemptions
appearing
with in t h i s Art i c l e
20,
Chapter 4,
prov ide
g rea t e r
pro tec t ion
to
th e
taxpayer .
SECTION 2. This amendment becomes e f f ec t i v e upon
passage.
SECTION
3.
fo l lows:
Sect ion
4.20.030
i s hereby amended
to
read
as
SEC.4.20.030 DEFINITIONS. As
used in t h i s chapte r :
Real
property
and r ea l ty mean r e a l proper ty as def ined by
and under the laws
of
the
s t a t e
of
Cal i fo rn ia .
Value of cons idera t ion
means th e
t o t a l
cons ide ra t ion ,
valued
in money
of th e United Sta tes ,
pa id
o r
de l ive red ,
o r
cont rac ted
to
be
paid o r de l ive red in r e tu rn fo r th e t r a n s f e r
of
r e a l
p ro pe rty , inc lu ding the amount of
any
indebtedness ex i s t ing
immediately p r i o r
to
the t r ans f e r
which i s secured by a l i en ,
deed
of
t r u s t o r o the r
encumbrance
on the
proper ty
conveyed and
which
c on tinu es to
be secured
by such l i en , deed
of
t r u s t o r
encumbrances
a f t e r
sa id t r an s fe r ,
and a lso in clu din g th e amount
of
any indebtedness which i s secured by
a
l i en ,
deed of t r u s t o r
encumbrance given
o r placed
upon th e
proper ty
in
connect ion
with
the
t r ans f e r
to secure the payment
of
th e
purchase
pr ice
o r
any
pa r t
the reof
which
remains
unpaid
a t
th e
t ime
of
t r ans f e r .
Value of
the
cons idera t ion also
in clu de s th e amount of any
spec ia l
assessment l ev i ed o r imposed upon
th e p ro per ty
by a
publ ic
body,
d i s t r i c t o r
agency, where
sa id sp ec ia l assessment
i s a l i en o r
e ncumbra nc e on the
proper ty
and th e
purchaser
o r
t r ans fe ree
agrees
to pay such spec ia l assessment o r t akes the
pro per ty su bjec t to the
l i en o f
such
spec ia l assessmen t . The
value of any l i en o r encumbrance
of
a type o the r
than tho se
which
are
hereinabove
spec i f i c a l l y inc luded, ex i s t ing
immediately p r i o r to
th e t r an s fe r and
remaining
a f t e r sa id
t r a ns fe r, sh al l not
be
inc luded in
determining
th e va lue
of
th e
cons idera t ion .
I f
th e
va lue of
th e c on sid er at i on
cannot
be
de f in i t e ly
determined,
o r i s l e f t
open
to
be
f ixed
by
fu tu re
con t ingenc ies , value
of
t he c o ns id e ra ti on sha l l
be
deemed to
mean the f a i r market
value
of the
proper ty
a t th e t ime
of
t r an s fe r ,
a f t e r
deduct ing th e
amount
of any l i en
o r
encumbrance,
i f
any,
of
a type which
would
be excluded in
dete rmin ing
th e
value o f th e c on sid er at io n p urs ua nt
to
the
above
provis ions
of
t h i s sec t ion . P r i o r code 5-27.03
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Unless
a t r ans f e r
i s
a
g i f t ,
i . e . ,
f ree
and
c lea r
of l i ens
or encumbrances,
i s
hereby presumed t ha t
th e
va lue of
cons idera t ion of a given proper ty being t r ans fe r red i s the f a i r
market
value of
t ha t
p ro per ty , u nle ss
c i rcumstances
support ing
a
departure
therefrom can be
furnished to the
sole
sa t i s f ac t i on of
the Direc tor
o r
h i s /he r des ignee s ) .
Furthermore,
i f
the
value
of cons idera t ion
cannot be
def in i te ly
determined, o r i s
l e f t open to
be
f ixed by fu ture
cont ingencies , value of
considerat ion
sha l l be deemed to
mean
the
f a i r market value of
the
proper ty a t th e
t ime
of t r ans fe r ,
a f t e r deduct ing the
amount
of
any l i en or encumbrance,
i f
any,
of a type which
would
be excluded in de te rmining
the
value of
considerat ion
pursuant
to
the
above prov i s ions of t h i s sec t ion .
Pr ior
code
5-27.03)
SECTION 4.
SECTION 5.
as
fo l lows:
This amendment becomes
e f f e c t ive
upon
passage
Sec t ion
4.20.050 A.
i s hereby
amended to read
SEC. 4.20.050 A. Any t r ans f e r made so le ly to
secure
a debt .
There
i s
an exemption
fo r t r ans fe r s
of
pa r t i a l
i n t e re s t s in
proper ty to a co-s ignor o r
from
a co-owner
as r equ i red pursuant
to
a ve r i f i ab l e demand by a l ender
in
orde r to
secure
the
debt
fo r
such
t r ans fe r . Spec i f i ca l ly , the subsequent
removal
o r
re ins ta tement
of such co-owner
o r
co-s igning par ty
s) must
be
ef fec ted
within
seven
7 years
of
the c lo se of escrow
per ta in ing
to such
loan
in order to qual i fy
fo r
the exemption
here in .
Nothing herein conta ined
sha l l
be deemed to exclude the
amount
of any such indebtedness
from
being
included
in the
value
of
cons idera t ion
pursuant to Sec t ion
4.20 .030
in
c onne ctio n w ith t r ans fe r s which are
not
made so le ly to
secure
a
debt;
SECTION 6.
This
amendment
becomes
e f f e c t ive
upon passage.
SECTION
7.
Sect ion
4.20.050
C
i s
hereby
amended
to
read as
fo l lows:
SEC. 4.20.050 C. Any t r ans f e r of prope r ty from one
spouse
to
the other
in
accordance
with
the terms of a
decree
of
d is so lu tio n, leg al separa tion o r
in
fu l f i l lmen t
of
a
proper ty
s et tl emen t i n ci de n t
the re to ;
provided,
however,
t ha t such
proper ty was
acquired by the husband and wife o r husband o r wife
p r i o r to
the
f ina l
decree of disso lu t ion .
Furthermore,
any
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t r a n s f e r
i f made dur ing
the
term of the marr iage
o r
domestic
p a r t n e r s h i p
between
husband and wife o r duly
r e g i s t e r e d
domest ic p a r t n e r s s h a l l
be
tax-exempt
i n t e r s p o u s a l
t r a n s f e r s .
However,
no t r a n s f e r of
p r o p e r t y
t o
a t h i r d
p a r t y
s h a l l
be
exempt from t h i s
t a x
d e s p i t e
th e
e x i s t e n c e
of
a
v a l i d
cour t
order o r
s e t t l e m e n t agreement .
Notwithstanding the foregoing,
a
t r a n s f e r t o
t h e
o t h e r
former
spouse o r p a r t n e r
a f t e r
d i s s o l u t i o n of the owner-occupied,
s i n g l e family r e s i d e n t i a l
p r o p e r t y
t h a t was the p rimary domic il e
of
the p a r t i e s
s h a l l be
e l i g i b l e
f o r t h i s r e a l p r o p e r t y
t r a n s f e r
t a x
exemption,
d e s p i t e the absence
of
a
c o u r t - o r d e r e d s e t t l e m e n t
agreement.
SECTION 8.
This
amendment becomes e f f e c t i v e upon passage.
SECTION
9. Sect ion
4.20.050
C . l . i s
hereby
amended t o read
as follow s:
SEC
4.20.50
C 1. The two p a r t i e s
t o t h e
t r a n s f e r
must
have f i l e d
f o r
Domestic P a r t n e r s h i p r e g i s t r a t i o n
as
adminis tered
by the O ffice
of
t h e City
Clerk a t l e a s t one
year p r i o r
t o the
t r a n s f e r i n q u e s t i o n
such q u a l i f y i n g d e c l a r a t i o n s being i n
compliance with
c u r r e n t City Council p o l i c y
requirements .
In
the event the p ar t i e s l i v e o u t s i d e Oakland, both must have
been
r e g i s t e r e d
as
domestic p a r t n e r s with the
City Clerk
o r
a p p r o p r i a t e
municipal agency of
t h a t j u r i s d i c t i o n
f o r
the one
year per iod ,
provided
t h a t
such
o t h e r j u r i s d i c t i o n
recognizes
the domestic p a r t n e r s t a t u s and t h e City Clerk of the C ity
of
Oakland
concludes
t h a t the
r e g i s t r a t i o n
requirements of t h a t
j u r i s d i c t i o n
a r e m n m lly s m l r to those c u r r e n t l y i n e f f e c t
i n Oakland.
For
Finance Agency records , i n a d d i t i o n t o the
a f f i d a v i t f o r t h e City
Clerk
r e g i s t r a t i o n
t h e p a r t i e s
request ing a
r e a l e st a te t r a n s f e r t a x exemption must a f f i r m and
a t t e s t t o the f ol low ing r equ ir emen ts :
a .
The p a r t i e s r e s i d e to g e t h e r and share t h e common
n e c e s s i t i e s
of l i f e
b.
The
p a r t i e s
a r e
n ot m arried
t o
anyone,
c .
The
p a r t i e s a r e a t l e a s t e i g h t e e n 18 years
of age,
d. The
p a r t i e s
a r e
not
r e l a t e d
by blood
so
c l o s e as t o
b a r
marriage i n the
s t a t e
of C a l i f o r n i a and a r e
mental ly
competent t o c on tr a ct
e . The p a r t i e s a r e each
o t h e r s
s o l e domestic p a r t n e r and
i n t e n d
t o
remain so i n d e f i n i t e l y and a r e r e s p on si b le
f o r t h e i r
common
welfare ,
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f
The
pa r t i e s agree
to f i l e
a s ta tement
of t e rmina t ion
of domest ic par tne r sh ip with
the O ffice
of
the C ity
Clerk within th ree
months
of change of
t h e i r
s t a tus i f
any of the dec la ra t ions of the a f f i d av i t of domest ic
par tnership cease to be
t rue
g The pa r t i e s understand t h a t the r eg i s t r a t i on of the
a f f idav i t of domest ic par tne r sh ip with th e
Office
of
the
City
Clerk
c rea tes a
domestic par tne r sh ip
of
continuous dura t ion
un ti l e i th e r
of
the par t i e s
f i l e s
a
s ta tement
of te rm in atio n o r
upon
the dea th of e i the r
of
the par t i e s
Pr io r
to th e
en te r in g in to a
subsequent dom estic pa rtne rsh ip o r marr iage the
surviv ing
par tne r must f i l e
a s ta tement of t e rmina t ion
with
the O ffice of th e
Ci ty
Clerk in th e
event
of
death
of one of the
par t i e s
h
Nei ther
of
the
pa r t i e s
has f i l ed a s tatement
of
t e rmina t ion
o r d i sso lu t ion
within s ix
months
pr io r
to
the
f i l ing of the cur ren t
a f f i dav i t of
domest ic
par tnership
The pa r t i e s understand t ha t any person/employer /
company who su f fe rs any
lo s s because
of fa l se
s tatements
conta ined in
the a f f i dav i t of domest ic
par tnership o r the sta tem ent of t e rmina t ion may have
cause to b ring a c i v i l
ac t ion
aga ins t th e par t ie s
i nd iv id ua lly o r
col lec t ive ly
to recover t h e i r lo s ses
SECTION
10
This amendment
becomes
e f f e c t ive upon
passage
SECTION 11 Sect ion
4 20 030
C 3 i s hereby amended to
read
as fo llow s:
SEC
4 20 030
C 3 The pa r t i e s
must provide
t ha t por t ion
of
t he i r
disso lu t ion and proper ty se t t lement agreement between
the domestic
p ar tn e rs p er ta in in g
to the d iv i s ion
o r
t r ans f e r of
property
which sha l l be
f i l ed
with
the Office of the C ity
Clerk Such copy
of such se t t lement agreement
sha l l be
a cc om pa nie d by
an
a f f idav i t with ve r i f i ab l e s igna tu res o r proof
of
i den t i ty
tha t the copy i s an accura te and authent ic
reproduct ion
of
the
f ina l
se t t lement
agreem ent between
the
pa r t i e s ;
SECTION
12
This amendment becomes
e f fec t ive
upon passage
SECTION 13
fol lows:
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Sect ion 4 20 050D
i s
hereby
amended
to read as
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SEC 4.20.050.D.
Transfe r
o r t r ans fe r s
conveyance,
lease
o r
sublease without cons idera t ion
t h a t confirm
or
cor rec t
a
deed,
provided
t ha t such
cor rec t ion i s recorded
no
l a t e r than
nine ty 90 days a f t e r the recorda t ion of th e t r a ns f e r to be
correc ted
SECTION 14 This amendment
becomes
e f fec t ive
upon passage.
SECTION
15.
as
fol lows:
Sect ion
4.20.050
E
i s hereby
amended
to
read
E. Trans fer to
or
between the United Sta tes s t a t e
of
Cal i fo rn ia any c i ty county, c i t y and county, d i s t r i c t or any
o ther po l i t i ca l subdivis ion of the s t a t e of Cal i fo rn ia
and
t r a ns f e r executed pursuant to eminent domain proceedings by the
United Sta tes S ta te
of
Cal i fo rn ia
any c i t y
county , c i ty and
country,
d i s t r i c t o r
o ther po l i t i ca l subdivis ion of th e
Sta te
of
Cal i fo rn ia ;
Any
deed, ins t rument ,
or
o th er w rit in g by which the Sta te of
Cal i fo rn ia any
p o l i t i c a l
subdivis ion
the reof
o r
agency o r
in s t rumenta l i ty
of e i t he r
thereof
conveys to a nonprof i t
corpora t ion rea l ty the
acqu is i t ion cons t ruc t ion o r improvement
of
which
was f inanced
o r
re f inanced
by ob l iga t ions
i ssued by the
n o n pr of it c o rp o ra ti on on beha l f of a governmental un i t within
the meaning of
Sect ion
1.103-1
b
of
Ti t l e 26 of the Code of
Feder al Regul at ion s.
SECTION 16 This amendment becomes
e f fec t ive
upon
passage
SECTION 17.
as
fol lows:
Sect ion
4.20.050
H
i s hereby amended to read
SEC
4.20.050
H 1.
In
the
case of r e a l proper ty held by
a
par tnership o r o th e r
en t i t y
t rea ted
as
a
p ar tn ers hip fo r federa l
income
tax
purposes ,
the tax imposed sha l l
not apply by
reason
of
any t r a ns f e r of any
i n t e re s t
in
a par tne r sh ip o r o th e r
en t i t y
o r
otherwise,
i f
both of
the
fo llow ing o cc ur:
a .
Such p ar tn ers hip o r
othe r en t i t y
t rea ted as
a
par tne r sh ip i s
considered
as a cont inuing par tnership
w ith in the
meaning of
Sect ion
708
of the
In te rna l
Revenue
Code
of
1986.
b. Such
cont inuing
par tnership continues to hold
the
r e a l
proper ty
concerned.
2. I f
there i s
a t e rmina t ion of
any partn ersh ip o r o th er e n t i t y
t r e a t e d as
a par tnership w ith in th e meaning of Section
708
of
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the I n t e r n a l Revenue Code
of
1986, f o r purposes
o f
t h i s
c h a p t e r ,
such
p ar t n er s h ip o r o th er
e n t i t y s h a l l
be t r e a t e d as having
executed an instrument whereby t h e r e was t r a n s f e r r e d , f o r
f a i r
market
v alu e e xclu siv e
of the value of any l i e n
o r
encumbrance
remaining t h e r e o n , a l l
r e a l t y
held
by such
p a r t n e r s h i p
o r o t h e r
e n t i t y a t
t h e
t ime
o f
such t e r m i n a t i o n .
3. Not more than one t a x s h a l l be imposed pursuan t t o t h i s
c h a p t e r by
t e r m i n a t i o n
d e s c r i b e d i n
s u b s e c t i o n
H
2 of t h i s
s e c t i o n , and
any
t r a n s f e r pursuant t h e r e t o , with r e s p e c t t o the
r e a l
p r o p e r t y
held by
such p ar t n er sh ip o r o t h e r e n t i t y t r e a t e d
as
a p a r t n e r s h i p a t t h e t ime of such t e r m i n a t i o n .
a . The making o r d e l i v e r y of conveyances t o make e f f e c t i v e any
o r d e r
of
t h e S e c u r i t i e s
and Exchange Commission , as
d e f i n e d
i n
s u b d i v i s i o n a
of Sect ion
1083 of t h e
I n t e r n a l Revenue
Code
of
1986, but only i f :
i . The
o r d e r
of the S e c u r i t i e s
and
Exchange
Commission, i n
obedience t o which such conveyance
i s
made, r e c i t e s t h a t such
conveyance i s
necessary o r a pp ro pr i a te to e f f e c t u a t e t h e
p r o v i s i o n s
of S ection 79K of T i t l e 15 of
t h e
United
S t a t e s Code,
r e l a t i n g
t o the
Publ ic
U t i l i t y Holding Company Act o f 1935,
Such
o r d e r
s p e c i f i e s
the p r o p e r t y t h a t
i s
o r d e r e d
t o
be
conveyed,
Such conveyance i s
made i n obedience t o such
o r d e r .
Ord.
11835 1,
1995;
Ord. 11664 1, 1993; p r i o r code 5-27.05
SECTION
18
This amendment becomes e f f e c t i v e upon passage.
SECTION 19.
read as fol lows:
Sect ion
4.20.050
I .
I t i s hereby added t o
SEC 4.20.050 I . Any r e a l
p r o p e r t y t h a t
i s
i n h e r i t e d
from a
deceased t r a n s f e r o r ,
without
c o n s i d e r a t i o n , upon t h e death of
such i n d i v i d u a l ,
o r from t h a t
d e c e a s e d s e s t a t e
o r t r u s t .
Transfers
from
a d e c e d e n t s
e s t a t e
i n t o a t r u s t f o r t h e b e n e f i t
of
the t r a n s f e r e e
s h a l l
l i k e w i s e
be exempt.
Upon
r e q u e s t
of
t h e
Agency D i r e c t o r ,
an a f f i d a v i t
of d e a t h
c e r t i f i c a t e , t r u s t
documents, o r o t h e r documents deemed
n e c e s s a r y ,
s h a l l be
provided .
SECTION 20.
This
a d d i t i o n
becomes
e f f e c t i v e upon
passage.
SECTION 21.
fo l lows:
Sect ion
4.20.050 i s
hereby added t o read
as
SEC
4.20.050 J . Any
t r a n s f e r
of
r e a l
p r o p e r t y
between
an
i n di v id ua l o r i n d i v i d u a l s and a l e g a l e n t i t y o r between
l e g a l
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e n t i t i e s t h a t r e s u l t s
so le ly
in a change in th e method
o f
holding
titl to the r e a l t y and in
which
propor t iona l ownership
i n t e r e s t s in the
r e a l t y
whether represen ted
by
s tock
membership
i n t e re s t
pa r tne rsh ip i n t e r e s t cotenancy i n t e r e s t
o r otherwise d i r e c t ly o r i n d i r e c t l y t h a t
remains
th e same
fo r
a minimum o f one hundred
e ighty
180
days
a f t e r the
t r a ns f e r
Trans fers from a
pa ren t
corpora t ion to a whol ly owned subs id i a ry
corpora t ion
sh a l l
l ikewise
be
exempt
provided
the
b en e f i c i a l
ownership
of
th e proper ty
remains
the same.
SECTION
22.
This add i t ion becomes
e f f e c t i v e upon passage.
SECTION
23.
fo l lows:
Sect ion 4.20.050 K i s hereby
added
to read as
4.20.050 K Transfe rs
without
cons idera t ion
provided
th e
t r ans fe ree ne i the r
conveys an
i n t e r e s t
t h e r e in
to
a
t h i r d par ty
nor
e f f e c t s
a r ef in an cin g f or a
per iod of 180
days
a f t e r
th e
g i f t t r a n s fe r ; however,
re f inan cing s fo r th e
purposes o f
r e ha b i l i t a t i on
of the
g i f t e d
p ro pe rty a re
no t
sub jec t
to
t h i s
l imi t a t ion
upon
submission
of
documentat ion requi red
by
the
Direc tor o r
h i s / h e r
designees
SECTION 24. This add i t ion becomes e f f e c t i v e upon
passage .
SECTION 25.
fo l lows:
Sect ion 4.20.070
i s
hereby added to read as
4.20.070
Due
da te s del inquenc ies p e n a l t i e s
i n t e r e s t
admin i s t ra t ive
charges and
l i en
r e lease r ec o rd at io n f ee s
The tax imposed
under t h i s
ch ap t e r i s
due
and payable
a t
th e
t ime
th e deed ins t rument o r w ri t in g e f fec t ing a t r a ns f e r subjec t
to the tax
i s
de l ive red
and i s
del inquent
i unpaid
a t the
t ime
o f
recorda t ion
the reof In cases
where
a t r a n s f e r
i s
ef fec ted
but
not recorded w ith
the
County
Recorder w ith in n in ety 90
days
o f accep tance , a l l
s t a tu t e s
of
l imi t a t ions regarding
l i ab i l i t y fo r t h i s tax w il l
be
to lle d u n ti l
th e
City has ac tua l
knowledge
of
th e
t r a ns f e r
o r
recorda t ion
a t
which
t ime
the
tax
on
the
unrecorded
t r a ns f e r
wil l r e l a t e back to th e ac tua l
t r a ns f e r da te
o f such unrecorded t r a n s fe r Accordingly
p en a l t i e s and
i n t e r e s t
w i l l accrue
back to such date
o f
ac tua l
unrecorded t r a ns f e r and wi l l be th e j o in t and severa l l i ab i l i t y
o f both the former t r a n s fe ro r
and
cur ren t
record ing t r a n s fe r r i n g
par ty In
the
even t t h a t the tax i s
not
paid
pr io r
to becoming
del inquen t a
del inquency
pena l ty
of
ten p erc en t
of
th e amount
o f th e
tax
due sh a l l accrue In th e event a por t ion of th e
tax
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i s unpaid p r i o r t o
becoming
d el in qu en t, th e p e n a l t y s h a l l
only
accrue as
t o t h e p o r t i o n remaining
unpaid. An a d d i t i o n a l
p e n a l t y
o f
f i f t e e n (15) p e r c e n t
s h a l l
accrue
th e
t a x remains unpaid
on
th e
n i n e t i e t h
day
fol lowing
th e d a t e o f
t h e o r i g i n a l
del inquency.
I n t e r e s t
s h a l l
accrue
a t
t h e
r a t e
o f
one
p e r c e n t
a
month o r
f r a c t i o n
t h e r e o f ,
on t h e amount of t a x , i n cl u si v e
o f
p e n a l t i e s ,
from
t h e d a t e
t h e
t a x becomes
d e l i n q u e n t
t o
t h e d a te
of payment. I n t e r e s t and p e n a l t y
s h a l l
become p a r t o f t h e t a x .
An
a d m i n i s t r a t i v e charge o f f i f t y d o l l a r s ( 50.00)
on each
p r o p e r t y and a
r e l e a s e o f l i e n f il i n g
fee i n
an amount
equa l
t o
th e amount charged by the
Alameda County
R e c o r d e r s O f f i c e
s h a l l
be added t o t h e
amount owed
f o r
each
p r o p e r t y approved f o r
a
t a x
l i e n
by
t h e C ity
Counci l .
P r i o r code
5-27.07)
SECTION 26.
This a d d i t i o n
becomes e f f e c t i v e upon
passage
SECTION 27.
fol lows:
S e c t i o n 4.20.080
i s hereby
amended
t o
read as
SEC
4.20.080. Exemption f o r low and moderate
income
f i r s t - t i m e homebuyers. S e c t i o n
4.20.020
n o t w i t h st a n d in g , th e t a x
on
a l l t r a n s f e r s of r e a l p r o p e r t y l o c a t e d i n t h e c i t y made
on
o r
a f t e r
August 10,
1993 i n which
th e
buyers
a r e
low and mod erate
income
f i r s t - t i m e
homebuyers s h a l l be l e v i e d a t
t h e r a t e o f
one
and one
q u a r t e r p e r c e n t
t ime homebuyers s h a l l be l e v i e d
a t t h e
r a t e o f one
and
o n e - q u a r t e r (1.25) p e r c e n t
o f
t h e v a lu e o f
c o n s i d e r a t i o n . For t h e
purpose
of t h i s s e c t i o n , low and
moderate
income
f i r s t - t i m e homebuyers a r e
d e f i n e d
a s buyers
who:
A. Earn
maximum of one
hundred (100)
p e r c e n t
o f t h e
median
family
income f o r
t h e Oakland Primary M e t r o p o l i t a n S t a t i s t i c a l
Area,
as d e f i n e d by
t h e
U.S.
Department
of
Housing and Urban
Development; and
B. Will occupy th e
p r o p e r t y
as
t h e i r
p r i n c i p a l
r e s i d e n c e ;
and
C
Are n ot p urc ha sin g
t h e
p r o p e r t y t o
be
h e l d
a s t e n a n t s i n
common; and
D
Have
not owned a home i n
t h r e e y e a r s p r i o r
t o t h e
d a t e o f
p urc ha sin g th e
p r o p e r t y ; o r
E.
Are
d i s p l a c e d
homemakers.
D isplaced
homemaker
i s
d e f i n e d
as
an
a du lt i n di v id ua l
who
has n o t
worked
f u l l - t i m e , f u l l - y e a r i n
t h e l a b o r
force
f o r
a
number of y e a r s b u t
h a s , d u r i n g
such
y e a r s , worked p r i m a r i l y
without
pay
t o
c a r e f o r th e
home and
family, i s
unemployed
o r
underemployed
and
i s
e x p e r i e n c i n g
d i f f i c u l t y i n
o b t a i n i n g o r upgrading
employment.
P r i o r code
5-27.07(a))
SECTION
28.
This
amendment becomes e f f e c t i v e upon passage .
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SE TION
29.
fo l lows:
Sect ion 4.20.090 i s hereby
amended to
read as
SE
4.20 .090
Declara t ion
may
be
requi red .
The
tax
imposed
by t h i s chap t e r sha l l
be
paid to th e Direc to r
by
th e
persons
r e fe r red
to in Sect ion
4.20 .040. The
Direc to r sha l l
have
the
au thor i ty as
pa r t of any ru les and regu la t ions promulgated
by
him o r her
as
provided fo r here in to requ i re
t h a t
th e payment
sha l l
be
accompanied by a dec la ra t ion o f the amount of tax due
s igned
by the person paying th e tax o r
by
h is agent . The
dec la ra t ion sha l l
include
a s ta tement t h a t
th e
value of
the
cons idera t ion
on which th e tax due was
computed
inc ludes
a l l
i nd eb te dn es s s ec ur ed
by l i en s deeds o f t r u s t o r o the r
encumbrances
remaining
o r
placed
on
the prope r ty
t r an s fe r r ed a t
th e
t ime
of
t r an s fe r and a lso inc ludes a l l spec i a l assessments
on
the proper ty
which a
purchaser
o r t r an sfe re e agrees to p a y o r
which remains a l i en on th e
proper ty
a t
th e t ime of t r ans f e r .
The
dec la ra t ion s ha ll id en ti fy th e deed ins t rument
o r w rit in g
e f f ec t i ng
the t r ans f e r fo r which the
tax i s being
pa id . The
Direc to r may requ i re de l ive ry to him
o r her
of a copy
o f
such
deed instrument o r wri t ing whenever h e o r she deems such to be
reasonab ly necessary to adequate ly i den t i fy such wri t ing o r to
a dm i nis te r th e
provis ions
of
t h i s chap ter . The Direc to r may re ly
on the dec la ra t ion as
to
th e
amount
of the
ta x due provided
he
o r she has no reason to
be l ieve
t h a t th e f u l l
amount
of the tax
due i s
no t
shown on the dec la ra t ion .
Whenever th e
d i r ec t o r
has
reason
to b el iev e
t h a t th e f u l l amount
o f
tax
due i s not
shown
on
th e
d ec la ra tio n o r
has
not
been paid
he o r she may by
not i ce
served upon any
person l i ab l e fo r the
tax requ i re him o r he r to fu rn ish a t rue
copy
of h is records
re lev an t to th e
value
o f the cons ide ra t ion o r
f a i r
market
value
of
the
proper ty
t rans fe r red . Such not i ce may be served a t
any
t ime within
th ree
years
a f t e r
recorda t ion
of th e deed;
ins t rument o r w ri t in g
which t r an s fe r s
such p ro pe rty . P rio r
code
5-27.08
SE TION
30.
This
amendment
becomes
e f f ec t i v e
upon
passage .
SE TION 31.
fo l lows:
Sect ion
4.20.100
i s hereby
amended to read as
SEC. 4.20.100
Determinat ion
o f de f i c i ency .
I f on th e
bas i s of such
in fo rmat ion as
the D i re ct or r ec ei ve s
pursuan t to the l a s t p ara gra ph o f
Sect ion
4.20.190 and /or on th e
bas i s
of such o th er r ele va nt
in fo rmat ion t h a t
comes
in to h is
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possess ion, he o r she determines t h a t
the amount
of t a x
due
as
s e t
f o r th in
the d e c l a r a t i o n ,
o r
as
paid, i s i n s u f f i c i e n t , he o r
she may recompute the t a x due on the b a s i s
o f
such in format ion .
I f the d e c l a r a t i o n
r e q u i r e d
by
Sect ion
4.20.090
i s
not
submit ted,
the
D i r e c t o r
may
make
an
e s t i m a t e
of
t h e
va lue of
t h e
c o n s i d e r a t i o n f o r the
p r o p e r t y
conveyed and determine th e amount
o f
t a x t o be
p a i d
on the b a s i s of
any
in format ion
i n h i s
o r her
possess ion o r
t h a t
may come
i n t o
h i s o r her p o s s e s s i o n .
One o r
more
d e f i c i e n c y determinat ions may be made of t h e amount
due
with
r e s p e c t
t o
any t r a n s f e r . P r i o r code
5-27.09
SECTION 32. This amendment becomes e f f e c t i v e upon passage.
SECTION 33.
fol lows:
Sect ion 4.20.160
i s
hereby amended t o read as
4.20.160. F i n a l i t y
of
determinat ion
The o r d e r o r d e c i s i o n
of
the D i r e c t o r
upon
a p e t i t i o n f o r
rede terminat ion becomes f i n a l t h i r t y 30 days a f t e r
s e r v i c e
of
n ot ic e th er e of upon the p e t i t i o n e r
a t
the t ime
o f
the hearing of
rede terminat ion . There
i s no
appeal of th e D i r e c t o r s
d e c i s i o n
or
h i s / h e r d e p u t i e s designated f o r
a
r e d e t e r m i n a t i o n ) to t h e
City
Council ;
w r i t s c ha lle ng in g th e D i r e c t o r s
d e c i s i o n
conveyed
by h i s / h e r deput ies a t an a d m i n i s t r a t i v e
h e a r i n g
must be f i l e d
with the
a p pr o pr i a t e c o ur t w it h in
n i n e t y
90 days
of t h e f i n a l
d a t e of such
rede terminat ion .
C a l i f o r n i a .
Code
of C i v i l
Procedure
1094.6.
SECTION 34. This amendment
becomes
e f f e c t i v e upon
passage.
A. N COUNCIL, OAKLAND, CALIFORNIA, DATE , 2000
PASSED BY THE FOLLOWING VOTE:
AYES- BRUNNER, CHANG, DE
L
FUENTE, MILEY, NADEL, REID,
RUSSO, AND SPEES.
NOES
ABSENT
ABSTENTION-
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ED FLOYD
City Clerk and Clerk of
th e Council
of
th e C ity
of
Oakland
Cal i fo rn ia
At t e s t :
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TY OF O K L N
Agenda Report
To: Office the City Manager
Attn: Robert C Bobb
From: Financial Services Agency
Date: June 20, 2000
Re: ORDINANCE AUTHORIZING THE AMENDMENT OF CERTAIN
SECTIONS OF ARTICLE 20, CHAPTER 4, OF THE OAKLAND
MUNICIPAL CODE FOR CERTAIN CLARIFICATIONS AND
MODIFICATIONS TO THE CITY OF OAKLAND REAL ESTATE
TRANSFER TAX
SUMMARY
At the City Council Meeting
May 30, 2000, the Council directed staff to provide
a supplemental report to provide clarification recommendations by staff to
amend certain sections the Oakland Municipal Code, Real Property Transfer
Tax Ordinance. Staff has been directed to conform to statewide rules governing
the transfer tax. Accordingly, the ordinance incorporates the Sections 11911
through 11930
the Revenue and Taxation Code that govern the transfer
real
property.
FISCAL IMPACT
By amending the Municipal Code, as it relates to the Real Property Transfer tax,
to incorporate staff's recommended changes and incorporate sections 11911
through 11930 the Revenue and Taxation Code, it is projected the City would
lose 2.8 million in tax revenues. The projected loss is based on transfers that
took place
in
fiscal year 1998-99.
The fiscal impacts for each transfer category are presented by
tu l loss
( 747,282) and potenti l
loss
2,077,443). Actual loss is the amount of the
actual revenue received during the fiscal year for said transfers. Potential loss is
the value
the number
transfers that have taken place but have not yet been
collected.
DISCUSSION
Sections 11911 through 11930 of the R T Code authorizes counties and cities to
impose a tax on each deed, instrument or writ ing by which any lands, tenements,
or other realty that are transferred within the city that are granted, assigned,
transferred, or otherwise conveyed to, or vested
in
when consideration or values
the interest exceed one hundred dollars ( 100).
In
the May 23, 2000 report, staff's recommendations totaled 2.3 million.
In
order to incorporate all of the exemptions in sections 11911 through 11930 the
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eal Property Transfer Tax
Ordinance Amendment
Page 2
June 20 2000
total financial impact would be 2.8 million. Listed below is a summary of the
recommended changes as they relate to the T code as well as additional staff
recommendations.
e tion
11911 - authorizes the taxation of transfers o real property.
Fiscal Impact not applicable
Section 11912 - Authorizes the payment of the tax.
Fiscal Impact not applicable
Section 11913 - Sets the parameters of taxation for mobile homes.
Fiscal Impact not applicable
Section 11914 - Repealed
e tion
9 To secure a debt
This section exempts written instruments given to secure a debt. This exemption
is in the current ordinance; however the amendment clarifies that no real estate
transfer tax is imposed where one party either purchasing or refinancing is
required by a lender for credit purposes to either add on a co-signor or remove
a co-owner.
Actual
oss 114 515
Potential loss - 370 443
Section 11922 - Exempts transfers to governmental agencies.
Included
current ordinance
Section 11923 - Exempts bankruptcies
This section exempts transfers in bankruptcy reorganization and
in
reorganizations involving a mere change in identity form or place of
organization.
Included in current ordinance
Section 11924 - Securities and Exchange Commission
This section exempts transfers pursuant to an order by the Securities and
Exchange Commission under the Public Utility Holding Company Act of 1935.
Included current ordinance
Section 11925 - Proportional Interest
The section states that levies will not be imposed if any transfer between
partnerships and LLCs that results solely
in
a change
in
the method of holding
title to the realty and
in
which the proportional ownership interests remain the
same immediately after the transfer. If the partnership terminates the tax
applies.
Actual loss 24 000
Potential loss 135 000
Section 11926 - Foreclosures
This section exempts transfers in foreclosures unless the consideration paid
exceeds the unpaid debt.
Included current ordinance
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Real Property Transfer Tax
Ordinance Amendment
Page 3 June 20, 2000
Section 11927 - Interspousal and Domestic Partner Transfers
This section exempts interspousal transfers
in
divorce or legal separation, which
is already
in
the current ordinance. The recommendation is to expand all
transfers between husband and wife or duly registered domestic partners
in
order
to
be
in
compliance with other jurisdictions and to support Council's goal
to
promote and foster the family unit.
Actual loss - 20 326
Potential loss - 58 000
Section 11928 - Transfers by the State of California
This section exempts transfers by the State
of
California where the purchaser
agrees to immediately reconvey the real property to an exempt agency.
Included current ordinance
Section 11929 - Transfers by a government entity to a non-profit
This section exempts transfers by government entities to a nonprofit corporation
where the acquisition, construction or improvement
of
the property was financed
by obligations issued by the nonprofit corporation on behalf of a governmental
entity.
Actual loss - 0
Potential loss - 0
Section 11930 - Transfers of gift and bequests
This section includes the following:
Transfers at Death - The proposed amendment recommends transfers
that are inherited from a deceased transferor or from the deceased's
estate or trust be exempt.
Actual loss - 29 000
Potential loss - 61 000
Gift transfers -This amendment would provide an exemption for the
transfer of realty for no consideration in cash or in-kind or relief of
indebtedness. This incorporates the notion of Love and Affection
transfers
as
defined
in
our previous reports.
ctu l loss
-
552 000
Potential loss - 1 193 000
The following are staff's recommended amendments that are not included in the
R T sections
9
through 11930:
Transfers from parent corporation
Transfers from a parent corporation to its wholly owned subsidiary should be
x pt in accordance with case law.
Actual loss
-
0
Potential loss
-
250 000
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Real Property Transfer Tax
Ordinance Amendment
Page 4
June
2 2
Due Dates
The proposed amendment recommends that cases where the transfer is
effected but not recorded all statutes
of
l imitations regarding liability for this tax
will be tolled until the City has actual knowledge
of
the transfer
Actual loss
-
7 441
Potential loss - 10 000
Subtotal
ctu l loss -
747 282
Subtotal otenti l losses - 2 077 443
For a total revenue loss of:
Environmental Opportunities
2 824 725
There are no specific environmental opportunities identified this report
Disability and Senior Citizen Access
There are no disability or senior citizen access issues identified
this report
RECOMMENDATION
Staff recommends that the Council adopt the proposed amendments as
presented to the Real Property Transfer Tax provisions of Article 20 Chapter 4
of the Oakland Municipal Code
Respectfully submitted
~ ~ ~ ~
DEBORAH A EDGERLY
Director Financial Services Agency
Prepared by: Debra Taylor Johnson
Revenue Manager
APROVED AND FORWARDED TO THE CITY COUNCIL:
t \ I
c?O oo
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CITY nORN Y
M S
Approved as to form
an d
l e g a l t y
Ordinance
No
INTRODUCED Y COUNCILMEM ER _
AUTHORIZING THE AMENDMENT OF CERTAIN SECTIONS
OF ARTICLE 20, CHAPTER
4,
OF THE OAKLAND MUNICIPAL
CODE PROVIDING FOR CERTAIN CLARIFICATIONS
TO
THE
THE CITY OF OAKLAND REAL
PROPERTY
TAX
WHEREAS
the
Council
of
the
C i t y
of
Oakland
adopted
A r t i c l e
20, Chapter 4, of the
Oakland
Municipal
Code
p r o v i d i n g f o r the
t a x a t i o n
of t h e t r a n s f e r of
r e a l
p ro pe r t y w it h in the
City
of
Oakland; and
WHEREAS
the e x i s t i n g
p r o v i s i o n s of
A r t i c l e 20, Chapter 4,
of the
Oakland Municipal Code
r eq u ir e m o d if ic at i o ns
t o
remove
any ambigui t ies t h a t
may
e x i s t t o
d e l e t e any p o r t i o n s
t h e r e o f
t h a t
a r e
no longer r e l e v a n t and t o
more
c l e a r l y s t a t e those
t r a n s a c t i o n s t h a t
a r e s u b j e c t t o the t a x ;
WHEREAS
the
proposed
m o d i f i c a t i o n
of
language
w il l n e it h e r
i n c r e a s e the ta x
r a t e nor
i n c r e a s e
the
number of c a t e g o r i e s o r
persons
s u b j e c t t o
the r e a l
e st a te t r a n s fe r
t a x ;
Now t h e r e f o r e the
Council of t h e City
of Oakland
does
o r d a i n
as
fol lows:
SECTION 1. S e c t i o n 4.20.020
i s
hereby amended t o
read:
SEC 4.20.020. IMPOSITION OF TAX
There
i s imposed a t a x
on
a l l
t r a n s f e r s by
deeds, ins t ruments ,
w r i t i n g s
o r
any o t h e r
document by which any lands,
tenements o r o t h e r i n t e r e s t s
i n
r e a l
p r o p e r t y
l o c a t e d i n the
c i t y a r e o r
i s
g r a n t e d
ass igned ,
t r a n s f e r r e d
o r
otherwise conveyed t o o r i n v e s t e d i n a
t r a n s f e r e e
o r t r a n s f e r e e s
t h e r e o f which s h a l l be l e v i e d a t the
r a t e of
one
and o n e - h a l f 1.50 p e r c e n t
of
t h e t rans fer value .
The measure o f the tax sha l l be computed on monevs exchanged
inc lud ing
any
l i en or e nc um br an ce a ssu me d or forg iven o f
the
type
referenced in Sect ion
4 .20 . 030
or i titl i s f ree
o f
indebtedness
on
the
fa i r
market value of such property a t
the
t ime o f the recordat ion
o f tran s fer o f any ownership there in .
8/12/2019 12264 CMS Report
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i > ~ ~ J :
Said tax s h a l l be
adminis tered
to conform
to
the
s ta tewide
ru le s
governing the
documentary t ransfer
tax as s ta ted in
Cal i forn ia
Revenue
Taxation
Code 11911 through 11930
as may
be
modified or
amended
inc lud ing
the exemptions
from
tax that
are
i temized
there in
except where the exemptions appearing with in
t h i s
A r t i c l e 20
Chapter
4
provide g rea t er p r ote c t i on
to
the
taxpayer.
In addi t ion sa id
tax
s h a l l
incorporate
those
exemptions
appearinq in s e c t i on s
60 69 .5
o f
the
Revenue
Taxation Code as
may be modif ied
or
amended which re la te
to
except ions to
change
o f
ownership tr igger ing
reassessment
under th e s ta tewide ru les
governing Cal i forn ia property
tax except
where
the
exemption
appearing with in
Revenue
Taxation
Code
11911
through 11930
as may be modified or amended or with in t h i s A r t ic l e 20
Chapter
4
provide
greater
protec t ion
to the
taxpayer .
SECTION 2. This amendment
becomes
e f f e c t i v e
upon
passage .
SECTION 3.
fo l lows:
Sec t ion 4.20.030 i s hereby amended
to
read as
SEC.4. 20.030
DEFINITIONS.
As
used in
t h i s chap t e r : Real
p rope r ty and r e a l ty mean
r e a l
proper ty as
def ined
by and
under
th e laws
of
th e Sta t e of Cal i forn ia .
Transfer
value
means th e t o t a l cons ide ra t ion computed in money
of
th e United
Sta t e s
paid de l i ve red
or rece ived
o r
con t r ac t ed
to be
pa id
de l i ve red
or
rece ived
in
connect ion
wi th
such
t ra n s f e r o f r e a l
p ro pe rty i nc lu din g th e amount of
any indeb tedness ex i s t i ng
immedia te ly
p r i o r
to
th e t r a n s f e r . Such
indebtedness s h a l l
i nc lude
n l i e n deed
of t r u s t o r o th e r encumbrance on th e
p rope r ty conveyed tha t
cont inue
to be
s ecu r i t y
therefor
whether
or not
i s
given
o r p laced
upon th e
proper ty in
connec t ion wi th th e t r an s f e r to
secure
th e
payment
of th e
purchase p r i c e o r any
pa r t t h e reo f tha t remains
unpa id
a t th e
t ime o f t r an s f e r . Transfer
value a lso inc lu des th e amount o f
any
s p ec i a l
assessment
lev ied o r
im posed upon
th e
proper ty
by
a
pub l i c
body
d i s t r i c t
o r
agency
where s a id sp ec ia l assessment
i s a
l i en
o r encumbrance on th e
p rope r ty and
th e
purcha se r
o r
t r ans fe ree
agrees to pay such
spec i a l
assessment
o r
tak es th e
p rope r ty subj ec t
to
th e
l i en
of such
spec i a l
assessment .
The
value of any l i en o r encumbrance
o f
a t ype o the r than
t hose
which
a re he re in above spec i f i c a l l y
i nc luded
ex i s t i ng
immedia te ly
p r i o r
to
the t r a n s f e r and r emain ing
a f t e r
sa id
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t ra n s fe r , sh a l l
not
be
inc luded in
determining
th e
transfer
value.
Furthermore,
the
transfer value cannot
be
de f in i t e ly
determined,
or i s
l e f t open to
be
f ixed by fu ture
cont ingenc ies ,
the transfer
value sha l l be deemed to mean the f a i r market
value of
the proper ty a t
the t ime
of t r ans f e r , a f t e r
deduct ing
the amount of any l i en o r
encumbrance, i f
any, of a type which
would be excluded in determining
the transfer
value pursuant
to
the
above
provis ions
of t h i s sec tion . (P rio r code 5-27.03
SECTION 4.
This
amendment becomes e f fec t ive
upon
passage
SECTION 5.
as fol lows:
Sect ion 4.20.050 A. i s hereby amended to read
SEC 4.20.050 A
Any
t r ans f e r made so le ly to
secure
a
debt . That i s , there i s an exemption for
t rans f ers o f par tia l
in teres t s in
property
to co-s ignor or from co-owner as
required oursuant to
ver i f i ab l e demand bv
the lender
to
secure
the debt for such transfer .
Sub sequen t removal
or reinstatement
o f such
co-s ign ing party s )
must
be
e f fec ted within three
3)
years of
the
or i a ina l transfer
to
secure loan in order for
such rees tabl i shment o f
i n teres t s in
the property
to qua li fy
from the
exemption herein . Such exemption sha l l
be
measured by
the the percentage
o f
i n teres t
t rans ferred to
the
co-s ignor
s)
or
from the
co-owner s)
only .
Nothing here in
conta ined
sha l l be
deemed to exclude
the amount of any such indebtedness
from being
inc luded
in
the
transfer
value pursuant
to
Sec t ion
4.20 .030 in
connect ion
with
t r ans fe r s which are
not
made
so le ly to secure
a
debt ;
SECTION 6. This amendment becomes
e f fec t ive
upon
passage.
SECTION 7.
as fo llow s:
Sect ion 4.20.050 C. l . i s
hereby
amended to read
SEC .04.20.50 C
The
two par t ie s
to
the t r ans f e r
must
have f i l ed
with the Office of,
the City Clerk a t
l e a s t
one
year
p r i o r to
the
t r ans f e r
in
quest ion, an
a f f i dav i t
s igned by both
qua l i fy ing par tne r s
dec la r ing ,
under pena l ty
of
per ju ry ,
the
pa r t i e s
i n t en t
to
l i ve
toge ther
as domest ic pa r t ne r s ,
such
qua li fy in g d e cl ar at io n s being
in
compliance with
cur ren t
City
Council
pol icy requirements .
Should
the
par t i e s
l i ve
outs ide
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Oakland, both must have
been
r e g i s t e r e d as domest ic
with the C ity Clerk of t h a t j u r i s d i c t i o n
f o r t h e
one-year
per iod , provided
t h a t
such o t h e r
j u r i s d i c t i o n
recogn izes the
domestic
p a r t n e r
s t a t u s and
t h e
ity
lerk
o f the ity o f
akland
concludes
t h a t
t h e r e g i s t r a t i o n
requi rements of t h a t
j u r i s d i c t i o n a r e minimally s i m i l a r
t o those
c u r r e n t l y
i n e f f e c t
i n Oakland.
The
p a r t i e s t o
t h e
a f f i d a v i t must a f f i r m and a t t e s t
t o
the fo l lowing
requi rements:
a.
The
p a r t i e s
r e s i d e
t o g e t h e r and s h a r e t h e
common
n e c e s s i t i e s of l i f e
b. The
p a r t i e s
a r e
not m arrie d t o
anyone,
c. The p a r t i e s
a r e a t
l e a s t
e i g h t e e n 18 y e a r s
of age,
d.
The p a r t i e s a r e not r e l a t e d by blood
so
c l o s e as t o
bar marriage i n
t h e
s t a t e of C a l i f o r n i a and a r e
mental ly
competent
t o c on tr a ct
e .
The
p a r t i e s a r e each o t h e r s s o l e domest ic p a r t n e r and
i n t e n d
t o remain so i n d e f i n i t e l y
and
a r e
r e s p o n s i b l e
f o r t h e i r
common
w e l f a r e
f . The p a r t i e s
agree t o
f i l e
s t a t e m e n t of t e r m i n a t i o n
of
domestic
p a r t n e r s h i p with
t h e O f f i c e
of the ity
lerk w i t h i n t h r e e months
of change
of
t h e i r
s t a t u s
i f
any
of
t h e
d e c l a r a t i o n s of
t h e a f f i d a v i t o f domestic
p a r t n e r s h i p
cease
t o be
t r u e
g. The p a r t i e s
unders tand
t h a t t h e
r e g i s t r a t i o n of
t h e
a f f i d a v i
t of
domestic
p a r t n e r s h i p
with t h e
O f f i c e of
the ity
lerk c r e a t e s
domest ic
p a r t n e r s h i p
of
cont inuous
d u r a t i o n
u n t i l e i t h e r
of
t h e
p a r t i e s f i l e s
s ta tem ent o f t e r m i n a t i o n
o r upon
t h e d e a t h of e i t h e r
of
t h e p a r t i e s .
P r i o r t o th e e n t e r i n g i n t o
subsequent dom estic
p a r t n e r s h i p o r
marr iage,
the
s u r v i v i n g
p a r t n e r must f i l e
s t a t e m e n t of t e r m i n a t i o n
wi t h
t h e
O f f i c e of the ity lerk i n
t h e
event of
death
of one of
th e p a r t i e s
N e i t h e r of
t h e
p a r t i e s
has
f i l e d sta tement of
t e r m in at i o n o r d i s s o l u t i o n w i t h i n s i x
months
p r i o r t o
the
f i l i n g
of
t h e
c u r r e n t
a f f i d a v i t
of
domestic
p a r t n e r s h i p
i
The p a r t i e s
understand
t h a t
any
person/employer/company
who s u f f e r s
any l o s s
because
of
f a l s e sta temen ts c on tain ed i n
t h e
a f f i d a v i t
of
domestic
p a r t n e r s h i p o r
t h e
s t a t e m e n t of
t e r m i n a t i o n
m y
have cause t o b r i n g
c i v i l
a c t i o n a g a i n s t
the
p a r t i e s i n d i v i d u a l l y o r c o l l e c t i v e l y
t o
recover
t h e i r l o s s e s i
8/12/2019 12264 CMS Report
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SECTION
8. This amendment becomes e f fec t ive upon passage.
SECTION
9.
Sect ion
4.20.030
C i s hereby amended to read
as fol lows:
SEC
4.20.030
C 3. The pa r t i e s
must
provide
t ha t
por t ion
of
t he i r d i sso lu t ion and p ro pe rty s ett lemen t agreement between
the domest ic
par tne rs
per ta in ing to the d iv i s ion
or
t r ans f e r of
proper ty , which
sha l l
be f i l ed with the
Office
of the C ity
Clerk. Such
copy of such se t t lement agreement sha l l be
accompanied by an a f f idav i t
with
ve r i f i ab l e
s igna tu res
o r proof
of ident i ty t ha t the copy i s an accura te and authent ic
reproduct ion of the f ina l se t t lement agreement
between
the
pa r t i e s ;
SECTION 10
This
amendment
becomes
e f fec t ive upon
passage.
SECTION
11.
as
fol lows:
Sect ion
4.20.050
H
i s
hereby amended
to read
SEC
4.20.050
H
1. In the case of r e a l proper ty
he ld
by
a
par tnership
or
other
ent i ty tre ted
as p rtnersh ip fo r fed er l
income t x
purposes the tax imposed sha l l not apply by
reason
of
any t r ans fe r of
any i n t e r e s t
in a
par tne r sh ip or
other ent i ty
or
otherwise , i f both
of
the fol lowing occur:
a . Such par tnership or other
ent i ty tre ted as
p rtnership
i s
considered
as a
cont inuing par tnership
within
the meaning of
Sect ion 708 of the
In te rna l
Revenue Code of 1986.
b. Such cont inuing par tnership cont inues to hold the rea l
proper ty concerned.
2. I f there i s
a
t e rmina t ion of any
par tne r sh ip
or other ent i ty
tre ted as partnership w ith in the meaning of Sec t ion 708
of
the
In ternal
Revenue
Code
of
1986
for purposes
of
t h i s
chapter , such par tnership or other ent i ty sha l l be t r e a t ed as
having executed
an instrument whereby there
was t r ans fe r red
fo r
f a i r
market
value
exc lus ive
o f the
value
o f
any l i en
or
encumbrance
remaining
thereon a l l rea l ty
held
by such
par tnership
or
other
ent i ty
a t
the
time
of
such
te rminat ion
3. Not more than
one
tax
sha l l
be imposed pursuan t
to t h i s
chapte r
by
t e rmina t ion described in subsec t ion H
2
of t h i s
sect ion and any t r ans f e r pursuant the re to with respec t to the
rea l
proper ty
held by
such
par tnership
or
other ent i ty tre ted
as partnership
a t the
time of
such t e rmina t ion
a . The
making
or
de l ive ry
of conveyances to make e f fec t ive any
order of the Secur i t i e s and
Exchange Commission ,
as
def ined
in
5
8/12/2019 12264 CMS Report
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s u b d i v i s i o n a) o f S e c t i o n 1083 o f t h e I n t e r n a l Revenue Code o f
1986,
but only
i f :
i . The o r d e r
o f
t h e S e c u r i t i e s and Exchange Commission , i n
obedience
t o
which such conveyance i s made,
r e c i t e s
t h a t such
conveyance
i s
n e c e s s a r y
o r a p p r o p r i a t e t o
e f f e c t u a t e
t h e
p r o v i s i o n s of S e c t i o n
9K
of
T i t l e 15
o f t h e
United S t a t e s
Code,
r e l a t i n g t o
t h e
P u b l i c U t i l i t y Holding
Company
Act of 1935,
ii
Such o r d e r s p e c i f i e s t h e
p r o p e r t y
which i s
o r d e r e d t o be
conveyed,
iii Such conveyance i s made i n obedience t o such o r d e r . Ord.
11835 1,
1995; Ord.
11664 1, 1993; p r i o r
code
5-27.05)
SECTION 12
This amendment becomes e f f e c t i v e
upon passage .
SECTION 13.
fol lows
S e c t i o n
4.20.070
i s
hereby
added t o r e a d as
4 .20 .070 Due d a t e s d e l i n q u e n c i e s p e n a l t i e s i n t e r e s t
a d m i n i s t r a t i v e
charges and l i e n r e l e a s e
r ec o r da ti o n f ee s.
The
t a x
imposed under t h i s c h a p t e r i s due and payable
a t t h e
t ime
th e
deed i n s t r u m e n t
o r w ri t i n g
e f f e c t i n g a
t r a n s f e r s u b j e c t
t o
th e t a x
i s
d e l i v e r e d
and i s
d e l i n q u e n t
i unpaid
a t t h e t ime
of
r e c o r d a t i o n
t h e r e o f . In cases where transfer i s
e f fec ted
but
not
recorded
with the
County
Recorder within ninety 90
days
o f
acceptance , a l l s ta tu te o f
l imi ta t ions
regarding
l i ab i l i t y
for th i s tax wi l l be to lle d u n ti l the City has actua l
knowledge o f the trans fer or recordat ion at which t ime the tax
on
the unrecorded
trans fer
wi l l re la te
back
to the actual
trans fer
date
o f such unrecorded
transfer Accordingly
pena l t i e s
and
in teres t
wi l l
accrue back
to such date
o f
actua l
unrecorded transfer and wi l l be the j o in t and s evera l
l i ab i l i t i e s o f both
the former trans feror
and current recording
transferring
party
I n
t h e event t h a t t h e t a x
i s
not
p a i d p r i o r
t o
becoming d e l i n q u e n t a del inquency
p e n a l t y
of t e n p e r c e n t of
t h e
amount of t h e
t a x
due s h a l l
a c c r u e .
I n
t h e
event a p o r t i o n
of t h e t a x
i s
unpaid
p r i o r
t o
becoming
d e l i n q u e n t
t h e
p e n a l t y
s h a l l
only
accrue a s t o th e p o r t i o n
remain in g unp ai d. An
a d d it io n a l p e n a l t y
o f
f i f t e e n
15)
p e r c e n t
s h a l l
accrue
i f
th e
t a x remains unpaid on t h e n i n e t i e t h day f o l l o w i n g t h e
d a t e
of
the o r i g i n a l del inquency.
I n t e r e s t
s h a l l accrue
a t
t h e
r a t e
o f
one
p e r c e n t
a
month o r
f r a c t i o n
t h e r e o f
on
th e amount o f t a x
i n c l u s i v e
of p e n a l t i e s from t h e
d a t e
t h e t a x becomes d e l i n q u e n t
t o
t h e d a t e of
payment . I n t e r e s t
and p e n a l t y s h a l l become
p a r t
o f t h e
t a x . An
a d m i n i s t r a t i v e
charge of f i f t y d o l l a r s 50.00)
on each
p r o p e r t y
and
a
r e l e a s e o f l i e n f i l i n g f e e i n an amount
equal
t o t h e
amount charged by t h e
Alameda
County
R e c o r d e r s
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Off ice sha l l
approved fo r
27.07)
be added to
the
amount
owed fo r
each
proper ty
a tax l i en by
the
Ci ty Counci l . Pr ior
code
5-
SECTION
14.
This
amendment
becomes
e f f e c t i ve
upon
passage
SECTION 15.
fo l lows
Sec t ion 4.20.080 i s hereby
amended
to
read as
SEC 4.20.080.
Exemption
fo r low and moderate income
f i r s t - t ime homebuyers.
Sec t ion 4.20.020 notw it hs ta nd in g, th e
tax
on a l l t r ans f e r s
of
r e a l
p ro pe rty l oc a te d
in the
c i ty
made on or a f t e r August 10,
1993
in
which the buyers are low and moderate income f i r s t - t ime
homebuyers sha l l be
l ev i ed a t the r a te
of
one and
one quar te r
percent
t ime
homebuyers sha l l be lev ied
a t
the r a te of one and
one-quar ter 1.25) percen t o f
the
tr ns fer v lue For th e
purpose
of
t h i s
sec t ion ,
low
and
moderate
income
f i r s t - t ime
homebuyers a re d ef in ed as buyers who:
A. Earn
a
maximum
of
one hundred 100) percen t of
the
median
family
income fo r the Oakland
Pr imary
Metropol i tan
S t a t i s t i c a l
Area,
as def ined by the U.S. Department of Housing a nd Urban
Development;
and
B. wi l l occupy the
proper ty
as
t h e i r
p r in c ipa l
r es idence ;
and
C. Are not
purchas ing
the
proper ty
to be he ld as tenan ts in
common;
and
D Have
not
owned a
home
in
t h ree
years pr i o r to th e
date
of
p ur ch as in g th e
proper ty ; o r
E. Are
disp laced
homemakers. D isplaced homemaker
i s
def ined as
an
a du lt in div id ua l
who has not worked fu l l - t ime ,
f u l l - yea r
in
the
l abor
force fo r a
number
of
years but has , dur ing such
years ,
worked pr imar i ly without pay to
care
fo r
th e home
and
family , i s unemployed
o r
underemployed
and i s
exper ienc ing
d i f f i c u l t y in
o bta in in g o r upgrading
employment.
P r io r
code
5-27.07 a
SECTION
16. This
amendment
becomes e f f ec t i ve
upon passage.
SECTION
17.
as fo llow s:
Sec t ion 4.20.090
i s hereby
amended
to read
SEC
4.20.090 Decla ra t ion may be r equ i red . The tax
imposed
by
t h i s chapter
sha l l be pa id to the
Director
by the
persons
re fe r red to in Sec t ion
4.20 .040.
The Direc to r sha l l have
the
author i ty as
pa r t of any ru les and r egu la t i ons
promulgated
by
him or her as
provided
fo r here in to requ ire
t ha t
the payment
8/12/2019 12264 CMS Report
24/25
ha l l be
accompanied
by
a dec la ra t ion
of
th e amount
of
tax due
s igned by the person
paying
th e
tax o r
by
h is agen t . The
dec la ra t ion sha l l
include
a
s ta tement
t h a t
the
tr nsf r v lu on
which the
tax due
was computed
inc ludes a l l indeb tedness
secured
by
l i ens deeds
of
t ru s t o r o the r
encumbrances remaining
o r
p laced
on the proper ty t rans fe r red a t
th e
t ime
of
t r ans f e r
and
also includes
a l l
spec ia l
assessments on
th e prope r ty which a
purchaser o r t r ans fe ree agrees to
p a y o r
which
remains
a l i en on
th e
proper ty a t
the
t ime of
t r an s fe r . The
dec la ra t ion sha l l
i den t i fy th e deed
in s t rumen t
o r
wri t ing
e f f ec t i ng
the t r ans f e r
fo r
which th e
tax i s
being
paid .
The
Direc to r
may r equ i re
d eliv ery to him o r her
of
a copy of such deed ins t rument o r
wri t ing
whenever
he
o r
she deems such to be
r ea s onabl y nece ss ary
to
adequately
i den t i fy such w ritin g o r to adm in is te r the
p ro vis io ns o f t h i s
chap ter . The
Direc to r
may
re ly
on th e
dec la ra t ion as to the amount
of
the tax due prov ided he o r
she
has
no
reason
to b el iev e
t h a t
th e
fu l l amount
of the
tax
due i s
not shown on th e dec la ra t ion .
Whenever the d i r ec t o r has
reason
to be lieve t h a t th e f u l l amount
of
tax
due i s not shown on the d ec la ra tio n o r has
no t
been
paid
he o r
she
may
by
not i ce
served upon any
person l i ab l e
fo r th e
t ax
requi re him o r her
to
furnish
a t rue copy
of
h is
records
re lev an t to
the
tr nsf r
v lu
o r
f a i r
market
value
of the
proper ty t r ans fe r red . Such
not ice
may be
served
a t any t ime
w ith in th ree years a f t e r recorda t ion of the
deed;
in strume nt o r
wri t ing
which t r an s fe r s such
pro per ty . P rio r
code
5-27.08
SECTION
18.
This
amendment
becomes
e f f ec t i v e
upon
passage.
SECTION
19.
as fo l lows:
Sect ion 4.20.090
i s
hereby
amended to
read
SEC 4.20.100
Determinat ion
of de f i c i ency . I f on the b a s is
of such
in fo rmat ion
as th e D i re cto r r ec ei ve s pursuan t
to
the
l a s t paragraph of
Sect ion
4.20.190
and /or
on th e bas i s of
such
o th er re le va nt
in fo rmat ion t h a t comes in to h is possess ion he o r
she
determines
t h a t
th e amount
of
tax due as s e t fo r th in the
dec la ra t ion
o r as
paid
i s
i n su f f i c i en t
he o r she may
recompute
the
tax
due on
the
bas i s
of
such
in fo rmat ion .
I f
the
dec la ra t ion requ i red
by
Sect ion
4.20 .090
i s
not
submit ted the Direc tor may make an es t im ate of the tr nsf r
v lu
fo r
the proper ty c onveye d a nd determine th e
amount
of
tax
to
be
paid on th e bas i s
of any
in fo rmat ion in
h is
o r
he r
possess ion
o r th a t may come in to h is o r
her possess ion .
One o r more def ic iency dete rmina t ions
may be made
of
the
amount
due with
respec t
to
any
t r an s fe r . Pr io r
code
5-27.09
8/12/2019 12264 CMS Report
25/25
SE TION 20. This
amendment
becomes
e f fec t ive
upon
passage.
SE TION
21.
fol lows:
Sect ion 4.20.160
i s
hereby amended
to read as
4.20.160.
Fina l i ty
of de te rmina t ion
The
order o r dec is ion
of the
Direc tor
upon
a pe t i t i on fo r
redeterminat ion becomes
f i n a l t h i r ty
30 days
a f t e r
serv ice o f
no t i ce
thereof
upon the pe t i t i one r at the t ime
o f
the hearing o f
redetermination. There i s
no appeal
o f
the
Direc t o r s dec i s ion
or
hi s /her deput ies des ignated for
redetermination
to the
City
Council;
wri ts chal lenging the
D ir ec to r s d ec is io n conveyed
by h i s /her
deput ies
at an
admin is trat ive
hearing must
be
f i l ed
with the
a pp ro pria te c ou rt
within ninety
90
days o f the f ina l
date
o f such redetermination. C al i forn ia . Code o f Civ i l
Procedure
1094 .6 . )
SE TION 22. This amendment becomes e f fec t ive
upon
passage
A. IN COUNCIL, OAKLAND, CALIFORNIA, DATE , 1999
PASSED BY THE FOLLOWING VOTE:
AYES- BRUNNER, CHANG,
E
L FUENTE, MILEY, NADEL, REID,
RUSSO, AND SPEES.
NOES
ABSENT
ABSTENTION-
ED FLOYD
Ci ty
Clerk and Clerk of
the
Counci l
of the C ity of Oakland, Cali forn ia
t t es t
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