HomeMy WebLinkAbout38.19 ORDINANCE N0. 38. ~9 '
AN ORDINANCE OF THE CITY OF SARATOGA
ADDING ARTICIZ III TO CHAPTER 14 OF
THE SARATOGA CITY CODE, LIMPOS'ING~ A
DOCUMENTARY STAMP TA~,7 ON THE SALE
OF REAL PROPERTY
The City-Council of the C~y o~ Saratoga do~s h~r~by
ordain as follows:
Section 1: There is hereby added to Chapter 14 of the
Saratoga City Code,'which Chapter is entitied
"TAXATION", the following Article III, which Article together
with all the sections and subsections thereof shall be as
follows:
ARTICLE III: DOCUMENTARY STAMP TAXES
·
Sec. 14-11: Title and purpose: This Article shall be
known as the "REAL
PROPERTY TRANSFER TAX ACT" of the City of Saratoga, and is
adopted pursuant to the authority contained in Part 6.7(commencing
with Section~ll901) of Division 2 of the Revenue and Taxation
Code of the State of California.
Sec. 14-12: Imposition of Tax: There,is hereby imposed
on each.deed, instrument
or writing by which'a~y ia~ds/~enements, or other realty sold within the
City of Saratoga 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 encumbrances remaining
thereon at the time of sale) exceeds one hundred dollars ($100.00),
a tax at the rate of twenty-seven and one-half cents ($0.275)
for each five hundred dollars(S500.00) or fractional part
thereof.
Sec. 14-13: Persons on Whom tax imposed: The tax imposed
pursuant to
Sec. 14-12 hereof shall be paid by any person who makes, signs
or issues any document or instrument subject to the tax, or
for whose use or benefit the same is made, signed or issued.
Sec. 14-14: Security for debt: Any tax imposed pursuant
to this Article shall
not apply to any instrument in writing given to secure a debt.
Sec. 14-15: Exemptions: The United States or any agency
or instrumentality thereof, any
state or territory, or political subdivision thereof, or the
District of Columbia, or the City of Saratoga, shall not be
liable for any tax imposed pursuant to this Article with respect
to any deed, instrument, or writing to which it is a p~rty,
but the tax may be collected by assessment from any other
party liable therefor.
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Sec. 14-16: Conveyancesnot subject to tax -- plans of
......... reorganization oradjuls~men~:
Any tax imposed pursuant to this.Article
shall not apply to the making, delivering
or filing of conveyances tomake effective any plan of
reorganization or adjustment--
(a) Confirmed Under the Federal Bankruptcy Act,
as~ amended, or .
(b) Approved in an equity receivership proceeding
in a court involving a railroad corporation, as
defined in subdivision (m) of Section 205 of
Title II of the United States Code, as'amended, or
(c) Approved in an equity receivership proceeding in
a Court involving a. cOrporation, as defined in
subdivision (3) of Section 506 of Title II of the
United States Code, as amended, or
(d) Whereby a mere change in identify, form, or place
of organization is effected.
Subdvisions (a) to (d), inclusive, of this section shall
only apply if the.making, delivery or filing of instruments of
transfer or conveyances occurs within five years from ~he date
of such confirmation, approval or change.
Sec. 14-17: Conveyances not subject to tax ~- securities
'~ and exChah~e cOmmission. orders:"'
Any tax imposed pursuant to this Article
shall not apply to the making or delivery
of conveyances to make effective any order of the Securities
and Exchange Commission, as defined in subdivision (a) of
section 1083 of the Internal Revenue Code of 1954, but
only if--
(a) The order of the Securities and Exchange Commission
in obedience to which such conveyance is made
recites that such conveyance is necessary or appropriate
to effectuate the provisions of Section 79k of Title 15 of
the United States Code, relating to the Public Utility Holding
,Company Act of 1935, and
(b)Such order specifies the property which
ordered to be conveyed, and
(c) Such conveyance is made in obedience to. such
order.
Sec. 14-18: Conveyances not subject to tax -- transfe[
Rr te~min~ti°n of partnership:
(a) In the case of any'realty held by a
partnership, no leyy shall be imposed
pursuant to this Article by reasonof any transfer of an
interest in a partnership or otherwise, if--
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(1) Such partnership (or another partnership) is
considered a continuing partnership within
the meaning of Section 708 of the Internal Revenue Code
of 1954, and
(2) Such continuing partnership continues to
hold the realty concerned.
(b) If there is a termination of any
partnership within the meaning
of Section 708 of the Internal Revenue Code of 1954, for
purposes of'this Article, such partnership shall be treated
as having executed an instrument whereby there was conveyed,
for fair market value (exclusive of the value Of any lien or
encumbrance remaining thereon), all realty held by such
partnership at the time of such termination.
(c)Not more than one tax shall be
imposed pursuant to this Article
by reason of a termination described in subdivision (b), and
any transfer pursuant thereof, with respect to the realty
held by such partnership at the time of such termination.
Sec. 14-19: Conveyance ~ot ~ubject to taX~--....County
exemptions:
In addition to the foregoing, there is
automatically exempted from the tax
imposed by this Article, such conveyances as may in the
future be exempted from suchltax by the County of Santa
Clara under its Ordinance adopted pursuant to Part 6.7 of
Division 2 of the Revenue and Taxation Code of the State of
California, without subsequeht or further amendment of this
Article to include such exemptions!.
Sec. 14-20: County Recorder to administer:
The County Recorder shall administer this
Article in conformity with the provisions
of Part 6.7 of Division 2 of the Revenue and Taxation Code
and the provisions of any countylordinance adopted pursuant
thereto.
Sec. 14-21: Claims for refund: Ciaims for refund
of taxes imposed
pursuant to this Article shall be governed by the provisions
of Chapter 5 (commencing with Section 5096) of Part 9 of
Division 1 of the Revenue and Taxation Code of the State of
California.
Section 2: This Ordinance shall become operative upon
the operative date of any ordinance adopted
by the County of Santa Clara pursuant to Part 6.7 (commencing
with Section 11901) of Division 2 of the Revenue and Taxation
Code of the State of California, or upon the effective date
of this Ordinance, whichever is the later. Upon its adoption,
the City Clerk shall file two (2)~ copies of this Ordinance
with the County Recorder of Santa Clara County.
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Section 3: If any section, subsection, sentence, clause
or phrase or this ordinance is for any reason
held by a court of competent jurisdiction to be invalid, such
decision shall not affect the validity of the remaining portions
of this ordinance. The City Council of the City of Saratoga
hereby declares that it would have passed this ordinance and
each section, subsection, sentence, clause and phrase thereof,
irrespective of the fact that any one or more !sections, subsections,
sentences, clauses or phrases beheld invalid or unconstitutional.
Section 4: This ordinance, providing for a tax levy for
the usual and current expenses of the City,
shall take effect immediately upon its passage and adoption,
and its operative effect shall be subject to the provisions of
Section 2 hereinabove set forth.
The above and foregoing Ordinance was pas~ed at a
meeting held by the City Council of the City of Saratoga on
the .6th day of December , 1967, by the following
vote:
AYES: Robbins, Tyler, Glennon
NOES: None
ABSENT: Burry, Hartman ~ ~~R\
The above and foregoing is a true and corrcc!
copy of Ordin3nc9 'c~,y:_/? which has ~ecn
published according to I~w.
Date '
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