Administration - Documentary Transfer Tax Act - Revenue & Taxation - CA

Section § 11931

This section discusses how taxes on real estate transfers are handled when both a city and the county impose such taxes. If a city imposes a real estate transfer tax at a specific rate, the county must grant a credit against its own tax for the city's portion, provided the city's tax aligns with the law. The county collects all these taxes and the proceeds are divided based on where the property is located and whether the city's tax conforms with the law. Essentially, if the property is in an unincorporated area, the funds go to the county. If the city has a conforming tax, the funds are split between the city and county. If not, the county keeps all. If the city has no tax, the county retains all funds.

If the legislative body of any city imposes a tax pursuant to subdivision (b) of Section 11911 equal to one-half the amount specified in subdivision (a) of Section 11911, the county in which such city is located shall grant a credit against the county tax in the amount of the city tax if the city’s tax conforms to this part. The county shall collect all taxes imposed pursuant to this part and the county auditor shall allocate the proceeds as follows:

(1) All money which relates to transfers of real property located in unincorporated areas of the county or in a city and county shall be allocated to the county or city and county, as the case may be.

(2) All money which relates to transfers of real property located in a city which imposes a tax on transfers of real property pursuant to this part shall be allocated one-half to such city and one-half to the county.

(3) All money which relates to transfers of real property located in a city which imposes a tax on transfers of real property not in conformity with this part shall not be credited against the county tax and the entire amount collected by the county shall be allocated entirely to the county.

(4) All money which relates to transfers of real property in a city which does not impose a tax on transfers of real property shall be allocated entirely to the county.

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Section § 11932

When a county has a tax under this section, any document you file for recordation must clearly display both the tax amount due and the exact location of the property, whether it's within a city (incorporated) or not (unincorporated).

If a county has imposed a tax pursuant to this part, every document subject to tax that is submitted for recordation shall show on the face of the document the amount of tax due and the incorporated or unincorporated location of the lands, tenements, or other realty described in the document.

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Section § 11933

When a county in California has its own tax on property transactions, the county recorder won't record a deed or similar document unless the applicable tax is paid. The person calculating the tax must include a signed declaration on the document showing the tax amount and whether or not the value used for tax calculations includes any remaining liens or debts on the property. The recorder can trust this declaration unless there's a reason to doubt its accuracy. Not collecting the tax doesn't affect the legal notice provided by recording the document.

If a county has imposed a tax pursuant to this part, the recorder shall not record any deed, instrument, or writing subject to the tax imposed pursuant to this part, unless the tax is paid at the time of recording. A declaration of the amount of tax due, signed by the party determining the tax or his or her agent, shall appear on the face of the document in compliance with Section 11932, and the recorder may rely on that declaration if the recorder has no reason to believe that the full amount of the tax due has not been paid. The declaration shall include a statement that the consideration or value on which the tax due was computed either was, or was not, exclusive of the value of a lien or encumbrance remaining on the interest or property conveyed at the time of sale. Failure to collect the tax due shall not affect the constructive notice otherwise imparted by recording a deed, instrument, or writing.

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Section § 11934

If you're looking to get a refund for certain taxes, you need to follow the rules laid out in another part of the law, specifically starting at Section 5096. Essentially, this section is telling you where to find the detailed steps for claiming a tax refund.

Claims for refunds of taxes imposed pursuant to this part shall be governed by the provisions of Chapter 5 (commencing with Section 5096) of Part 9 of Division 1 of this code.

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Section § 11935

This law states that local governments that impose a documentary transfer tax can create a process for resolving disputes about this tax through administrative appeals. However, whatever value is decided upon during these appeals, or by a court, for the purpose of calculating this tax, does not affect how that property's value is determined for property tax purposes. Property tax values will still be set by the county assessor, an assessment appeals board, or a court that reviews property tax values.

(a) Any ordinance adopted pursuant to this part may include an administrative appeal process for resolution of disputes related to the documentary transfer tax.

(b) Whether the amount of documentary transfer tax is determined by an administrative appeal process or established by a court of law, the value of the property established for purposes of determining the amount of documentary transfer tax due shall not be binding on the determination of the value of that property for property tax purposes by the county assessor, by an assessment appeals board, or by a court of law reviewing property tax values established by an assessment appeals board.

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