Documentary Transfer Tax ActExemptions
Section § 11921
This law states that taxes from this part don't apply to written documents used to secure a debt, like a mortgage or lien.
Section § 11922
This law states that when the United States government or any of its agencies, a state, territory, or any of their subdivisions are acquiring property, they don't have to pay certain taxes on the process.
Section § 11923
This law exempts certain tax from being applied to the process of making, delivering, or filing conveyances (legal documents for transferring property) as part of a reorganization or adjustment. These situations include reorganizations confirmed under the Federal Bankruptcy Code, those approved in equity receivership proceedings involving railroad corporations or other corporations, and scenarios where there's a mere change in identity, form, or location of the organization. This exemption applies only if the conveyance occurs within five years of the reorganization or adjustment.
Section § 11924
This law says that if the Securities and Exchange Commission (SEC) orders a property transfer under the Public Utility Holding Company Act of 1935, you don't have to pay certain taxes on that transfer. But, there are conditions: the SEC order must say that the transfer is necessary, it must specify which property needs to be transferred, and the transfer must be done as the order requires.
Section § 11925
This law states that if property is owned by a partnership or an entity considered a partnership for tax purposes, no transfer tax is applied when an interest in the partnership is transferred, as long as the partnership continues to exist and own the property. It outlines that in case of partnership termination, the property is treated as sold at fair market value, but only one tax can be imposed on such transfers related to termination. It also clarifies that no tax is due when property ownership shifts in title form but retains the same ownership proportions.
Section § 11926
This law explains that property transfer taxes don't apply to deeds or documents given to a lender or mortgage holder from the borrower during foreclosure, unless the property's value is more than the remaining debt and foreclosure costs. If the property's value is higher, the extra amount is taxed. The details of the transaction, such as the debt amount and the identities of the parties involved, have to be clearly stated on the documents or through a sworn statement for tax purposes.
Section § 11927
This law section states that any tax typically applied to documents transferring property does not apply when the property transfer is between spouses and is part of dividing community or quasi-community property after a divorce, legal separation, annulment, or similar legal judgment. This also includes transfers made according to a written agreement between the spouses if it is made in anticipation of such a judgment, even if the agreement is not officially part of the judgment.
To be eligible for this tax exemption, the document must have a statement, signed by either spouse, indicating it qualifies for this exemption.
Section § 11928
This law states that if the State of California, or any of its political subdivisions or agencies, transfers real property through a deed or similar document, and there is an agreement in place for the buyer to immediately transfer that property back to the exempt agency, then the usual tax that would apply to such transfers does not need to be paid.
Section § 11929
This law states that if the State of California or its subdivisions or agencies transfer property to a nonprofit corporation, it won't be subject to a specific tax. This only applies if the property was funded or refinanced by certain obligations the nonprofit issued for a governmental unit.
Section § 11930
This law states that tax won't apply to any document transferring property if the transfer is a gift made during someone's lifetime or occurs because of someone's death. This applies whether the property is given directly to someone or put in a trust for them.