BILL NUMBER: AB 561	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Ting

                        FEBRUARY 20, 2013

   An act to amend Sections 11911 and 11925 of the Revenue and
Taxation Code, relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 561, as introduced, Ting. Taxation: documentary transfer tax.
   Existing law authorizes counties and cities and counties to impose
a documentary transfer tax at a specified rate upon deeds,
instruments, or writings by which any lands, tenements, or other
realty sold are transferred.
   This bill would provide that "realty sold" for purposes of the
imposition of a documentary transfer tax includes any acquisition or
transfer of ownership interests in a legal entity that would
constitute a change in ownerships of that legal entity's real
property, as specified.
   Existing law prohibits the imposition of the documentary transfer
tax, in the case of any realty held by a partnership, upon any
transfer of an interest in a partnership under specified conditions.
Existing law also prohibits more than one documentary tax from being
imposed by reason of a specified termination of any partnership or
other entity treated as a partnership, and any transfer with respect
to the realty held by a partnership or other entity treated as a
partnership at the time of the termination.
   This bill would eliminate those prohibitions.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 11911 of the Revenue and Taxation Code is
amended to read:
   11911.  (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 her 
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  
that  is within a county  which   that
 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 her  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   that  is not in conformity
with this part. 
   (d) For purposes of this section, "realty sold" includes any
acquisition or transfer of ownership interests in a legal entity that
would constitute a change in ownership of that legal entity's real
property under Section 64. 
  SEC. 2.  Section 11925 of the Revenue and Taxation Code is amended
to read: 
   11925.  (a) In the case of any realty held by a partnership or
other entity treated as a partnership for federal income tax
purposes, no levy shall be imposed pursuant to this part by reason of
any transfer of an interest in the partnership or other entity or
otherwise, if both of the following occur:
   (1) The partnership or other entity treated as a partnership is
considered a continuing partnership within the meaning of Section 708
of the Internal Revenue Code of 1986.
   (2) The continuing partnership or other entity treated as a
partnership continues to hold the realty concerned.
   (b) If there is a termination of any partnership or other entity
treated as a partnership for federal income tax purposes, within the
meaning of Section 708 of the Internal Revenue Code of 1986, for
purposes of this part, the partnership or other entity 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 the partnership or
other entity at the time of the termination.
   (c) Not more than one tax shall be imposed pursuant to this part
by a county, city and county or city by reason of a termination
described in subdivision (b), and any transfer pursuant thereto, with
respect to the realty held by a partnership or other entity treated
as a partnership at the time of the termination.
   (d) No 
    11925.    No  levy shall be imposed pursuant to
this part by reason of any transfer between an individual or
individuals and a legal entity or between legal entities that results
solely in a change in the method of holding title to the realty and
in which proportional ownership interests in the realty, whether
represented by stock, membership interest, partnership interest,
cotenancy interest, or otherwise, directly or indirectly, remain the
same immediately after the transfer.