BILL NUMBER: AB 561 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JANUARY 6, 2014
AMENDED IN ASSEMBLY MAY 9, 2013
AMENDED IN ASSEMBLY APRIL 30, 2013
INTRODUCED BY Assembly Member Ting
FEBRUARY 20, 2013
An act to amend Sections 11911 and 11925
Section 119 11 of, and to repeal Section 11924 of,
the Revenue and Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 561, as amended, 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, but is not limited
to, any acquisition or transfer of ownership interests in a legal
entity that would constitute a change in ownerships
ownership of that legal entity's real property,
as specified. The bill would also require a city, county, or city and
county that imposes a documentary transfer tax to submit information
to the Board of Equalization annually regarding the imposition of
the documentary transfer tax and require the board to compile the
information into a publicly available report.
Existing law prohibits the imposition of a documentary transfer
tax on the making or delivery of a conveyance to make effective an
order of the Securities and Exchange Commission, if specified
requirements are met.
The bill would eliminate that prohibition.
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 pursuant to
that termination with respect to the realty held by the partnership
or other entity.
This bill would eliminate those prohibitions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
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, 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 that is within a county 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, 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 that is not in conformity with this part.
(d) For purposes of this section, "realty sold" includes, but is
not limited to, 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 as set forth in Chapter 2 (commencing
with Section 60) of Part 0.5 of Division 1.
(e) A city, county, or city and county that imposes a documentary
transfer tax shall submit information to the Board of Equalization
annually regarding the imposition of the documentary transfer tax.
The board shall compile this information into a report and make the
report available to the public.
SEC. 2. Section 11924 of the Revenue and Taxation Code is
repealed.
SEC. 3. Section 11925 of the Revenue and
Taxation Code is amended to read:
11925. (a) 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.
(b) Notwithstanding subdivision (a), if there is a termination of
a 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) No more than one tax shall be imposed pursuant to this part by
a county, city, or city and county by reason of a termination
described in subdivision (b), or any transfer pursuant thereto, with
respect to the realty held by a partnership or other entity treated
as a partnership at the time of termination.