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INTRODUCED Y COUNCILMEM ER _

Ordinance No.

C.M.S.

AUTHORIZING THE

AMENDMENT OF

CERTAIN SECTIONS OF

ARTICLE 20, CHAPTER 4, OF THE OAKLAND MUNICIPAL CODE

PROVIDING FOR CERTAIN CLARIFICATIONS AND MODIFICATIONS

TO

THE CITY

OF OAKLAND

REAL PROPERTY

TAX

WHEREAS

the Council

of

the City

of Oakland adopted Art i c l e

20,

Chapter

4,

of

the Oakland

Municipal Code prov id ing fo r the

taxat ion of the

t r ans fe r

of r e a l

property w ith in the

City o f

Oaklandi and

WHEREAS

the exis t ing provis ions

of

Art ic le

20,

Chapter 4,

of

the

Oakland Municipal

Code r eq uir e m o dific atio ns

to

remove

any ambiguit ies

t h a t

may e x i s t

to

de le te any por t ions t he reof

tha t are no longer

re l evan t and

to more c l e a r ly

s t a t e

those

t ransact ions t h a t are subjec t to the t x

WHEREAS

the

proposed

modif ica t ion

of

language w ill n e i th e r

increase the tax ra te

nor

inc rease the number

of

ca teg or ies o r

persons

subjec t

to the r ea l e st ate t ra n sf er t x

Now

t he re fo re

the

Council

of the

City

of

Oakland does orda in

as fo l lows:

SECTION 1. Sect ion 4.20.020 i s hereby amended to

read:

SEC

4.20 .020.

IMPOSITION OF

TAX There

i s

imposed

a tax

on

a l l

t rans fe rs

by

deeds,

ins t ruments

wri t ings o r

any

o ther

document by which any lands,

tenements

o r o th e r

i n t e re s t s

in

rea l proper ty loca ted in the c i ty

are

o r i s

granted

ass igned ,

t r ans fe r red

o r otherwise

conveyed

to o r inves ted in a

t r ans fe ree

or

t r ans fe rees

thereof which s ha l l be

l ev ied

a t the

ra t e of one and one ha l f 1.50

percent o f the

va lue

of

cons idera t ion .

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Said

tax

sha l l be

adminis tered

to conform to

th e

s ta tewide ru les

governing the documentary t r ans f e r tax as s t a t ed

in

Cal i fo rn ia

Revenue

Taxat ion Code

11911

through 11930, as cod i f ied on

th e date of passage

of

t h i s

ord inance ,

inc lud ing

the

exemptions

from

tax

t h a t

are i temized

the re in , except where the exemptions

appearing

with in t h i s Art i c l e

20,

Chapter 4,

prov ide

g rea t e r

pro tec t ion

to

th e

taxpayer .

SECTION 2. This amendment becomes e f f ec t i v e upon

passage.

SECTION

3.

fo l lows:

Sect ion

4.20.030

i s hereby amended

to

read

as

SEC.4.20.030 DEFINITIONS. As

used in t h i s chapte r :

Real

property

and r ea l ty mean r e a l proper ty as def ined by

and under the laws

of

the

s t a t e

of

Cal i fo rn ia .

Value of cons idera t ion

means th e

t o t a l

cons ide ra t ion ,

valued

in money

of th e United Sta tes ,

pa id

o r

de l ive red ,

o r

cont rac ted

to

be

paid o r de l ive red in r e tu rn fo r th e t r a n s f e r

of

r e a l

p ro pe rty , inc lu ding the amount of

any

indebtedness ex i s t ing

immediately p r i o r

to

the t r ans f e r

which i s secured by a l i en ,

deed

of

t r u s t o r o the r

encumbrance

on the

proper ty

conveyed and

which

c on tinu es to

be secured

by such l i en , deed

of

t r u s t o r

encumbrances

a f t e r

sa id t r an s fe r ,

and a lso in clu din g th e amount

of

any indebtedness which i s secured by

a

l i en ,

deed of t r u s t o r

encumbrance given

o r placed

upon th e

proper ty

in

connect ion

with

the

t r ans f e r

to secure the payment

of

th e

purchase

pr ice

o r

any

pa r t

the reof

which

remains

unpaid

a t

th e

t ime

of

t r ans f e r .

Value of

the

cons idera t ion also

in clu de s th e amount of any

spec ia l

assessment l ev i ed o r imposed upon

th e p ro per ty

by a

publ ic

body,

d i s t r i c t o r

agency, where

sa id sp ec ia l assessment

i s a l i en o r

e ncumbra nc e on the

proper ty

and th e

purchaser

o r

t r ans fe ree

agrees

to pay such spec ia l assessment o r t akes the

pro per ty su bjec t to the

l i en o f

such

spec ia l assessmen t . The

value of any l i en o r encumbrance

of

a type o the r

than tho se

which

are

hereinabove

spec i f i c a l l y inc luded, ex i s t ing

immediately p r i o r to

th e t r an s fe r and

remaining

a f t e r sa id

t r a ns fe r, sh al l not

be

inc luded in

determining

th e va lue

of

th e

cons idera t ion .

I f

th e

va lue of

th e c on sid er at i on

cannot

be

de f in i t e ly

determined,

o r i s l e f t

open

to

be

f ixed

by

fu tu re

con t ingenc ies , value

of

t he c o ns id e ra ti on sha l l

be

deemed to

mean the f a i r market

value

of the

proper ty

a t th e t ime

of

t r an s fe r ,

a f t e r

deduct ing th e

amount

of any l i en

o r

encumbrance,

i f

any,

of

a type which

would

be excluded in

dete rmin ing

th e

value o f th e c on sid er at io n p urs ua nt

to

the

above

provis ions

of

t h i s sec t ion . P r i o r code 5-27.03

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Unless

a t r ans f e r

i s

a

g i f t ,

i . e . ,

f ree

and

c lea r

of l i ens

or encumbrances,

i s

hereby presumed t ha t

th e

va lue of

cons idera t ion of a given proper ty being t r ans fe r red i s the f a i r

market

value of

t ha t

p ro per ty , u nle ss

c i rcumstances

support ing

a

departure

therefrom can be

furnished to the

sole

sa t i s f ac t i on of

the Direc tor

o r

h i s /he r des ignee s ) .

Furthermore,

i f

the

value

of cons idera t ion

cannot be

def in i te ly

determined, o r i s

l e f t open to

be

f ixed by fu ture

cont ingencies , value of

considerat ion

sha l l be deemed to

mean

the

f a i r market value of

the

proper ty a t th e

t ime

of t r ans fe r ,

a f t e r deduct ing the

amount

of

any l i en or encumbrance,

i f

any,

of a type which

would

be excluded in de te rmining

the

value of

considerat ion

pursuant

to

the

above prov i s ions of t h i s sec t ion .

Pr ior

code

5-27.03)

SECTION 4.

SECTION 5.

as

fo l lows:

This amendment becomes

e f f e c t ive

upon

passage

Sec t ion

4.20.050 A.

i s hereby

amended to read

SEC. 4.20.050 A. Any t r ans f e r made so le ly to

secure

a debt .

There

i s

an exemption

fo r t r ans fe r s

of

pa r t i a l

i n t e re s t s in

proper ty to a co-s ignor o r

from

a co-owner

as r equ i red pursuant

to

a ve r i f i ab l e demand by a l ender

in

orde r to

secure

the

debt

fo r

such

t r ans fe r . Spec i f i ca l ly , the subsequent

removal

o r

re ins ta tement

of such co-owner

o r

co-s igning par ty

s) must

be

ef fec ted

within

seven

7 years

of

the c lo se of escrow

per ta in ing

to such

loan

in order to qual i fy

fo r

the exemption

here in .

Nothing herein conta ined

sha l l

be deemed to exclude the

amount

of any such indebtedness

from

being

included

in the

value

of

cons idera t ion

pursuant to Sec t ion

4.20 .030

in

c onne ctio n w ith t r ans fe r s which are

not

made so le ly to

secure

a

debt;

SECTION 6.

This

amendment

becomes

e f f e c t ive

upon passage.

SECTION

7.

Sect ion

4.20.050

C

i s

hereby

amended

to

read as

fo l lows:

SEC. 4.20.050 C. Any t r ans f e r of prope r ty from one

spouse

to

the other

in

accordance

with

the terms of a

decree

of

d is so lu tio n, leg al separa tion o r

in

fu l f i l lmen t

of

a

proper ty

s et tl emen t i n ci de n t

the re to ;

provided,

however,

t ha t such

proper ty was

acquired by the husband and wife o r husband o r wife

p r i o r to

the

f ina l

decree of disso lu t ion .

Furthermore,

any

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t r a n s f e r

i f made dur ing

the

term of the marr iage

o r

domestic

p a r t n e r s h i p

between

husband and wife o r duly

r e g i s t e r e d

domest ic p a r t n e r s s h a l l

be

tax-exempt

i n t e r s p o u s a l

t r a n s f e r s .

However,

no t r a n s f e r of

p r o p e r t y

t o

a t h i r d

p a r t y

s h a l l

be

exempt from t h i s

t a x

d e s p i t e

th e

e x i s t e n c e

of

a

v a l i d

cour t

order o r

s e t t l e m e n t agreement .

Notwithstanding the foregoing,

a

t r a n s f e r t o

t h e

o t h e r

former

spouse o r p a r t n e r

a f t e r

d i s s o l u t i o n of the owner-occupied,

s i n g l e family r e s i d e n t i a l

p r o p e r t y

t h a t was the p rimary domic il e

of

the p a r t i e s

s h a l l be

e l i g i b l e

f o r t h i s r e a l p r o p e r t y

t r a n s f e r

t a x

exemption,

d e s p i t e the absence

of

a

c o u r t - o r d e r e d s e t t l e m e n t

agreement.

SECTION 8.

This

amendment becomes e f f e c t i v e upon passage.

SECTION

9. Sect ion

4.20.050

C . l . i s

hereby

amended t o read

as follow s:

SEC

4.20.50

C 1. The two p a r t i e s

t o t h e

t r a n s f e r

must

have f i l e d

f o r

Domestic P a r t n e r s h i p r e g i s t r a t i o n

as

adminis tered

by the O ffice

of

t h e City

Clerk a t l e a s t one

year p r i o r

t o the

t r a n s f e r i n q u e s t i o n

such q u a l i f y i n g d e c l a r a t i o n s being i n

compliance with

c u r r e n t City Council p o l i c y

requirements .

In

the event the p ar t i e s l i v e o u t s i d e Oakland, both must have

been

r e g i s t e r e d

as

domestic p a r t n e r s with the

City Clerk

o r

a p p r o p r i a t e

municipal agency of

t h a t j u r i s d i c t i o n

f o r

the one

year per iod ,

provided

t h a t

such

o t h e r j u r i s d i c t i o n

recognizes

the domestic p a r t n e r s t a t u s and t h e City Clerk of the C ity

of

Oakland

concludes

t h a t the

r e g i s t r a t i o n

requirements of t h a t

j u r i s d i c t i o n

a r e m n m lly s m l r to those c u r r e n t l y i n e f f e c t

i n Oakland.

For

Finance Agency records , i n a d d i t i o n t o the

a f f i d a v i t f o r t h e City

Clerk

r e g i s t r a t i o n

t h e p a r t i e s

request ing a

r e a l e st a te t r a n s f e r t a x exemption must a f f i r m and

a t t e s t t o the f ol low ing r equ ir emen ts :

a .

The p a r t i e s r e s i d e to g e t h e r and share t h e common

n e c e s s i t i e s

of l i f e

b.

The

p a r t i e s

a r e

n ot m arried

t o

anyone,

c .

The

p a r t i e s a r e a t l e a s t e i g h t e e n 18 years

of age,

d. The

p a r t i e s

a r e

not

r e l a t e d

by blood

so

c l o s e as t o

b a r

marriage i n the

s t a t e

of C a l i f o r n i a and a r e

mental ly

competent t o c on tr a ct

e . The p a r t i e s a r e each

o t h e r s

s o l e domestic p a r t n e r and

i n t e n d

t o

remain so i n d e f i n i t e l y and a r e r e s p on si b le

f o r t h e i r

common

welfare ,

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f

The

pa r t i e s agree

to f i l e

a s ta tement

of t e rmina t ion

of domest ic par tne r sh ip with

the O ffice

of

the C ity

Clerk within th ree

months

of change of

t h e i r

s t a tus i f

any of the dec la ra t ions of the a f f i d av i t of domest ic

par tnership cease to be

t rue

g The pa r t i e s understand t h a t the r eg i s t r a t i on of the

a f f idav i t of domest ic par tne r sh ip with th e

Office

of

the

City

Clerk

c rea tes a

domestic par tne r sh ip

of

continuous dura t ion

un ti l e i th e r

of

the par t i e s

f i l e s

a

s ta tement

of te rm in atio n o r

upon

the dea th of e i the r

of

the par t i e s

Pr io r

to th e

en te r in g in to a

subsequent dom estic pa rtne rsh ip o r marr iage the

surviv ing

par tne r must f i l e

a s ta tement of t e rmina t ion

with

the O ffice of th e

Ci ty

Clerk in th e

event

of

death

of one of the

par t i e s

h

Nei ther

of

the

pa r t i e s

has f i l ed a s tatement

of

t e rmina t ion

o r d i sso lu t ion

within s ix

months

pr io r

to

the

f i l ing of the cur ren t

a f f i dav i t of

domest ic

par tnership

The pa r t i e s understand t ha t any person/employer /

company who su f fe rs any

lo s s because

of fa l se

s tatements

conta ined in

the a f f i dav i t of domest ic

par tnership o r the sta tem ent of t e rmina t ion may have

cause to b ring a c i v i l

ac t ion

aga ins t th e par t ie s

i nd iv id ua lly o r

col lec t ive ly

to recover t h e i r lo s ses

SECTION

10

This amendment

becomes

e f f e c t ive upon

passage

SECTION 11 Sect ion

4 20 030

C 3 i s hereby amended to

read

as fo llow s:

SEC

4 20 030

C 3 The pa r t i e s

must provide

t ha t por t ion

of

t he i r

disso lu t ion and proper ty se t t lement agreement between

the domestic

p ar tn e rs p er ta in in g

to the d iv i s ion

o r

t r ans f e r of

property

which sha l l be

f i l ed

with

the Office of the C ity

Clerk Such copy

of such se t t lement agreement

sha l l be

a cc om pa nie d by

an

a f f idav i t with ve r i f i ab l e s igna tu res o r proof

of

i den t i ty

tha t the copy i s an accura te and authent ic

reproduct ion

of

the

f ina l

se t t lement

agreem ent between

the

pa r t i e s ;

SECTION

12

This amendment becomes

e f fec t ive

upon passage

SECTION 13

fol lows:

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Sect ion 4 20 050D

i s

hereby

amended

to read as

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SEC 4.20.050.D.

Transfe r

o r t r ans fe r s

conveyance,

lease

o r

sublease without cons idera t ion

t h a t confirm

or

cor rec t

a

deed,

provided

t ha t such

cor rec t ion i s recorded

no

l a t e r than

nine ty 90 days a f t e r the recorda t ion of th e t r a ns f e r to be

correc ted

SECTION 14 This amendment

becomes

e f fec t ive

upon passage.

SECTION

15.

as

fol lows:

Sect ion

4.20.050

E

i s hereby

amended

to

read

E. Trans fer to

or

between the United Sta tes s t a t e

of

Cal i fo rn ia any c i ty county, c i t y and county, d i s t r i c t or any

o ther po l i t i ca l subdivis ion of the s t a t e of Cal i fo rn ia

and

t r a ns f e r executed pursuant to eminent domain proceedings by the

United Sta tes S ta te

of

Cal i fo rn ia

any c i t y

county , c i ty and

country,

d i s t r i c t o r

o ther po l i t i ca l subdivis ion of th e

Sta te

of

Cal i fo rn ia ;

Any

deed, ins t rument ,

or

o th er w rit in g by which the Sta te of

Cal i fo rn ia any

p o l i t i c a l

subdivis ion

the reof

o r

agency o r

in s t rumenta l i ty

of e i t he r

thereof

conveys to a nonprof i t

corpora t ion rea l ty the

acqu is i t ion cons t ruc t ion o r improvement

of

which

was f inanced

o r

re f inanced

by ob l iga t ions

i ssued by the

n o n pr of it c o rp o ra ti on on beha l f of a governmental un i t within

the meaning of

Sect ion

1.103-1

b

of

Ti t l e 26 of the Code of

Feder al Regul at ion s.

SECTION 16 This amendment becomes

e f fec t ive

upon

passage

SECTION 17.

as

fol lows:

Sect ion

4.20.050

H

i s hereby amended to read

SEC

4.20.050

H 1.

In

the

case of r e a l proper ty held by

a

par tnership o r o th e r

en t i t y

t rea ted

as

a

p ar tn ers hip fo r federa l

income

tax

purposes ,

the tax imposed sha l l

not apply by

reason

of

any t r a ns f e r of any

i n t e re s t

in

a par tne r sh ip o r o th e r

en t i t y

o r

otherwise,

i f

both of

the

fo llow ing o cc ur:

a .

Such p ar tn ers hip o r

othe r en t i t y

t rea ted as

a

par tne r sh ip i s

considered

as a cont inuing par tnership

w ith in the

meaning of

Sect ion

708

of the

In te rna l

Revenue

Code

of

1986.

b. Such

cont inuing

par tnership continues to hold

the

r e a l

proper ty

concerned.

2. I f

there i s

a t e rmina t ion of

any partn ersh ip o r o th er e n t i t y

t r e a t e d as

a par tnership w ith in th e meaning of Section

708

of

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the I n t e r n a l Revenue Code

of

1986, f o r purposes

o f

t h i s

c h a p t e r ,

such

p ar t n er s h ip o r o th er

e n t i t y s h a l l

be t r e a t e d as having

executed an instrument whereby t h e r e was t r a n s f e r r e d , f o r

f a i r

market

v alu e e xclu siv e

of the value of any l i e n

o r

encumbrance

remaining t h e r e o n , a l l

r e a l t y

held

by such


o r o t h e r

e n t i t y a t

t h e

t ime

o f

such t e r m i n a t i o n .

3. Not more than one t a x s h a l l be imposed pursuan t t o t h i s

c h a p t e r by

t e r m i n a t i o n

d e s c r i b e d i n

s u b s e c t i o n

H

2 of t h i s

s e c t i o n , and

any

t r a n s f e r pursuant t h e r e t o , with r e s p e c t t o the

r e a l

p r o p e r t y

held by

such p ar t n er sh ip o r o t h e r e n t i t y t r e a t e d

as

a p a r t n e r s h i p a t t h e t ime of such t e r m i n a t i o n .

a . The making o r d e l i v e r y of conveyances t o make e f f e c t i v e any

o r d e r

of

t h e S e c u r i t i e s

and Exchange Commission , as

d e f i n e d

i n

s u b d i v i s i o n a

of Sect ion

1083 of t h e

I n t e r n a l Revenue

Code

of

1986, but only i f :

i . The

o r d e r

of the S e c u r i t i e s

and

Exchange

Commission, i n

obedience t o which such conveyance

i s

made, r e c i t e s t h a t such

conveyance i s

necessary o r a pp ro pr i a te to e f f e c t u a t e t h e

p r o v i s i o n s

of S ection 79K of T i t l e 15 of

t h e

United

S t a t e s Code,

r e l a t i n g

t o the

Publ ic

U t i l i t y Holding Company Act o f 1935,

Such

o r d e r

s p e c i f i e s

the p r o p e r t y t h a t

i s

o r d e r e d

t o

be

conveyed,

Such conveyance i s

made i n obedience t o such

o r d e r .

Ord.

11835 1,

1995;

Ord. 11664 1, 1993; p r i o r code 5-27.05

SECTION

18

This amendment becomes e f f e c t i v e upon passage.

SECTION 19.

read as fol lows:

Sect ion

4.20.050

I .

I t i s hereby added t o

SEC 4.20.050 I . Any r e a l

p r o p e r t y t h a t

i s

i n h e r i t e d

from a

deceased t r a n s f e r o r ,

without

c o n s i d e r a t i o n , upon t h e death of

such i n d i v i d u a l ,

o r from t h a t

d e c e a s e d s e s t a t e

o r t r u s t .

Transfers

from

a d e c e d e n t s

e s t a t e

i n t o a t r u s t f o r t h e b e n e f i t

of

the t r a n s f e r e e

s h a l l

l i k e w i s e

be exempt.

Upon

r e q u e s t

of

t h e

Agency D i r e c t o r ,

an a f f i d a v i t

of d e a t h

c e r t i f i c a t e , t r u s t

documents, o r o t h e r documents deemed

n e c e s s a r y ,

s h a l l be

provided .

SECTION 20.

This

a d d i t i o n

becomes

e f f e c t i v e upon

passage.

SECTION 21.

fo l lows:

Sect ion

4.20.050 i s

hereby added t o read

as

SEC

4.20.050 J . Any

t r a n s f e r

of

r e a l

p r o p e r t y

between

an

i n di v id ua l o r i n d i v i d u a l s and a l e g a l e n t i t y o r between

l e g a l

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e n t i t i e s t h a t r e s u l t s

so le ly

in a change in th e method

o f

holding

titl to the r e a l t y and in

which

propor t iona l ownership

i n t e r e s t s in the

r e a l t y

whether represen ted

by

s tock

membership

i n t e re s t

pa r tne rsh ip i n t e r e s t cotenancy i n t e r e s t

o r otherwise d i r e c t ly o r i n d i r e c t l y t h a t

remains

th e same

fo r

a minimum o f one hundred

e ighty

180

days

a f t e r the

t r a ns f e r

Trans fers from a

pa ren t

corpora t ion to a whol ly owned subs id i a ry

corpora t ion

sh a l l

l ikewise

be

exempt

provided

the

b en e f i c i a l

ownership

of

th e proper ty

remains

the same.

SECTION

22.

This add i t ion becomes

e f f e c t i v e upon passage.

SECTION

23.

fo l lows:

Sect ion 4.20.050 K i s hereby

added

to read as

4.20.050 K Transfe rs

without

cons idera t ion

provided

th e

t r ans fe ree ne i the r

conveys an

i n t e r e s t

t h e r e in

to

a

t h i r d par ty

nor

e f f e c t s

a r ef in an cin g f or a

per iod of 180

days

a f t e r

th e

g i f t t r a n s fe r ; however,

re f inan cing s fo r th e

purposes o f

r e ha b i l i t a t i on

of the

g i f t e d

p ro pe rty a re

no t

sub jec t

to

t h i s

l imi t a t ion

upon

submission

of

documentat ion requi red

by

the

Direc tor o r

h i s / h e r

designees

SECTION 24. This add i t ion becomes e f f e c t i v e upon

passage .

SECTION 25.

fo l lows:

Sect ion 4.20.070

i s

hereby added to read as

4.20.070

Due

da te s del inquenc ies p e n a l t i e s

i n t e r e s t

admin i s t ra t ive

charges and

l i en

r e lease r ec o rd at io n f ee s

The tax imposed

under t h i s

ch ap t e r i s

due

and payable

a t

th e

t ime

th e deed ins t rument o r w ri t in g e f fec t ing a t r a ns f e r subjec t

to the tax

i s

de l ive red

and i s

del inquent

i unpaid

a t the

t ime

o f

recorda t ion

the reof In cases

where

a t r a n s f e r

i s

ef fec ted

but

not recorded w ith

the

County

Recorder w ith in n in ety 90

days

o f accep tance , a l l

s t a tu t e s

of

l imi t a t ions regarding

l i ab i l i t y fo r t h i s tax w il l

be

to lle d u n ti l

th e

City has ac tua l

knowledge

of

th e

t r a ns f e r

o r

recorda t ion

a t

which

t ime

the

tax

on

the

unrecorded

t r a ns f e r

wil l r e l a t e back to th e ac tua l

t r a ns f e r da te

o f such unrecorded t r a n s fe r Accordingly

p en a l t i e s and

i n t e r e s t

w i l l accrue

back to such date

o f

ac tua l

unrecorded t r a ns f e r and wi l l be th e j o in t and severa l l i ab i l i t y

o f both the former t r a n s fe ro r

and

cur ren t

record ing t r a n s fe r r i n g

par ty In

the

even t t h a t the tax i s

not

paid

pr io r

to becoming

del inquen t a

del inquency

pena l ty

of

ten p erc en t

of

th e amount

o f th e

tax

due sh a l l accrue In th e event a por t ion of th e

tax

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i s unpaid p r i o r t o

becoming

d el in qu en t, th e p e n a l t y s h a l l

only

accrue as

t o t h e p o r t i o n remaining

unpaid. An a d d i t i o n a l

p e n a l t y

o f

f i f t e e n (15) p e r c e n t

s h a l l

accrue

th e

t a x remains unpaid

on

th e

n i n e t i e t h

day

fol lowing

th e d a t e o f

t h e o r i g i n a l

del inquency.

I n t e r e s t

s h a l l

accrue

a t

t h e

r a t e

o f

one

p e r c e n t

a

month o r

f r a c t i o n

t h e r e o f ,

on t h e amount of t a x , i n cl u si v e

o f

p e n a l t i e s ,

from

t h e d a t e

t h e

t a x becomes

d e l i n q u e n t

t o

t h e d a te

of payment. I n t e r e s t and p e n a l t y

s h a l l

become p a r t o f t h e t a x .

An

a d m i n i s t r a t i v e charge o f f i f t y d o l l a r s ( 50.00)

on each

p r o p e r t y and a

r e l e a s e o f l i e n f il i n g

fee i n

an amount

equa l

t o

th e amount charged by the

Alameda County

R e c o r d e r s O f f i c e

s h a l l

be added t o t h e

amount owed

f o r

each

p r o p e r t y approved f o r

a

t a x

l i e n

by

t h e C ity

Counci l .

P r i o r code

5-27.07)

SECTION 26.

This a d d i t i o n

becomes e f f e c t i v e upon

passage

SECTION 27.

fol lows:

S e c t i o n 4.20.080

i s hereby

amended

t o

read as

SEC

4.20.080. Exemption f o r low and moderate

income

f i r s t - t i m e homebuyers. S e c t i o n

4.20.020

n o t w i t h st a n d in g , th e t a x

on

a l l t r a n s f e r s of r e a l p r o p e r t y l o c a t e d i n t h e c i t y made

on

o r

a f t e r

August 10,

1993 i n which

th e

buyers

a r e

low and mod erate

income

f i r s t - t i m e

homebuyers s h a l l be l e v i e d a t

t h e r a t e o f

one

and one

q u a r t e r p e r c e n t

t ime homebuyers s h a l l be l e v i e d

a t t h e

r a t e o f one

and

o n e - q u a r t e r (1.25) p e r c e n t

o f

t h e v a lu e o f

c o n s i d e r a t i o n . For t h e

purpose

of t h i s s e c t i o n , low and

moderate

income

f i r s t - t i m e homebuyers a r e

d e f i n e d

a s buyers

who:

A. Earn

maximum of one

hundred (100)

p e r c e n t

o f t h e

median

family

income f o r

t h e Oakland Primary M e t r o p o l i t a n S t a t i s t i c a l

Area,

as d e f i n e d by

t h e

U.S.

Department

of

Housing and Urban

Development; and

B. Will occupy th e

p r o p e r t y

as

t h e i r

p r i n c i p a l

r e s i d e n c e ;

and

C

Are n ot p urc ha sin g

t h e

p r o p e r t y t o

be

h e l d

a s t e n a n t s i n

common; and

D

Have

not owned a home i n

t h r e e y e a r s p r i o r

t o t h e

d a t e o f

p urc ha sin g th e

p r o p e r t y ; o r

E.

Are

d i s p l a c e d

homemakers.

D isplaced

homemaker

i s

d e f i n e d

as

an

a du lt i n di v id ua l

who

has n o t

worked

f u l l - t i m e , f u l l - y e a r i n

t h e l a b o r

force

f o r

a

number of y e a r s b u t

h a s , d u r i n g

such

y e a r s , worked p r i m a r i l y

without

pay

t o

c a r e f o r th e

home and

family, i s

unemployed

o r

underemployed

and

i s

e x p e r i e n c i n g

d i f f i c u l t y i n

o b t a i n i n g o r upgrading

employment.

P r i o r code

5-27.07(a))

SECTION

28.

This

amendment becomes e f f e c t i v e upon passage .

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SE TION

29.

fo l lows:

Sect ion 4.20.090 i s hereby

amended to

read as

SE

4.20 .090

Declara t ion

may

be

requi red .

The

tax

imposed

by t h i s chap t e r sha l l

be

paid to th e Direc to r

by

th e

persons

r e fe r red

to in Sect ion

4.20 .040. The

Direc to r sha l l

have

the

au thor i ty as

pa r t of any ru les and regu la t ions promulgated

by

him o r her

as

provided fo r here in to requ i re

t h a t

th e payment

sha l l

be

accompanied by a dec la ra t ion o f the amount of tax due

s igned

by the person paying th e tax o r

by

h is agent . The

dec la ra t ion sha l l

include

a s ta tement t h a t

th e

value of

the

cons idera t ion

on which th e tax due was

computed

inc ludes

a l l

i nd eb te dn es s s ec ur ed

by l i en s deeds o f t r u s t o r o the r

encumbrances

remaining

o r

placed

on

the prope r ty

t r an s fe r r ed a t

th e

t ime

of

t r an s fe r and a lso inc ludes a l l spec i a l assessments

on

the proper ty

which a

purchaser

o r t r an sfe re e agrees to p a y o r

which remains a l i en on th e

proper ty

a t

th e t ime of t r ans f e r .

The

dec la ra t ion s ha ll id en ti fy th e deed ins t rument

o r w rit in g

e f f ec t i ng

the t r ans f e r fo r which the

tax i s being

pa id . The

Direc to r may requ i re de l ive ry to him

o r her

of a copy

o f

such

deed instrument o r wri t ing whenever h e o r she deems such to be

reasonab ly necessary to adequate ly i den t i fy such wri t ing o r to

a dm i nis te r th e

provis ions

of

t h i s chap ter . The Direc to r may re ly

on the dec la ra t ion as

to

th e

amount

of the

ta x due provided

he

o r she has no reason to

be l ieve

t h a t th e f u l l

amount

of the tax

due i s

no t

shown on the dec la ra t ion .

Whenever th e

d i r ec t o r

has

reason

to b el iev e

t h a t th e f u l l amount

o f

tax

due i s not

shown

on

th e

d ec la ra tio n o r

has

not

been paid

he o r she may by

not i ce

served upon any

person l i ab l e fo r the

tax requ i re him o r he r to fu rn ish a t rue

copy

of h is records

re lev an t to th e

value

o f the cons ide ra t ion o r

f a i r

market

value

of

the

proper ty

t rans fe r red . Such not i ce may be served a t

any

t ime within

th ree

years

a f t e r

recorda t ion

of th e deed;

ins t rument o r w ri t in g

which t r an s fe r s

such p ro pe rty . P rio r

code

5-27.08

SE TION

30.

This

amendment

becomes

e f f ec t i v e

upon

passage .

SE TION 31.

fo l lows:

Sect ion

4.20.100

i s hereby

amended to read as

SEC. 4.20.100

Determinat ion

o f de f i c i ency .

I f on th e

bas i s of such

in fo rmat ion as

the D i re ct or r ec ei ve s

pursuan t to the l a s t p ara gra ph o f

Sect ion

4.20.190 and /or on th e

bas i s

of such o th er r ele va nt

in fo rmat ion t h a t

comes

in to h is

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possess ion, he o r she determines t h a t

the amount

of t a x

due

as

s e t

f o r th in

the d e c l a r a t i o n ,

o r

as

paid, i s i n s u f f i c i e n t , he o r

she may recompute the t a x due on the b a s i s

o f

such in format ion .

I f the d e c l a r a t i o n

r e q u i r e d

by

Sect ion

4.20.090

i s

not

submit ted,

the

D i r e c t o r

may

make

an

e s t i m a t e

of

t h e

va lue of

t h e

c o n s i d e r a t i o n f o r the

p r o p e r t y

conveyed and determine th e amount

o f

t a x t o be

p a i d

on the b a s i s of

any

in format ion

i n h i s

o r her

possess ion o r

t h a t

may come

i n t o

h i s o r her p o s s e s s i o n .

One o r

more

d e f i c i e n c y determinat ions may be made of t h e amount

due

with

r e s p e c t

t o

any t r a n s f e r . P r i o r code

5-27.09

SECTION 32. This amendment becomes e f f e c t i v e upon passage.

SECTION 33.

fol lows:

Sect ion 4.20.160

i s

hereby amended t o read as

4.20.160. F i n a l i t y

of

determinat ion

The o r d e r o r d e c i s i o n

of

the D i r e c t o r

upon

a p e t i t i o n f o r

rede terminat ion becomes f i n a l t h i r t y 30 days a f t e r

s e r v i c e

of

n ot ic e th er e of upon the p e t i t i o n e r

a t

the t ime

o f

the hearing of

rede terminat ion . There

i s no

appeal of th e D i r e c t o r s

d e c i s i o n

or

h i s / h e r d e p u t i e s designated f o r

a

r e d e t e r m i n a t i o n ) to t h e

City

Council ;

w r i t s c ha lle ng in g th e D i r e c t o r s

d e c i s i o n

conveyed

by h i s / h e r deput ies a t an a d m i n i s t r a t i v e

h e a r i n g

must be f i l e d

with the

a p pr o pr i a t e c o ur t w it h in

n i n e t y

90 days

of t h e f i n a l

d a t e of such

rede terminat ion .

C a l i f o r n i a .

Code

of C i v i l

Procedure

1094.6.

SECTION 34. This amendment

becomes

e f f e c t i v e upon

passage.

A. N COUNCIL, OAKLAND, CALIFORNIA, DATE , 2000

PASSED BY THE FOLLOWING VOTE:

AYES- BRUNNER, CHANG, DE

L

FUENTE, MILEY, NADEL, REID,

RUSSO, AND SPEES.

NOES

ABSENT

ABSTENTION-

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ED FLOYD

City Clerk and Clerk of

th e Council

of

th e C ity

of

Oakland

Cal i fo rn ia

At t e s t :

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TY OF O K L N

Agenda Report

To: Office the City Manager

Attn: Robert C Bobb

From: Financial Services Agency

Date: June 20, 2000

Re: ORDINANCE AUTHORIZING THE AMENDMENT OF CERTAIN

SECTIONS OF ARTICLE 20, CHAPTER 4, OF THE OAKLAND

MUNICIPAL CODE FOR CERTAIN CLARIFICATIONS AND

MODIFICATIONS TO THE CITY OF OAKLAND REAL ESTATE

TRANSFER TAX

SUMMARY

At the City Council Meeting

May 30, 2000, the Council directed staff to provide

a supplemental report to provide clarification recommendations by staff to

amend certain sections the Oakland Municipal Code, Real Property Transfer

Tax Ordinance. Staff has been directed to conform to statewide rules governing

the transfer tax. Accordingly, the ordinance incorporates the Sections 11911

through 11930

the Revenue and Taxation Code that govern the transfer

real

property.

FISCAL IMPACT

By amending the Municipal Code, as it relates to the Real Property Transfer tax,

to incorporate staff's recommended changes and incorporate sections 11911

through 11930 the Revenue and Taxation Code, it is projected the City would

lose 2.8 million in tax revenues. The projected loss is based on transfers that

took place

in

fiscal year 1998-99.

The fiscal impacts for each transfer category are presented by

tu l loss

( 747,282) and potenti l

loss

2,077,443). Actual loss is the amount of the

actual revenue received during the fiscal year for said transfers. Potential loss is

the value

the number

transfers that have taken place but have not yet been

collected.

DISCUSSION

Sections 11911 through 11930 of the R T Code authorizes counties and cities to

impose a tax on each deed, instrument or writ ing by which any lands, tenements,

or other realty that are transferred within the city that are granted, assigned,

transferred, or otherwise conveyed to, or vested

in

when consideration or values

the interest exceed one hundred dollars ( 100).

In

the May 23, 2000 report, staff's recommendations totaled 2.3 million.

In

order to incorporate all of the exemptions in sections 11911 through 11930 the

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eal Property Transfer Tax

Ordinance Amendment

Page 2

June 20 2000

total financial impact would be 2.8 million. Listed below is a summary of the

recommended changes as they relate to the T code as well as additional staff

recommendations.

e tion

11911 - authorizes the taxation of transfers o real property.

Fiscal Impact not applicable

Section 11912 - Authorizes the payment of the tax.


Section 11913 - Sets the parameters of taxation for mobile homes.


Section 11914 - Repealed

e tion

9 To secure a debt

This section exempts written instruments given to secure a debt. This exemption

is in the current ordinance; however the amendment clarifies that no real estate

transfer tax is imposed where one party either purchasing or refinancing is

required by a lender for credit purposes to either add on a co-signor or remove

a co-owner.

Actual

oss 114 515

Potential loss - 370 443

Section 11922 - Exempts transfers to governmental agencies.

Included

current ordinance

Section 11923 - Exempts bankruptcies

This section exempts transfers in bankruptcy reorganization and

in

reorganizations involving a mere change in identity form or place of

organization.

Included in current ordinance

Section 11924 - Securities and Exchange Commission

This section exempts transfers pursuant to an order by the Securities and

Exchange Commission under the Public Utility Holding Company Act of 1935.

Included current ordinance

Section 11925 - Proportional Interest

The section states that levies will not be imposed if any transfer between

partnerships and LLCs that results solely

in

a change

in

the method of holding

title to the realty and

in

which the proportional ownership interests remain the

same immediately after the transfer. If the partnership terminates the tax

applies.

Actual loss 24 000

Potential loss 135 000

Section 11926 - Foreclosures

This section exempts transfers in foreclosures unless the consideration paid

exceeds the unpaid debt.


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Real Property Transfer Tax

Ordinance Amendment

Page 3 June 20, 2000

Section 11927 - Interspousal and Domestic Partner Transfers

This section exempts interspousal transfers

in

divorce or legal separation, which

is already

in

the current ordinance. The recommendation is to expand all

transfers between husband and wife or duly registered domestic partners

in

order

to

be

in

compliance with other jurisdictions and to support Council's goal

to

promote and foster the family unit.

Actual loss - 20 326


Section 11928 - Transfers by the State of California

This section exempts transfers by the State

of

California where the purchaser

agrees to immediately reconvey the real property to an exempt agency.


Section 11929 - Transfers by a government entity to a non-profit

This section exempts transfers by government entities to a nonprofit corporation

where the acquisition, construction or improvement

of

the property was financed

by obligations issued by the nonprofit corporation on behalf of a governmental

entity.

Actual loss - 0

Potential loss - 0

Section 11930 - Transfers of gift and bequests

This section includes the following:

Transfers at Death - The proposed amendment recommends transfers

that are inherited from a deceased transferor or from the deceased's

estate or trust be exempt.

Actual loss - 29 000


Gift transfers -This amendment would provide an exemption for the

transfer of realty for no consideration in cash or in-kind or relief of

indebtedness. This incorporates the notion of Love and Affection

transfers

as

defined

in

our previous reports.

ctu l loss

-

552 000

Potential loss - 1 193 000

The following are staff's recommended amendments that are not included in the

R T sections

9

through 11930:

Transfers from parent corporation

Transfers from a parent corporation to its wholly owned subsidiary should be

x pt in accordance with case law.

Actual loss

-

0

Potential loss

-

250 000

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Real Property Transfer Tax

Ordinance Amendment

Page 4

June

2 2

Due Dates

The proposed amendment recommends that cases where the transfer is

effected but not recorded all statutes

of

l imitations regarding liability for this tax

will be tolled until the City has actual knowledge

of

the transfer

Actual loss

-

7 441


Subtotal

ctu l loss -

747 282

Subtotal otenti l losses - 2 077 443

For a total revenue loss of:

Environmental Opportunities

2 824 725

There are no specific environmental opportunities identified this report

Disability and Senior Citizen Access

There are no disability or senior citizen access issues identified

this report

RECOMMENDATION

Staff recommends that the Council adopt the proposed amendments as

presented to the Real Property Transfer Tax provisions of Article 20 Chapter 4

of the Oakland Municipal Code

Respectfully submitted

~ ~ ~ ~

DEBORAH A EDGERLY

Director Financial Services Agency

Prepared by: Debra Taylor Johnson

Revenue Manager

APROVED AND FORWARDED TO THE CITY COUNCIL:

t \ I

c?O oo

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CITY nORN Y

M S

Approved as to form

an d

l e g a l t y

Ordinance

No

INTRODUCED Y COUNCILMEM ER _

AUTHORIZING THE AMENDMENT OF CERTAIN SECTIONS

OF ARTICLE 20, CHAPTER

4,

OF THE OAKLAND MUNICIPAL

CODE PROVIDING FOR CERTAIN CLARIFICATIONS

TO

THE

THE CITY OF OAKLAND REAL

PROPERTY

TAX

WHEREAS

the

Council

of

the

C i t y

of

Oakland

adopted

A r t i c l e

20, Chapter 4, of the

Oakland

Municipal

Code

p r o v i d i n g f o r the

t a x a t i o n

of t h e t r a n s f e r of

r e a l

p ro pe r t y w it h in the

City

of

Oakland; and

WHEREAS

the e x i s t i n g

p r o v i s i o n s of

A r t i c l e 20, Chapter 4,

of the

Oakland Municipal Code

r eq u ir e m o d if ic at i o ns

t o

remove

any ambigui t ies t h a t

may

e x i s t t o

d e l e t e any p o r t i o n s

t h e r e o f

t h a t

a r e

no longer r e l e v a n t and t o

more

c l e a r l y s t a t e those

t r a n s a c t i o n s t h a t

a r e s u b j e c t t o the t a x ;

WHEREAS

the

proposed

m o d i f i c a t i o n

of

language

w il l n e it h e r

i n c r e a s e the ta x

r a t e nor

i n c r e a s e

the

number of c a t e g o r i e s o r

persons

s u b j e c t t o

the r e a l

e st a te t r a n s fe r

t a x ;

Now t h e r e f o r e the

Council of t h e City

of Oakland

does

o r d a i n

as

fol lows:

SECTION 1. S e c t i o n 4.20.020

i s

hereby amended t o

read:

SEC 4.20.020. IMPOSITION OF TAX

There

i s imposed a t a x

on

a l l

t r a n s f e r s by

deeds, ins t ruments ,

w r i t i n g s

o r

any o t h e r

document by which any lands,

tenements o r o t h e r i n t e r e s t s

i n

r e a l

p r o p e r t y

l o c a t e d i n the

c i t y a r e o r

i s

g r a n t e d

ass igned ,

t r a n s f e r r e d

o r

otherwise conveyed t o o r i n v e s t e d i n a

t r a n s f e r e e

o r t r a n s f e r e e s

t h e r e o f which s h a l l be l e v i e d a t the

r a t e of

one

and o n e - h a l f 1.50 p e r c e n t

of

t h e t rans fer value .

The measure o f the tax sha l l be computed on monevs exchanged

inc lud ing

any

l i en or e nc um br an ce a ssu me d or forg iven o f

the

type

referenced in Sect ion

4 .20 . 030

or i titl i s f ree

o f

indebtedness

on

the

fa i r

market value of such property a t

the

t ime o f the recordat ion

o f tran s fer o f any ownership there in .

8/12/2019 12264 CMS Report

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i > ~ ~ J :

Said tax s h a l l be

adminis tered

to conform

to

the

s ta tewide

ru le s

governing the

documentary t ransfer

tax as s ta ted in

Cal i forn ia

Revenue

Taxation

Code 11911 through 11930

as may

be

modified or

amended

inc lud ing

the exemptions

from

tax that

are

i temized

there in

except where the exemptions appearing with in

t h i s

A r t i c l e 20

Chapter

4

provide g rea t er p r ote c t i on

to

the

taxpayer.

In addi t ion sa id

tax

s h a l l

incorporate

those

exemptions

appearinq in s e c t i on s

60 69 .5

o f

the

Revenue

Taxation Code as

may be modif ied

or

amended which re la te

to

except ions to

change

o f

ownership tr igger ing

reassessment

under th e s ta tewide ru les

governing Cal i forn ia property

tax except

where

the

exemption

appearing with in

Revenue

Taxation

Code

11911

through 11930

as may be modified or amended or with in t h i s A r t ic l e 20

Chapter

4

provide

greater

protec t ion

to the

taxpayer .

SECTION 2. This amendment

becomes

e f f e c t i v e

upon

passage .

SECTION 3.

fo l lows:

Sec t ion 4.20.030 i s hereby amended

to

read as

SEC.4. 20.030

DEFINITIONS.

As

used in

t h i s chap t e r : Real

p rope r ty and r e a l ty mean

r e a l

proper ty as

def ined

by and

under

th e laws

of

th e Sta t e of Cal i forn ia .

Transfer

value

means th e t o t a l cons ide ra t ion computed in money

of

th e United

Sta t e s

paid de l i ve red

or rece ived

o r

con t r ac t ed

to be

pa id

de l i ve red

or

rece ived

in

connect ion

wi th

such

t ra n s f e r o f r e a l

p ro pe rty i nc lu din g th e amount of

any indeb tedness ex i s t i ng

immedia te ly

p r i o r

to

th e t r a n s f e r . Such

indebtedness s h a l l

i nc lude

n l i e n deed

of t r u s t o r o th e r encumbrance on th e

p rope r ty conveyed tha t

cont inue

to be

s ecu r i t y

therefor

whether

or not

i s

given

o r p laced

upon th e

proper ty in

connec t ion wi th th e t r an s f e r to

secure

th e

payment

of th e

purchase p r i c e o r any

pa r t t h e reo f tha t remains

unpa id

a t th e

t ime o f t r an s f e r . Transfer

value a lso inc lu des th e amount o f

any

s p ec i a l

assessment

lev ied o r

im posed upon

th e

proper ty

by

a

pub l i c

body

d i s t r i c t

o r

agency

where s a id sp ec ia l assessment

i s a

l i en

o r encumbrance on th e

p rope r ty and

th e

purcha se r

o r

t r ans fe ree

agrees to pay such

spec i a l

assessment

o r

tak es th e

p rope r ty subj ec t

to

th e

l i en

of such

spec i a l

assessment .

The

value of any l i en o r encumbrance

o f

a t ype o the r than

t hose

which

a re he re in above spec i f i c a l l y

i nc luded

ex i s t i ng

immedia te ly

p r i o r

to

the t r a n s f e r and r emain ing

a f t e r

sa id

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t ra n s fe r , sh a l l

not

be

inc luded in

determining

th e

transfer

value.

Furthermore,

the

transfer value cannot

be

de f in i t e ly

determined,

or i s

l e f t open to

be

f ixed by fu ture

cont ingenc ies ,

the transfer

value sha l l be deemed to mean the f a i r market

value of

the proper ty a t

the t ime

of t r ans f e r , a f t e r

deduct ing

the amount of any l i en o r

encumbrance, i f

any, of a type which

would be excluded in determining

the transfer

value pursuant

to

the

above

provis ions

of t h i s sec tion . (P rio r code 5-27.03

SECTION 4.

This

amendment becomes e f fec t ive

upon

passage

SECTION 5.

as fol lows:

Sect ion 4.20.050 A. i s hereby amended to read

SEC 4.20.050 A

Any

t r ans f e r made so le ly to

secure

a

debt . That i s , there i s an exemption for

t rans f ers o f par tia l

in teres t s in

property

to co-s ignor or from co-owner as

required oursuant to

ver i f i ab l e demand bv

the lender

to

secure

the debt for such transfer .

Sub sequen t removal

or reinstatement

o f such

co-s ign ing party s )

must

be

e f fec ted within three

3)

years of

the

or i a ina l transfer

to

secure loan in order for

such rees tabl i shment o f

i n teres t s in

the property

to qua li fy

from the

exemption herein . Such exemption sha l l

be

measured by

the the percentage

o f

i n teres t

t rans ferred to

the

co-s ignor

s)

or

from the

co-owner s)

only .

Nothing here in

conta ined

sha l l be

deemed to exclude

the amount of any such indebtedness

from being

inc luded

in

the

transfer

value pursuant

to

Sec t ion

4.20 .030 in

connect ion

with

t r ans fe r s which are

not

made

so le ly to secure

a

debt ;

SECTION 6. This amendment becomes

e f fec t ive

upon

passage.

SECTION 7.

as fo llow s:

Sect ion 4.20.050 C. l . i s

hereby

amended to read

SEC .04.20.50 C

The

two par t ie s

to

the t r ans f e r

must

have f i l ed

with the Office of,

the City Clerk a t

l e a s t

one

year

p r i o r to

the

t r ans f e r

in

quest ion, an

a f f i dav i t

s igned by both

qua l i fy ing par tne r s

dec la r ing ,

under pena l ty

of

per ju ry ,

the

pa r t i e s

i n t en t

to

l i ve

toge ther

as domest ic pa r t ne r s ,

such

qua li fy in g d e cl ar at io n s being

in

compliance with

cur ren t

City

Council

pol icy requirements .

Should

the

par t i e s

l i ve

outs ide

8/12/2019 12264 CMS Report

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Oakland, both must have

been

r e g i s t e r e d as domest ic

with the C ity Clerk of t h a t j u r i s d i c t i o n

f o r t h e

one-year

per iod , provided

t h a t

such o t h e r

j u r i s d i c t i o n

recogn izes the

domestic

p a r t n e r

s t a t u s and

t h e

ity

lerk

o f the ity o f

akland

concludes

t h a t

t h e r e g i s t r a t i o n

requi rements of t h a t

j u r i s d i c t i o n a r e minimally s i m i l a r

t o those

c u r r e n t l y

i n e f f e c t

i n Oakland.

The

p a r t i e s t o

t h e

a f f i d a v i t must a f f i r m and a t t e s t

t o

the fo l lowing

requi rements:

a.

The

p a r t i e s

r e s i d e

t o g e t h e r and s h a r e t h e

common

n e c e s s i t i e s of l i f e

b. The

p a r t i e s

a r e

not m arrie d t o

anyone,

c. The p a r t i e s

a r e a t

l e a s t

e i g h t e e n 18 y e a r s

of age,

d.

The p a r t i e s a r e not r e l a t e d by blood

so

c l o s e as t o

bar marriage i n

t h e

s t a t e of C a l i f o r n i a and a r e

mental ly

competent

t o c on tr a ct

e .

The

p a r t i e s a r e each o t h e r s s o l e domest ic p a r t n e r and

i n t e n d

t o remain so i n d e f i n i t e l y

and

a r e

r e s p o n s i b l e

f o r t h e i r

common

w e l f a r e

f . The p a r t i e s

agree t o

f i l e

s t a t e m e n t of t e r m i n a t i o n

of

domestic

p a r t n e r s h i p with

t h e O f f i c e

of the ity

lerk w i t h i n t h r e e months

of change

of

t h e i r

s t a t u s

i f

any

of

t h e

d e c l a r a t i o n s of

t h e a f f i d a v i t o f domestic


cease

t o be

t r u e

g. The p a r t i e s

unders tand

t h a t t h e

r e g i s t r a t i o n of

t h e

a f f i d a v i

t of

domestic


with t h e

O f f i c e of

the ity

lerk c r e a t e s

domest ic


of

cont inuous

d u r a t i o n

u n t i l e i t h e r

of

t h e

p a r t i e s f i l e s

s ta tem ent o f t e r m i n a t i o n

o r upon

t h e d e a t h of e i t h e r

of

t h e p a r t i e s .

P r i o r t o th e e n t e r i n g i n t o

subsequent dom estic

p a r t n e r s h i p o r

marr iage,

the

s u r v i v i n g

p a r t n e r must f i l e

s t a t e m e n t of t e r m i n a t i o n

wi t h

t h e

O f f i c e of the ity lerk i n

t h e

event of

death

of one of

th e p a r t i e s

N e i t h e r of

t h e

p a r t i e s

has

f i l e d sta tement of

t e r m in at i o n o r d i s s o l u t i o n w i t h i n s i x

months

p r i o r t o

the

f i l i n g

of

t h e

c u r r e n t

a f f i d a v i t

of

domestic


i

The p a r t i e s

understand

t h a t

any

person/employer/company

who s u f f e r s

any l o s s

because

of

f a l s e sta temen ts c on tain ed i n

t h e

a f f i d a v i t

of

domestic

p a r t n e r s h i p o r

t h e

s t a t e m e n t of

t e r m i n a t i o n

m y

have cause t o b r i n g

c i v i l

a c t i o n a g a i n s t

the

p a r t i e s i n d i v i d u a l l y o r c o l l e c t i v e l y

t o

recover

t h e i r l o s s e s i

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SECTION

8. This amendment becomes e f fec t ive upon passage.

SECTION

9.

Sect ion

4.20.030

C i s hereby amended to read

as fol lows:

SEC

4.20.030

C 3. The pa r t i e s

must

provide

t ha t

por t ion

of

t he i r d i sso lu t ion and p ro pe rty s ett lemen t agreement between

the domest ic

par tne rs

per ta in ing to the d iv i s ion

or

t r ans f e r of

proper ty , which

sha l l

be f i l ed with the

Office

of the C ity

Clerk. Such

copy of such se t t lement agreement sha l l be

accompanied by an a f f idav i t

with

ve r i f i ab l e

s igna tu res

o r proof

of ident i ty t ha t the copy i s an accura te and authent ic

reproduct ion of the f ina l se t t lement agreement

between

the

pa r t i e s ;

SECTION 10

This

amendment

becomes

e f fec t ive upon

passage.

SECTION

11.

as

fol lows:

Sect ion

4.20.050

H

i s

hereby amended

to read

SEC

4.20.050

H

1. In the case of r e a l proper ty

he ld

by

a

par tnership

or

other

ent i ty tre ted

as p rtnersh ip fo r fed er l

income t x

purposes the tax imposed sha l l not apply by

reason

of

any t r ans fe r of

any i n t e r e s t

in a

par tne r sh ip or

other ent i ty

or

otherwise , i f both

of

the fol lowing occur:

a . Such par tnership or other

ent i ty tre ted as

p rtnership

i s

considered

as a

cont inuing par tnership

within

the meaning of

Sect ion 708 of the

In te rna l

Revenue Code of 1986.

b. Such cont inuing par tnership cont inues to hold the rea l

proper ty concerned.

2. I f there i s

a

t e rmina t ion of any

par tne r sh ip

or other ent i ty

tre ted as partnership w ith in the meaning of Sec t ion 708

of

the

In ternal

Revenue

Code

of

1986

for purposes

of

t h i s

chapter , such par tnership or other ent i ty sha l l be t r e a t ed as

having executed

an instrument whereby there

was t r ans fe r red

fo r

f a i r

market

value

exc lus ive

o f the

value

o f

any l i en

or

encumbrance

remaining

thereon a l l rea l ty

held

by such

par tnership

or

other

ent i ty

a t

the

time

of

such

te rminat ion

3. Not more than

one

tax

sha l l

be imposed pursuan t

to t h i s

chapte r

by

t e rmina t ion described in subsec t ion H

2

of t h i s

sect ion and any t r ans f e r pursuant the re to with respec t to the

rea l

proper ty

held by

such

par tnership

or

other ent i ty tre ted

as partnership

a t the

time of

such t e rmina t ion

a . The

making

or

de l ive ry

of conveyances to make e f fec t ive any

order of the Secur i t i e s and

Exchange Commission ,

as

def ined

in

5

8/12/2019 12264 CMS Report

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s u b d i v i s i o n a) o f S e c t i o n 1083 o f t h e I n t e r n a l Revenue Code o f

1986,

but only

i f :

i . The o r d e r

o f

t h e S e c u r i t i e s and Exchange Commission , i n

obedience

t o

which such conveyance i s made,

r e c i t e s

t h a t such

conveyance

i s

n e c e s s a r y

o r a p p r o p r i a t e t o

e f f e c t u a t e

t h e

p r o v i s i o n s of S e c t i o n

9K

of

T i t l e 15

o f t h e

United S t a t e s

Code,

r e l a t i n g t o

t h e

P u b l i c U t i l i t y Holding

Company

Act of 1935,

ii

Such o r d e r s p e c i f i e s t h e

p r o p e r t y

which i s

o r d e r e d t o be

conveyed,

iii Such conveyance i s made i n obedience t o such o r d e r . Ord.

11835 1,

1995; Ord.

11664 1, 1993; p r i o r

code

5-27.05)

SECTION 12

This amendment becomes e f f e c t i v e

upon passage .

SECTION 13.

fol lows

S e c t i o n

4.20.070

i s

hereby

added t o r e a d as

4 .20 .070 Due d a t e s d e l i n q u e n c i e s p e n a l t i e s i n t e r e s t

a d m i n i s t r a t i v e

charges and l i e n r e l e a s e

r ec o r da ti o n f ee s.

The

t a x

imposed under t h i s c h a p t e r i s due and payable

a t t h e

t ime

th e

deed i n s t r u m e n t

o r w ri t i n g

e f f e c t i n g a

t r a n s f e r s u b j e c t

t o

th e t a x

i s

d e l i v e r e d

and i s

d e l i n q u e n t

i unpaid

a t t h e t ime

of

r e c o r d a t i o n

t h e r e o f . In cases where transfer i s

e f fec ted

but

not

recorded

with the

County

Recorder within ninety 90

days

o f

acceptance , a l l s ta tu te o f

l imi ta t ions

regarding

l i ab i l i t y

for th i s tax wi l l be to lle d u n ti l the City has actua l

knowledge o f the trans fer or recordat ion at which t ime the tax

on

the unrecorded

trans fer

wi l l re la te

back

to the actual

trans fer

date

o f such unrecorded

transfer Accordingly

pena l t i e s

and

in teres t

wi l l

accrue back

to such date

o f

actua l

unrecorded transfer and wi l l be the j o in t and s evera l

l i ab i l i t i e s o f both

the former trans feror

and current recording

transferring

party

I n

t h e event t h a t t h e t a x

i s

not

p a i d p r i o r

t o

becoming d e l i n q u e n t a del inquency

p e n a l t y

of t e n p e r c e n t of

t h e

amount of t h e

t a x

due s h a l l

a c c r u e .

I n

t h e

event a p o r t i o n

of t h e t a x

i s

unpaid

p r i o r

t o

becoming

d e l i n q u e n t

t h e

p e n a l t y

s h a l l

only

accrue a s t o th e p o r t i o n

remain in g unp ai d. An

a d d it io n a l p e n a l t y

o f

f i f t e e n

15)

p e r c e n t

s h a l l

accrue

i f

th e

t a x remains unpaid on t h e n i n e t i e t h day f o l l o w i n g t h e

d a t e

of

the o r i g i n a l del inquency.

I n t e r e s t

s h a l l accrue

a t

t h e

r a t e

o f

one

p e r c e n t

a

month o r

f r a c t i o n

t h e r e o f

on

th e amount o f t a x

i n c l u s i v e

of p e n a l t i e s from t h e

d a t e

t h e t a x becomes d e l i n q u e n t

t o

t h e d a t e of

payment . I n t e r e s t

and p e n a l t y s h a l l become

p a r t

o f t h e

t a x . An

a d m i n i s t r a t i v e

charge of f i f t y d o l l a r s 50.00)

on each

p r o p e r t y

and

a

r e l e a s e o f l i e n f i l i n g f e e i n an amount

equal

t o t h e

amount charged by t h e

Alameda

County

R e c o r d e r s

8/12/2019 12264 CMS Report

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Off ice sha l l

approved fo r

27.07)

be added to

the

amount

owed fo r

each

proper ty

a tax l i en by

the

Ci ty Counci l . Pr ior

code

5-

SECTION

14.

This

amendment

becomes

e f f e c t i ve

upon

passage

SECTION 15.

fo l lows

Sec t ion 4.20.080 i s hereby

amended

to

read as

SEC 4.20.080.

Exemption

fo r low and moderate income

f i r s t - t ime homebuyers.

Sec t ion 4.20.020 notw it hs ta nd in g, th e

tax

on a l l t r ans f e r s

of

r e a l

p ro pe rty l oc a te d

in the

c i ty

made on or a f t e r August 10,

1993

in

which the buyers are low and moderate income f i r s t - t ime

homebuyers sha l l be

l ev i ed a t the r a te

of

one and

one quar te r

percent

t ime

homebuyers sha l l be lev ied

a t

the r a te of one and

one-quar ter 1.25) percen t o f

the

tr ns fer v lue For th e

purpose

of

t h i s

sec t ion ,

low

and

moderate

income

f i r s t - t ime

homebuyers a re d ef in ed as buyers who:

A. Earn

a

maximum

of

one hundred 100) percen t of

the

median

family

income fo r the Oakland

Pr imary

Metropol i tan

S t a t i s t i c a l

Area,

as def ined by the U.S. Department of Housing a nd Urban

Development;

and

B. wi l l occupy the

proper ty

as

t h e i r

p r in c ipa l

r es idence ;

and

C. Are not

purchas ing

the

proper ty

to be he ld as tenan ts in

common;

and

D Have

not

owned a

home

in

t h ree

years pr i o r to th e

date

of

p ur ch as in g th e

proper ty ; o r

E. Are

disp laced

homemakers. D isplaced homemaker

i s

def ined as

an

a du lt in div id ua l

who has not worked fu l l - t ime ,

f u l l - yea r

in

the

l abor

force fo r a

number

of

years but has , dur ing such

years ,

worked pr imar i ly without pay to

care

fo r

th e home

and

family , i s unemployed

o r

underemployed

and i s

exper ienc ing

d i f f i c u l t y in

o bta in in g o r upgrading

employment.

P r io r

code

5-27.07 a

SECTION

16. This

amendment

becomes e f f ec t i ve

upon passage.

SECTION

17.

as fo llow s:

Sec t ion 4.20.090

i s hereby

amended

to read

SEC

4.20.090 Decla ra t ion may be r equ i red . The tax

imposed

by

t h i s chapter

sha l l be pa id to the

Director

by the

persons

re fe r red to in Sec t ion

4.20 .040.

The Direc to r sha l l have

the

author i ty as

pa r t of any ru les and r egu la t i ons

promulgated

by

him or her as

provided

fo r here in to requ ire

t ha t

the payment

8/12/2019 12264 CMS Report

24/25

ha l l be

accompanied

by

a dec la ra t ion

of

th e amount

of

tax due

s igned by the person

paying

th e

tax o r

by

h is agen t . The


include

a

s ta tement

t h a t

the

tr nsf r v lu on

which the

tax due

was computed

inc ludes a l l indeb tedness

secured

by

l i ens deeds

of

t ru s t o r o the r

encumbrances remaining

o r

p laced

on the proper ty t rans fe r red a t

th e

t ime

of

t r ans f e r

and

also includes

a l l

spec ia l

assessments on

th e prope r ty which a

purchaser o r t r ans fe ree agrees to

p a y o r

which

remains

a l i en on

th e

proper ty a t

the

t ime of

t r an s fe r . The


i den t i fy th e deed

in s t rumen t

o r

wri t ing

e f f ec t i ng

the t r ans f e r

fo r

which th e

tax i s

being

paid .

The

Direc to r

may r equ i re

d eliv ery to him o r her

of

a copy of such deed ins t rument o r

wri t ing

whenever

he

o r

she deems such to be

r ea s onabl y nece ss ary

to

adequately

i den t i fy such w ritin g o r to adm in is te r the

p ro vis io ns o f t h i s

chap ter . The

Direc to r

may

re ly

on th e

dec la ra t ion as to the amount

of

the tax due prov ided he o r

she

has

no

reason

to b el iev e

t h a t

th e

fu l l amount

of the

tax

due i s

not shown on th e dec la ra t ion .

Whenever the d i r ec t o r has

reason

to be lieve t h a t th e f u l l amount

of

tax

due i s not shown on the d ec la ra tio n o r has

no t

been

paid

he o r

she

may

by

not i ce

served upon any

person l i ab l e

fo r th e

t ax

requi re him o r her

to

furnish

a t rue copy

of

h is

records

re lev an t to

the

tr nsf r

v lu

o r

f a i r

market

value

of the

proper ty t r ans fe r red . Such

not ice

may be

served

a t any t ime

w ith in th ree years a f t e r recorda t ion of the

deed;

in strume nt o r

wri t ing

which t r an s fe r s such

pro per ty . P rio r

code

5-27.08

SECTION

18.

This

amendment

becomes

e f f ec t i v e

upon

passage.

SECTION

19.

as fo l lows:

Sect ion 4.20.090

i s

hereby

amended to

read

SEC 4.20.100

Determinat ion

of de f i c i ency . I f on the b a s is

of such

in fo rmat ion

as th e D i re cto r r ec ei ve s pursuan t

to

the

l a s t paragraph of

Sect ion

4.20.190

and /or

on th e bas i s of

such

o th er re le va nt

in fo rmat ion t h a t comes in to h is possess ion he o r

she

determines

t h a t

th e amount

of

tax due as s e t fo r th in the

dec la ra t ion

o r as

paid

i s

i n su f f i c i en t

he o r she may

recompute

the

tax

due on

the

bas i s

of

such

in fo rmat ion .

I f

the

dec la ra t ion requ i red

by

Sect ion

4.20 .090

i s

not

submit ted the Direc tor may make an es t im ate of the tr nsf r

v lu

fo r

the proper ty c onveye d a nd determine th e

amount

of

tax

to

be

paid on th e bas i s

of any

in fo rmat ion in

h is

o r

he r

possess ion

o r th a t may come in to h is o r

her possess ion .

One o r more def ic iency dete rmina t ions

may be made

of

the

amount

due with

respec t

to

any

t r an s fe r . Pr io r

code

5-27.09

8/12/2019 12264 CMS Report

25/25

SE TION 20. This

amendment

becomes

e f fec t ive

upon

passage.

SE TION

21.

fol lows:

Sect ion 4.20.160

i s

hereby amended

to read as

4.20.160.

Fina l i ty

of de te rmina t ion

The

order o r dec is ion

of the

Direc tor

upon

a pe t i t i on fo r

redeterminat ion becomes

f i n a l t h i r ty

30 days

a f t e r

serv ice o f

no t i ce

thereof

upon the pe t i t i one r at the t ime

o f

the hearing o f

redetermination. There i s

no appeal

o f

the

Direc t o r s dec i s ion

or

hi s /her deput ies des ignated for

redetermination

to the

City

Council;

wri ts chal lenging the

D ir ec to r s d ec is io n conveyed

by h i s /her

deput ies

at an

admin is trat ive

hearing must

be

f i l ed

with the

a pp ro pria te c ou rt

within ninety

90

days o f the f ina l

date

o f such redetermination. C al i forn ia . Code o f Civ i l

Procedure

1094 .6 . )

SE TION 22. This amendment becomes e f fec t ive

upon

passage

A. IN COUNCIL, OAKLAND, CALIFORNIA, DATE , 1999

PASSED BY THE FOLLOWING VOTE:

AYES- BRUNNER, CHANG,

E

L FUENTE, MILEY, NADEL, REID,

RUSSO, AND SPEES.

NOES

ABSENT

ABSTENTION-

ED FLOYD

Ci ty

Clerk and Clerk of

the

Counci l

of the C ity of Oakland, Cali forn ia

t t es t

12264 CMS Report

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