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CHAPTER I.
RESERVED

Secs. A30-1--A30-10. Reserved.

CHAPTER II.
SALES AND USE TAX*

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State law reference(s)--Local sales and use taxes, Revenue and Taxation Code § 7200 et seq.

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Sec. A30-11. Title.

This chapter shall be known as the Santa Clara County Uniform Local Sales and Use Tax Ordinance.

(Code 1954, § 2.3-1; Ord. No. NS-216, § 1, 1-2-68)

Sec. A30-12. Purpose.

The Board of Supervisors of the County of Santa Clara hereby declares that this chapter is adopted to achieve the following, among other, purposes, and direct that the provisions hereof be interpreted in order to accomplish those purposes:

(1) To adopt a sales and use tax ordinance which complies with the requirements and limitations contained in Part 1.5 of Division 2 of the Revenue and Taxation Code of the State of California (Revenue and Taxation Code § 7200 et seq.);

(2) To adopt a sales and use tax ordinance which incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.5 of Division 2 of the said Revenue and Taxation Code (Revenue and Taxation Code § 7200 et seq.);

(3) To adopt a sales and use tax ordinance which imposes a 1 1/4 percent tax and provides a measure therefor that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the California state sales and use taxes;

(4) To adopt a sales and use tax ordinance which can be administered in a manner that will, to the degree possible consistent with the provisions of Part 1.5 of Division 2 of the said Revenue and Taxation Code (Revenue and Taxation Code § 7200 et seq.), minimize the cost of collecting County sales and use taxes and at the same time minimize the burden of record keeping upon persons subject to taxation under the provisions of this chapter;

(5) To adopt a sales and use tax ordinance which can be administered in a manner that will exclude the receipts of particular sales from the measure of the sales tax imposed by this County which have been included in the measure of the sales tax imposed by any other county, city and county, or city in any other county in this State, and avoid imposing a use tax on the storage, use or other consumption of tangible personal property in this County when the gross receipts from the sale of, or the use of that property have been subject to a sales or use tax by any other county, city and county, or city in another county of this State, pursuant to a sales and use tax ordinance enacted under the provisions of Part 1.5 of Division 2 of the said Revenue and Taxation Code (Revenue and Taxation Code § 7200 et seq.).

(Code 1954, § 2.3-2; Ord. No. NS-216, § 1, 1-2-68; Ord. No. NS-216, § 1, 3-21-72)

Sec. A30-13. Operative date.

This chapter shall become operative on the first day of October 1956, if, as of said date, every incorporated city within the County either (a) has adopted no sales and use tax ordinance that is operative or is to become operative, or (b) has adopted a sales and use tax ordinance, sometimes hereinafter referred to as a uniform sales and use tax ordinance, to become operative on or after October 1, 1956, which conforms to the provisions listed in Section A30-16 and which provides for a tax of 91 percent of one percent (0.0091) or less of the gross receipts of the retailer from the sale of all tangible personal property sold at retail in the respective cities. Prior to the operative date hereof, this County shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this sales and use tax ordinance.

(Code 1954, § 2.3-3, Ord. No. NS-216, § 1, 1-2-61; Ord. No. NS-216.1, § 1, 8-5-69)

Sec. A30-14. Sales tax imposed.

(a) For the privilege of selling tangible personal property at retail a tax is hereby imposed upon all retailers in the County at the rate of one percent of the gross receipts of the retailer from the sale of all tangible personal property sold at retail in the County of Santa Clara on and after October 1, 1956, to and including June 30, 1972, and at the rate of 1 1/4 percent thereafter.

(b) For the purpose of this chapter, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the Board of Equalization.

(b) (1) Except as hereinafter provided, and except insofar as they are inconsistent with the provisions of Part 1.5 of Division 2 of the Revenue and Taxation Code of the State of California (Revenue and Taxation Code § 7500 et seq.), all of the provisions of Part 1 of Division 2 of said code (Revenue and Taxation Code § 6000 et seq.), as amended and in force and effect on April 1, 1956, applicable to sales taxes are hereby adopted and made a part of this section as though fully set forth herein.

(b) (2) Wherever, and to the extent that, in Part 1 of Division 2 of the Revenue and Taxation Code (Revenue and Taxation Code § 6000 et seq.) the State of California is named or referred to as the taxing agency, the County of Santa Clara shall be substituted therefor. Nothing in this subdivision shall be deemed to require the substitution of the name of the County of Santa Clara for the word "State" when that word is used as part of the title of the State Controller, State Treasurer, the State Board of Control, the State Board of Equalization, of the name of the State Treasury, or of the constitution of the State of California; nor shall the name of the County be substituted for that of the State in any section when the result of that substitution would require action to be taken by or against the County or any agency thereof, rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this chapter; and neither shall the substitution be deemed to have been made in those sections, including, but not necessarily limited to, sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to provide an exemption from this tax with respect to certain gross receipts which would not otherwise be exempt from this tax while those gross receipts remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code (Revenue and Taxation Code § 6000 et seq.); nor to impose this tax with respect to certain gross receipts which would not be subject to tax by the State under the said provisions of that code; and, in addition, the name of the County shall not be substituted for that of the State in Revenue and Taxation Code §§ 6701, 6702, except in the last sentence thereof, 6711, 6715, 6737, 6797 and 6826 as adopted.

(b) (3) If a seller's permit has been issued to a retailer under Revenue and Taxation Code § 6067, an additional seller's permit shall not be required by reason of this section.

(b) (4) There shall be excluded from the gross receipts by which the tax is measured:

(1) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer.

(2) Eighty percent of the gross receipts from the sale of property to operators of common carriers and waterborne vessels to be used or consumed in the operation of such common carriers or waterborne vessels principally outside of this County.

The following provisions shall be operative January 1, 1984:

(b) (4.5) There shall be excluded from the gross receipts by which the tax is measured:

(1) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer.

(2) Eighty percent of the gross receipts from the sale of tangible personal property to operators of aircraft to be used or consumed principally outside the County in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States or any foreign government.

The following provisions shall be operative on the operative date of any act of the Legislature of the State of California, which amended or repeals and reenacts Revenue and Taxation Code §§ 7202 and 7203 to provide an exemption for operators of waterborne vessels in the same or substantially the same language as that existing in those statutory sections as they read on October 1, 1983.

(b) (4.5) There shall be excluded from the gross receipts by which the tax is measured:

(1) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer.

(2) Eighty percent of the gross receipts from the sale of tangible personal property to operators of waterborne vessels to be used or consumed principally outside the County in which the sale is made and directly and exclusively in the carriage of persons or property in such vessels for commercial purposes.

(3) Eighty percent of the gross receipts from the sale of tangible personal property to operators of aircraft to be used or consumed principally outside the County in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States or any foreign government.

(Code 1954, § 2.3-4; Ord. No. NS-216, § 1, 1-2-68; Ord. No. NS-216.2, § 2, 3-21-72; Ord. No. NS-216.3, § 1, 9-25-73; Ord. No. NS-216.4, §§ 1, 4, 12-13-83)

Sec. A30-15. Use tax imposed.

(a) An excise tax is hereby imposed on the storage, use or other consumption in the County of Santa Clara of tangible personal property purchased from any retailer on or after October 1, 1956, for storage, use or other consumption in the County at the rate of one percent of the sales price of the property to and including June 30, 1972, and at the rate of 1 1/4 percent thereafter. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made.

(b) (1) Except as hereinafter provided, and except insofar as they are inconsistent with the provisions of Part 1.5 of Division 2 of the Revenue and Taxation Code of the State of California (Revenue and Taxation Code § 7200 et seq.), all of the provisions of Part 1 of Division 2 of said code (Revenue and Taxation Code § 6000 et seq.), as amended and in force and effect on April 1, 1956, applicable to use taxes, are hereby adopted and made a part of this section as though fully set forth herein.

(b) (2) Wherever, and to the extent that, in Part 1 of Division 2 of the said Revenue and Taxation Code the State of California (Revenue and Taxation Code § 6000 et seq.) is named or referred to as the taxing agency, the name of this County shall be substituted therefor. Nothing in this subdivision shall be deemed to require the substitution of the name of this County for the word "State" when that word is used as part of the title of the State Controller, the State Treasurer, the State Board of Control, the State Board of Equalization, or the name of the State Treasury, or of the Constitution of the State of California, nor shall the name of the County be substituted for that of the State in any section when the result of that substitution would require action to be taken by or against the County or any agency thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this chapter; and neither shall the substitution be deemed to have been made in those sections, including but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to provide an exemption from this tax with respect to certain storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such storage, use or other consumption remains subject to tax by the State under the provisions of Part 1 of Division 2 of the said Revenue and Taxation Code, or to impose this tax with respect to certain storage, use or other consumption of tangible personal property which would not be subject to tax by the State under the said provisions of this Code; and in addition, the name of the County shall not be substituted for that of the State in Revenue and Taxation Code §§ 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 and 6828 as adopted, and the name of the County shall not be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Revenue and Taxation Code § 6203 nor in the definition of that phrase in Revenue and Taxation Code § 6203.

(b) (3) There shall be exempt from the tax due under this section:

(1) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer.

(2) The storage, use or other consumption of tangible personal property, the gross receipts from the sale of which has been subject to sales tax under a sales and use tax ordinance enacted in accordance with Part 1.5 of Division 2 of the Revenue and Taxation Code (Revenue and Taxation Code § 7200 et seq.) by any city and county, county, or city in this State.

(3) Provided, however, that the storage or use of tangible personal property in the transportation or transmission of persons, property, or communications or in the generation, transmission or distribution of electricity or in the manufacture, transmission or distribution of gas in intrastate, interstate or foreign commerce by public utilities which are regulated by the Public Utilities Commission of the State of California shall be exempt from 80 percent of the tax due under this section.

The following provisions shall be operative January 1, 1984:

(b) (3.5) There shall be excluded from the tax due under this section:

(1) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer.

(2) The storage, use or other consumption of tangible personal property, the gross receipts from the sale of which have been subject to sales tax under a sales and use tax ordinance enacted in accordance with Part 1.5 of Division 2 of the Revenue and Taxation Code (Revenue and Taxation Code § 7200 et seq.) by any city and county, county, or city in this State, shall be exempt from the tax due under this chapter.

(3) In addition to the exemptions provided in Revenue and Taxation Code §§ 6366 and 6366.1 of the Revenue and Taxation Code, the storage, use or other consumption of tangible personal property purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States or any foreign government is exempt from 80 percent of the tax.

The following provisions shall be operative on the operative date of any act of the Legislature of the State of California which amended or repeals and reenacts Revenue and Taxation Code § 7202 and 7203 to provide an exemption for operators of waterborne vessels in the same or substantially the same language as that existing in those statutory sections as they read on October 1, 1983.

(b) (3.5) There shall be exempt from the tax due under this section:

(1) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer.

(3) Provided, however, that the storage, use or other consumption of tangible personal property purchased by operators of waterborne vessels and used or consumed by such operators directly and exclusively in the carriage of persons or property in such vessels for commercial purposes is exempted from 80 percent of the tax.

(4) And provided that in addition to the exemptions provided in Revenue and Taxation Code §§ 6366 and 6336.1, the storage, use or other consumption of tangible personal property purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States or any foreign government is exempt from 80 percent of the tax.

(Code 1954, § 2.3-5; Ord. No. NS-216, § 1, 1-2-68; Ord. No. NS-216.2, § 3, 3-21-72; Ord. No. NS-216.3, § 2, 9-25-73; Ord. No. NS-216.4, §§ 2, 5, 12-13-83)

Sec. A30-16. Credited against tax.

The following provisions shall be operative January 1, 1984:

Any person subject to a sales or use tax or required to collect a use tax under this chapter shall be entitled to credit against the payment of taxes due under this chapter the amount of sales and use tax due any city in this County, provided that the city sales and use tax is levied under an ordinance including provisions substantially conforming to the provisions of Subdivisions (1) to (8), inclusive, of Revenue and Taxation Code § 7202(h)(1)--(h)(8), and other applicable provisions of Part 1.5 of Division 2 of that code (Revenue and Taxation Code § 7200 et seq.).

Any person subject to a sales or use tax or required to collect a use tax under this chapter shall be entitled to credit against the payment of taxes due under this chapter the amount of sales and use tax due any city in this County, provided that the city sales and use tax is levied under an ordinance including provisions substantially conforming to the provisions of Revenue and Taxation Code § 7202(i)(1)--(i)(10) and other applicable provisions of Part 1.5 of Division 2 of that code (Revenue and Taxation Code § 7200 et seq.).

(Code 1954, § 2.3-6; Ord. No. NS-216, § 1, 1-2-68; Ord. No. NS-216.3, § 3, 9-25-73; Ord. No. NS-216.4, §§ 3, 6, 12-13-83)

Sec. A30-16.5. Credit against tax.

Any person subject to a sales or use tax or required to collect a use tax under this chapter shall be entitled to credit against the payment of taxes due under this chapter the amount of sales and use tax due any city in this County, provided that the city sales and use tax is levied under an ordinance including provisions substantially conforming to the provisions of Revenue and Taxation Code § 7202(i)(1)--(i)(10) and other applicable provisions of Part 1.5 of Division 2 of that code (Revenue and Taxation Code § 7200 et seq.).

(Ord. No. NS-216.3, § 4, 9-25-73)

Sec. A30-17. Legal actions.

No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action, or proceedings in any court against the State or this County or against any officer of the State or this County to prevent or enjoin the collection under this chapter or Part 1.5 of Division 2 of the Revenue and Taxation Code (Revenue and Taxation Code § 7200 et seq.) of any tax or any amount of tax required to be collected.

(Code 1954, § 2.3-7; Ord. No. NS-216, § 1, 1-2-68)

Sec. A30-18. Incorporation of amendments to state law.

All amendments of the Revenue and Taxation Code enacted subsequent to April 1, 1956, which relate to the sales and use tax and which are not inconsistent with Part 1.5 of Division 2 of the Revenue and Taxation Code (Revenue and Taxation Code § 7200 et seq.) shall automatically become a part of this chapter.

(Code 1954, § 2.3-8; Ord. No. NS-216, § 1, 1-2-68)

Sec. A30-18.5. Operative dates of certain sections.

(a) Sections A30-14(b)(4.5), A30-15(b)(3.5), and A30-16.5 of this chapter shall become operative on January 1 of the year following the year in which the State Board of Equalization adopts an assessment ratio for state-assessed property which is identical to the ratio which is required from local assessments by Revenue and Taxation Code § 401, at which time Sections A30-14(b)(4), A30-15(b)(3), and A30-16 shall become inoperative.

(b) In the event that Sections A30-14(b)(4.5), A30-15(b)(3.5), and A30-16.5 of this chapter become operative and the State Board of Equalization subsequently adopts an assessment ratio for state assessed property which is higher than the ratio which is required for local assessments by Revenue and Taxation Code § 401, Sections A30-14(b)(4), A30-15(b)(3), and A30-16 shall become operative on the first day of the month next following the month in which such higher ratio is adopted, at which time Sections A30-14(b)(4.5), A30-15(b)(3.5), and A30-16.5 of this chapter shall be inoperative until the first day of the month following the month in which the Board again adopts an assessment ratio for state-assessed property which is identical to the ratio required for local assessments by Revenue and Taxation Code § 401, at which time Sections A30-14(b)(4.5), A30-15(b)(3.5), and A30-16.5 shall again become operative and Sections A30-14(b)(4), A30-15(b)(3), and A30-16 shall become inoperative.

(Ord. No. NS-216.3, § 5, 9-25-73)

Editor's note--For operative dates for §§ A30-14(b)(4.5), A30-15(b)(3.5) and A30-16 later than those given in this § A30-18.5, see those individual sections.

Sec. A30-19. Inoperation of chapter.

This chapter shall become inoperative on the first day of the first calendar quarter which commences more than 60 days following the date upon which any city within the County initially adopts a uniform sales and use tax ordinance with the rate greater than one percent or increases the rate of tax in an existing uniform sales and use tax ordinance to a rate greater than one percent.

This chapter may be made inoperative not less than 60 days, but not earlier than the first day of the calendar quarter, following the County's lack of compliance with Article II of Chapter 2 of Division 3 of Title 3 of the Government Code (Government Code § 29530).

(Code 1954, § 2.3-9; Ord. No. NS-216, § 1, 1-2-68; Ord. No. NS-216.1, § 2, 8-5-69; Ord. No. NS-216.2, § 4, 3-21-72; Ord. No. NS-216.5, 1-8-85)

Sec. A30-20. Penalty.

Any person violating any of the provisions of this chapter shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punishable by a fine of not more than $500.00 or by imprisonment for a period of not more than six months in the County jail or by both such fine and imprisonment.

(Ord. No. NS-216, § 1, 1-2-68)

Sec. A30-21. Severability.

If any section, subsection, sentence, clause, phrase or portion of this chapter, including but not limited to any exemption, is, for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portion of this chapter. The Board of Supervisors hereby declares that it would have adopted this chapter and each section, subsection, sentence, clause, phrase or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or portions may be declared invalid or unconstitutional.

(Code 1954, § 2.3-11; Ord. No. NS-216, § 1, 1-2-68)

Secs. A30-22--A30-31. Reserved.

CHAPTER III.
REAL PROPERTY TRANSFER TAX*

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Editor's note--Ord. No. NS-215.6, adopted September 25, 2007, amended Ch. III, in its entirety, to read as herein set out. Prior to inclusion of said ordinance, Ch. III pertained to similar subject matter. See also the Code Comparative Table.

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Sec. A30-32. Title; authority.

Pursuant to authority granted by the Documentary Transfer Tax Act (Revenue and Taxation Code § 11901 et seq.), the Board of Supervisors hereby imposes a tax on any document, transferring, for consideration, an ownership interest in real property located in whole or in part, within this County. This ordinance shall be known, and may be cited, as the Documentary Transfer Tax Ordinance, and the tax imposed hereby shall be known as the Documentary Transfer Tax of the County of Santa Clara. It is adopted pursuant to Part 6.7 of Division 2 of the Revenue and Taxation Code (Revenue and Taxation Code § 11901 et seq.) and Part 0.5, commencing and ending with Section 64 of Division 1 of the Revenue and Taxation Code.

(Ord. No. NS-215.6, 9-25-07)

Sec. A30-33. Imposed.

There is hereby imposed 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 $100.00 a tax at the rate of $0.55 for each $500.00 or fractional part thereof.

(Ord. No. NS-215.6, 9-25-07)

Sec. A30-34. Persons on whom imposed.

The tax imposed by Section A30-33 shall be paid by any person who makes, signs or issues any document or instrument subject to the tax, or for whose use or benefit the same is made, signed or issued.

(Ord. No. NS-215.6, 9-25-07)

Sec. A30-34.1. Mobile homes.

The transfer of any mobile home installed on a foundation system, pursuant to Section 18551 of the Health and Safety Code, and subject to local property taxation shall be subject to this part.

(Ord. No. NS-215.6, 9-25-07)

Sec. A30-35. Security for debt.

The tax imposed pursuant to this chapter shall not apply to any instrument in writing given to secure a debt.

(Ord. No. NS-215.6, 9-25-07)

Sec. A30-36. Government agencies.

Any deed, instrument or writing to which the United States or any agency or instrumentality thereof, any state or territory, or political subdivision thereof, is a party shall be exempt from any tax imposed pursuant to this chapter when the exempt agency is acquiring title.

(Ord. No. NS-215.6, 9-25-07)

Sec. A30-37. Plans of reorganization or adjustment.

The tax imposed pursuant to this chapter shall not apply to the making, delivering or filing of conveyances to make effective any plan of reorganization or adjustment:

(a) Confirmed under the Federal Bankruptcy Act, as amended;

(b) Approved in equity receivership proceeding in a court involving a railroad corporation, as defined in Section 101 of Title 11 of the United States Code, as amended;

(c) Approved in an equity receivership proceeding in a court involving a corporation, as defined in Section 101 of Title 11 of the United States Code, as amended; or

(d) Whereby a mere change in identity, form or place of organization is effected. Subsections (a) to (d), inclusive, of this section shall only apply if the making, delivery or filing of instruments of transfer or conveyances occurs within five years from the date of such confirmation, approval or change.

(Ord. No. NS-215.6, 9-25-07)

Sec. A30-38. Conveyances pursuant to Securities and Exchange Commission orders.

The tax imposed pursuant to this chapter shall not apply to the making or delivery of conveyances to make effective any order of the Securities and Exchange Commission, as defined in Subdivision (a) of Section 1083 of the Internal Revenue Code of 1954; but only if:

(a) The order of the Securities and Exchange Commission in obedience to which such conveyance is made recites that such conveyance is necessary or appropriate to effectuate the provisions of Section 79k of Title 15 of the United States Code, relating to the Public Utility Holding Company Act of 1935;

(b) Such order specifies the property which is ordered to be conveyed;

(Ord. No. NS-215.6, 9-25-07)

Sec. A30-39. Transfer or termination of partnership or other entities.

(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 chapter by reason of a termination described in Subsection (b), and any transfer pursuant thereto, with respect to the realty held by such partnership or other entity treated as a partnership at the time of such termination.

(d) 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.

(Ord. No. NS-215.6, 9-25-07)

Sec. A30-39.1. Foreclosure document.

Any tax imposed pursuant to this part shall not apply with respect to any deed, instrument, or writing to a beneficiary or mortgagee, which is taken from the mortgagor or trustor as a result of or in lieu of foreclosure; provided, that such tax shall apply to the extent that the consideration exceeds the unpaid debt, including accrued interest and cost of foreclosure. Consideration, unpaid debt amount and identification of grantee as beneficiary or mortgagee shall be noted on said deed, instrument or writing or stated in an affidavit or declaration under penalty of perjury for tax purposes.

(Ord. No. NS-215.6, 9-25-07)

Sec. A30-39.2. Community or marital property.

(a) Any tax imposed pursuant to this part shall not apply with respect to any deed, instrument, or other writing which purports to transfer, divide, or allocate community, quasi-community, or quasi-marital property assets between spouses for the purpose of effecting a division of community, quasi-community, or quasimarital property which is required by a judgment decreeing a dissolution of the marriage or legal separation, by a judgment of nullity, or by any other judgment or order rendered pursuant to the Family Code, or by a written agreement between the spouses, executed in contemplation of any such judgment or order, whether or not the written agreement is incorporated as part of any of those judgments or orders.

(b) In order to qualify for the exemption provided in subdivision (a), the deed, instrument, or other writing shall include a written recital, signed by either spouse, stating that the deed, instrument, or other writing is entitled to the exemption.

(Ord. No. NS-215.6, 9-25-07)

Sec. A30-39.3. Reconveyance: Exempt Agency.

Any tax imposed pursuant to this part shall not apply with respect to any deed, instrument, or other writing by which realty is conveyed by the State of California, any political subdivision thereof, or agency or instrumentality of either thereof, pursuant to an agreement whereby the purchaser agrees to immediately reconvey the realty to the exempt agency.

(Ord. No. NS-215.6, 9-25-07)

Sec. A30-39.4. Non-profit corporation on behalf of the governmental unit.

Any tax imposed pursuant to this part shall not apply with respect to any deed, instrument, or other writing by which the State of California, any political subdivision thereof, or agency or instrumentality of either thereof, conveys to a nonprofit corporation realty the acquisition, construction, or improvement of which was financed or refinanced by obligations issued by the nonprofit corporation on behalf of a governmental unit, within the meaning of Section 1.103-1 (b) of Title 26 of the Code of Federal Regulations.

(Ord. No. NS-215.6, 9-25-07)

Sec. A30-39.5. Gift and beneficiary transfer.

Any tax imposed pursuant to this part shall not apply to any deed, instrument, or other writing which purports to grant, assign, transfer, convey, divide, allocate, or vest lands, tenements, or realty, or any interest therein, if by reason of such inter vivos gift or by reason of the death of any person, such lands, tenements, realty, or interests therein are transferred outright to, or in trust for the benefit of, any person or entity.

(Ord. No. NS-215.6, 9-25-07)

Sec. A30-39.6. Transfer of real property of legal entities.

Documentary transfer tax is imposed when change of ownership occurs in any of the following:

(a) (1) When a corporation, partnership, limited liability company, other legal entity, or any other person obtains control through direct or indirect ownership or control of more than 50 percent of the voting stock of any corporation, or obtains a majority ownership interest in any partnership, limited liability company, or other legal entity through the purchase or transfer of corporate stock, partnership, or limited liability company interest, or ownership interests in other legal entities, including any purchase or transfer of 50 percent or less of the ownership interest through which control or a majority ownership interest is obtained, the purchase or transfer of that stock or other interest shall be a change of ownership of the real property owned by the corporation, partnership, limited liability company, or other legal entity in which the controlling interest is obtained.

(2) On or after January 1, 1996, when an owner of a majority ownership interest in any partnership obtains all of the remaining ownership interests in that partnership or otherwise becomes the sole partner, the purchase or transfer of the minority interests, subject to the appropriate application of the step-transaction doctrine, shall not be a change in ownership of the real property owned by the partnership.

(b) If property is transferred on or after March 1, 1975, to a legal entity in a transaction excluded from change in ownership by paragraph (2) of subdivision (a) of Section 62, then the persons holding ownership interests in that legal entity immediately after the transfer shall be considered the "original co-owners."

Whenever shares or other ownership interests representing cumulatively more than 50 percent of the total interests in the entity are transferred by any of the original coowners in one or more transactions, a change in ownership of that real property owned by the legal entity shall have occurred, and the property that was previously excluded from change in ownership under the provisions of paragraph (2) of subdivision (a) of Section 62 of the Revenue and Taxation Code shall be reappraised.

The date of reappraisal shall be the date of the transfer of the ownership interest representing individually or cumulatively more than 50 percent of the interests in the entity.

A transfer of shares or other ownership interests that results in a change in control of a corporation, partnership, limited liability company, or any other legal entity is subject to reappraisal as provided in subdivision (a) rather than this subdivision.

(Ord. No. NS-215.6, 9-25-07)

Sec. A30-40. Credit for city tax.

If the legislative body of any city in the County imposes a tax pursuant to Part 6.7 of Division 2 of the Revenue and Taxation Code (Revenue and Taxation Code § 11901 et seq.) equal to one-half the amount specified in Section A30-33, a credit shall be granted against the taxes due under this chapter in the amount of the city tax if the city's tax conforms to this part.

(Ord. No. NS-215.6, 9-25-07)

Sec. A30-41. Administration and allocation of tax.

The County Recorder shall administer this chapter and shall also administer any ordinance adopted by any city in the County pursuant to Part 6.7 of Division 2 of the Revenue and Taxation Code (Revenue and Taxation Code § 11901 et seq.) imposing a tax for which a credit is allowed by this chapter.

On or before the 15th day of the month, the Recorder shall report to the Director of Finance or his delegate the amounts of taxes collected during the preceding month pursuant to this chapter and each such city ordinance. The Director of Finance shall allocate and distribute monthly said taxes as follows:

(a) All moneys which relate to transfers of real property located in the unincorporated territory of the County shall be allocated to the County.

(b) All moneys which relate to transfers of real property located in a city in the County which has imposed a tax pursuant to said Part 6.7 (Revenue and Taxation Code § 11901 et seq.) shall be allocated one-half to such city and one-half to the County.

(c) All moneys which relate to transfers of real property located in a city in the County which imposes a tax on transfers of real property not in conformity with said Part 6.7 (Revenue and Taxation Code § 11901 et seq.) shall be allocated to the County.

(d) All moneys which relate to transfers of real property in a city in the County which does not impose a tax on transfers of real property shall be allocated to the County.

(Ord. No. NS-215.6, 9-25-07)

Sec. A30-42. Recordation subject to payment of tax.

The Recorder shall not record any deed, instrument or writing subject to the tax imposed by this chapter 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 agent, shall appear on the face of the document. The declaration shall include a statement that the consideration or value on which the tax due was computed was, or that it was not, exclusive of the value of a lien or encumbrance remaining on the interest or property conveyed at the time of sale. If the party submitting the document so requests, the declaration may be made on a separate paper which shall be affixed to the document by the Recorder after the permanent record is made and before the original is returned as specified in Government Code Section 27321. The Recorder may rely on the declaration as to the amount of the tax due provided he has no reason to believe that the full amount of the tax due has not been paid.

Every document subject to tax hereunder which is submitted for recordation shall show on the face of the document, or in a separate document, the location of the lands, tenements or other realty described in the document. If said lands, tenements or other realty are located within a city in the County, the name of the city shall be set forth. If said lands, tenements or other realty are located in the unincorporated area, of the County, that fact shall be set forth.

(Ord. No. NS-215.6, 9-25-07)

Sec. A30-42.5. Requirement of tax roll parcel number.

(a) Each deed, instrument or writing by which lands, tenements, or other realty is sold, granted, assigned, transferred, or otherwise conveyed, shall have noted upon it the tax roll parcel number. The number shall be used only for administrative and procedural purposes and shall not be proof of title and in the event of any conflicts, the stated legal description noted upon the documents shall govern.

(b) The validity of any document described in Subsection (a) shall not be affected if the tax roll parcel number noted thereon is erroneous or omitted, and there shall be no liability attaching to any person for an error in such number or for omission of such number.

(c) If the document describes a parcel which has been created by the division of an existing parcel and which at the time of the recording has not been given a separate parcel number, the document shall have noted upon it the words "portion of" and the parcel number of the parcel from which it was created.

(Ord. No. NS-215.6, 9-25-07)

Sec. A30-43. Claims for refunds.

Claims for refunds of taxes imposed pursuant to this chapter shall be governed by the provisions of Chapter 5 of Part 9 of Division 1 of the Revenue and Taxation Code (Revenue and Taxation Code § 5096 et seq.).

(Ord. No. NS-215.6, 9-25-07)

Sec. A30-44. Interpretation.

In the administration of this chapter, the Recorder shall interpret its provisions consistently with Part 6.7 of Division 2 of the Revenue and Taxation Code (Revenue and Taxation Code § 11901 et seq.) and Part 0.5 commencing and ending with Section 64 of Division 1 of the Revenue and Taxation Code.

(Ord. No. NS-215.6, 9-25-07)

Sec. A30-45. Authority to require records.

Whenever the County Recorder has reason to believe that the full amount of tax due under this chapter has not been paid, he may, by notice served upon any person liable therefor, require him to furnish a true copy of his records relevant to the amount of the consideration or value of the interest or property conveyed.

(Ord. No. NS-215.6, 9-25-07)

Sec. A30-46. Violations.

Any person or persons who makes, signs, issues or accepts or causes to be made, signed, issued or accepted and who submits or causes to be submitted for recordation any deed, instrument or writing subject to the tax imposed by this chapter and makes any material misrepresentation of fact for the purpose of avoiding all or any part of the tax imposed by this chapter shall be guilty of a misdemeanor.

No person or persons shall be liable, either civilly or criminally, for any unintentional error made in designating the location of the lands, tenements or other realty described in a document subject to the tax imposed by this chapter.

(Ord. No. NS-215.6, 9-25-07)

Sec. A30-46.1. Delinquency.

(a) Delinquency. For purposes of this section, the documentary transfer tax is due when either a deed, instrument or writing effecting a transfer subject to the tax is delivered to the County Recorder, or upon notice of documentary transfer tax due by the County Recorder pursuant to Section A30.39.6. The documentary transfer tax shall be delinquent if not paid at the time the documentary transfer tax is due.

(b) Delinquency notice. The County Recorder shall send notices of delinquent documentary transfer tax. In the event the person liable for the tax fails to comply, the County Recorder shall transfer the matter to the County Tax Collector for further collection and initiation of lien proceedings.

(c) If the County Tax Collector issues a tax lien for non-payment of documentary transfer tax, the County Recorder shall record a tax lien against the real property.

(Ord. No. NS-215.6, 9-25-07)

CHAPTER IV.
REPORT REQUIRED FROM OWNERS OR OPERATORS OF MOBILE HOME PARKS LISTING MOBILE HOMES ON THE PREMISES

Sec. A30-47. Reserved.

Editor's note--Ord. No. NS-300.653, § 9, adopted Aug. 7, 2001, repealed § A30-47, which pertained to reporting procedure. See the Code Comparative Table.

CHAPTER V.
TRANSIENT OCCUPANCY TAX

Sec. A30-48. Short title and adoption authority.

This chapter shall be known as the "Transient Occupancy Tax Ordinance" and is adopted pursuant to the authorization contained in Chapter 1, Part 1.7 of Division 2, of the Revenue and Taxation Code of the State (Revenue and Taxation Code § 7280 et seq.).

(Ord. No. NS-216.6, § 1, 8-26-86)

Sec. A30-49. Definitions.

For the purposes of this chapter, the following words and phrases shall have the meanings respectively ascribed to them by this section, unless the context or the provision clearly requires otherwise:

(a) Director of Finance shall mean the Director of Finance for the County of Santa Clara or his or her designee.

(b) Hotel means a room or rooms, or other living space, in a hotel, inn, tourist home or house, motel, or other lodging. The term "other lodging" includes space at a recreational vehicle park or other recreational vehicle site, but does not include the following:

(i) Any facilities operated by a local government entity.

(ii) Any lodging excluded pursuant to subsection (b).

(c) Occupancy means the use or possession, or the right to the use or possession, of any room or rooms or portion thereof, in any hotel for dwelling, lodging or sleeping purposes.

(d) Operator means the person who is the proprietor of the hotel, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee or any other capacity. Where the operator performs his functions through a managing agent of any type or character other than an employee, the managing agent shall also be deemed an operator for the purposes of this chapter and shall have the same duties and liabilities as his principal. Compliance with the provisions of this chapter by either the principal or the managing agent shall, however, be considered to be compliance by both.

(e) Rent means the consideration charged, whether or not received, for the occupancy of space in a hotel valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever.

(f) Transient means any person who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license or other agreement for a period of 30 consecutive calendar days or less, counting portions of calendar days as full days. Any such person so occupying space in a hotel shall be deemed to be a transient until the period of 30 days has expired. In determining whether a person is a transient, uninterrupted periods of time extending both prior and subsequent to the effective date of this chapter may be considered.

(Ord. No. NS-216.6, § 1, 8-26-86; Ord. No. NS-216.8, 12-13-05)

Sec. A30-50. Tax imposed.

(a) For the privilege of occupancy in a hotel in the unincorporated areas of the County, unless the occupancy is for a period of more than 30 days, each transient is subject to and shall pay a tax in the amount of eight percent of the rent charged by the operator. Said debt is extinguished only by payment to the operator or to the County. The transient shall pay the tax to the operator of the hotel at the time the rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the transient's ceasing to occupy space in the hotel. If for any reason the tax due is not paid to the operator of the hotel, the Director of Finance may require that such tax be paid directly to the Director of Finance.

(b) The term "the privilege of occupancy in a hotel" does not include the right of an owner of a time-share estate in a room or rooms in a time-share project, or the owner of a membership camping contract in a camping site at a campground, or the guest of the owner, to occupy the room, rooms, camping site, or other real property in which the owner retains that interest.

(Ord. No. NS-216.6, § 1, 8-26-86; Ord. No. NS-216.8, 12-13-05)

Sec. A30-51. Exemptions.

No tax shall be imposed upon:

(a) Any person as to whom, or any occupancy as to which, it is beyond the power of the County to impose the tax herein provided;

(b) Any officer or employee of the federal or state government, or any political subdivision thereof, when on official business;

(c) Any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.

No exemption shall be granted except under a claim therefor made at the time rent is collected and under penalty of perjury upon a form prescribed by the Director of Finance.

(Ord. No. NS-216.6, § 1, 8-26-86)

Sec. A30-52. Operator's duties.

Each operator shall collect the tax imposed by this chapter to the same extent and at the same time as the rent is collected from every transient. The amount of tax shall be separately stated from the amount of rent charged, and each transient shall receive a receipt for payment from the operator. No operator of a hotel shall advertise or state in any manner, whether directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the operator, or that it will not be added to the rent, or that, if added, any part will be refunded except in the manner hereinafter provided.

(Ord. No. NS-216.6, § 1, 8-26-86)

Sec. A30-53. Registration.

Within 30 days after the effective date of this chapter [September 25, 1986], or within 30 days after commencing business, whichever is later, each operator of any hotel in the unincorporated areas of the County renting occupancy to transients shall register the hotel with the Director of Finance and obtain from him a "Transient Occupancy Registration Certificate" to be at all times posted in a conspicuous place on the premises. The certificate shall, among other things, state the following:

(a) The name of the operator;

(b) The address of the hotel;

(d) "This Transient Occupancy Registration Certificate signifies that the person named on the face hereof has fulfilled the requirements of the Transient Occupancy Tax Ordinance by registering with the Director of Finance for the purpose of collecting from transients the Transient Occupancy Tax and remitting said tax to the Director of Finance. This certificate does not authorize any person to conduct any unlawful business or to conduct any lawful business in any unlawful manner, nor to operate a hotel without strictly complying with all applicable laws, including but not limited to those requiring a permit from any board, commission, department or office of the County of Santa Clara. This certificate does not constitute a permit."

(Ord. No. NS-216.6, § 1, 8-26-86)

Sec. A30-54. Reporting and remitting.

Each operator shall, on or before the last day of the month following the close of each calendar quarter, or at the close of any shorter reporting period which may be established by the Director of Finance, make a return to the Director of Finance, on forms provided by him or her, of the total rents charged and received and the amount of tax collected for transient occupancies. At the time the return is filed, the full amount of tax collected shall be remitted to the Director of Finance. The Director of Finance may establish shorter reporting periods for any certificate holder if he or she deems it necessary in order to ensure collection of the tax, and he or she may require further information in the return. Returns and payments are due immediately upon cessation of business for any reason. All taxes collected by operators pursuant to this chapter shall be held in trust for the account of the County until payment thereof is made to the Director of Finance.

(Ord. No. NS-216.6, § 1, 8-26-86)

Sec. A30-55. Penalties and interest.

(a) Original delinquency. Any operator who fails to remit any tax imposed by this chapter within the time required shall pay a penalty of ten percent of the amount of the tax.

(b) Continued delinquency. Any operator who fails to pay any delinquent remittance on or before a period of 30 days following the date on which the remittance first became delinquent shall pay a second delinquency penalty of ten percent of the amount of the tax in addition to the ten percent penalty first imposed.

(c) Fraud. If the Director of Finance determines that the nonpayment of any remittance under this chapter is due to fraud, a penalty of 25 percent of the amount of the tax shall be added thereto in addition to the penalties stated in Paragraphs (a) and (b) of this section.

(d) Interest. In addition to the penalties imposed, any operator who fails to remit any tax imposed by this chapter shall pay interest at the rate of 1.5 percent per month or fraction thereof on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid.

(e) Penalties merged with tax. Every penalty imposed and such interest as accrues under the provisions of this section shall become a part of the tax herein required to be paid.

(Ord. No. NS-216.6, § 1, 8-26-86)

Sec. A30-56. Failure to collect and report tax; determination of tax by Department of Finance.

(a) Assessment of estimated tax. If any operator fails or refuses to collect the tax and to make, within the time provided in this chapter, any report and remittance of the tax or any portion thereof required by this chapter, the Director of Finance shall proceed in such manner as he or she may deem best to obtain facts and information on which to base his or her estimate of the tax due. As soon as the Director of Finance procures such facts and information as he or she is able to obtain upon which to base the assessment of any tax imposed by this chapter and payable by any operator who has failed or refused to collect the same and to make such report and remittance, he or she shall proceed to determine and assess against such operator the tax, interest and penalties provided for by this chapter.

(b) Notice of assessment; hearing; determination of tax. The Director of Finance shall give a notice of the amount so assessed by serving it personally or by depositing it in the United States mail, postage prepaid, addressed to the operator at his or her last-known address. Such operator may within ten days after the serving or mailing of such notice make application in writing to the Director of Finance for a hearing on the amount assessed. If the application by the operator for a hearing is not made within the time prescribed, the tax, interest and penalties, if any, determined by the Director of Finance shall become final and conclusive and immediately due and payable. If such application is made, the Director of Finance shall give not less than five days' written notice in the manner prescribed herein for the operator to appear at a time and place fixed in the notice and show cause as to why the amount specified therein should not be fixed for such tax, interest and penalties. After such hearing, the Director of Finance shall determine the proper tax to be remitted and shall thereafter give written notice to the operator in the manner prescribed herein of such determination and the amount of such tax, interest and penalties. The amount determined to be due shall be paid in full within ten days after notice of such determination is given to the operator, unless an appeal is taken as provided in Section A30-57.

(Ord. No. NS-216.6, § 1, 8-26-86)

Sec. A30-57. Appeal.

Any operator aggrieved by any decision of the Director of Finance with respect to the amount of any tax, interest or penalties imposed under this chapter may appeal such decision to the Board of Supervisors.

(Ord. No. NS-216.6, § 1, 8-26-86)

Sec. A30-58. Records.

It shall be the duty of every operator liable for the collection and payment to the County of any tax imposed by this chapter to keep and preserve, for a period of three years, all records as may be necessary to determine the amount of such tax, which records the Director of Finance shall have the right to inspect at all reasonable times.

(Ord. No. NS-216.6, § 1, 8-26-86)

Sec. A30-59. Refunds.

(a) Whenever the amount of any tax, interest or penalty has been overpaid or paid more than once or has been erroneously or illegally collected or received by the County under this chapter, it may be refunded as provided in Paragraphs (b) and (c) of this section provided a claim in writing therefor, stating under penalty of perjury the specific grounds upon which the claim is founded, is filed with the Director of Finance within three years of the date of payment. The claim shall be on forms furnished by the Director of Finance.

(b) An operator may claim a refund or take as credit against taxes collected and remitted the amount overpaid, paid more than once, or erroneously or illegally collected or received when it is established to the satisfaction of the Director of Finance that the person from whom the tax has been collected was not a transient; however, neither a refund nor a credit shall be allowed unless the amount of the tax so collected has either been refunded to the person who paid the tax or credited to rent subsequently payable by such person to the operator.

(c) A transient may obtain a refund of taxes overpaid or paid more than once or erroneously or illegally collected or received by the County by filing a claim in the manner provided by Paragraph (a) of this section, but only when the tax was paid by the transient directly to the Director of Finance, or when the transient, having paid the tax to the operator, establishes to the satisfaction of the Director of Finance that the transient has been unable to obtain a refund from the operator who collected the tax.

(d) No refund shall be paid under the provisions of this section unless the claimant establishes his right thereto by written records showing entitlement to such refund.

(Ord. No. NS-216.6, § 1, 8-26-86)

Sec. A30-60. Actions to collect.

Any tax required to be paid by any transient under the provisions of this chapter shall be deemed a debt owed by the transient to the County. Any such tax collected by an operator which has not been remitted to the County shall be deemed a debt owed by the operator to the County. Any person owing money to the County under the provisions of this chapter shall be liable to an action brought in the name of the County for the recovery of such amount.

(Ord. No. NS-216.6, § 1, 8-26-86)

Sec. A30-61. Proceeds to general fund.

The proceeds derived from the transient occupancy tax shall be deposited in the County's general fund and shall be expended for general operating expenses incurred by the County or for capital improvements or such other legal uses and purposes as determined by the Board of Supervisors.

(Ord. No. NS-216.6, § 1, 8-26-86)

Sec. A30-62. Violations of chapter; penalties.

Any operator or other person who violates any of the provisions of this chapter or who fails or refuses to register as required herein, or to furnish any return required to be made, or who fails or refuses to furnish a supplemental return or other data required by the Director of Finance, or who renders a false or fraudulent return or claim, is guilty of a misdemeanor.

(Ord. No. NS-216.6, § 1, 8-26-86)

Cross reference(s)--Penalty for misdemeanor, § A1-28.

Secs. A30-63--A30-75. Reserved.

CHAPTER VI.
PROPERTY TAX REASSESSMENT OF PROPERTY DAMAGED OR DESTROYED BY MISFORTUNE OR CALAMITY

Sec. A30-76. Purpose.

It is the purpose of this ordinance that every assessee of any taxable property, or any person liable for taxes thereon, whose property was damaged or destroyed, without his/her fault by a misfortune or calamity, whether or not in such an area or region subsequently proclaimed by the Governor to be in a state of disaster, may apply for reassessment of that property, in accordance with Article XIII, Section 15, of the California Constitution, as provided therein.

(Ord. No. NS-300.593, § 1, 1-28-97; Ord. No. NS-300.664, § 1, 3-26-02)

Sec. A30-77. Definitions.

Unless otherwise defined in this chapter, the definitions set forth in California Revenue and Taxation Code §§ 170 and 172.1 shall govern the interpretation of terms used in this chapter.

(Ord. No. NS-300.593, § 2, 1-28-97)

Sec. A30-78. Application for reassessment.

An assessee of taxable property, or person liable for the taxes thereon, whose property was damaged or destroyed without his/her fault as a result of a misfortune or disaster as described in Section A30-76, may deliver to the County Assessor a written application requesting reassessment. The application must show the condition and value, if any, of the property immediately after the damage or destruction, and the dollar amount of the damage. The application shall be executed under penalty of perjury, or if executed outside the State, verified by affidavit.

(Ord. No. NS-300.593, § 3, 1-28-97)

Sec. A30-79. Manner of reassessment by Assessor.

Upon receiving a proper application, the Assessor shall appraise the property and determine separately the full cash value of land, improvements and personalty immediately before and after the damage or destruction. If the sum of the full cash values of the land, improvements and personalty before the damage or destruction exceeds the sum of the values after the damage by $10,000.00 or more, the Assessor shall also separately determine the percentage reduction in value of land and improvements due to the damage or destruction. The Assessor shall reduce the value appearing on the assessment roll the percentages of damage or destruction computed pursuant to this section, and the taxes due on the property shall be adjusted as provided in Section A30-82 herein; provided, however, that the amount of the reduction shall not exceed the actual loss.

(Ord. No. NS-300.593, § 4, 1-28-97; Ord. No. NS-300.664, § 2, 3-26-02)

Sec. A30-80. Notice of reassessment and appeal.

The Assessor shall notify the applicant in writing of the amount of the proposed reassessment. The notice shall state that the applicant may appeal the proposed reassessment to the Santa Clara County Assessment Appeals Board within six months of the date of mailing the notice. If an appeal is requested within the six-month time period, the Assessment Appeals Board shall hear and decide the matter as if the proposed reassessment had been entered on the rolls and assessment made outside the regular assessment period. The decision of the Assessment Appeals Board regarding the damaged value of the property shall be final, provided that a decision of the Assessment Appeals Board regarding any assessment made pursuant to this section shall create no presumption as regards the value of the affected property subsequent to the date of the damage.

Those reassessed values resulting from reductions in full cash value of amounts, as determined above, shall be forwarded to the Auditor by the Assessor or the Clerk of the Assessment Appeals Board, as the case may be. The Controller-Treasurer shall enter the reassessed values on the roll. After being entered on the roll, such reassessed values shall not be subject to review, except by a court of competent jurisdiction.

(Ord. No. NS-300.593, § 5, 1-28-97; Ord. No. NS-300.664, § 3, 3-26-02)

Sec. A30-81. Reassessment if no application is filed.

If no such application is made and the Assessor determines that within the preceding 12 months a property has suffered damage caused by the aforementioned misfortune or calamity, which may qualify the property owner for relief, the Assessor may, but is not required to, reassess the property as provided in Section A30-79 herein, and notify the last known owner of the property of the reassessment, or provide the last known owner of the property with an application for reassessment. The property owner shall file the completed application within 60 days of the date of mailing of notification by the Assessor, but in no case more than 12 months after the occurrence of said damage.

(Ord. No. NS-300.593, § 6, 1-28-97; Ord. No. NS-300.664, § 3, 3-26-02)

Sec. A30-82. Reassessment applicable for fiscal year.

The tax rate fixed for property on the roll on which the property so reassessed appeared at the time of the misfortune or calamity, shall be applied to the amount of the reassessment as determined in accordance with this section and the assessee shall be liable for: (1) a prorated portion of the taxes that would have been due on the property for the current fiscal year had the misfortune or calamity not occurred, to be determined on the basis of the number of months in the current fiscal year prior to the misfortune or calamity; plus, (2) a proration of the tax due on the property as reassessed in its damaged or destroyed condition, to be determined on the basis of the number of months in the fiscal year after the damage or destruction, including the month in which the damage was incurred. If the damage or destruction occurred after January 1 and before the beginning of the next fiscal year, the reassessment shall be utilized to determine the tax liability for the next fiscal year; provided, however, if the property is fully restored during the next fiscal year, taxes due for that year shall be prorated based on the number of months in the year before and after the completion of restoration.

(Ord. No. NS-300.593, § 7, 1-28-97)

Sec. A30-83. Reassessment upon restoration or repair.

The assessed value of the property in its damaged condition, as determined pursuant to Section A30-79, compounded annually by the inflation factor specified in Revenue and Taxation Code § 51(a) shall be the taxable value of the property until it is restored, repaired, reconstructed or other provisions of the law require the establishment of a new base year value.

If partial reconstruction, restoration or repair has occurred on any subsequent lien date, the taxable value shall be increased by an amount determined by multiplying the difference between its factored base year value immediately before the calamity and its assessed value in its damaged condition by the percentage of the repair, reconstruction or restoration completed on that lien date.

(1) When the property is fully repaired, restored or reconstructed, the Assessor shall make an additional assessment or assessments in accordance with Subparagraph (A) or (B) upon completion of the repair, restoration or reconstruction.

(A) If the completion of the repair, restoration or reconstruction occurs on or after January 1, but on or before May 31, then there shall be two additional assessments. The first additional assessment shall be the difference between the new taxable value as of the date of completion and the taxable value on the current roll. The second additional assessment shall be the difference between the new taxable value as of the date of completion and the taxable value to be enrolled on the roll being prepared.

(B) If the completion of the repair, restoration or reconstruction occurs on or after June 1, but before the succeeding January 1, then the additional assessment shall be the difference between the new taxable value as of the date of completion and the taxable value on the current roll.

(2) On the lien date following completion of the repair, restoration or reconstruction, the Assessor shall enroll the new taxable value of the property as of that lien date.

(3) For purposes of this subdivision "new taxable value" shall mean the lesser of the property's (A) full cash value, or (B) factored base year value or its factored base year value as adjusted pursuant to Revenue and Taxation Code § 70(c).

(Ord. No. NS-300.593, § 8, 1-28-97)

Sec. A30-84. Refund of excess taxes paid.

Any tax paid in excess of the total tax due shall be refunded to the taxpayer pursuant to Chapter 5 of Part 9 of the Revenue and Taxation Code (Revenue and Taxation Code § 5096 et seq.), as an erroneously collected tax or by an order of the Board of Supervisors without the necessity of a claim being filed.

(Ord. No. NS-300.593, § 9, 1-28-97)

Sec. A30-85. Operative date.

This chapter shall apply to property damaged on or after January 1, 1997.

(Ord. No. NS-300.593, § 10, 1-28-97)

Secs. A30-86--A30-199. Reserved.

CHAPTER VII.
RESERVED*

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Editor's note--Chapter VII, §§ A30-200.010--A30-200.260, levying a business license tax, derived from Ord. No. NS-218, § 1, adopted Nov. 5, 1991, was repealed by § 1 of Ord. No. NS-219, adopted Dec. 17, 1991.

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Secs. A30-200.010--A30-200.260. Reserved.

DIVISION A30 APPENDIX
REAL PROPERTY TRANSFER TAX REGULATIONS

The following tax material is included in this Code for reference and information.

Section A30-44 of the Code provides that the Recorder shall interpret the provisions of the real property transfer tax consistently with those documentary stamp tax regulations adopted by the Internal Revenue Service of the United States Treasury Department, as the same existed on November 8, 1967, except that the determination of what constitutes "realty" shall be determined by the definition or scope of that term under state law.

The following are regulations from Part 47 of Title 26 of the Code of Federal Regulations applicable to the real property transfer tax, as they existed on November 8, 1967.

Section 47.4361-1. Imposition of tax.

(A) Scope of tax.

(1) Section 4361 imposes a tax upon deeds, instruments, or other writings, whereby realty sold is granted, assigned, transferred, or otherwise conveyed to, or vested in, the purchaser or, at his direction, any other person, when the consideration for, 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 $100.00.

(2) The tax is limited to conveyances of realty sold and does not apply to other conveyances (see Paragraph (B) of Section 47.4361-2). The tax attaches at the time the deed or other instrument of conveyance is delivered, irrespective of the time when the sale is made. Deeds deposited in escrow become subject to the tax upon delivery to the grantee. A conveyance of realty subject to an equity of redemption is taxable when made, not when the time for redemption expires.

(3) For purposes of the tax imposed by Section 4361, the determination of what constitutes "realty" is not controlled by the definition or scope of that term under state law. State law determines the character of the rights conveyed by an instrument, but whether such conveyance constitutes a conveyance of "realty" is to be determined under federal law.

(4) For purposes of the regulations in this part:

(i) The term "realty" includes:

(a) Those interests in real property which endure for a period of time, the termination of which is not fixed or ascertained by a specific number of years, such as an estate in fee simple, life estate, perpetual easement, etc.; and

(b) Those interests enduring for a fixed period of years but which, either by reason of the length of the term or the grant of a right to extend the term by renewal or otherwise, consist of a bundle of rights approximating those of the class of interests mentioned in (a) of this subdivision.

(ii) The term "sold" imports a transfer of an interest for a valuable consideration, which may involve money or anything of value.

(iii) The term "deed" includes any instrument or writing whereby realty is assigned, transferred, or otherwise conveyed to, or vested in, the purchaser, or at his direction, any other person.

(B) Rate and computation of tax. The rate of tax is $0.55 on each $500.00 or fractional part thereof of the net consideration paid for, or the net value of, the realty conveyed, that is, the gross consideration of gross value less, in either case, the amount of all liens or encumbrances on the realty existing before the sale and not removed thereby. The tax is based upon the net consideration where it is definite in amount, or may be definitely determined. The tax is based upon net value where the amount of the consideration is indefinite, or is left open to be fixed by future contingencies. In determining the amount of the net consideration for, or net value of, the realty conveyed, only the amount of the liens and encumbrances on the property existing before the sale and not removed thereby may be deducted. Thus, for example, taxes or assessments which are liens on the property before the sale and are not paid at the time of sale are deductible. No deduction shall be made on account of any lien or encumbrance placed upon the property in connection with the sale, or by reason of deferred payments of the purchase price whether represented by notes or otherwise.

Section 47.4361-2. Illustrations.

(A) Conveyances subject to tax. The following are examples of conveyances subject to the tax:

(1) A conveyance of realty in exchange for other property; also the conveyance of the other property, if it is realty.

(2) A conveyance of realty in consideration of life maintenance. The tax is computed on the net value of the realty conveyed.

(3) A conveyance by a defaulting mortgagor to the mortgagee in consideration of the cancellation of the mortgage debt. The tax is computed on the amount of the unpaid mortgage debt plus unpaid accrued interest.

(4) Deeds given by masters in chancery, sheriffs, clerks of court, etc., for realty sold under foreclosure or execution. The tax is computed on the amount bid for the property plus the costs if paid by the purchaser, whether the purchaser is the mortgagee, judgment creditor, or any other person.

(5) A conveyance of realty by a judgment or decree in a condemnation proceeding under the power of eminent domain, or a conveyance of such property under threat or imminence of such proceeding.

(6) Conveyances to or by building and loan associations. However, the tax does not apply to a conveyance of realty to a building and loan association for the purpose of securing a loan thereon, nor to the reconveyance of the realty to its owner as part of the loan transaction.

(7) A conveyance of realty to a corporation in exchange for shares of its capital stock.

(8) A conveyance of realty by a corporation in a liquidation or in dissolution to its shareholders subject to the debts of the corporation; however, if there are no corporate debts and the conveyance is made solely for the cancellation and retirement of the capital stock, the tax does not apply.

(9) Deeds to standing timber and to mines. (For definition of the term "deed," see Paragraph (A)(4)(iii) of Section 47.4361-1.)

(10) In jurisdictions where common-law dower still exists, an instrument conveying the estate acquired by a widow upon assignment of dower. However, an instrument purporting to convey the inchoate right of dower of a wife, or the consummate right of dower of a widow prior to assignment of dower, is not subject to the tax. Where by statute, dower has been abolished and in lieu thereof a different interest in the husband's real property is conferred upon the wife, the taxability of an instrument purporting to convey such interest prior to its assignment must be determined by the nature of the wife's interest as fixed by the statutes and decisions of the jurisdiction in which the real estate is located.

(11) A conveyance of real estate sold to or by the United States (see, however, Paragraph (A) of Section 47.4384-1).

(12) A conveyance of realty by a partner to the partnership as a contribution of partnership assets. See Section 4383 and Section 47.4383-1 for application of tax in case of a termination of a partnership owning realty.

(B) Conveyances not subject to tax. In addition to the various exemptions prescribed in Sections 4362 and 4382 and in the Bankruptcy Act as amended, the following are examples of conveyances not subject to tax:

(1) The reconveyance of realty, conveyed to secure a debt, upon payment of such debt.

(2) Conveyances of realty without consideration and otherwise than in connection with a sale, including a deed conveying realty as a bona fide gift, although the deed may recite a consideration for the transfer, such as "natural love and affection and $1.00," "desire to promote public welfare and $1.00," or "$1.00 and other valuable consideration"; a gift of realty by a husband to his wife accomplished through the conveyance of the property for an ostensible consideration to a "straw man" who immediately reconveys the property to the wife; and a deed to or by a trustee not pursuant to a sale.

(3) A deed to confirm title already vested in the grantee, such as a quitclaim deed to correct a flaw in title.

(4) A deed given by an executor in accordance with the terms of the will; however, if, by reason of a consideration passing between devisees, one of them takes a greater share in the realty than that to which he is entitled under the will, the deed given by the executor to convey such greater share is subject to a tax computed upon the amount of such consideration.

(5) A deed from an agent to his principal conveying real estate purchased for and with funds of the principal.

(6) An option for the purchase of real property or a contract for the sale of real property, if the contract does not vest legal title.

(7) Partition deeds, unless, for consideration, some of the parties take shares greater in value than their undivided interests, in which event a tax attaches to each deed conveying such greater share computed upon the consideration for the excess.

(8) Ordinary leases of real property for a definite term of years (see, however, Paragraph (A)(4)(i) of Section 47.4361-1).

(9) A deed executed by a debtor conveying property to a trustee for the benefit of his creditors; however, when the trustee conveys such property to a creditor or sells it to any other person, the deed executed by him is taxable.

(10) Conveyance to a receiver of realty included in the receivership assets, and reconveyance of such realty upon termination of the receivership.

(11) A deed conveying real estate situated in a foreign country.

(12) Transfer of real estate in a statutory merger or consolidation from a constituent corporation to the continuing or new corporation.

Section 47.4362-1. Exemptions.

(A) Security for debt. Section 4362 expressly exempts from the tax imposed by Section 4361 any instrument or writing, such as a mortgage or a deed of trust, given to secure a debt.

(B) Conveyance to which state is party. No state or territory, or political subdivision thereof, or the District of Columbia shall be liable for the tax imposed by Section 4361 in respect of a conveyance to which it is a party regardless of the capacity in which it acts. However, the conveyance is not exempt from tax, and the nonexempt party to the conveyance shall be liable for the tax. The affixing of stamps to the deed or other instruments or conveyance by the exempt governmental body does not constitute payment of the tax, and the nonexempt party remains liable for the tax in such case. Where all parties to a taxable conveyance are governmental bodies exempt under Section 362, no tax shall be imposed.