Ordinance 813
ORDINANCE NO.~~
AN ORDINANCE OF THE CITY OF GILROY IMPOSING A
DOCUMENTARY STAMP TAX ON THE SALE OF REAL
PROPERTY
THE CITY COUNCIL OF THE CITY OF GILROY DOES ORDAIN AS FOLLOWS:
SECTION I: This Ordinance shall be known as the "Real Property
Transfer Tax Ordinance of the City of Gilroy". It is adopted pur-
suant to the authority contained in Part 6.7 (Commencing with Sec-
tion 11901) of Division 2 of the Revenue and Taxation Code of the
State of California.
SECTION II: There is hereby imposed on each deed, instrument or
writing by which any lands, tenements, or other realty sold within
the City of Gilroy shall be granted, assigned, transferred or other-
wise conveyed to, or vested in, the purchaser or purchasers, or any
other person or persons, by his or their direction, when the consid-
eration or value of the interest or property conveyed (exclusive of
the value of any lien or encumbrances remaining thereon at the time
of sale) exceeds one hundred dollars ($100.00), a tax at the rate of
twenty-seven and one-half cents ($0.275) for each five hundred dollars
($500.00) or fractional part thereof.
SECTION III: Any tax imposed pursuant to Section II hereof shall be
paid by any person who makes, signs or issues any document or instru-
ment subject to the tax, or for whose use or benefit the same is made,
signed or issued.
SECTION IV: Any tax imposed pursuant to this Ordinance shall not
apply to any instrument in writing given to secure a debt.
SECTION V: The United states or any agency or instrumentality thereof,
any state or territory, or political subdivision thereof, or the Dis-
trict of Columbia shall not be liable for any tax imposed pursuant to
this Ordinance with respect to any Deed, instrument, or writing to
which it is a party, but the tax may be collected by assessment from
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any other party liable therefor.
SECTION VI: Any tax imposed pursuant to this Ordinance 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 an equity receivership proceeding in a
Court involving a railroad corporation, as defined in
subdivision (m) of Section 205 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 subdivision (3)
of Section 506 of Title 11 of the United States Code, as
amended; or
(d) Whereby a mere change in identity, form or place of organi-
zation is effected.
subdivision (a) to (d), inclusive, of this section shall only
apply if the making, delivery or filing of instruments bf transfer
or conveyances occurs within five years from the date of such confirm-
ation, approval or change.
SECTION VII: Any tax imposed pursuant to this Ordinance shall not
apply to the making or delivery of conveyances to make effective any
order of the Securities and Exchange Commission, as defined in sub-
division (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 Com-
pany Act of 1935;
(b) Such order specifies the property which is ordered to be
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conveyed;
(c) Such conveyance is made in obedience to such order.
SECTION VIII: (a) In the case of any realty held by a partner-
ship, no levy shall be imposed pursuant to this Ordinance by reason
of any transfer of an interest in a partnership or other wise, if:
(1) Such partnership (or another partnership) is considered
a continuing partnership within the meaning of Section 708 of the
Internal Revenue Code of 1954; and
(2) Such continuing partnership continues to hold the realty
concerned.
(b) If there is a termination of any partnership within the
meaning of section 708 of the Internal Revenue Code of 1954, for
purposes of. this ordinance, such partnership shall be treated as
having executed an instrument whereby there was conveyed, for fair
market value (exclusive of the value of ~ lien or encumbrance re-
maining thereon), all realty held by such partnership at the time of
such termination.
(c) Not more than one tax shall be imposed pursuant to this
Ordinance by reason of a termination described in subdivision (b),
and any transfer pursuant thereto, with respect to the realty held
by such partnership at the time of such termination.
SECTION IX: The County Remrder shall administer this Ordinance in
conformity with the provisions of Part 6.7 of Division 2 of the Revenue
and Taxation Code and the provisions of any county ordinance adopted
pursuant thereto.
SECTION X: Claims for refund of taxes imposed pursuant to this Or-
dinance shall be governed by the provisions of Chapter 5 (commencing
with Section 5096) of Part 9 of Division 1 of the Revenue and Taxa-
tion Code of the State of California.
SECTION XI: This Ordinance shall become operative upon the opera-
tive date of any Ordinance adopted by the County of Santa Clara,
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pursuant to Part 6.7 (commencing with Section 11901) of Division
2 of the Revenue and Taxation Code of the State of California, or
upon the effective date of this Ordinance, whichever is the later.
SECTION XII: Upon its adoption the City Clerk shall file two copies
of this Ordinance with the County Recorder of the County of Santa
Clara.
SECTION XIII: This Ordinance, inasmuch as it provides for a tax
levy for the usual and current expenses of the City, shall take ef-
fect immediately.
The foregoing Ordinance was introduced at a regular meeting of
the City Council of the City of Gilroy held on the 4th day of Decem-
ber, 1967, to take effect immediately for the reasons set forth in
Section XIII of this Ordinance and was ordered published by title and
summary in accordance with the City Charter,by the following vote:
AYES: COUNCILMEMBERS: A 11 emand, Duffi n ,Kennedy ,Jr. ,Quart i ro 1 i , S i 1 va,
Wentworth, and G00drich.
NOES: COUNCILME~ERS: None
ABSENT: COUNCILMEMBERS: None
APPROVED:
, g li~1
i.il7At'f ~3. i7th:rd'
Mayor
ATTEST!; ;J
O~~!v1mnJ t, I ~
, City Clerk)
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I, SUSANNE E. PAYNE ,City Clerk of
the City of Gilroy, do hereby certify that the attached Ordinance
No. 81~ is an original ordinance, duly adopted by the Counci I
of the City of Gilroy at a regular meeting of said Council held on
the 4th day of December, J9 67 , at which meeting
a quorum was present.
further certify that the said ordinance has been pub-
lished in accordance with the charter of the City of Gilroy.
IN WITNESS WHEREOF, I have hereunto set my hand and af-
fixed th is 5th day of