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Ordinance - 1019ORDINANCE NO. 1019 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST COVINA ADDING CHAPTER 5 CONSISTING OF SECTIONS 6500 THROUGH 6511 IMPOSING A DOCUMENTARY STAMP TAX ON THE SALE OF REAL PROPERTY., The City Council of the City of West Covina does ordain as follows: SECTION 1. Article VI of the West Covina Municipal Code is hereby amended by adding thereto Chapter 5 consisting of Sections 6500 through 6511 inclusive to read respectively as follows: "CHAPTER 5 - DOCUMENTARY STAMP TAX - SALE OF REAL PROPERTY 6500. TITLE. This ordinance shall be known as the "Real Property Transfer Tax Ordinance. It is adopted ursuant to the authority contained in Part 6.7 (pcommencing with Section 11901) of Division 2 of the Revenue and Taxation Code of the State of California. 6501. TAX IMPOSED. There is hereby imposed on each deed, instrument or writing by which any lands, tenements, or other realty sold within the City shall be granted, assigned, transferred or otherwise conveyed to, or vested in, the purchaser or purchasers, or any other person or persons, by his or their direction, when the consideration 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), a tax at the rate of twenty-seven and one-half cents ($0.275) for each five hundred dollars ($500) or fractional part thereof. 6502. PERSON RESPONSIBLE. Any tax imposed pursuant to Section 6501 hereof 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. 6503. SECURITY TRANSACTION. Any tax imposed pursuant to this Chapter shall not apply to any instrument in writing given to secure a debt. 6504. UNITED STATES. The United States or any agency or instru- mentality thereof, any state or territory, or political subdivision thereof, or the District of Columbia shall not be liable for any tax imposed pursuant to this Chapter with respect to any deed, instrument, or writing to which it is a party, but the tax may be collected by assessment from any other party liable therefor. • 6505. EXEMPTIONS . Any tax imposed pursuant to this Chapter shall not apply to the making, delivering or filing of con- veyances to make effective any plan of reorganization or adjustment -- (a) Confirmed under the Federal Bankruptcy Act, as amended; (b) Approved in an equity receivership pro- ceeding in a court involving a railroad corpo- ration, as defined in subdivision (in) of Section 205 of Title 11 of the United States Code, as amended; (c) Approved in an equity receivership pro- ceeding 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 organization is effected. Subdivisions (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 con- firmation, approval or change. 65o6. SAME. Any 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 nece- ssary or appropriate to effectuate the provi- sions 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; (c) Such conveyance is made in obedience to such order. 6507. PARTNERSHIPS. (a) In the case of any realty held by a part- nership, no levy shall be imposed pursuant to this Chapter by reason of any transfer of an interest in a partnership or otherwise, if-- -2- 0 (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 contin- ues to hold the realty concerned. (b) If there is a termination of any partner- ship within the meaning of Section 708 of the Internal Revenue Code of 1954, for purposes of this Chapter, such partnership 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 remain- ing thereon), all realty held by such partner- ship at the time of such termination. (c) Not more than one tax shall be imposed pursuant to this Chapter 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. 65o8. ADMINISTRATION. The County Recorder shall administer this Chapter 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. 6509. REFUNDS. Claims for refund of taxes imposed pursuant to this Chapter shall be governed by the provisions of Chapter 5 (commencing with Section 5096) of Part 9 of Division 1 of the Revenue and Taxation Code of the State of California. 6510. 0 PERA TIVE DATE. This Chapter shall become operative upon the operative date of any ordinance adopted by the County of Los Angeles, pursuant to Part 6.7 (com- mencing 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, which- ever is the later. 6511. RECORDATION. Upon its adoption the City Clerk shall file two copies of this ordinance with the County Recorder of Los Angeles County." SECTION 2. This Ordinance, inasmuch as it provides for a tax levy for the usual and current expenses of the City, shall • take effect immediately and the City Clerk shall cause the same to be published at least once in the official newspaper within fifteen (15) days after its adoption. -3- 0 SECTION 3. The City Clerk shall certify to the adoption of this Ordinance. 1967. PASSED AND APPROVED this llth day of December , STATE OF CALIFORNIA COUNTY OF LOS ANGELES SS. CITY OF 14EST COVINA I, LELA W. PRESTON, City Clerk of the City of West Covina, do hereby certify that the foregoing Ordinance No. 1019 was regularly introduced and placed upon its first reading at a regular meeting of the City Council on the 27th day of November , 1967. That, thereafter, said ordinance was duly adopted and passed at a regular meeting of the City Council on the llth day of December , 1967, by the following vote, to wit: AYES: Councilmen: Gillum, Nichols, Gleckman, Snyder, Krieger NOES: Councilmen: None . ABSENT: Councilmen: None CityCer 11