R112781
City Council Meeting: July 28, 2020 Santa Monica, California
RESOLUTION NUMBER 11278 (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA SUBMITTING TO THE VOTERS A MEASURE TO AMEND SANTA
MONICA MUNICIPAL CODE CHAPTER 6.96 AND SET THE REAL PROPERTY
TRANSFER TAX RATE AT SIX DOLLARS PER THOUSAND DOLLARS OF
CONSIDERATION OR PROPERTY VALUE TRANSFERRED FOR ALL SALES OR
TRANSFERS OF FIVE MILLION DOLLARS OR GREATER
WHEREAS, on November 28, 1967, the City Council of the City Of Santa Monica
adopted Ordinance No. 761 (CCS), which established the Real Property Transfer Tax
Ordinance of the City of Santa Monica (the “City Real Estate Transfer Tax”), and set a
real estate transfer tax rate of $0.55 per $1,000 of consideration or property value
transferred; and
WHEREAS, on August 13, 1991, the City Council adopted Ordinance No. 1596
(CCS), which, among other things, amended the City Real Estate Transfer Tax to
establish a real estate transfer tax rate of $3.00 per $1,000 of consideration or property
value transferred; and
WHEREAS, many residents live in the City of Santa Monica because the City
invests in community priorities, offering extensive services and programs that
substantially enhance the quality of life of its residents; and
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WHEREAS, the ongoing COVID-19 global pandemic has devastated nearly all of
the City’s long-trusted revenue streams, including sales tax, transient occupancy tax,
parking revenue, and business license revenue; and
WHEREAS, the City Council has taken proactive steps to reduce expenses, save
money, and maintain the level of services the community has come to expect; and
WHEREAS, in response to a significant reduction in local revenues, the City
Council has reduced service positions and deferred infrastructure maintenance; and
WHEREAS, sustaining a lower level of services and deferring infrastructure
maintenance until the local economy recovers will erode the progress that the City has
made over time in meeting community needs; and
WHEREAS, the City is working closely with small businesses, employers, and
other stakeholders to implement an economic recovery plan, but it is expected that it will
take time for national and local economies to recover; and
WHEREAS, a new, locally-controlled revenue source is needed to preserve Santa
Monica’s essential city services; and
WHEREAS, increasing the City Real Estate Transfer Tax rate to $6.00 per $1,000
of consideration or property value transferred for properties that are sold or transferred
with a valuation of $5,000,000.00 or higher would partially fill the revenue gap created by
COVID-19 and help preserve Santa Monica’s essential city services; and
WHEREAS, the current City Real Estate Transfer Tax rate is set at only three
dollars per thousand dollars of consideration or property value transferred for all sales
and transfers of commercial and residential properties; and
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WHEREAS, the City Real Estate Transfer Tax rate is 33% lower than the real
estate transfer tax rates in the nearby cities of Culver City and Los Angeles; and
WHEREAS, an incremental increase on the one-time tax for each time a property
with a valuation of $5,000,000.00 or higher is sold or otherwise transferred will only impact
approximately 10% of the sales and transfers in the City; and
WHEREAS, the proposed incremental increase would help provide new, ongoing
revenue to help preserve key foundational services, including: keeping public spaces
such as parks, beaches, and beach restrooms clean and safe; homelessness prevention
planning and programs; tenant protection programs; afterschool and mental health
support programs for youth; emergency response; library programs; economic recovery
programs; infrastructure maintenance; and food programs for the hungry; and
WHEREAS, under applicable law, the City Council of the City of Santa Monica
must present any proposed increase to the City Real Estate Transfer Tax to the electorate
of the City of Santa Monica for adoption by majority vote of the electorate.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AND PROCLAIM AS FOLLOWS:
SECTION 1. A General Municipal Election has been called for November 3, 2020,
for the purpose of, among other things, electing City Council members and submitting
measures and ballot propositions to the voters.
SECTION 2. At the General Municipal Election called for November 3, 2020, the
following measure to amend the Santa Monica Municipal Code shall be placed on the
ballot and submitted to the qualified electors of the City of Santa Monica:
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MEASURE “_”:
To protect essential services including addressing
homelessness, cleaning beaches/parks, public safety/ fire/
emergency response, protections for tenants and seniors,
supporting libraries, small business recovery, food for the
hungry, and after-school/ mental health services for youth,
shall the City of Santa Monica increase the one-time real
estate transfer tax paid on each sale of property for $5 million
or more by $3.00 per $1,000 of sales price, exempting
affordable housing projects, providing $3 million annually for
local services?
YES
_________
NO
SECTION 3. The City of Santa Monica recognizes that additional costs may be
incurred by the County by reasons of the addition of this measure to the ballot and agrees
to reimburse the County for any additional costs performed upon presentation of a bill
pursuant to Elections Code Section 10002.
SECTION 4. The City Clerk shall transmit to the City Attorney, in accordance with
Elections Code Section 9280, a copy of this ballot measure. The City Attorney shall
prepare an impartial analysis of the ballot measure, which shall not exceed 500 words in
length. The impartial analysis shall be filed by the date set by the City Clerk for the filing
of primary arguments. In accordance with Santa Monica Municipal Code section
11.04.190 and California Elections Code Section 9295, not less than 10 calendar days
before the City Clerk submits the official elections materials for printing, the City Clerk
shall make a copy of all applicable election materials available for public examination in
the City Clerk’s office.
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SECTION 5. The City Council authorizes its members, as follows, to file written
arguments for or against the ballot measure:
FOR: Mayor Kevin McKeown
AGAINST: _____________________________________
All written arguments filed by any person in favor of or against the ballot measure,
including any rebuttal arguments, shall be accompanied by the names and signatures of
the persons submitting the arguments as required by applicable law, and any names,
signatures and arguments may be filed until the time and date fixed by the City Clerk in
accordance with applicable law, after which no change may be submitted to the City Clerk
unless permitted by law.
SECTION 6. The City Clerk shall cause the text of the ballot measure, which is
contained in Exhibit 1, together with the City Attorney’s impartial analysis, and any
arguments for or against the measure, as well as any rebuttal, to be mailed to all qualified
voters with the sample ballot. In addition to other notices and publications required by
law, the City Clerk, not less than forty (40) days and not more than sixty (60) days before
the statewide general election, shall cause the text of the ballot measure to be published
once in the official newspaper and in each edition thereof during the day of publication.
The City Clerk is authorized to give such notice and to fix such times and dates as are
required by law or which are appropriate to conduct properly the election.
SECTION 7. The provisions of Resolutions 11254 and 11255 (CCS) are referred
to and incorporated into this Resolution. Those Resolutions provide necessary particulars
concerning the General Municipal Election to be held on November 3, 2020, and among
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other things, deal with the placing on the ballot of this and other measures as well as the
conduct, consolidation and coordination of the General Municipal Election with the
General Statewide Election, which will also be conducted on November 3, 2020. In all
respects, the election shall be held and conducted as provided for by applicable law,
including but not limited to the above referenced Resolutions. The City Clerk is authorized
and directed to procure and furnish any official ballots, notices, printed materials and all
supplies or equipment that may be necessary in order to conduct the election properly
and lawfully.
SECTION 8. The City Clerk shall certify to the adoption of this Resolution, and
thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
_________________________
GEORGE S. CARDONA
Interim City Attorney
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Exhibit 1
CITY COUNCIL PROPOSED MEASURE TO AMEND SANTA MONICA MUNICIPAL
CODE CHAPTER 6.96 AND SET THE REAL PROPERTY TRANSFER TAX RATE AT
SIX DOLLARS PER THOUSAND DOLLARS OF CONSIDERATION OR PROPERTY
VALUE TRANSFERRED FOR ALL SALES OR TRANSFERS OF FIVE MILLION
DOLLARS OR GREATER
WHEREAS, on November 28, 1967, the City Council of the City Of Santa Monica
adopted Ordinance No. 761 (CCS), which established the Real Property Transfer Tax
Ordinance of the City of Santa Monica (the “City Real Estate Transfer Tax”), and set a
real estate transfer tax rate of $0.55 per $1,000 of consideration or property value
transferred; and
WHEREAS, on August 13, 1991, the City Council adopted Ordinance No. 1596
(CCS), which, among other things, amended the City Real Estate Transfer Tax to
establish a real estate transfer tax rate of $3.00 per $1,000 of consideration or property
value transferred; and
WHEREAS, many residents live in the City of Santa Monica because the City
invests in community priorities, offering extensive services and programs that
substantially enhance the quality of life of its residents; and
WHEREAS, the ongoing COVID-19 global pandemic has devastated nearly all of
the City’s long-trusted revenue streams, including sales tax, transient occupancy tax,
parking revenue, and business license revenue; and
WHEREAS, the City Council has taken proactive steps to reduce expenses, save
money, and maintain the level of services the community has come to expect; and
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WHEREAS, in response to a significant reduction in local revenues, the City
Council has reduced service positions and deferred infrastructure maintenance; and
WHEREAS, sustaining a lower level of services and deferring infrastructure
maintenance until the local economy recovers will erode the progress that the City has
made over time in meeting community needs; and
WHEREAS, the City is working closely with small businesses, employers, and
other stakeholders to implement an economic recovery plan, but it is expected that it will
take time for national and local economies to recover; and
WHEREAS, a new, locally-controlled revenue source is needed to preserve Santa
Monica’s essential city services; and
WHEREAS, increasing the City Real Estate Transfer Tax rate to $6.00 per $1,000
of consideration or property value transferred for properties that are sold or transferred
with a valuation of $5,000,000.00 or higher would partially fill the revenue gap created by
COVID-19 and help preserve Santa Monica’s essential city services; and
WHEREAS, the current City Real Estate Transfer Tax rate is set at only three
dollars per thousand dollars of consideration or property value transferred for all sales
and transfers of commercial and residential properties; and
WHEREAS, the City Real Estate Transfer Tax rate is 33% lower than the real
estate transfer tax rates in the nearby cities of Culver City and Los Angeles; and
WHEREAS, an incremental increase on the one-time tax for each time a property
with a valuation of $5,000,000.00 or higher is sold or otherwise transferred will only impact
approximately 10% of the sales and transfers in the City; and
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WHEREAS, the proposed incremental increase would help provide new, ongoing
revenue to help preserve key foundational services, including: keeping public spaces
such as parks, beaches, and beach restrooms clean and safe; homelessness prevention
planning and programs; tenant protection programs; afterschool and mental health
support programs for youth; emergency response; library programs; economic recovery
programs; infrastructure maintenance; and food programs for the hungry; and
WHEREAS, under applicable law, the City Council of the City of Santa Monica
must present any proposed increase to the City Real Estate Transfer Tax to the electorate
of the City of Santa Monica for adoption by majority vote of the electorate.
NOW, THEREFORE:
SECTION 1. Chapter 6.96 of the Santa Monica Municipal Code is amended to read
as follows:
6.96.010 Title.
This Chapter shall be known as the “Real Property Transfer Tax Ordinance of the
City of Santa Monica.” It is adopted pursuant to the authority contained in Part 6.7
(commencing with Section 11901) of Division 2 of the Revenue and Taxation Code of
the State of California and other authority held as a charter city.
6.96.015 Definitions.
For purposes of this Chapter, the following terms shall have the following meanings:
(a) “Affordable Housing Transfer” shall mean a transfer of property to: (1) a
nonprofit corporation; (2) a limited partnership or limited liability company in which a
nonprofit corporation is the managing general partner or managing member; or (3) a
community land trust (as defined by Revenue and Taxation Code Section 402.1) and
operated in accordance with Revenue and Taxation Code Section 214.18, if the
property is subject to a binding agreement or covenant recorded on the real property
and enforceable by the City to provide all residential units on the property (other than
units reserved for on-site property managers) at an affordable rent or affordable housing
cost to lower income households as defined in California Health and Safety Code
Section 50079.5;
(b) “City” shall mean the City of Santa Monica;
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(c) “City Collected Portion” shall mean, with respect to any Second Tier Tax
owed, one half of that Second Tier Tax;
(d) “County” shall mean the County of Los Angeles;
(e) “County Collected Portion” shall mean, with respect to any Second Tier
Tax owed, one half of that Second Tier Tax;
(f) “First Tier Tax” shall mean the City-imposed tax pursuant to this Chapter
to be paid at the First Tier Tax Rate on any sale or transfer within the City;
(g) “First Tier Tax Rate” shall mean the tax rate of three dollars for each one
thousand dollars of consideration or property value, or fractional part thereof, which tax
rate is equivalent to the tax rate that shall remain in effect prior to March 1, 2021;
(h) “Second Tier Tax” shall mean the City-imposed tax pursuant to this
Chapter to be paid at the Second Tier Tax Rate on any sale or transfer within the City;
(i) “Second Tier Tax Agreement” shall mean a fully executed and binding
agreement between City and County that requires the County to administer the entirety
of the Second Tier Tax;
(j) “Second Tier Tax Rate” shall mean the tax rate of six dollars for each one
thousand dollars of consideration or property value, or fractional part thereof.
6.96.020 Transfers affected and amount of tax.
Effective October 15, 1991 March 1, 2021, there is hereby imposed on each deed,
instrument, or writing by which any lands, tenements, or other realty sold within the City
of Santa Monica shall be granted, assigned, transferred or otherwise conveyed to, or
vested in, the purchaser or purchasers, or any other person or persons, by his, her or
their direction, when the consideration or value of the interest or property conveyed
(exclusive of the value of any lien or encumbrance remaining thereon at the time of
sale) exceeds one hundred dollars, a tax at the rates set forth below:
(a) for sales or transfers when the consideration or value of the interest or
property conveyed is less than $5,000,000.00, the First Tier Tax Rate; and
(b) for sales or transfers when the consideration or value of the interest or
property conveyed is greater than or equal to $5,000,000.00, the Second Tier
Tax Rate.
Prior to October 15, 1991 March 1, 2021, the tax at the rate of fifty-five cents
three dollars for each one thousand dollars of consideration or property sale value, or
fractional part thereof, shall remain in effect.
6.96.030 Taxpayer designated.
Any tax imposed pursuant to Section 6.96.020 hereof shall be paid by: (1) any
person who makes, signs or issues any document or instrument subject to the tax; or
(2) any person for whose use or benefit any document or instrument subject to the tax
the same is made, signed or issued; or (3) any combination thereof. The obligation to
pay any tax imposed pursuant to Section 6.96.020 shall be a joint and several liability of
the taxpayers identified in this section.
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6.96.035 Payment of First Tier Tax to County, Payment of Second Tier Tax to
County and City
Any taxes due under this Chapter shall be paid prior to recording any deed,
instrument, or writing subject to the tax. Payment shall be made as follows:
(a) Any First Tier Tax owed shall be paid directly to the County on behalf of the
City;
(b) Unless the County enters into a Second Tier Tax Agreement, any Second
Tier Tax owed shall be paid in two equal parts:
i. The County Collected Portion (three dollars for each one thousand
dollars of consideration or property value, or fractional part thereof)
shall be paid to the County on behalf of the City; and
ii. The City Collected Portion (three dollars for each one thousand
dollars of consideration or property value, or fractional part thereof)
shall be paid directly to City.
6.96.036 Payment of Entire Second Tier Tax to County Upon Execution of Binding
Agreement - Notice.
In the event that the City and County enter into a Second Tier Tax Agreement, the
County is authorized to collect the entirety of the Second Tier Tax as if Section
6.96.035(b) did not exist. The City shall provide at least 90-days notice of the effective
date of any Second Tier Tax Agreement on its website.
6.96.040 Debt-securing instrument exempted.
Any tax imposed pursuant to this Chapter shall not apply to any instrument in writing
given to secure a debt.
6.96.050 Certain governmental units exempted.
The United States or any agency or instrumentality thereof, any state or territory, or
political subdivision thereof, including any city, county, 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.
6.96.051 Partial exemption for certain affordable housing developments by non-
profit corporations and community land trusts.
For an Affordable Housing Transfer in which the consideration or value of the
interest or property conveyed is greater than or equal to $5,000,000.00:
(a) If prior to the time an obligation to collect the City Collected Portion of the
Second Tier Tax arises under Section 6.96.095 of this Chapter, a taxpayer with respect
to the transfer, as defined in Section 6.96.030 of this Chapter, obtains from the Director
of Finance a certification that the transfer is an Affordable Housing Transfer, no
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taxpayer with respect to the Affordable Housing Transfer shall be required to pay the
City Collected Portion of the Second Tier Tax on the Affordable Housing Transfer;
(b) If the City Collected Portion of the Second Tier Tax is paid on an Affordable
Housing Transfer, any taxpayer with respect to the transfer, as defined in Section
6.96.030 of this Chapter, may apply to the Director of Finance for a refund of that
portion of the City Collected Portion of the Second Tier Tax paid by the taxpayer on the
Affordable Housing Transfer; any such application for a refund must be submitted within
120-days of the transfer subject to the Second Tier Tax.
6.96.060 Plans of reorganization or adjustment.
Any 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 an equity receivership proceeding in a court involving a railroad
corporation, as defined in subdivision (m) of Section 205 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 subdivision (3) of Section 506 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.
6.96.070 Securities and Exchange Commission orders.
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 195486,
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; and
(c) Such conveyance is made in obedience to such order.
6.96.080 Partnerships.
(a) In the case of any realty held by a partnership, no levy shall be imposed
pursuant to this Chapter by reason of any transfer of an interest in a partnership or
otherwise, if:
(1) Such partnership (of another partnership) is considered a continuing partnership
within the meaning of Section 708 of the Internal Revenue Code of 195486; and
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(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 195486, 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 remaining 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 Chapter by reason of a
termination described in subsection (b), and any transfer pursuant thereto, with respect
to the realty held by such partnership at the time of such termination.
6.96.090 Administration by County Recorder as to First Tier Tax and County
Collected Portion of Second Tier Tax Absent Second Tier Tax Agreement.
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. The City Manager of the City of Santa
Monica is authorized to negotiate and enter into a contract with the County of Los
Angeles or one of its officials for the administration of this Chapter and payment to the
County for its costs of administration. Until the effective date of a Second Tier Tax
Agreement, the County shall administer and collect: (1) the entirety of any First Tier
Tax; and (2) the County Collected Portion of any Second Tier Tax. Following the
effective date of a Second Tier Tax Agreement, the County will collect: (1) the entirety of
any First Tier Tax; and (2) the entirety of any Second Tier Tax as provided in the
Second Tier Tax Agreement.
The City Manager is authorized to negotiate, modify, and enter into a contract
with the County or one of its officials for the administration of this Chapter and payment
to the County for its costs of administration.
6.96.095 Administration of City Collected Portion of Second Tier Tax by recording
party or agent.
Unless a Second Tier Tax Agreement has been executed and the City has
provided at least 90-days notice on its website of the effective date of said agreement in
accordance with Section 6.96.036, the City Collected Portion of any Second Tier Tax
shall be administered as follows:
(a) Any entity (including any escrow company, title company, or taxpayer as defined
in Section 6.96.030, or agent thereof) that records any deed or written instrument
subject to the Second Tier Tax Rate set forth by Section 6.96.020(b) shall be
responsible for ensuring that the City Collected Portion of the Second Tier Tax is
collected and paid prior to said recording.
(b) Escrow companies that are involved in a property sale or transfer to which the
Second Tier Tax Rate applies shall ensure that either:
(i) the City Collected Portion of the Second Tier Tax has been paid to the
City prior to recording any deed or written instrument subject to the
Second Tier Tax Rate; or
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(ii) funds sufficient to cover the City Collected Portion of the Second Tier
Tax have been set aside to be distributed to City at the time of
recording.
(c) the Director of Finance is authorized to promulgate any rules or regulations
reasonably necessary to administer the City Collected Portion of the Second Tier
Tax, as well as necessary forms and receipts.
Following the effective date of a Second Tier Tax Agreement, the obligations
imposed by subsections (a) and (b) of this Section 6.96.095 will cease to exist.
6.96.100 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 Division 1 of
the Revenue and Taxation Code of the State of California. The Director of Finance may
issue rules or regulations reasonably necessary to establish and administer a refund
application process (including any necessary forms or declarations) to issue any
refunds due pursuant to the partial exemptions in Section 6.96.051.
6.96.110 Authority of Finance Director.
(a) The Director of Finance is hereby designated as the officer of the City
responsible for maintaining relations with the County of Los Angeles for the purpose of
administering the tax imposed under this Chapter and receiving and accounting for the
funds collected thereunder.
(b) If the County of Los Angeles or the entities identified in Section 6.96.095 does
not collect or administer the tax due under this Chapter, or if any tax owed is otherwise
unpaid, then the Director of Finance shall have the power and duty to enforce all of the
provisions of this Chapter. The Director of Finance, designee, or any third-party agent
authorized by the Director of Finance may collect any unpaid tax through any lawful
means.
(c) The Director of Finance is authorized to issue any rules and regulations
reasonably necessary to implement and administer this Chapter. In such case, the City
tax is due prior to any recordation with the County of Los Angeles of any written
instrument subject to the tax and the Director of Finance may make an assessment for
taxes not paid and make refunds.
6.96.120 Due dates, delinquencies, penalties, interest, and administrative
charges.
The tax imposed under this Chapter is due and payable at the time the deed,
instrument, or writing effecting a transfer subject to the tax is delivered to the County
Recorder. Any such tax is delinquent if unpaid at the time of recordation. In cases
where a transfer is effected but not recorded with the County Recorder within ninety
(90) days of acceptance, all statutes of limitation regarding liability for this tax will be
tolled until the City has actual knowledge of the transfer or recording, at which time the
tax, penalties, and interest on the unrecorded transfer will relate back to the actual
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transfer date of such unrecorded transfer. Any unpaid tax pursuant to this Chapter will
be a joint and several liability of all taxpayers, as designated by Section 6.96.030 of this
Chapter.
If any tax is not paid prior to becoming delinquent, the Director of Finance may
impose a delinquency penalty of up to ten percent of the amount of the tax due. To the
extent permitted by law, the Director of Finance may establish rules and regulations that
establish an applicable interest rate. The Director of Finance shall have the power to
reduce or waive any penalty or interest applicable under this Chapter so long as such
reduction or waiver is in writing and in compliance with any City-issued rules or
regulations concerning this Chapter. Any request for reduction or waiver of any penalty
or interest assessed pursuant to this Chapter shall be made in writing no later than thirty
days following the assessment of such penalty or interest.
6.96.130 Declaration or additional records may be required.
The tax imposed by this Chapter shall be paid to the City by the taxpayers referred
to in Section 6.96.030. The Director of Finance shall have the authority as part of any
rules and regulations promulgated by him or her as provided for herein to require that
the payment shall be accompanied by a declaration of the amount of tax due signed by
the person paying the tax or by his agent. The declaration shall include a statement of
the value of the consideration on which the tax due was computed. The declaration also
shall identify the property address and deed, instrument or writing effecting the transfer
for which the tax is being paid. The Director of Finance, or designee, may require
delivery of a copy of such deed, instrument or writing whenever reasonably necessary
to adequately identify such writing or to administer the provisions of this Chapter. The
Director of Finance, or designee, may rely on the declaration as to the amount of the tax
due; provided, he or she has no reason to believe that the full amount of the tax due is
not shown on the declaration.
Whenever the Director of Finance, or designee, has reason to believe that the full
amount of tax due is not shown on the declaration or has not been paid, he or she may,
by notice served upon any person liable for the tax, require him or her to furnish a true
copy of his or her records relevant to the value of the consideration or fair market value
of the property transferred. Such notice may be served at any time within three years
after recordation of the deed, instrument or writing which transfers such property.
6.96.140 Determination of deficiency.
If on the basis of such information as the Director of Finance receives pursuant to
the last paragraph of Section 6.96.130 and/or on the basis of such other relevant
information that comes into his or her possession, he or she determines that the amount
of tax due as set forth in the declaration, or as paid, is insufficient, he or she may
recompute the tax due on the basis of such information.
If the declaration required by Section 6.96.130 is not submitted, the Director of
Finance may make an estimate of the value of the consideration for the property
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conveyed and determine the amount of tax to be paid on the basis of any information in
his or her possession or that may come into his or her possession.
One or more deficiency determinations may be made of the amount due with
respect to any transfer.
6.96.150 Notice of determination.
The Director of Finance, or designee, shall give written notice to a person liable for
payment of the tax imposed under this Chapter of his or her determination made under
Section 6.96.140. Such notice shall be given within three years after the recordation of
the deed, instrument or writing effecting the transfer on which the tax deficiency
determination was made.
6.96.160 Manner of giving notice.
Any notice required under this Chapter may be served personally or by mail; if by
mail, service shall be made by depositing the notice in the United States mail, in a
sealed envelope with postage paid, addressed to the person on whom it is to be served
at his or her address as it appears in the records of City or as ascertained by the
Director of Finance, or designee. The service is complete at the time of the deposit of
the notice in the United States mail, without extension of time for any reason.
6.96.170 Petition for redetermination.
Any person against whom a determination is made under this Chapter or any
person directly interested may petition the Director of Finance for a redetermination
within sixty (60) days after service upon the person of notice thereof. If a petition for
redetermination is not filed in writing with the Director of Finance within the sixty (60)
day period, the determination becomes final at the expiration of the period.
6.96.180 Consideration of petition for redetermination — Hearing.
If a petition for redetermination is filed within the sixty (60) day period, the Director
of Finance, or designee, shall reconsider the determination and, if the person has so
requested in his petition, shall grant the person an oral hearing, and shall give him ten
days' notice of the time and place of hearing. The Director of Finance may designate
one or more deputies for the purpose of conducting hearings and may continue a
hearing from time to time as may be necessary.
6.96.190 Determination of petition.
The Director of Finance, or designee, may decrease or increase the amount of the
determination before it becomes final, but the amount may be increased only if a claim
for the increase is asserted by the Director of Finance, or designee, at or before the
hearing.
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6.96.200 Finality of determination.
The order or decision of the Director of Finance, or designee, upon a petition for
redetermination becomes final thirty (30) days after service of notice thereof upon the
petitioner or at the time of hearing of redetermination. There is no appeal of the Director
of Finance's (or designee’s) decision to the City Council; writs challenging the Director's
decision conveyed by his/her deputies at an administrative hearing must be filed with
the appropriate court within ninety (90) days of the final date of such redetermination.
(California Code of Civil Procedure § 1094.6.)
6.96.210 Tax a debt.
The amount of any tax, penalties, and interest imposed under the provisions of this
Chapter shall be deemed a debt to the City. Any person owing money to the City under
the provisions of this Chapter shall be liable to an action brought in the City’s name for
the recovery of such amount.
6.96.220 Tax a lien.
The amount of tax, penalties and interest imposed under the provisions of this
Chapter is assessed against the property upon the transfer of which the tax is imposed,
and if not paid when due, such tax shall constitute an assessment against such property
and shall be a lien on the property for the amount thereof, which lien shall continue until
the amount thereof including all penalties and interest are paid, or until it is discharged
of record. Any person owing money to the City under the provisions of this Chapter shall
be liable to an action brought in the name of the City for the recovery of such amount.
6.96.230 Notice of hearing on lien.
The Director of Finance shall file with the City Manager a written notice of those
persons on whom the City will file liens. Upon the receipt of such notice the City
Manager shall present same to the City Council, and the City Council shall forthwith, by
resolution, fix a time and place for a public hearing to confirm such liens.
The Director of Finance shall cause a copy of such resolution and notice to be
served upon the transferor or transferee of property not less than ten days prior to the
time fixed for such hearing. Such service shall be by mailing a copy of such resolution
and notice to the transferor or transferee of property at his or her last known address.
Service shall be deemed complete at the time of deposit in the United States mail.
6.96.240 Collection of delinquent taxes by special tax roll assessment.
With the confirmation of the lien by the City Council pursuant to the hearing set forth
in Section 6.96.220, the delinquent tax charges contained therein which remain unpaid
by the transferor or transferee shall constitute a special assessment against said
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property, and shall be collected at such time as is established by the County Auditor-
Controller for inclusion in the next property tax assessment.
The Director of Finance shall turn over to the County Auditor-Controller for inclusion
in the next property tax assessment the total sum of unpaid delinquent charges
consisting of the delinquent transfer taxes, penalties and interest at the rate of twelve
(12) percent per annum from the date of recordation to the date of lien.
Thereafter, said assessment may be collected at the same time and in the same
manner as ordinary municipal taxes are collected, and shall be subject to the same
penalties and the same procedure of sale as provided for delinquent, ordinary,
municipal taxes. The assessment lien previously imposed upon the property are
paramount to all other liens except for those of state, county, and municipal taxes with
which it shall be upon parity. The lien shall continue until the assessment and all interest
and charges due and payable thereon are paid. All taxes applicable to the levy,
collection and enforcement of municipal taxes shall be applicable to said special
assessments.
6.96.250 Administrative Penalties.
Any person violating or failing to comply with any provision of this Chapter may
be subject to any of the penalties set forth in Section 1.08.010 of the Santa Monica
Municipal Code. Each such violation or failure shall constitute a separate offense.
Neither the City’s pursuit of any such penalties nor the imposition of any such penalties
shall excuse any person from the payment, collection or remittance of any tax provided
for in this Chapter.
6.96.260 Authority of City Council to establish rules and amend Chapter
The City Council is authorized to establish by resolution any rules that are
necessary and desirable for implementation of this Chapter. The City Council is
authorized to amend any aspect of this Chapter as long as the amendment does not
result in an increase in the authorized tax rate.
6.96.270 Severability
If any section, subsection, subdivision, paragraph, sentence, clause or phrase of
this Chapter or any part thereof is for any reason held to be invalid, unlawful or
unconstitutional, such decision shall not affect the validity of the remaining portions of
this Chapter or any part thereof. The City Council hereby declares that it would have
passed each section, subsection, subdivision, paragraph, sentence, clause or phrase
thereof, irrespective of the fact that any one or more sections, subsections,
subdivisions, paragraphs, sentences, clauses or phrases be declared unconstitutional.
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SECTION 2. Any provision of the Santa Monica Municipal Code inconsistent with
the provisions of this measure, to the extent of such inconsistencies and no further, is
hereby repealed or modified to that extent necessary to effect the provisions of this
measure.
SECTION 3. If any section, subsection, sentence, clause, or phrase of this
measure is for any reason held to be invalid or unconstitutional by a decision of any court
of competent jurisdiction, such decision shall not affect the validity of the remaining
portions of this measure. The City Council hereby declares that it would have placed this
measure and the resulting Santa Monica Municipal Code amendment, and the voters
declare that they would have adopted this measure and the resulting Santa Monica
Municipal Code amendment, and each and every section, subsection, sentence, clause,
or phrase not declared invalid or unconstitutional, without regard to whether any portion
may be subsequently declared invalid or unconstitutional.
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Adopted and approved this 28th day of July 2020.
__________________________
Kevin McKeown, Mayor
I, Denise Anderson-Warren, City Clerk of the City of Santa Monica, do hereby
certify that Resolution No. 11278 (CCS) was duly adopted at a meeting of the Santa
Monica City Council held on the 28th day of July 2020, by the following vote:
AYES: Councilmembers Davis, Himmelrich, McCowan, Jara, Winterer,
Mayor Pro Tem O’Day, Mayor McKeown
NOES: None
ABSENT: None
ATTEST:
_____________________________________
Denise Anderson-Warren, City Clerk
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