San Francisco County Municipal Code Art. 12-C Business and Tax Regulations Code

REAL PROPERTY TRANSFER TAX Sec. 1101. Short Title. Sec. 1101.1. Definitions. Sec. 1102. Tax Imposed. Sec. 1102.1. Assessor's Parcel Numbers. Sec. 1102.2. Domestic Partners. Sec. 1103. Payment of Tax; Due Dates and Delinquency Dates. Sec. 1104. Instrument to Secure Debt. Sec. 1105. Exemptions. Sec. 1106. Exceptions. Sec. 1107. Orders of Securities and Exchange Commission. Sec. 1108. Application to Partnerships. Sec. 1108.1. Exemption; Dissolution of Marriage, Etc. Sec. 1108.2. Exemption; Deeds in Lieu of Foreclosure, Etc. Sec. 1108.3. Application to Leasehold Instruments. Sec. 1108.4. Exemption; Certain Conversions of Stock Cooperatives to Condominium Units. Sec. 1108.5. Exemption; Transfers between Spouses and Transfers between Domestic Partners. Sec. 1108.6. Exemptions for Rent-Restricted Affordable Housing. Sec. 1108.7. Exemption for Conversion to Residential Use. Sec. 1108.8. Partial Exemption for Transfers of Residential Rental Properties Built and Financed by Certain Labor Organizations. Sec. 1108.10. Exemption for Certain Port Leasehold Instruments. Sec. 1109. Title Changes Not Affecting Ownership. Sec. 1110. Administration by County Recorder. Sec. 1111. Recording Payment of Tax. Sec. 1111.1. Records; Investigation; Subpoenas. Sec. 1113. Claims for Refunds. Sec. 1113.1. Refunds Permissible Without a Claim. Sec. 1113.2. Refunds; Interest. Sec. 1113.3. Exhaustion of Administrative Remedies; Presentation of Claim for Refund as Prerequisite to Suit; Payment of Disputed Amount and Petition for Refund; Limitations. Sec. 1114. Administration and Interpretation. Sec. 1115. Deficiency Determinations; Jeopardy Determinations. Sec. 1115.1. Lien Proceedings. Sec. 1115.2. Penalties and Interest. Sec. 1115.3. Manner of Giving Notice. Sec. 1115.4. Tax as Debt. Sec. 1115.5. Summary Judgment. Sec. 1115.6. Collection of Tax from Third Party. Sec. 1116. Misdemeanors. Sec. 1117. Remedies Cumulative. Sec. 1118. Confidentiality. Sec. 1119. Amendment of Article.

This Article shall be known as the "Real Property Transfer Tax Ordinance." 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. (Ord. 315-67, App. 12/12/67; amended by Ord. 352-84, App. 8/8/84; Ord. 377-84, App. 8/31/84)

Except where the context otherwise requires, the terms used in this Article 12-C shall have the meanings given to them in Sections 6.2- 2 et seq. of the Business and Tax Regulations Code. (Added by Ord. 176-17, File No. 170703, App. 7/27/2017, Eff. 8/26/2017)

Every document pertaining to real property that is submitted for recordation shall show on the face of the document the Assessor's current parcel number, or numbers, and the commonly-known situs and/or street name and number of the real property described therein. (Ord. 315-67, App. 12/12/67; amended by Ord. 579-85, App. 12/27/85; Ord. 201-01, File No. 011242, App. 9/28/2001)

"Domestic partnerships" shall mean a domestic partnership created pursuant to Chapter 62 of the Administrative Code, Division 2.5 of the California Family Code, or the laws of another state or political subdivision thereof, and for which a Declaration of Domestic Partnership or similar official record acknowledging the domestic partnership has been filed with the County Clerk pursuant to Chapter 62, or with the public official responsible for the registration of domestic partnerships pursuant to the laws of the jurisdiction under which the domestic partnership was created. (Added by Ord. 108-04, File No. 040493, App. 6/21/2004)

(a) Any tax imposed pursuant to this Article 12-C 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. (b) The tax imposed by this Article 12-C is due and payable at the time the deed, instrument or writing effecting a transfer subject to the tax is delivered, and is delinquent if unpaid 30 days later. (c) The County Recorder may accept partial payments of taxes due. The difference between the amount paid by the person liable for the tax and the total amount due shall be treated as a delinquent tax and shall be subject to penalties and interest on the unpaid balance under Section 1115.2. Partial payments shall be applied first to administrative collection costs, interest, penalties, and other costs and charges, in that order, and the balance, if any, shall be applied to the taxes due. (Ord. 315-67, App. 12/12/67; amended by Ord. 377-84, App. 8/31/84; Ord. 176-17, File No. 170703, App. 7/27/2017, Eff. 8/26/2017)

Any tax imposed pursuant to this ordinance shall not apply to any instrument in writing given to secure a debt. (Ord. 315-67, App. 12/12/67; amended by Ord. 377-84, App. 8/31/84)

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 ordinance when the exempt agency is acquiring title. Any deed, instrument or writing shall be exempt from up to one-third (1/3) of any tax imposed pursuant to this ordinance if: (1) it transfers an interest in real property used as a residence; and (2) after January 1, 2009, the transferor has installed an active solar system, as that term is defined in Revenue & Taxation Code § 73(b), or has made seismic retrofitting improvements or improvements utilizing earthquake hazard mitigation technologies, as those terms are defined in Revenue & Taxation Code § 74.5(b), and the transferor has claimed and the Assessor has approved an exclusion from reassessment for the value of that system or those improvements. This partial exemption shall only apply to the initial transfer by the person who installed the active solar system or made the seismic safety improvements. The amount of this partial exemption shall not exceed the transferor's cost of seismic retrofitting improvements or the active solar system. Multi-family residential properties are eligible for this partial exemption. (Ord. 315-67, App. 12/12/67; amended by Ord. 377-84, App. 8/31/84; Proposition N, 11/4/2008)

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 Title 11 of the United States Code; (b) Whereby a mere change in identity, form or place or organization is effected. Subdivisions (a) and (b), 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. 315-67, App. 12/12/67; amended by Ord. 377-84, App. 8/31/84; Ord. 20-09, File No. 081450, App. 2/5/2009)

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 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; (c) Such conveyance is made in obedience to such order. (Ord. 315-67, App. 12/12/67; amended by Ord. 377-84, App. 8/31/84)

Any tax imposed pursuant to this ordinance shall not apply with respect to any deed, instrument, or writing to a beneficiary or mortgagee, which is taken from the mortgagor, trustor or trustee, 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 for tax purposes. (Ord. 315-67, App. 12/12/67; amended by Ord. 352-84, App. 8/8/84; Ord. 377-84, App. 8/31/84)

Any tax imposed pursuant to this ordinance shall not apply with respect to any deed, instrument or writing which creates, terminates, or transfers a leasehold interest having a remaining term (including renewal options) of less than 35 years. (Ord. 315-67, App. 12/12/67; amended by Ord. 377-84, App. 8/31/84; Proposition N, 5, 11/4/2008)

COOPERATIVES TO CONDOMINIUM UNITS. Any tax imposed pursuant to this Article shall not apply with respect to any deed, instrument, or writing in connection with the conversion to condominium units of the following kind of stock cooperative project: a stock cooperative project (a) which is entitled to an exemption from the annual limitation imposed on the number of conversions and the annual condominium conversion lottery pursuant to Section 1396 of the San Francisco Subdivision Code; and (b) wherein 80 percent or more of the condominium units serve as security for loans in favor of the City and County of San Francisco, pursuant to the Homeownership Assistance Loan Fund (under San Francisco Administrative Code Section 10.100 – 08) or its predecessor program, as identified by the Mayor's Office of Housing, prior to the conversion. (Added by Ord. 473-96, App. 12/13/96; amended by Ord. 20-09, File No. 081450, App. 2/5/2009)

TRANSFERS BETWEEN DOMESTIC PARTNERS. (a) The tax imposed under this Article shall not apply to transfers of real property between spouses or between domestic partners. (b) Individuals of the same sex who obtain a certificate of marriage or other official government document of any state or political subdivision thereof acknowledging their union in marriage shall be deemed to be in a "domestic partnership" that qualifies for the exemption under subsection (a) in the event such individuals are denied the legal status of marriage or the legal rights, privileges and obligations of spouses, or the marriage certificate or other official government document acknowledging their marriage is invalidated or revoked in a final judgment or by operation of law, because such individuals are of the same sex. (c) In order to qualify for the exemption provided in this Section, the deed, instrument or other writing effecting the transfer of real property shall include a written recital, signed by either spouse or domestic partnership, stating that the transfer is entitled to the exemption for spouses and domestic partners. (Added by Ord. 108-04, File No. 040493, App. 6/21/2004)

The tax imposed under this Article shall not apply where the deed, instrument, or other writing transferring title to real property between an individual or individuals and a legal entity or between legal entities results solely in a change in the method of holding title and in which the proportional ownership interests in the real property, whether represented by stock, membership interest, partnership interest, cotenancy interest, or otherwise, directly or indirectly, remains exactly the same before and after the transfer. (As Sec. 1108(d), established by Ord. 315-67, App. 12/12/67; amended by Ord. 377-84, App. 8/31/84; Ord. 28-95, App. 2/3/95; Ord. 20-09, File No. 081450, App. 2/5/2009; amended and redesignated as Sec. 1109 by Proposition W, 11/8/2016) (Former Sec. 1109 set forth by Ord. 315-67, App. 12/12/67; amended by Ord. 377-84, App. 8/31/84; repealed by Ord. 20-09, File No. 081450, App. 2/5/2009)

The County Recorder shall administer this ordinance. On or before the fifteenth day of the month the Recorder shall report to the County Auditor the amounts of taxes collected during the preceding month pursuant to this ordinance. (Ord. 315-67, App. 12/12/67; amended by Ord. 352-84, App. 8/8/84; Ord. 377-84, App. 8/31/84)

The County Recorder may authorize the Controller to refund transfer tax payments, without the need for a refund claim, if the County Recorder determines: (a) the tax was paid more than once; (b) the amount paid exceeds the amount due as a result of an arithmetic or clerical error; or (c) the tax was paid on a type of transaction that is exempt from the tax. The County Recorder may authorize such a refund no later than one year after payment of the tax. The statute of limitations for filing a claim for refund under Section 1113(a) shall not be tolled and shall continue to run while a person’s request for refund under this Section 1113.1 is pending. (Added by Ord. 20-09, File No. 081450, App. 2/5/2009; amended by Ord. 176-17, File No. 170703, App. 7/27/2017, Eff. 8/26/2017)

(a) Any amounts refunded prior to entry of a final judgment in a judicial proceeding shall bear interest at the rate for prejudgment interest on refunds of local taxes or fees provided by section 3287(c) of the California Civil Code, as amended from time to time, and shall be computed from the date of payment to the date of refund. (b) If the Controller offsets overpayments for a particular transfer against another liability or liabilities owed to the City, or against penalties or interest on the other liability or liabilities owed to the City, the taxpayer will be credited with interest on the amount so applied at the rate of interest set forth above, computed from the date of payment. (c) If a taxpayer elects to apply all or part of a refund, inclusive of any interest accrued up to the date of the taxpayer's election, against a future San Francisco tax liability, the taxpayer will not be credited with interest on the amount so applied from the date of the taxpayer's election. (Added by Ord. 154-15 , File No. 150730, App. 8/6/2015, Eff. 9/5/2015)

(a) In the administration of this ordinance the recorder shall interpret its provisions consistently with those Documentary Stamp Tax Regulations adopted by the Internal Revenue Service of the United States Treasury Department which relate to the Tax on Conveyances and are identified as Sections 47.4361-1, 47.4361-2 and 47.4362-1 of Part 47 of Title 26 of the Code of Federal Regulations, as the same existed on November 8, 1967, except that for the purposes of this ordinance, the determination of what constitutes “realty” shall be determined by the definition or scope of that term under state law. (b) Notwithstanding subsection (a), “realty sold” includes any acquisition or transfer of ownership interests in a legal entity that would be a change of ownership of real property under California Revenue and Taxation Code Section 64. In such cases, there shall be deemed to have been an instrument executed whereby there was conveyed, for fair market value, all real property that experienced a change of ownership under California Revenue and Taxation Code Section 64. (Ord. 315-67, App. 12/12/67; amended by Ord. 377-84, App. 8/31/84; Proposition N, 4, 11/4/2008; Proposition W, 11/8/2016)

Any notice required to be given hereunder by the County Recorder or the Board of Supervisors to any person shall be sufficiently given or served if it is personally served upon such person or if it is deposited, postage prepaid, in a post office letter box addressed to the person at the address for such person given on an affidavit described in Sections 1111(c) or (d), a deed, instrument or writing subject to the tax, a refund claim form, or written protests or objections to a report of delinquency filed for or on behalf of the person or, if no such address is available, to the person at the official address maintained by the County Assessor for mailing of tax bills levied against the real property that was transferred without full payment of tax or, if no such address is available, to the person at the address of said real property. In the case of service by mail, the service is complete at the time of deposit with the United States Postal Service. (Added by Ord. 377-84, App. 8/31/84; amended by Ord. 20-09, File No. 081450, App. 2/5/2009; Ord. 201-13 , File No. 130276, App. 10/3/2013, Eff. 11/2/2013; Ord. 176-17, File No. 170703, App. 7/27/2017, Eff. 8/26/2017)

The remedies, procedures, penalties, interest, collection costs, and other costs and charges, including reasonable attorneys’ fees, provided in this Article 12-C are cumulative, and may be pursued alternatively, concurrently, or consecutively as the County Recorder and/or the Tax Collector determine. (Added by Ord. 176-17, File No. 170703, App. 7/27/2017, Eff. 8/26/2017)

The Board of Supervisors may amend or repeal this Article 12-C by ordinance without a vote of the people except as limited by the California Constitution.

(Added by Proposition C, 3/5/2024, Eff. 4/12/2024)