Transfer tax bill defining ‘realty sold’ to include proposition 13 transfers returns
By Matthew F Burke and Craig A Becker
Assembly Bill 561 (AB 561), which stalled in the California Legislature last year, is back for reconsideration, with amendments. The latest version broadens the definition of ‘realty sold’ to include Proposition 13 changes in ownership caused by transfers of interests in legal entities. This extension of the transfer tax to transfers of interests in legal entities, rather than just direct transfers of realty, would significantly expand the reach of the California transfer tax.
In 2013, Phil Ting, former San Francisco assessor and newly elected state assemblyman, introduced AB 561, which would amend certain provisions of the California Revenue and Taxation Code relating to documentary transfer taxes (‘transfer taxes’) on real estate. The bill is back for consideration in 2014.
Currently, the California Transfer Tax Act (R&TC §§ 11911 to 11930) (CTTA) requires that counties and general law (non-charter) cities conform their local transfer tax ordinances to the standard provisions in the CTTA, which allow for transfer taxes to be imposed on deeds, instruments or other writings that transfer any ‘lands, tenements or other realty sold’. The tax is based on the value of property, at a rate of 0.11 per cent for the county tax and up to one half that rate for a non-charter city tax, with a credit against the county portion for any city tax imposed…
Click on the link below to read the rest of the Pillsbury briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.