§ 3.08.400  TAX IMPOSED.
   A.   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 (including the value of any lien or encumbrances remaining thereon at the time of sale) exceeds one hundred dollars ($100.00) a tax on such consideration or value at the rates set forth below:
      1.   0.45% of the amount of consideration or value of $1,499,999 or less; and
      2.   1.5% of the amount of consideration or value from $1,500,000 to $2,999,999; and
      3.   3.0% of the amount of consideration or value from $3,000,000 to $9,999,999; and
      4.   4.00% of the amount of consideration or value equal to or over $10,000,000.
   B.   The City Manager shall increase or decrease the amounts of consideration or value that establish the threshold of each of the four (4) tax rate tiers set forth in Subsection A. by an amount proportional to the change in the Consumer Price Index for All Urban Consumers, Los Angeles-Long Beach-Anaheim (CPI), as published by the U.S. Department of Labor, rounded up to the nearest one thousand dollars ($1,000.00), provided that such increase or decrease may not be done more than once per five (5) years after the effective date of the ordinance from which this Subsection is derived, and provided the amounts of consideration or value that establish the threshold of each of the four (4) tax rate tiers may not decrease below the amounts established in Subsection A. In the event the Bureau of Labor Statistics discontinues the publication of the CPI, then a comparable statistic shall be used as determined by the City’s Chief Financial Officer.
   C.   Notwithstanding Subsection A. herein, the following transfers shall be taxed at a rate of 0.45% regardless of the value of the consideration:
      1.   A transfer of improved real property to a nonprofit corporation, or a limited partnership or limited liability company in which a nonprofit corporation is the managing general partner or managing member, accompanied by a binding agreement or covenant recorded on the 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 Cal. Health & Safety Code Section 50079.5; and
      2.   A transfer of real property that contains four (4) or more dwelling units designed for permanent residential occupancy, including accessory dwelling units, and meets all of the following conditions:
         a.   At least one (1) or more of the dwelling units was newly constructed within the last five (5) years prior to the transfer of the real property, based on the date of the issuance of the certificate of occupancy for such newly constructed dwelling units (“newly constructed” shall not include the remodel or renovation of an existing unit);
         b.   The newly constructed dwelling units must have resulted in a net increase in the total number of dwelling units on the real property; and
         c.   The transfer of real property is the first transfer following the issuance of the certificate of occupancy for such newly constructed dwelling units.
   D.   The City Council is authorized to establish such rules and procedures that are necessary and desirable for implementation of this Section 3.08.400 and may amend any aspect of this Subchapter 3.08.400 et seq. as long as the amendment does not result in an increase in the authorized tax rate.
('65 Code, § 33D-1) (Ord. No. CS-921 § 1 (part); Ord. No. 91-015 § 1; Ord. No. 2020-016 § 1)