(Amended by Ord. No. 178,101, Eff. 1/9/07.)
For every person engaged in the business of developing and selling real property in which the person has equity or title, the tax shall be $165.60 per year or fractional part for the first $60,000.00 or less of gross receipts, plus $2.76 per year for each additional $1,000.00 of gross receipts or fractional part in excess of $60,000.00.
1. Real Property Seller means a person engaged in the business of developing and selling real property in which the person has equity or title.
2. A person shall be deemed to be engaged in the business of Real Property Sales if the person:
(i) As a subdivider, as that term is defined in Section 11508 of the Business and Professions Code, has recorded a subdivision map respecting the property sold in accordance with the Subdivision Map Act of California, provided, however, that a person filing or joining in the filing of a subdivision map for the sole purpose of accomplishing a street vacation shall not be considered a subdivider; or
(ii) Has prior to sale, divided the property held pursuant to the "lot-split" regulations of the Los Angeles Municipal Code (commencing at Section 17.50); or
(iii) Sells two or more pieces of real property within a calendar year and upon each of which a building was constructed or caused to be constructed by the seller, provided the sales were within three years of the recordation by anyone of a subdivision map respecting the property sold pursuant to the Subdivision Map Act; or
(iv) Sells any real property upon which he has constructed or caused to be constructed an apartment house or commercial building, provided the sale is either prior to or within three years after the issuance of a Certificate of Occupancy or its equivalent respecting the property sold.
3. For purposes of this section, the term "gross receipts" shall not include:
(i) proceeds realized from the sale of property:
a. through foreclosure; or
b. to an agency proposing to take the land under eminent domain proceedings; or
c. through the exercise of a power of sale contained in a deed of trust or mortgage; or
d. through bankruptcy; or
e. through assignment for the benefit of creditors; or
f. through court order; or
(ii) the unpaid balance on the date of sale of any encumbrance of record upon the property;
(iii) existing prior to the sale and remaining in existence between the same parties following the sale;
(iv) existing of record 180 days prior to the date of sale; or
(v) existing prior to the sale and with respect to which a deficiency judgment is prohibited under the provisions of California Code of Civil Procedure Section 580b, whether or not it is extinguished by reason of the sale.
4. No person shall engage in this business or perform any act required to be taxed under this section during any tax period without first obtaining a registration certificate and paying a tax in the minimum amount of $165.00.
5. At the close of each tax period, the person shall file a statement with the Director of Finance setting forth the amount of gross receipts derived from the business for that period, and shall pay on or before the last day of February in the next subsequent tax period any additional tax that may be due under this article for the preceding expired tax period.
6. In the event the business is discontinued, dissolved or otherwise terminated before the close of the tax period, the required statement of gross receipts shall then be filed, and any additional tax due under this section shall be paid on or before the close of business on the last day of the month following the month in which discontinuance, dissolution or termination occurred.
7. When any person's activities occurring both within and without the City contribute to the production of receipts from the business taxed under this section, the person's gross receipts shall be apportioned in a manner that is fairly calculated to determine the amount of gross receipts derived from or attributable to engaging in business in the City. The apportionment shall be made on the basis of payroll, value and situs of tangible property, general expense, or by reference to any of these or other factors, or by another method of apportionment that will fairly determine the amount of gross receipts derived from or attributable to engaging in business in the City. In the absence of substantial information to the contrary, 80% of the total gross receipts shall be deemed attributable to activities conducted in the jurisdiction in which the subject real property is located and 20% of the total gross receipts shall be deemed attributable to activities conducted in the jurisdiction in which is located a place or premises, other than the subject real property, from which business activities are conducted. The percentages may be increased or decreased by the Director of Finance where after consideration of all of the facts, circumstances warrant the deviation.
8. The sale of any real property, which would not subject the owner to taxation under the provisions of this section, shall not subject the owner to taxation under the provisions of Section 21.49, Professions and Occupations, of this article.