SEC. 21.9.4. EXEMPTION - DEBT SECURITY.

This article shall be known as the “Real Property Transfer Tax Ordinance of the City of Los Angeles.” 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. It is also enacted under the authority of Subdivision (d) of Subsection (11) of Section 2 of the Los Angeles City Charter and other authority held as a Charter City.

SEC. 21.9.2. TAX IMPOSED.

(Amended by Initiative Approved by the Voters on 11/8/22, Ord. No. 187,692, Eff. 1/1/23.)

(a) There is hereby imposed on each deed, instrument or writing by which any lands, tenements, or other realty sold within the City of Los Angeles shall be granted, assigned, transferred or otherwise conveyed to, or vested in, the purchaser or purchasers, or any other person or persons, by the person’s or persons’ 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 $100.00, a tax at the rate of $2.25 for each $500.00 or fractional part thereof.

(b) In addition to and separate from any tax imposed under Subsection (a) of this section, starting on April 1, 2023, there is hereby imposed a tax known as the “Homelessness and Housing Solutions Tax” on each deed, instrument or writing by which any lands, tenements, or other realty sold within the City of Los Angeles shall be granted, assigned, transferred or otherwise conveyed to, or vested in, the purchaser or purchasers, or any other person or persons, by the person or their direction, when the consideration or value of the interest or property conveyed (including the value of any lien or encumbrance remaining thereon at the time of sale) exceeds:

(1) $5,000,000 but is less than $10,000,000, a tax at the rate of 4% of the consideration or value; or

(2) $10,000,000 or greater, a tax at the rate of 5.5% of the consideration or value.

(c) The Director of Finance for the City of Los Angeles shall adjust the consideration or value thresholds set forth in Subsection (b) of this section adjusted annually based on the Bureau of Labor Statistics Chained Consumer Price Index (C-CPI-U), pursuant to guidelines and procedures the Director of Finance establishes pursuant to Subsection (c) of Section 21.9.11 of this Code.

SEC. 21.9.3. PERSONS LIABLE.

Any tax imposed pursuant to Sec. 21.9.2 hereof 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.

SEC. 21.9.4. EXEMPTION – DEBT SECURITY.

Any tax imposed pursuant to this article shall not apply to any instrument in writing given to secure a debt.

SEC. 21.9.5. EXEMPTION – GOVERNMENTAL AGENCIES.

(Amended by Ord. No. 140,085, Eff. 5/11/70.)

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 the tax imposed pursuant to this article when the exempt agency is acquiring title.

SEC. 21.9.6. EXEMPTIONS – BANKRUPTCY, RECEIVERSHIP, ETC.

Any tax imposed pursuant to this article 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 Sec. 205 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 Sec. 506 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.

Subdivisions (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.

SEC. 21.9.7. EXEMPTIONS – ORDERS OF S.E.C.

Any tax imposed pursuant to this article 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 Sec. 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 necessary or appropriate to effectuate the provisions of Sec. 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;

SEC. 21.9.8. EXEMPTION – CERTAIN PARTNERSHIP TRANSFERS.

(a) In the case of any realty held by a partnership, no levy shall be imposed pursuant to this article by reason of any transfer of an interest in a partnership or otherwise, if:

(1) Such partnership (or another partnership) is considered a continuing partnership within the meaning of Sec. 708 of the Internal Revenue Code of 1954; and

(2) Such continuing partnership continues to hold the realty concerned.

(b) If there is a termination of any partnership within the meaning of Sec. 708 of the Internal Revenue Code of 1954, for purposes of this article, 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 article by reason of a termination described in Subdivision (b), and any transfer pursuant thereto, with respect to the realty held by such partnership at the time of such termination.

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