(A) Security instruments. The tax imposed pursuant to this article shall not apply to any instrument in writing given to secure a debt.
(B) Governmental entities. Any deed, instrument or writing to which the United States or any agency or instrumentality thereof, any state or territory, or political subdivision thereof, or the District of Columbia is a party acquiring titles shall be exempt from any tax imposed pursuant to this article , however the tax may be collected from any other party liable therefor.
(C) Plans of reorganization and adjustment.
(1) The 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 that is any of the following:
(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 Section 101 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 Section 101 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.
(2) Subdivision (A) 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.
(D) Orders of securities and exchange commission. The 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 § 1083 of the Internal Revenue Code of 1954, but only if:
(1) 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;
(2) Such order specifies the property which is ordered to be conveyed; and
(3) Such conveyance is made in obedience to such order.
(E) Transfer of interest in partnership.
(1) In the case of any realty held by a partnership (or other entity treated as a partnership for federal income tax purposes), no tax shall be imposed pursuant to this article by reason of any transfer of an interest in the partnership or other entity or otherwise, but only if:
(a) Such partnership (or other entity treated as a partnership for federal income tax purposes) is considered a continuing partnership within the meaning of § 708 of the Internal Revenue Code of 1986; and
(b) Such continuing partnership (or other entity treated as a partnership for federal income tax purposes) continues to hold the realty concerned.
(2) If there is a termination of any partnership (or other entity treated as a partnership for federal income tax purposes) within the meaning of § 708 of the Internal Revenue Code of 1986, for purposes of this article, such partnership (or other entity treated as a partnership for federal income tax purposes) 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 (or other entity treated as a partnership for federal income tax purposes) at the time of such termination.
(3) Not more than one tax shall be imposed pursuant to this article by reason of a termination described in subdivision (E)(2) of this section, and any transfer pursuant thereto, with respect to the realty held by such partnership (or other entity treated as a partnership for federal income tax purposes) at the time of such termination.
(4) No tax shall be imposed pursuant to this article by reason of any transfer between an individual or individuals and a legal entity or between legal entities that results solely in a change in the method of holding title to the realty and in which proportional ownership interests in the realty, whether represented by stock, membership interest, partnership interest, co-tenancy interest, or otherwise, directly or indirectly, remain the same immediately after the transfer.
(F) Instruments in lieu of foreclosure.
(1) The tax imposed pursuant to this article shall not apply to any deed, instrument or writing to a beneficiary or mortgagee, which is taken from the mortgagor 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 the accrued interest and cost of foreclosure.
(2) Consideration, unpaid debt amount, and identification of grantee as beneficiary or mortgagee shall be noted on the deed, instrument or writing, or stated in an affidavit or declaration under penalty of perjury for tax purposes.
(G) Allocation of assets between spouses.
(1) The tax imposed pursuant to this article shall not apply to any deed, instrument or writing which transfers, divides or allocates community, quasi-community or quasi-marital property assets between spouses for purposes of effecting a division of the same, which is required by a judgment decreeing a dissolution of the marriage or legal separation, by a judgment of nullity, or by any other judgment or order rendered pursuant to the Family Code, or by a written agreement between the spouses, executed in contemplation of such judgment or order, whether or not it is incorporated as part of the judgment or order.
(2) The deed, instrument or writing shall include a written recital, signed by either spouse, stating that it is entitled to the exemption.
(H) Certain deeds with agreement for purchaser to reconvey. The tax imposed pursuant to this article shall not apply with respect to any deed, instrument, or other writing by which realty is conveyed by the State of California, any political subdivision thereof, or agency or instrumentality of either thereof, pursuant to an agreement whereby the purchaser agrees to immediately reconvey the realty to the exempt agency.
(I) Certain conveyances involving nonprofit corporation. The tax imposed pursuant to this article shall not apply with respect to any deed, instrument, or other writing by which the State of California, any political subdivision thereof, or agency or instrumentality of either thereof, conveys to a nonprofit corporation realty the acquisition, construction, or improvement of which was financed or refinanced by obligations issued by the nonprofit corporation on behalf of a government unit, within the meaning of § 1.103-1(b) of Title 26 of the Code of Federal Regulations.
(J) Certain conveyances involving inter vivos gift or death. Any tax imposed pursuant to this part shall not apply to any deed, instrument, or other writing which purports to grant, assign, transfer, convey, divide, allocate, or vest lands, tenements, or realty, or any interest therein, if by reason of such inter vivos gift or by reason of the death of any person, such lands, tenements, realty, or interests therein are transferred outright to, or in trust for the benefit of, any person or entity.
(Ord. 969, § 9, 2018)