HomeMy WebLinkAboutMINUTES - 08061991 - 1.124 BOARD OF SUPERVISORS OF CONTRA COSTA COUN'T'Y
The following item(s) ,
was(were) brought to the attention of Board members after the,
agenda was posted. The Board by unanimous vote agreed on the need
to take action.
s
TO: BOARD OF SUPERVISORS
Contra
Phil Batchelor \ Costa
FROM: ;.
DATE: August Count
6 1991 �� `�
rrA count
SUBJECT: REAL PROPERTY TRANSFER TAX - CITY OF SAN PABLO
SPECIFIC REOUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION
Authorize the Clerk-Recorder to execute a contract with the City of San Pablo for
real property transfer tax collection services provided by the County to the
City, effective August 14, 1991.
FINANCIAL IMPACT
It is estimated that the County will collect an additional $36,000 in documentary
transfer tax and that the Recorder will collect approximately $10,000 in
collection service charges annually under the terms of the contract.
REASONS FOR RECOMMENDATION / BACKGROUND
The City of San Pablo, a general law city, adopted an ordinance to increase its
real property transfer tax to $7 per $1,000 of value transferred. This tax rate
is beyond the limit set by Revenue and Taxation Code 11911(b) for general law
cities. The Code stipulates that if a city sets a general tax not in accordance
with Section 11911(b) , then the County is not required to split with that city
the County documentary transfer tax for transfers which occur within that city.
Prior to July 1, 1991, the City of San Pablo charged a documentary transfer tax
in conformance with the Code, and the County had been splitting its $1.10 tax per
$1,000 of value transferred in the City ($.55 to the County and $.55 to the
City) . Since the City of San Pablo raised its tax to $7 per $1,000, the County
may legally retain the entire $1. 10 tax per $1,000 of value, thereby doubling the
annual revenue received from transfers occurring in the City. Depending on the
housing market, the County may receive an additional $36,000 per year as a result
of the City being out of compliance with the Documentary Transfer Tax Act.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOAR OMMITTEE
APPROVE OTHER
SIGNATURE (S):
ACTION OF BOARD ON AUG 5 199 1
APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
X UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
CC: County Administrator ATTESTED AUG 6 1991
Clerk-Recorder PHIL BATCHELOR,CLERK OF THE BOARD OF
Auditor-Controller SUPERVISORS AND COUNTY ADMINISTRATOR
County Counsel BY 'G = �""-
City of San Pablo
M382 (10/88)
DEPUTY