HomeMy WebLinkAboutMINUTES - 08111992 - 1.64 TO: BOARD OF SUPERVISORS ��
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FROM: Phil Batchelor, County Administrator ,'
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DATE: August 11, 1992 County
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SUBJECT: REAL PROPERTY TRANSFER TAX - CITY OF EL CERRITO
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
Authorize the Clerk-Recorder to execute a contract with the City of EI Cerrito for real property
transfer tax collection services provided by the County to the City, effective September 1, 1992.
FINANCIAL IMPACT:
It is estimated that the County will collect an additional $40,000 in documentary transfer tax and
the Recorder will collect approximately $12,000 in collection services charges annually under the
terms of the contract.
BACKGROUND:
The City of EI Cerrito, a general law city, amended Chapter 4.24 of the EI Cerrito Municipal Code
and adopted Resolution 92-63 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 September 1, 1992, the City of EI Cerrito 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 EI Cerrito
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 $40,000 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 BOARD OMMITTEE ,
APPROVE OTHER
SIGNATURE (S):
ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER
1
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
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.
Contact: Julie Enea, County Administrator's Office, 646-4855 or
CC: Barbara Chambers, Recorder's Office, 646-2363 ATTESTED
Clerk-Recorder PHIL RATCHEL R,CLERK OF THE BOARD OF
County Administrator SUPERVISORS AND COUNTY ADMINISTRATOR
County Auditor-Controller
County Counsel � /,�
M382 (10Q;y of EI Cerrito via CAO BY DEPUTY