HomeMy WebLinkAboutMINUTES - 07121994 - 1.75 To: BOARD OF SUPERVISORS SE..L. Contra
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FROM: Phil Batchelor, County Administrator Costa
Jul 121994 ' County
DATE: Y , '_
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SUBJECT: REAL PROPERTY TRANSFER TAX - CITY OF PINOLE
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
Authorize the Clerk-Recorder to execute a contract with the City of Pinole for real
property transfer tax collection services provided by the County to the City, effective
August 1, 1994.
FINANCIAL IMPACT:
It is estimated that the County will collect an additional $25,000 in documentary transfer
tax and the Recorder will collect approximately $8,000 in collection services charges
annually under the terms of the contract.
BACKGROUND:
The City of Pinole, amended its Municipal Code and increased its real property transfer
tax to $5.50 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.
Currently, the County had been splitting a $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 Pinole plans to raise
its tax to-$5.50 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 $25,000
per year as a result of the City being out of compliance with the Documentary Transfer
Tax Act.
CONTINUED ON ATTACHMENT: YES SIGNATURE: 2��_x
L-4- /
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON APPROVED AS RECOMMENDED _ OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
Contact: Tony Enea, CAO, 646-4094 ATTESTED S=a,I I O-L! '
PHIL BA CHEL R,CLERK OF THE BOARD OF
CC: Barbara Chambers, Recorder, 646-2363 SUPERVISORS AND COUNTY ADMINISTRATOR
Clerk-Recorder
County Administrator n
'.County Auditor-Controller BY l 'A� �QQ�
,DEPUTY
County Counsel
City of Pinole
CITY OF PINOLE , COMM D ID :510-724-4921 JUL 06 '94 14 :02 No .003 P .02
AGREEMENT BETWEEN THE CITY OF PINOLE
AND THE COUNTY OF CONTRA COSTA
PROVIDING FOR THE COLLECTION OF TAXES
UNDER THE REAL PROPERTY TRANSFER TAX ORDINANCE
WHEREAS, Ordinance No. 566 adopted by the City of Pinole
on June 20, 1994, amends portion of Chapter 3.16 of the Pinole
Municipal Code and provides for the imposition of an increased tax
upon the transfers of real property Located within the City of
Pinole (the "Tax") ; and
WHEREAS, the City of Pinole ("City") desires to enter
into an agreement with Contra Costa County ("County") and with the
Contra Costa County Recorder ("Recorder") in order for County to
collect the Tax imposed by Chapter 3.16 as amended, through the
County Recorder's Office; and
WHEREAS, County agrees to collect the Tax for City under
the terms and agreements as hereinafter provided for; and
WHEREAS, one purpose of this Agreement is to provide a
source of revenue to reimburse the County for its reasonable costs
and services to be provided to City hereunder;
THEREFORE, IT I$ HEREBY AGREED between the City, the
County and the Recorder as follows:
1. County hereby agrees:
(a) Effective August 1, 1994, and except as
hereinafter provided for, County, through the Recorder's Office
shall collect for City the Tax imposed by Chapter 3.16 of the
Pinole Municipal Code (as amended by Ordinance No. 566) .
(b) Collection of the Tax shall be governed by the
following rules:
(i) If the Recorder is unable to collect the
Tax when the instrument or writing is presented for recordation,
the Recorder will record the instrument or writing if otherwise
recordable under the law, and will indicate on the face of the
instrument or writing that the City Tax was unpaid at the time of
recordation. The responsibility of thereafter collecting the Tax
shall be that of the City.
(ii) County Recorder will incur no liability
for errors made in the computation of the Tax.
(iii) The sworn declaration of value of the real
property by the taxpayer or such higher amount as may be determined
by the Recorder shall determine the value for City Tax purposes.
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CITY OF PINOLE , COMM D ID :510-724-4921 JUL 06 '94 14 :02 No .003 P .03
(Iv) A sworn claim of exemption from the Tax by
the taxpayer shall be accepted by the Recorder.
(v) Actions taken by Recorder shall not
preclude City from later collecting the Tax or additional tax
(including both transferor and transferee) if it is found by the
City that such tax or additional tax is due.
(vi) Delinquencies will be tracked and
collected by City, including penalty, interest and other charges.
(c) County will refer to City for settlement any
unresolved disputes regarding payment of the Tax.
(d) County will refer to City any requests for refunds
of the tax.
(e) All tax collected under Chapter 3.16, as amended, of
the Pinola Municipal Code by the Recorder or the County Tax
Collector shall be transmitted to City, less the collection charge
set forth in paragraph 2 (a) , on a monthly basis. The payment will
consist of a warrant, a statement showing the total daily amount
paid, and a report showing each individual amount paid cross-
referenced as to Taxes collected by the Recorder with the
Recorder's document recording number, date of recordation, and the
date paid.
(f) The County agrees to provide to the City such
reports and other materials as are necessary and desirable to
enable the City to effectively administer the Tax, including timely
delivery of the statement described in paragraph 1 (e) , above and
a copy of each City of Pinole recordation subject to said Tax for
which the Tax was not paid. The latter documents will also be made
available on a monthly basis.
(g) County and Recorder agree to permit City personnel
and representatives to examine the records and procedures of the
Recorder's Office (and any other County offices involved in the
administration of City's Tax) concerning the Collection of the
City's Tax.
(h) County agrees that communications, payment, reports
and all other materials sent to City shall be addressed:
City of Pinole
2131 pear Street
Pinole, CA 94564
ATTENTION: Finance Director
(i) County shall use the same procedures as presently
followed for collection of the County Documentary Transfer Tax with
the following exceptions:
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CITY OF PINOLE , COMM D ID :510-724-4921 JUL 06 '94 14 :03 No .003 P .04
(i) The City Tax shall be at the rate
prescribed by Chapter 3.16 of the Pinole Municipal Code, as
amended, and its implementing resolutions.
(ii) The City Tax applies to the total
consideration paid as defined by Chapter 3. 16 of the Pinole
Municipal Code, as amended.
(iii) The Tax applies only to real property
situated within the city limits of the City of Pinole.
(iv) The Tax shall include interest and
penalties accrued as may be applicable.
(j) if, as a result of a court order or a settlement of
a claim or lawsuit, the Tax is found to be unlawful and the City
refunds all of the taxes collected pursuant to Pinole Municipal
Code Chapter 3. 16, as amended, County shall pay to City the amounts
it would have credited to City under the prior tax rate of fifty-
five cents ($.55) per one thousand dollars ($1,000) after the date
such a lawsuit was served upon the County.
2. City hereby agrees:
(a) City shall pay to County, for the collection of the
Tax, the sum of two and one-half percent (2-1/2t) of the amount of
City's Tax collected by the County. County and Recorder will
provide the necessary equipment and personnel needed for proper
collection of said Tax and the full reimbursement thereof is
included in the rate set forth above.
(b) Indemnification:
(i) The City shall defend, indemnify, save and
hold harmless the County and its officers and employeeo includingi
but not limited to, the Recorder, the Contra Costa County Tax
Collector ("Tax Collector") and Auditor-Controller, from any injury
to person(s) or property, including without limitation all
consequential damages, from any cause whatsoever arising directly
or indirectly from or connected with the operations or services of
the County, the Recorder, the Tax Collector, Auditor--Controller, or
their agents, servants, employees or subcontractors hereunder
including, but not limited to, the collection or non-collection of
said Tax by the County Recorder, Tax Collector or City, and save
and except claims or litigation arising through the willful
misconduct of the County or its officers or employees. City will
reimburse the County for any expenditures, including reasonable
attorney fees, the County may make• by reason of the matters that
are subject of indemnification and, if requested by the County,
will defend any claims or litigation to which this indemnification
provision applies at the sole cost and expense of the City.
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CITY OF PINOLE , COMM D ID :510-724-4921 JUL 06 '94 14 :04 No .003 P .05
(ii) County will not require City to pay for
services of its County Counsel or County's retained outside counsel
unless an actual conflict of interest exists between County and
City.
(c) Yn the event County is ordered by any court of
competent jurisdiction to refund or otherwise expend any monies as
a result of City's real property transfer tax.. City shall reimburse
County for said monies within ten (10) days of County's written
demand or County may offset said monies from City's next property
tax distribution.
(d) All communication and notices sent by City to County
shall be addressed:
Stephen L. weir
Contra Costa County Cleric-Recorder
P.O. Box 911
Martinez, CA 94553
(e) City agrees to provide County with such forms,
notices and other Materials as are necessary and desirable to
assist the County Recorder in carrying out collection of the City
Tax. Legal questions concerning the levy or collection of the Tax
shall be subject to determination by the Pinole City Attorney.
3. Duration
(a) This Agreement shall continue until July 1, 1997,
and from fiscal year to fiscal year thereafter, provided that
either party hereto may terminate this Agreement at the and of
fiscal year 1996-1997 or any subsequent fiscal year by giving the
other party sixty (60) or more days' notice in writing of
termination prior to the beginning of such fiscal year.
(b) At any time or times following June 30, 1997,
periodic review of the collection charge set forth in paragraph
2(a) will be conducted by County and City and upon written
notification by either party to the other alleging that the charges
do not fairly cover (or alternately, exceed) reasonable costs of
providing the Tax collection services being rendered to City by
County hereunder, the parties agree to promptly and in good faith
renegotiate the charges set forth herein with the purpose of
establishing more fair and equitable charges. in the event the
parties are unable to agree upon new provisions with respect to
charges, either party may terminate this Agreement upon ninety (90)
days' written notice.
(c) This Agreement shall take effect from and after
August 1, 1994.
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CITY OF PINOLE , COMM D ID :510-724-4921 JUL 06 '94 14 :04 No .003 P .06
CITY OF PINOLE COUNTY OF CONTRA COSTA
A MUNICIPAL CORPORATION
By; BY:
Donald E. Bradley Stephen L. Weir
City Manager County Clerk-Recorder
Attest:
City Clerk
Approved as to forms Approved as to form:
City Attorney County Counsel
trantax.agr