RECOMMENDATION(S):
AUTHORIZE the Clerk-Recorder or designee to execute an Agreement with the City of El Cerrito for documentary transfer tax collection services provided by the County to the City, effective July 1, 2020 until terminated.
FISCAL IMPACT:
The County will receive administrative costs associated with collecting documentary transfer tax for the City of El Cerrito. 100% General Fund.
BACKGROUND:
On December 4, 2018, the City of El Cerrito, a charter City, adopted Ordinance 2018-03 to increase its documentary transfer tax to $12.00 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 tax not in accordance with Section 11911(b), then the County is not required to split with the City the County documentary transfer tax for transfers which occur within that City.
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