No Longer Able To Conceal Purchase Price - New Documentary Transfer Tax Disclosure Requirements In 2015
Governor Jerry Brown recently approved Assembly Bill No. 1888 (AB 1888) which amends California Revenue and Taxation Code Sections 11932 and 11933, effective January 1, 2015, to eliminate the option of having the amount of the documentary transfer tax paid in connection with any transfer of real property shown on a separate, unrecorded paper affixed to the transfer deed recorded with the applicable County Recorder’s Office.
Currently, parties to a transfer of real property can elect to have the documentary transfer tax amount reflected on an unrecorded declaration instead of directly on the face of the recorded grant deed to avoid having information about the purchase price (which can be ascertained from the amount of the transfer tax paid) readily available to the public. However, beginning on January 1, 2015, any deed, instrument or transfer document subject to transfer tax will be required to state the applicable documentary transfer tax due directly on such document when recorded with the County Recorder’s Office.
If you have any questions or need assistance with AB 1888, please feel free to contact the Retail Group of Cox, Castle & Nicholson LLP (Gary Glick or Scott Grossfeld in Los Angeles; Bob Sykes or Dave Wensley in Orange County; or Scott Brooks in San Francisco).