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Title: 3 - Revenue and Finance

Chapter: 12 - Real Property Transfer Tax

Section: 80 - Realty held by partnership

A.  In the case of any realty held by a partnership, or other entity treated as a partnership for federal income tax purposes, no tax shall be imposed pursuant to this chapter by reason of any transfer of an interest in the partnership or other entity or other­wise, if.

1.  Such partnership or other entity treated as a partnership is considered a continuing partnership within the meaning of Section 708 of the Internal Revenue Code of 1986 and

2.  Such continuing partnership or other entity treated as a partnership continues to hold the realty concerned.

B.  If there is a termination of any partnership or other entity treated as a partnership for federal income tax purposes, within the meaning of Section 708 of the Internal Revenue Code of 1986, for purposes of this chapter, such partnership or other entity shall be treated as having executed an instrument whereby there was conveyed, for fair market value (exclusive of the value of any lien or encumbrance remaining thereon), all realty held by such partnership or other entity at the time of such termination.

C.  Not more than one tax shall be imposed pursuant to this chapter by reason of a termination described in subsection B, and any transfer pursuant thereto, with respect to the realty held by such partnership, or other entity treated as a partnership, at the time of such termination.

D.  No levy shall be imposed pursuant to this chapter by reason of any transfer between an individual or individuals and a legal entity or between legal entities that results solely in a change in the method of holding title to the realty and in which proportion­al ownership interests in the realty, whether represented by stock, membership interest, partnership interest, co tenancy interest, or otherwise, directly or indirectly, remain the same immediately after the transfer.

 

(Ord. 2000-010 §§ 8-11, 2000: Ord. 68-1 § 8, 1968.)