Opinion No. (2002)

BILL LOCKYER Attorney General THOMAS S. LAZAR Deputy Attorney General THE HONORABLE ROBERT WESTMEYER, COUNTY COUNSEL, COUNTY OF NAPA, has requested an opinion on the following question: Are cities exempt from paying documentary transfer taxes when acquiring title to real property? CONCLUSION Cities are exempt from paying documentary transfer taxes when acquiring title to real property. ANALYSIS The Constitution states in part: "The Legislature may not impose taxes for local purposes but may authorize local governments to impose them." (Cal. Const., art. XIII , § 24 .) One tax local governments may impose is a tax upon conveyances of real property as authorized under the Documentary Transfer Tax Act (Rev. Tax. Code, §§ 11901 - 11934 ; "Act") 1 . The Act provides numerous exemptions from the tax (§§ 11921 - 11930 ), including when a government agency is acquiring title to real property. Section 11922 states: "Any deed, instrument or writing to which the United States or any agency or instrumentality thereof, any state or territory, or political subdivision thereof, is a party shall be exempt from any tax imposed pursuant to this part when the exempt agency…