New Tax of $75 for Deeds Recorded in California by Deed and Record

NextGen Medium-Rectangle-300×250-3d

Mark W. Bidwell, Attorney at Law

Effective January 1, 2018, California has an additional of recording fee of $75 per recording. The $75 tax assessed due to the Building Homes and Jobs Act increases the cost of preparing and recording deeds for Deed and Record. There are two exceptions to this new tax.

In addition to any other recording fee required by county recorders in California a tax of $75 must now be paid. This tax is paid at the time of recording any real estate instrument. Real estate instruments include grant deeds, quit claim deeds, affidavits of death and revocable transfer on death deeds also known as a TOD Deeds.

There are two exemptions to this tax. The first exemption is the tax is not imposed on real property that is a residential dwelling that is occupied by its owner. In other words, a person’s primary residence or home is exempt from this tax.

At the time of this press release Deed and Record anticipates this owner/occupier exemption will not apply to the addition or removal of a co-owner of the property who does not occupy the property. This exemption also may not apply to affidavits of death of trustee(s) by a successor trustee because there is no longer an owner/occupier of the home.

The second exemption is if a transfer tax has already been imposed on the recording of the deed, this new tax will not be accessed. If there is no sale, the transfer tax may be imposed on the value of the property exchanged. As a general rule the transfer tax is $1.10 per $1,000. For recordings related to timeshare and undeveloped land it may be less expensive to pay the transfer tax based on the value of the property then to pay the full $75 imposed by the Building, Homes and Jobs Act.

To claim either exemption the owner/transferor must under penalty of perjury declare the reason for the exemption. This declaration must be on the made on the deed itself.

Effective January 1, 2018 the Building, Homes and Jobs Act imposed a new tax of $75 on all real estate documents recorded with county recorders. These documents include grant deeds, quit claim deeds, affidavits of death and TOD Deeds. There are two exemptions to this tax; real property transfers by an owner/occupier and transfers that impose a transfer tax.

This press release was authored by Mark W. Bidwell, an attorney licensed in California. Mr. Bidwell markets through a website, Address is 4952 Warner Avenue, Suite 235, Huntington Beach, CA 92649. Telephone is 714-846-2888.

Share article on social media or email:

NextGen Leaderboard-728×90-1a