ITEM 8-E

City Council Meeting 8-13-91             Santa Monica, California

                          STAFF REPORT

TO:         Mayor and City Council

FROM:       City Attorney

SUBJECT:    Ordinance Amending Santa Monica Municipal Code
            Sections 61000, 61002 and 61008, and Adding
            Section 61010 to the Santa Monica Municipal Code

      At  its  meeting  on  July  23,  1991,  the  City   Council
introduced for first reading an ordinance amending Municipal Code
Sections 61000, 61002 and 61008, and adding Section 61010 to  the
Municipal  Code  relating  to  the  City's  real  estate property
transfer tax.  The ordinance is now presented to the City Council
for adoption.

                         RECOMMENDATION

      It  is  respectfully  recommended  that  the   accompanying
ordinance be adopted.

PREPARED BY:  Robert M. Myers, City Attorney


                      ORDINANCE NUMBER ____

                      (City Council Series)

             AN ORDINANCE OF THE CITY COUNCIL OF THE
      CITY OF SANTA MONICA AMENDING SANTA MONICA MUNICIPAL
            CODE SECTIONS 61000, 61002 AND 61008, AND
     ADDING SECTION 61010 TO THE SANTA MONICA MUNICIPAL CODE

      THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS
FOLLOWS:

      SECTION 1.  Santa Monica Municipal Code  Section  61000  is
amended to read as follows:

                  SECTION   61000.    Title.     This
            Ordinance  shall  be  known  as the "Real
            Property Transfer Tax  Ordinance  of  the
            City  of  Santa  Monica."   It is adopted
            pursuant to the  authority  contained  in
            Part  6.7 (commencing with Section 11901)
            of Division 2 of the Revenue and Taxation
            Code of the State of California and other
            authority held as a charter city.

      SECTION 2.  Santa Monica Municipal Code  Section  61001  is
amended to read as follows:

                  SECTION 61001.  Transfers  Affected
            and Amount of Tax.  Effective October 15,
            1991, there is  hereby  imposed  on  each
            deed, instrument, or writing by which any
            lands, tenements, or  other  realty  sold
            within  the City of Santa Monica shall be
            granted,   assigned,    transferred    or
            otherwise  conveyed to, or vested in, the
            purchaser or  purchasers,  or  any  other
            person or persons, by his or her or their
            direction,  when  the  consideration   or
            value   of   the   interest  or  property
            conveyed (exclusive of the value  of  any
            lien  or encumbrance remaining thereon at
            the time of sale) exceeds $100.00, a  tax
            at  the  rate of $3.00 for each $1,000.00
            of property sale value or fractional part
            thereof.   Prior to October 15, 1991, the
            tax  at  the  rate  of  fifty-five  cents
            ($.55)  for  each  $1,000.00  of property
            sale value  or  fractional  part  thereof
            shall remain in effect.

      SECTION 3.  Santa Monica Municipal Code  Section  61008  is
amended to read as follows:

                  SECTION  61008.    Agreement   with
            County  Recorder.   The  County  Recorder
            shall  administer   this   Ordinance   in
            conformity  with  the  provisions of Part
            6.7 of Division  2  of  the  Revenue  and
            Taxation  Code  and the provisions of any
            county ordinance  adopted  thereto.   The
            City  Manager of the City of Santa Monica
            is authorized to negotiate and enter into
            a contract with the County of Los Angeles
            or  one  of   its   officials   for   the
            administration   of  this  Ordinance  and
            payment to the County for  its  costs  of
            administration.

      SECTION 4.  Section 61010 is  hereby  added  to  the  Santa
Monica Municipal Code to read as follows:

                  SECTION   61010.    Authority    of
            Finance Director.

                  (a)   The  Direct  of  Finance   is
            hereby  designated  as the officer of the
            City    responsible    for    maintaining
            relations  with the County of Los Angeles
            for the purpose of administering the  tax
            imposed    under   this   Ordinance   and
            receiving and accounting  for  the  funds
            collected thereunder.

                  (b)  If the County of  Los  Angeles
            does  not  collect the tax due under this
            Ordinance, then the Director  of  Finance
            shall  have the power and duty to enforce
            all of the provisions of this  Ordinance.
            In  such  case, the City tax is due prior
            to any recordation with the County of Los
            Angeles of any written instrument subject
            to the tax and the  Director  of  Finance
            may make an assessment for taxes not paid
            and make refunds.

      SECTION 5.  Any provision of  the  Santa  Monica  Municipal
Code  or  appendices  thereto inconsistent with the provisions of
this Ordinance, to the extent  of  such  inconsistencies  and  no
further, are hereby repealed or modified to that extent necessary
to affect the provisions of this Ordinance.

      SECTION 6.  If any section, subsection,  sentence,  clause,
or  phrase of this Ordinance is for any reason held to be invalid
or unconstitutional by a decision of any court of  any  competent
jurisdiction,  such decision shall not affect the validity of the
remaining portions of this Ordinance.  The  City  Council  hereby
declares  that  it would have passed this Ordinance, and each and
every  section,  subsection,  sentence,  clause,  or  phrase  not
declared  invalid  or  unconstitutional without regard to whether
any portion of  the  Ordinance  would  be  subsequently  declared
invalid or unconstitutional.

      SECTION 7.  The Mayor shall sign and the City  Clerk  shall
attest  to  the  passage of this Ordinance.  The City Clerk shall
cause the same to be published once  in  the  official  newspaper
within  15  days after its adoption.  This Ordinance shall become
effective after 30 days from its adoption.

APPROVED AS TO FORM:

__________________________________
ROBERT M. MYERS
City Attorney