When is documentary transfer tax paid?The tax is paid at the time of recording a document transferring real property. Those cities opting into this tax receive half the amount collected for property in the city.The City of Sacramento collects a separate transfer tax above this tax and, thus, does not receive any DTT revenue.
What is city transfer tax?In lieu of collecting documentary transfer tax (DTT) pursuant to Revenue and Taxation Code section 11911, a City may establish an additional real property transfer tax ("city transfer tax") which it collects separate and apart from the DTT.
In Sacramento County, only the City of Sacramento has established a City Transfer Tax (Sacramento City Code section 3.16.020) and does not receive any DTT revenue. The tax is imposed on all transfers by deeds, or any other document, by which any interests in real property located in the City of Sacramento incorporated area are sold and/or granted, assigned, transferred, or conveyed to purchaser(s), or any other person(s), or entities.
For more information, read the City's notice or contact the Revenue Division (Enforcement & Collections).
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When is city transfer tax collected?City Transfer Tax (in addition to DTT) is collected at the time of recording if the tax amount is identified in the declaration on the first or lead page of the document.
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Are there any exemptions from documentary transfer tax?Yes. If the property is considered to have been sold there are several exemptions under the law. These exemptions relate to specific causes of real property transfers and are infrequently used. Refer to the fact sheet on Transfer Tax Exemptions under Revenue & Taxation Code for details.
Are there any other requirements?Yes. Each document transferring an interest in real property must clearly state, on its face, if the property is located in the county's unincorporated area or within a city's limits. Cities in Sacramento County are: Citrus Heights, Elk Grove, Folsom, Galt, Isleton, Rancho Cordova, and Sacramento.