California Legislature Considers New Tax on Homeowners – SB 391
The CA state legislature has been considering a new tax that would be imposed on homeowners who need to record certain documents with their counties.
This $75 per document tax will be imposed on a variety of documents, which will include, for example, documents related to refinancing properties, taking properties in and out of trusts, making lot line adjustments, obtaining constructions loans and upon the death of a spouse.
This new tax would also apply to foreclosures (the owner would be responsible, not the lender) and filing mechanics liens.
Example: It is not untypical in a refinance, for six documents to be subject to the new tax, resulting in a tax total of $552. If a spouse dies, up to five documents need to be recorded, creating a total tax of $440 including existing recording fees.
SB 391 is in the Assembly Appropriations Committee.
The CALIFORNIA ASSOCIATION OF REALTORS® is opposing this bill.
By Harrison K. Long. Source of information is the California Association of Realtors.
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