Senate Bill No 2 Building Homes and Job Act Imposes a Fee -- Effective January 1

by Placerville Newswire / Dec 16, 2017 / comments

[EDC BOS, Jane Kohlstedt, Assistant County Recorder-Clerk]

RE: Government Code section 27388.1 – Building Homes & Jobs Act Fee (SB-2) Signed by the Governor and filed with the Secretary of State September 29, 2017 to Impose a Document Fee.

Effective January 1, 2018, in order to fund the State’s Building Homes & Jobs Act (SB-2), Government Code section 27388.1 requires that documents accepted for recording at the El Dorado County Recorder’s Office be charged an additional seventy-five dollars ($75) fee as follows:

“…a fee of seventy-five dollars ($75) shall be paid at the time of recording of every real estate instrument, paper, or notice required or permitted by law to be recorded, except those expressly exempted from payment of recording fees, per each single transaction per parcel of real property. The fee imposed by this section shall not exceed two hundred twenty-five dollars ($225)…”

Only an expressly limited number of statutory exemptions exist regarding the collection of this fee. When an exemption is applicable, a valid declaration of exemption must be placed on the face of each document, or on a document cover page, which shall become part of the document, prior to depositing with the Recorder. If no valid exemption is declared, the fee will be assessed and collected. Following are samples of applicable statutory exemptions to be used on the first page of each document:

  1. A Documentary Transfer Tax (DTT) Declaration stating that the transfer is subject to payment of the DTT including the amount of DTT due and to be paid at the time of recording; and/or
  2. Exempt from fee per GC sec 27388.1(a)(2); recorded concurrently “in connection with” a transfer subject to the imposition of DTT; or
  3. Exempt from fee per GC sec 27388.1(a)(2); recorded concurrently “in connection with” a transfer of real property that is a residential dwelling to an owner-occupier; or
  4. Exempt from fee per GC sec 27388.1(a)(1); fee cap of $225 reached; or
  5. Exempt from fee per GC sec 27388.1(a)(1); not related to real property.

Failure to include a specified exemption justification in the declaration of exemption; results in the imposition of the $75 Building Homes and Jobs Act fee. Fees are collected on behalf of the State and, deposited with the State to fund State programs. The County Recorder only collects the fee on behalf of the State.