Arguments in Support of the Bill
The California Senate criticized the prior Documentary Transfer Tax Act as an “outdated statute” that allowed parties to “shield” the amount of transfer tax paid from public inspection. The Senate commented that the “only purpose for this provision is an attempt to keep others from knowing the purchase price of the property.” By preventing parties from including the transfer tax information on a separate document from the recorded deed, the new bill will provide more transparency. The Senate believes that it will help “ensure that real estate appraisers have access to transfer tax information in order to accurately appraise real property.”
Furthermore, the revision to the Act will provide transparent administration of California’s documentary transfer tax law and will resolve an issue relating to the availability of the information under the California Public Records Act. According to an informal survey, 21 counties do not require a CPRA request, 11 counties require a CPRA request, and one county refuses to provide the information.