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Consent-General Government # 9.
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| Board of Supervisors |
County Administrator |
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| Subject |
| Approve amendment to Agreement No. 92-49 (Revenue Sharing and Property Tax Exchange Agreement with the City of Woodland) to end transfers of a portion of Woodland's Documentary Transfer Tax to County. (General fund impact $200,000 to $250,000 per year) (Blacklock/May) |
| Recommended Action |
| Approve amendment to Agreement No. 92-49 (Revenue Sharing and Property Tax Exchange Agreement with the City of Woodland) to end transfers of a portion of Woodland's Documentary Transfer Tax to County. |
| Strategic Plan Goal(s) |
Operational Excellence
Thriving Residents
Safe Communities
Sustainable Environment
Flourishing Agriculture |
| Reason for Recommended Action/Background |
The purpose of this item is to amend a 1992 revenue sharing agreement with the City of Woodland to remove Woodland’s obligation to transfer a portion of its Documentary Transfer Taxes (“DTT”) to the County. See Attachment A.
DTTs are imposed when real property is sold and a document is recorded with the County Recorder. For property transfers in Woodland, the Recorder collects the County and City DTTs at a combined rate of $1.10 per $500 in value of the property transferred, shared equally at 55 cents per $500 to the County and 55 cents per $500 to the City. In the three other cities in the County, the rate is a total of 55 cents per $500 in value, with 27.5 cents per $500 going to the city and 27.5 cents per $500 to the County. In the unincorporated areas, the rate also is 55 cents per $500, but it is all kept by the County.
The City of Woodland is reducing its DTT to be more in line with neighboring jurisdictions. As a result, Woodland’s DTT will reduce from 55 cents per $500 to 27.5 cents per $500. The County’s share of the DTT will undergo the same change by operation of law, resulting in the same 27.5 cents per $500 rate as collected in the other cities. As a result, all property owners in Yolo County will pay the same DTT rate regardless of where their property is located. The revised DTT will also be more in line with the statute authorizing DTTs, which limits the combined total customers pay to 55 cents per $500, to be split evenly between cities and counties for transfers within incorporated areas.
Woodland’s change to its DTT will affect the 1992 revenue-sharing agreement between the County and the City of Woodland related to the City’s annexation of Gibson Ranch. See Attachment B. In the agreement, the City agreed to pay the County an effective rate of $0.55 cents per $500 in value of the City’s share of the DTT. Absent an amendment to the 1992 Agreement, the City of Woodland would be required to transfer more than its total share of the DTT after it reduced its rate to 27.5 cents per $500. The proposed amendment would mean that the DTT is treated the same for each of the cities in the County. As a result, the County’s revenues would decrease by approximately $200,000 to $250,000, with Woodland incurring an equal reduction in revenue. Nonetheless, staff recommends revising the 1992 Agreement to help ensure that all property owners in the County pay the same DTT on transactions. |
| Collaborations (including Board advisory groups and external partner agencies) |
| The County Administrator, Clerk-Recorder-Assessor and County Counsel's Office collaborate on this item. |
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| Fiscal Impact |
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| Source of Funds for this Expenditure |
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Explanation (Expenditure and/or Revenue) |
| Further explanation as needed: |
| DTT received from sales in Woodland will be reduced by 50%. In 2016, the DTT collected for sales in Woodland was $457,837.85. Decreased revenue is expected to range from $200,000 to $250,000 per year. |
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