SB 2 Recording Fees: State Clarifies Exemptions - California and its Cities, Counties and Other Political Subdivisions May be Due Refunds

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The State of California, as well as cities, counties and other political subdivisions in the State, are officially exempt from paying a recently enacted $75 fee for document recording. This clarification came with the passage of Assembly Bill 110, which Gov. Jerry Brown signed last month.
 
AB 110 was passed in response to problems with SB 2’s implementation. Senate Bill 2, the Building Homes and Jobs Act, imposes a $75 fee on the recording of certain documents to fund affordable housing in California. The new fee went into effect Jan. 1. Since then, some county recorder offices charged the $75-per-document fee to state agencies, cities, counties and other political subdivisions when those agencies have recorded certain types of documents.
 
Although these entities are generally exempt from recording fee payments under Government Code sections 6103 and 27383, they are not exempt from recording fee payments for releases of liens, encumbrances or other notices. That fact led many county recorder offices to apply the $75 fee when those types of documents were recorded.
 
AB 110 clarifies that, under existing law, the State and “any county, municipality, or other political subdivision of the state” is exempt from payment of the $75 recording fee. In addition, AB 110 provides that this clarification is retroactive to Jan. 1 — meaning that any State agency, county, city, or other political subdivision that was charged the fee since that date may request reimbursement by the applicable county recorder’s office.
 
Read more about SB 2 and other affordable housing bills passed last year by clicking here.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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