How To Claim A Refund On Erroneous $75 'Recording Tax'
SACRAMENTO (CBS13) - Did you pay $75 for something called a "recording tax"? If so, you might be entitled to a refund.
In March, the California Legislature amended a bill that imposed a $75 recording tax that cleared you credit because a lien release wouldn't have been recorded without it, but according to the Howard Jarvis Taxpayers Association, you shouldn't have to pay the charges.
"Many citizens were charged improperly, primarily for recording tax lien releases, child support lien releases, even lien releases not related to real property (jet skis, for example). Additional mistakes could be numerous," the association wrote in a statement.
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If paid the $75 tax and don't think you should have been charged, you'll need to request a refund in writing. The association has provided a template for the refund.
Senate Bill 2 states that the fee of $75 is to be paid "at the time of recording every real estate instrument, paper, or notice…" But it's unclear whether county recorder officers should charge the fee for tax liens and lien releases presented by government agencies.
The documents to be taxed under this law include, but are not limited to: deeds, grant deeds, trustee's deed, deed of trust, mechanic's lien, and maps.
Revenue collected from the $75 tax is supposed to go toward affordable housing projects.