Opinion No. (1999)

BILL LOCKYER Attorney General Gregory L. Gonot, Deputy

THE HONORABLE WESLEY CHESBRO, MEMBER OF THE CALIFORNIA STATE SENATE, has requested an opinion on the following question:

Does the documentary transfer tax apply to the transfer of real property from a parent corporation to a wholly-owned subsidiary corporation?

CONCLUSION

The documentary transfer tax does not apply to the transfer of real property from a parent corporation to a wholly-owned subsidiary corporation when the beneficial ownership of the property remains the same.

ANALYSIS

The Documentary Transfer Tax Act (Rev. Tax. Code, §§…