Real Property Transfer Tax

Culver City’s Real Property Transfer Tax (RPTT) is a one-time fee imposed by the City when a property is sold in Culver City.  The RPTT is assessed in addition to Los Angeles County’s Documentary Transfer Tax. RPTT funds are used by the City to provide essential city services including deferred maintenance of parks, facilities, and streets, addressing homelessness, after-school programs and senior services, and economic recovery programs.

 

How do I Pay?

The Los Angeles County Registrar-Recorder/County Clerk collects the RPTT on behalf of the City at the time the property sale is recorded. 

More information and payment instructions can be found on the Registrar-Recorder/County Clerk’s webpage.

 

Tax Calculator

Insert the consideration or value of the interest or property conveyed, including the value of any lien or encumbrances remaining thereon at the time of sale. Round value of consideration, including any liens or encumbrances ("value") down to the next dollar.

NOTE: The City of Culver City is providing this online calculator as a courtesy and it should not be relied on. The City is not responsible for the correct calculation of the property transfer tax.

Calculation Methodology

Value Tax Calculation 
$1,499,999 or less 0.45% x value
From $1,500,000 to $2,999,999 $6,750 + 1.5% x (value - $1,500,000)
From $3,000,000 to $9,999,999 $29,249.99 + 3% x (value - $3,000,000)
$10,000,000 and over $239,249.96 + 4% x (value - $10,000,000)

Tax Rates

Property sold or conveyed on or after April 1, 2021 for more than $100.00 is assessed at the following marginal tax rates, based on the consideration or value of the property conveyed, including the value of any lien or encumbrances remaining thereon at the time of sale:

  • 0.45% on amounts of $1,499,999 or less.
  • 1.5% on amounts from $1,500,000 to $2,999,999.
  • 3.0% on amounts from $3,000,000 to $9,999,999.
  • 4.0% on amounts $10,000,000 and above.

Property sold before April 1, 2021 for more than $100.00 is taxed at the rate of $4.50 per $1000 of the consideration or value of property conveyed.

Sales of affordable housing and the first sale of newly constructed multi-family housing may be subject to different tax rates.

 

Include the Value of Any Liens and Encumbrances

The Culver City RPTT is assessed on the consideration or value of the interest or property conveyed including the value of any lien or encumbrances remaining thereon at the time of sale.  This is an important distinction because many jurisdictions tax the value excluding the value of any lien or encumbrances.

0.45% Rate for Affordable Housing and Newly Constructed Multi-Family Housing

The entire value of the following types of transfers and sales are taxed at the 0.45% rate, regardless of the value of consideration:

  • 100% deed-restricted affordable housing
  • First transfer of newly constructed multi-family housing

A taxpayer who is entitled to this reduction must either provide documentation and receive verification of eligibility from the City before the tax is paid or claim a refund by providing documentation of eligibility after the tax is paid.

  • Documentation Eligibility Form

The Documentation Eligibility Form will be posted here when available.

Affordable Housing is defined as:

“A transfer of improved real property to a nonprofit corporation, or a limited partnership or limited liability company in which a nonprofit corporation is the managing general partner or managing member, accompanied by a binding agreement or covenant recorded on the property and enforceable by the City to provide all residential units on the property (other than units reserved for on-site property managers) at an affordable rent or affordable housing cost to lower income households as defined in California Health and Safety Code Section 50079.5.”

First transfer of newly constructed multi-family housing is defined as:

“A transfer of real property that contains four or more dwelling units designed for permanent residential occupancy, including accessory dwelling units, and meets all of the following conditions:

  • At least one or more of the dwelling units was newly constructed within the last five years prior to the transfer of the real property, based on the date of the issuance of the certificate of occupancy for such newly constructed dwelling units (“newly constructed” shall not include the remodel or renovation of an existing unit);
  • The newly constructed dwelling units must have resulted in a net increase in the total number of dwelling units on the real property; and
  • The transfer of real property is the first transfer following the issuance of the certificate of occupancy for such newly constructed dwelling units.”

 

Frequently Asked Questions

Who pays the real estate transfer tax?

Either the seller or buyer may pay the real property transfer tax during the transfer or sale. If it is not paid, the seller and buyer are jointly and severally liable to the City for the payment of the tax.

Will the tax bracket thresholds change over time?

The thresholds for the four tax rate brackets (i.e. $1,500,000, $3,000,000, and $10,000,000) will change every five years, based on the Consumer Price Index. The tax rates (0.45%, 1.5%, 3.0%, and 4.0%) will stay the same over time.

Does the Culver City real estate transfer tax apply to commercial property sales?

Yes, Culver City's real property transfer tax applies to all property sales, including residential and commercial.

Are there exemptions for the real property transfer tax?

Property conveyed by inheritance may be exempt from the real property transfer tax. See the County of Los Angeles's "Notice of Exempt Transactions Under the Documentary Transfer Tax" document for a list of more exemptions. You may also contact the County Recorder's Office staff at (562) 462-2125 if you have any further questions about exemptions.

 

Is the RPTT a general tax or a special tax?

The RPTT is a "general tax," not a "special tax," and may be used for any valid municipal purpose. General tax revenues are deposited into the City's General Fund and do not go to the County or State. Like other City revenues, real property transfer tax revenue is subject to annual independent audits, ensuring full accountability and transparency.

What was Measure RE?

Measure RE was a ballot measure approved by 51.89% of Culver City voters at the November 3, 2020 General Municipal Election. Measure RE changed the City’s RPPT from the previous 0.45% flat tax to the current marginal tax rate with four brackets, based on sales price or value, effective April 1, 2021. 

Learn more about Measure RE.