County recorder
anticipates challenges with new user fee
EL CENTRO — The implementation of new real estate recording fees Monday is expected to bring challenges for both the county Recorder’s Office and members of the general public.
Aside from the anticipated challenges associated with implementing a new law, many potential patrons likely remain unaware of the new law’s existence, said county Clerk-Recorder Chuck Storey.
Starting Monday, the Recorder’s Office will begin charging a $75 per document fee to record real estate documents.
That $75 per document fee is capped at a total of $225 in instances where more than three real estate documents are being recorded at once.
“We may not like it, but we’re going to do what the law requires us to do, and do it in the most fair and equitable manner we can,” Storey said.
Currently, the Recorder’s Office charges $13 dollars for recording a document, with a $1 charge for any additional pages.
The new fee is the result of the passage of Senate Bill 2, also known as the Building Homes and Jobs Act, aimed at streamlining new housing construction and combating homelessness.
On average, the local Recorder’s Office records about 30,000 documents per year, and estimated 50 to 60 percent of those would be subject to the new real estate document fee, Storey said.
County recorders are required to collect the tax proceeds for 90 days and then submit the proceeds to the state for auditing.
“As they audit us, they will tell us where we’re doing it right, where we’re doing it wrong,” Storey said.
The legislation also allows the Clerk/Recorder’s Office to be compensated for administrative costs associated with the legislation.
Storey said his office’s computations set that administrative cost at $10.01 and will be retaining $10 for its expenses.
“This is however subject to review by the state controller’s office and may have to be changed if they do not agree with our analysis,” he said.
Statewide, an estimated $200 to $300 million is expected to be collected annually in connection to the new fee.
During its first year of implementation, 50 percent of the taxes collected will be made available to local governments for specified purposes, such as supporting housing programs, the development of vacant or under-used land and housing-related parks, the bill’s language stated.
The remaining 50 percent of the proceeds will be made available to the state’s Department of Housing and Community Development to combat homelessness.
Although the bill’s language states that the department “shall ensure geographic equity in the distribution and expenditure of funds,” Storey expressed uncertainty about the amount of funds that could potentially be made available to the Valley.
“We may not like it, but we’re going to do what the law requires us to do, and do it in the most fair and equitable manner we can.” Chuck Storey, county Clerk-Recorder
“We don’t have the votes that they got in the large counties, so I’m not expecting much money to come back here to house the homeless,” he said.
During its second year of implementation, the percentage of tax proceeds made available to local governments increases to 70 percent, with the remaining amount going to the state’s Department of Housing and Community Development.
Some of the real estate documents that will be subject to the $75 per document fee include mortgage refinancing, quitclaim deeds and affidavits of death related to real estate.
Documents exempted from the fee include owner-occupied home sales and commercial real estate sales.
Failure to pay the $75 per document fee will result in the Recorder’s Office not being able to record the documents.
“There’s not a thing we can do about it other than what the state’s called on us to do,” Storey said. “If you don’t pay it, I can’t record it.”