The Documentary Transfer Tax Act (Revenue and Taxation Code §§11901, et. seq), as originally enacted, allows the amount of documentary transfer tax on a conveyance of commercial real estate to be shown on a separate declaration to prevent the purchase price from being readily ascertainable. It permits a county recorder to attach the declaration to the deed after the permanent record is made and before the original is returned.

Newly enacted AB 1888 will eliminate this practice.  Beginning January 1, 2015, a signed declaration of the amount of transfer tax due must be shown on the face of all deeds or other instruments conveying title prior to recordation. It eliminates the ability of parties to keep a commercial real estate transaction price confidential.

Starting next year, documentary transfer tax will no longer be a private affair.