Borough of Eagles Mere, PA Taxation

Personal living or family expenses.

Medical, dental, surgical or nursing expenses.

Premiums on personal life, health or accident insurance.

Contributions or gifts of any kind, regardless of character or purposes of the recipient or donee.

(5)

Interest other than interest on business indebtedness or on indebtedness incurred to provide funds to finance the production of taxable income.

(6)

Personal taxes, including taxes on real estate occupied as taxpayer's residence, personal property taxes and per capita, occupational and poll taxes.

(7)

Income, gift, inheritance and estate taxes.

(8)

Any amount paid out for new buildings or for permanent improvements or betterments made to increase the value of any property or estate.

(9)

Any amount expended in restoring property or in making good the exhaustion thereof for which an allowance is or has been made.

(10)

Premiums paid on any life insurance policy covering the life of any employee or of any person financially interested in any trade or business carried on by the taxpayer, when the taxpayer is directly or indirectly a beneficiary under such policy.

(11)

Any amount otherwise allowable as a deduction which is allocatable to one or more classes of income other than interest wholly exempt from the tax imposed herein or any amount otherwise allowable under § 96-6A(1) hereof which is allocatable to interest wholly exempt from the tax imposed herein.

(12)

Amounts paid or accrued for such taxes and carrying charges as, under regulations prescribed by the Collector, are chargeable capital accounts with respect to property, if the taxpayer elects, in accordance with such regulations, to treat such taxes or charges as so chargeable.

Losses from sales or exchange of property. In computing net income, no deduction shall in any case be allowed in respect to losses from sales or exchanges of property, directly or indirectly, under circumstances described in Section 267 of the Federal Internal Revenue Code.

Unpaid expenses and interest. In computing net income no deductions shall be allowed under § 96-5A hereof if:

Such expenses or interest are not paid within the taxable period or within 3 1/2 months after the close thereof;

By reason of the method of accounting of the person to whom the payment is to be made, the amount thereof is not, unless paid, includable in the gross income of such person for the taxable period in which or with which the taxable period of the taxpayer ends; and

At the close of the taxable period of the taxpayer or at any time within 3 1/2 months thereafter both the taxpayer and the person to whom the payment is made are persons between whom losses would be disallowed under § 96-6B hereof.

§ 96-7 Accounting records, periods and methods.

Taxpayers, employers and others required to file returns and declarations under the provisions of this article shall keep such records as will permit the filing of true and accurate returns and declarations, and such records shall be preserved for a period of not less than six years.

The net income shall be computed upon the basis of the taxpayer's annual accounting period (fiscal year or calendar year, as the case may be) in accordance with the method of accounting regularly employed in keeping the books of such taxpayer; but if no such method of accounting has been so employed or if the method employed does not clearly reflect the net income, the computation shall be made in accordance with such method as, in the opinion of the Collector, does clearly reflect the net income. If the taxpayer's annual accounting period is other than a fiscal year ending on the last day of any month other than December or if the taxpayer has no annual accounting period or does not keep books, the net income shall be computed on the basis of the calendar year.

§ 96-8 Taxable period.

The amount of all items of gross income shall be included in the gross income for the taxable period in which said amounts were received by the taxpayer, unless, under methods of accounting permitted under § 96-7 hereof, any such amounts are to be properly accounted for as of a different period. In the case of the death of a taxpayer whose net income is computed upon the basis of the accrual method of accounting, amounts (except amounts representing his share of a partnership's taxable period ending with its dissolution on account of his death) accrued only by reason of the death of the taxpayer shall not be included in computing net income for the period in which falls the date of the taxpayer's death.

§ 96-9 Deductions and credits.

The deductions and credits provided for in this article shall be taken for the taxable period in which paid or accrued or paid and incurred, dependent upon the method of accounting upon the basis of which the net income is computed, unless, in order to clearly reflect the net income, the deductions or credits should be taken as of a different period. In the case of the death of a taxpayer whose net income is computed upon the basis of the accrual method of accounting, amounts (except amounts representing his share of a partnership's net loss for the partnership's taxable period ending with its dissolution on account of his death) accrued as deductions and credits only by reason of the death of the taxpayer shall not be allowed in computing net income for the period in which falls the date of the taxpayer's death.

§ 96-10 Installment basis.

A person who regularly sells or otherwise disposes of personal property on the installment plan may return his income on the installment basis of accounting provided in Section 44 of the Federal Internal Revenue Code, provided that the consent of the Collector to do so is first obtained. In the case of a casual sale or other casual disposition of personal property (other than property of a kind which would properly be included in the inventory of the taxpayer if on hand at the close of the taxable year) for the price exceeding $1,000 or of a sale of other disposition of real property, if in either case the initial payments do not exceed 30% of the selling price, the income may be returned on the basis and in the manner prescribed in Section 44 of the Federal Internal Revenue Code.

The gain or loss upon the disposition of installment obligations at prices in excess of or less than face amount shall be computed and recognized as provided for in Section 44 of the Federal Internal Revenue Code.

§ 96-11 Change of accounting period.

If a taxpayer changes his accounting period from fiscal year to calendar year, from calendar year to fiscal year or from fiscal year to another, the net income of such taxpayer shall, with the approval of the Collector, be computed on the basis of such new accounting period.

§ 96-12 Partnerships.

How taxed. Individuals carrying on business in partnership shall be liable for the tax herein imposed only in their individual capacity. The net income of the partnership as such shall not be taxed to the partnership.

Computation of partnership net income. The net income of the partnership shall be computed in the same manner and on the same basis as provided by §§ 96-3 through 96-10 inclusive.

Different taxable periods of partner and partnership. If the taxable period of a partner is different from that of a partnership, the inclusions with respect to the net income of the partnership in computing the net income of the partner for his taxable period shall be based upon the net income of the partnership for any taxable period of the partnership ending within or with the taxable period of the partner.

Net operating losses of partnerships. The benefit of the deductions for net operating losses allowed by § 96-6G hereof shall not be allowed to a partnership, but shall be allowed to the members of the partnership under regulations prescribed by the Collector.

Unincorporated associations, joint ventures and common trust funds. Unincorporated associations, joint ventures and common trust funds whose earnings are distributed or distributable to its members shall be treated as partnerships for the purpose of the tax imposed by this article.

§ 96-13 Exemption from tax.

The net income of the following entities shall be exempt from the tax imposed by this article:

Every corporation which is subject to the Pennsylvania corporate net income tax.

Every corporation which is exempt from the Pennsylvania corporate net income tax.

Every eleemosynary corporation created and existing for purely religious, educational, literary, scientific or charitable purposes.

Fraternal and religious organizations, business leagues, chambers of commerce, real estate boards, boards of trade, civic leagues and social service and recreational clubs and community chests, funds or foundations and cemetery companies, whether such organization is incorporated or unincorporated, if no party of the net earnings thereof inures to the benefit of any private shareholder, individual, estate or trust.

The corporations and organizations which are specifically exempted in Subsection A of this section from the tax herein imposed shall, however, be required to withhold the tax from compensation paid to their employees as provided in § 96-14A hereof concerning income payments made to persons whose net income is subject to the tax hereunder.

§ 96-14 Returns.

The following shall be filed with the Collector:

Individual returns. Every individual resident of the Borough of Eagles Mere and every individual nonresident, any part of whose net income is subject to the tax imposed by this article, having for the taxable period a gross income shall make a return to the Collector, which shall contain or be verified by a written declaration that it is made under the penalties of perjury. Such return shall set forth in such cases, and to such extent and in such details as the Collector may by regulations prescribe, the items of gross income and the deductions and credits allowed and such other information for the purpose of carrying out the provisions of this article as may be prescribed by such regulations. A husband and wife may make a single return jointly, provided that their taxable periods are the same. Such a return may be made even though one of the spouses has neither gross income nor deductions. If a joint return is made, the tax shall be computed on the aggregate income and the liability with respect to the tax shall be joint and several. In the event that a taxpayer's taxable net income consists solely of salary, wages or other compensation from which the tax has been withheld by his employer and paid to the Collector, such taxpayer shall be relieved of the necessity of filing a return. If the taxpayer is unable to make his own return, the return shall be made by a duly authorized agent or by the guardian or other person charged with the care of the person or property of such taxpayer. The fact that an individual's name is signed to a filed return shall be prima facie evidence for all purposes that the return was actually signed by him.

§ 96-15 Time and place for filing returns.

Returns shall be filed with the Collector of Income Tax in the Borough of Eagles Mere as follows:

General rule. Returns made on the basis of the calendar year shall be made on or before the 15th day of April following the close of the calendar year. Returns made on the basis of a fiscal year shall be made on or before the 15th day of the fourth month following the close of the fiscal year. Returns made on the basis of a taxable period of less than 12 months shall be made on or before the 15th day of the fourth month following the close of the taxable period.

Extension of time. The Collector may grant a reasonable extension of time for filing returns, under such rules and regulations as he may prescribe.

§ 96-16 Payment of tax.

Payment of tax shall be made as follows:

Time of payment. The total amount of tax imposed by this article shall be paid to the Collector on or before the 15th day of April following the close of the taxable period; or if the return shall be made on the basis of a fiscal year or a taxable period of less than 12 months ending on the last day of the month other than December, then the total amount of tax shall be paid on or before the 15th day of the fourth month following the close of the taxable period.

Credits against tax. The following credits shall be allowed against the tax:

Tax withheld. The amount deducted and withheld as tax under § 96-19 hereof during any calendar year upon wages of any individual shall be allowed as credit to the recipient of the income against the tax imposed by this article for the taxable period beginning in such calendar year. If more than one taxable period begins in any such calendar year, such amount shall be allowed as a credit against the tax for the last taxable period so beginning.

Estimated tax on declaration. The aggregate amount paid on account of the estimated tax appearing on a declaration of estimated tax filed for the taxable period under the provisions of §§ 96-17 and 96-18 hereof shall be allowed as a credit against the tax imposed by this article for the taxable period.

Extension of time for payment. At the request of the taxpayer, the Collector may extend the time for payment of the amount determined as the tax by the taxpayer for a period not to exceed three months from the date prescribed for the payment of the tax, with interest at 1/2 of 1% per month.

Fractional parts of cent. In payment of any tax under this article, a fractional part of a cent shall be disregarded unless it amounts to one-half cent or more, in which case it shall be increased to $0.01.

§ 96-17 Declaration of estimated tax.

The provisions relating to declarations of estimated tax are as follows:

Requirement of declaration. Every taxpayer who anticipates taxable income which is not subject to the provisions of § 96-19 hereof, and every employee of a governmental unit whose net income is subject to the tax but from whose salary wages or other compensation the tax will not be deducted by his employer, shall at the time prescribed by Subsection D of this section make a declaration of his estimated tax for the taxable period.

Contents of declaration.

In the declaration required under Subsection A, the taxpayer shall state:

The amount which he estimates as the amount of tax under this article for the taxable period without regard to any credits under § 96-16B(1)(a) hereof.

The amount which he estimates as a credit under § 96-16B(1)(a) hereof.

(c)

The excess of the amount estimated under Subsection B(1)(a) above over the amount estimated under Subsection B(2)(b) above, which excess, for the purposes of this article, shall be considered the estimated tax for the taxable period.

The declaration shall also contain such other information as the Collector may by regulations prescribe and shall contain or be verified by a written statement that it is made under the penalties of perjury.

Joint declaration. In the case of a husband and wife, a single declaration under this section may be filed by them jointly, in which case the liability with respect to the estimated tax shall be joint and several. If a joint declaration is made but a joint return is not made for the taxable period, the estimated tax for such year may be treated as the estimated tax of either the husband or the wife or may be divided between them.

Time and place for filing. The declaration required under Subsection A of this section shall be filed with the Collector on or before the 15th day of the fourth month of the taxable period, except that, if the requirements of Subsection A of this section are first met:

After the first day of the third month and before the second day of the sixth month of the taxable period, the declaration shall be filed on or before the 15th day of the sixth month of the taxable period;

After the first day of the sixth month and before the second day of the ninth month of the taxable period, the declaration shall be filed on or before the 15th day of the ninth month of the taxable period; or

After the first day of the ninth month and before the second day of the 12th month of the taxable period, the declaration shall be filed on or before the 15th day of the 12th month of the taxable period.

Amendment of declaration. A taxpayer shall file an amendment of his original declaration for the taxable period at any time such amendment may become necessary due to an unexpected increase or decrease in his estimated taxable net income.

Extension of time. The Collector may grant a reasonable extension of time for filing declarations and paying the estimated tax under such rules and regulations as he shall prescribe. The tax due shall bear interest at the rate of 1/2 of 1% per month during the extension.

Persons under disability. If the taxpayer is unable to make his own declaration, the declaration shall be made by a duly authorized agent or by the guardian or other person charged with the care of the person or property of such taxpayer.

Signatures presumed correct. The fact that an individual's name is signed to a filed declaration shall be prima facie evidence for all purposes that the declaration was actually signed by him.

§ 96-18 Payment of estimated tax.

The following provisions shall govern payment of the estimated tax provided by § 96-17 hereof:

In general, the estimated tax shall be paid as follows:

If the declaration is required to be filed on or before the 15th day of the fourth month of the taxable period, the estimated tax shall be paid in four equal installments. The first installment shall be paid at the time of the filing of the declaration; the second installment on the 15th day of the sixth month of the taxable period; the third installment on the 15th day of the ninth month of the taxable period; and the fourth installment on the 15th day of the 12th month of the taxable period.

If the declaration is required to be filed after the 15th day of the third month and not later than the 15th day of the sixth month of the taxable period, the estimated tax shall be paid in three equal installments. The first installment shall be paid at the time of the filing of the declaration; the second installment on the 15th day of the ninth month of the taxable period and the third payment on the 15th day of the 12th month of the taxable period.

If the declaration is required to be filed after the 15th day of the sixth month and not later than the 15th day of the ninth month of the taxable period, the estimated tax shall be paid in two equal installments. The first installment shall be paid at the time of the filing of the declaration; and the second installment on the 15th day of the 12th month of the taxable period.

If the declaration is required to be filed after the 15th day of the ninth month of the taxable period, the estimated tax shall be paid in full at the time of the filing of the declaration.

(5)

If the declaration is filed after the time prescribed in Subsection D of § 96-17 hereof, including cases in which an extension of time for filing the declaration has been granted under Subsection F of § 96-17 hereof, Subsections A(2), (3) and (4) of this subsection shall not apply, and there shall be paid at the time of filing all installments of estimated tax which have been payable on or before such time if the declaration had been filed within the time prescribed in Subsection D of § 96-17, and the remaining installments shall be paid at the time at which and in the amounts in which they would have been payable if the declaration had been so filed.

Amendments of declaration. If any amendment of a declaration is filed, the remaining installments, if any, shall be ratably increased or decreased, as the case may be, to reflect the increase or decrease, as the case may be, in the estimated tax by reason of such amendment, and if any amendment is made after the 15th day of the ninth month of the taxable period, an increase in the estimated tax by reason thereof shall be paid at the time of making such amendment.

Installments paid in advance. At the election of the taxpayer, any installment of the estimated tax may be paid prior to the date prescribed for its payment.

Payment as part of tax for taxable period. Payment of the estimated tax or any installment thereof shall be considered payment on account of the tax for the taxable period.

§ 96-19 Collection at tax source.

The following provisions shall govern the withholding of tax at the source:

Requirements of withholding. Every employer who maintains a place of business in or resides in the Borough of Eagles Mere and employs one or more persons on a salary, wage, commission or other compensation made to residents of the Borough of Eagles Mere regardless of where their services were rendered and to nonresidents for work done or services performed in said Borough of Eagles Mere, the tax shall be 1% of such payments.

Employer's quarterly withholding returns. Every employer required under Subsection A of this section to deduct and withhold the tax from salaries, wages, commissions and other compensation paid to his employees shall make a return quarterly, which shall contain, or be verified by, a written declaration that it is made under penalties of perjury. Such return shall set forth the aggregate amount of the tax withheld by the employer during the quarter of the calendar year for which the return is made and such other information as the Collector may by regulations prescribe. The return shall be signed by the employer, and the fact that the employer's name is signed to a file return shall be prima facie evidence for all purposes that the return was actually signed by him.

Time and place for filing withholding returns. Employer's quarterly withholding returns shall be filed with the Collector on or before the last day of the month following the quarter for which the return is made.

Payment of tax. The total amount of the tax withheld during a quarter shall be paid to the Collector at the time the employer's quarterly withholding return is filed, viz., on or before the last day of the month following the quarter during which the tax was withheld.

Failure of employer to file a return and pay the tax. The failure or omission of any employer to make a return and pay the tax to the Collector shall not relieve the employee from payment of the tax.

Tax withheld as part of tax for taxable period. The tax withheld by an employer shall be considered payment on account of the employee's tax for the taxable period.

Employer's annual withholding returns. Every employer required to deduct and withhold a tax in respect of the salary, wages, commission or other compensation of an employee shall furnish to each such employee, in respect of his employment during the calendar year, on or before January 31 of the succeeding year or, if his employment is terminated before the close of such calendar year, on the day on which the last payment of compensation is made, a written statement showing the compensation paid by the employer to such employee during such calendar year and the amount of tax deducted and withheld under this section with respect to such compensation, an annual return containing a summary by quarters of the compensation paid to employees and the tax withheld therefrom during the calendar year and such other information as the Collector, by rules and regulations, may prescribe. With the last return of each year, the employer shall attach duplicate copies of the statement furnished to employees as provided in this subsection, which return shall be filed on or before January 31 of the succeeding year by every employer required to deduct and withhold tax under the provisions of this section.

§ 96-20 Changes made by the federal government.

If the amount of the net income, as returned by any taxpayer under this article to the federal government for any period ending after January 1, 1964, is finally changed or corrected by the Federal Commissioner of Internal Revenue or by any other agency or court of the United States, such taxpayer, within 30 days after receipt of notice of such final change or correction, shall make report under penalties of perjury of such change or correction to the Collector in such form as the Commissioner shall, by regulations, prescribe.

§ 96-21 Deficiencies and overpayments.

The terms "deficiency" and "overpayment" shall mean, for the purpose of this article, the following excesses, respectively:

Deficiency. "Deficiency" shall mean the amount by which the tax imposed by this article exceeds the sum of the amount shown as tax by the taxpayer on his return, plus the amount previously assessed or collected as deficiencies.

Overpayment. "Overpayment" shall mean the amount by which the amount shown as tax by the taxpayer on his return, plus the amounts previously assessed or collected as deficiencies, over the tax imposed by this article.

§ 96-22 Assessment of deficiency.

In the event that the Collector shall determine that a deficiency exists in the tax of any taxpayer, he shall notify such taxpayer by registered mail of such deficiency, and the taxpayer shall have the privilege of making a protest, in writing, against the findings of the Collector within 30 days of the date upon which the notice was mailed by the Collector. If requested by the taxpayer, the Collector shall grant the taxpayer an oral hearing, at which the taxpayer may be represented by an attorney or agent, provided that a power of attorney authorizing such representation is filed with the Collector. In the event that the taxpayer does not protest the findings of the Collector within the required time, the deficiency, together with interest and penalties, if any, thereon, shall be immediately collected.

In the event that after the filing of a protest by the taxpayer the findings of the Collector are unchanged or not changed sufficiently to eliminate the entire deficiency and the taxpayer is so notified by the Collector by registered mail, the taxpayer shall have the privilege of appealing the decision of the Collector to the Board of Appeal and Review within 30 days of the date upon which the second notice was mailed by the Collector. If requested by the taxpayer, the Board of Appeal and Review shall grant the taxpayer an oral hearing, at which time the taxpayer may be represented by an attorney or agent, provided that a power of attorney authorizing such representation is filed with the Board. In the event that the taxpayer does not appeal the findings of the Collector to the Board of Appeal and Review or in the event that the Board does not, after appeal, change the Collector's findings sufficiently to eliminate the entire deficiency, the deficiency remaining, together with interest and penalties, if any, thereon, shall be immediately collected.

§ 96-23 Refunds.

Provisions relating to the determination of overpayments refundable shall be as follows:

Overpayment. Where there has been an overpayment of any tax imposed by this article, the amount of such overpayment shall be credited against any other taxes then due from the taxpayer to the School District, and any balance shall be refunded immediately to the taxpayer.

Excessive withholding. When the amount of the tax withheld at the source under § 96-19 hereof exceeds the tax imposed by this article against which the tax so withheld may be credited under § 96-16B(1) hereof, the amount of such excess shall be considered an overpayment.

Excessive estimated tax. When the aggregate amount of estimated tax paid under §§ 96-17 and 123-18 hereof exceeds the tax imposed by this article against which the estimated tax so paid may be credited under § 96-16B(2) hereof, the amount of such excess shall be considered an overpayment.

§ 96-24 Limitation of assessment.

In the case of a false or fraudulent return with intent to evade tax or failure to file a return or a willful attempt to defeat or evade tax, the tax may be assessed or a proceeding in court for collection without assessment may be begun at any time.

Overpayments of taxes imposed by this article shall not be refunded unless a proper claim for refund is filed by the taxpayer within three years from the date of filing the return on which the overpayment was made or two years from the date of overpayment of the tax, whichever period expires later, except that if the return was filed before the due date, the three-year refund period shall begin on the last day prescribed for filing the return.

§ 96-25 Interest on deficiencies.

All taxes imposed by this article remaining unpaid after they become due shall bear interest at the rate of 6% per year.

§ 96-26 Violations and penalties.

Any taxpayer, employer or person who shall fail, neglect or refuse to make any return or declaration required by this article or any employer who shall refuse to deduct and withhold the tax or any taxpayer or employer who shall refuse to pay the tax, penalties and interest imposed by this article or any person who shall refuse to permit the Collector or any duly authorized agent or employee, to examine his books, records and papers or who shall knowingly make any incomplete, false or fraudulent return or who shall attempt to do anything whatever to avoid payment of the whole or any part of the tax shall be liable to prosecution before any District Justice in and for the County of Sullivan and, upon conviction of a violation of this section, shall be liable to a fine of not more than $100 and costs for such offense and, in default of payment of fine and costs, shall be liable for imprisonment for not than one day for each dollar of fine and costs unpaid.

§ 96-27 Collection of unpaid taxes.

The Collector may sue for the recovery of taxes due and unpaid under this article, together with interest at the rate of 6% per annum from the period when the taxes became due and costs.

Any suit brought to recover the tax imposed by this article shall be begun within six years after such tax is due or within six years after a declaration or return has been filed, whichever date is later; provided, however, that this limitation shall not prevent the institution of a suit for a tax due or determined to be due in the following cases:

Where no declaration or return was filed by any person although a declaration of return was required to be filed by him under the provisions of this article.

Where an examination of the declaration or return in the possession of the Collector reveals a fraudulent evasion of taxes, including but not limited to substantial understatements of taxes deducted and the actual or estimated net profits or earnings.

MEMBERS OF THE SAME FAMILY

Where any person has deducted taxes under the provisions of this article and has failed to pay the amount so deducted to the Collector.

§ 96-28 Collector of Income Tax.

A Collector of Income Tax shall be elected annually by the Borough Council of Eagles Mere to serve during the ensuing fiscal year ending December 31 and shall receive such compensation for his services as the Borough of Eagles Mere shall determine.

It shall be the duty of the Collector to collect and receive the tax imposed by this article in the manner prescribed herein. It shall also be his duty to keep an accurate record showing the amount of tax assessed to each taxpayer and the amount received by him from each taxpayer or employer and the dates of such assessments and payments.

The Collector is hereby charged with the enforcement of the provisions of this article and is hereby empowered, subject to the approval of the Board of Appeal and Review and the Borough of Eagles Mere, to adopt and promulgate and to enforce rules and regulations relating to any matter or thing pertaining to the administration and enforcement of the provisions of this article, including provisions for the examination and correction of returns.

§ 96-29 Examination of records.

The Collector, or any agent or employee authorized by him in writing, is hereby authorized to examine the books, papers and records of any employer or supposed employer or of any taxpayer or supposed taxpayer in order to verify the accuracy of any return made or, if no return was made, to ascertain the tax imposed by this article. Every employer or supposed employer or taxpayer or supposed taxpayer is hereby directed or required to give to the Collector, or his duly authorized agent or employee, the means, facilities and opportunity for such examinations and investigations as are hereby authorized. The Collector is hereby authorized to examine any person under oath concerning any income which was or should have been returned for taxation and, to this end, may compel the production of books, papers and records and the attendance of all persons before him, whether as parties or witnesses, whom he believes to have knowledge of such income.

§ 96-30 Confidentiality; additional penalties.

Any information gained by the Collector or any employee, agent or other official of the Borough of Eagles Mere as a result of any returns, examinations, investigations, hearings or verifications required or authorized by this article shall be confidential, except for official purposes and except in accordance with proper judicial orders or as otherwise provided by law. Any person divulging such information, whether or not at the time of divulging it a Collector, employer, agent or other official as aforesaid, shall be guilty of a misdemeanor and, upon conviction, shall be fined not more than $1,000 and costs for each offense or be imprisoned for not more than one year, or both, and if the offender is an officer or employee of the Borough of Eagles Mere, he shall be dismissed from office or discharged from employment.

§ 96-31 Board of Appeal and Review.

A Board of Appeal and Review, consisting of three members, shall be elected annually by the Borough of Eagles Mere to serve during the ensuing fiscal year ending June 30. The members of the Board of Appeal and Review shall receive such compensation for their services as the Borough of Eagles Mere shall determine. If a member of Eagles Mere Borough Council is elected to serve as a member of the Board of Appeal and Review, he shall serve without compensation.

All rules, regulations and amendments or changes thereto which are adopted by the Collector under the authority conferred by this article must be approved by the Borough of Eagles Mere before the same becomes effective.

After such approval, said rules, regulations, amendments and changes shall be filed with the Secretary of the Borough of Eagles Mere and shall be open to public inspection.

Any person dissatisfied with any ruling of the Collector which is made under authority conferred by this article may appeal therefrom to the Board of Appeal and Review within 30 days from the announcement of such ruling or decision by the Collector, and the Board of Appeal and Review shall, on hearing, have jurisdiction and authority by the vote of a majority of said Board to affirm, reverse or modify any such ruling or decision or any part thereof.

A majority of the members of the Board of Appeal and Review shall constitute a quorum. The Board of Appeal and Review shall adopt its own procedural rules and shall keep a record of its transactions. All hearings of the Board shall be conducted privately, and the provisions of § 96-30 hereof with reference to the confidential character of information shall apply to such matters as may be heard before the Board of Appeal and Review on appeal.

§ 96-32 Applicability.

This Article shall not apply to any person or property as to whom or which it is beyond the legal power of the Borough of Eagles Mere to impose the tax herein provided for.

Article II Realty Transfer Tax

[Adopted 6-2-1980 by Ord. No. 81; amended in its entirety 12-4-2006 by Ord. No. 2006-3]

§ 96-33 Short title.

This article shall be known as the "Realty Transfer Tax Ordinance" of Eagles Mere Borough.

§ 96-34 Authority.

A realty transfer tax for general revenue purposes is hereby imposed upon the transfer of real estate or interest in real estate situated within the Borough of Eagles Mere, regardless of where the documents making the transfer are made, executed or delivered, or where the actual settlements on such transfer took place, as authorized by Article XI-D, "Local Real Estate Transfer Tax," 72 P.S. § 8101 et seq.

§ 96-35 Definitions.

The following words when used in regard to the real estate transfer tax shall have the meaning ascribed to them in this section.

ASSOCIATION

A partnership, limited partnership, or any other form of unincorporated enterprise, owned or conducted by two or more persons other than a private trust or decedent's estate.

CORPORATION

A corporation, joint-stock association, business trust or banking institution which is organized under the laws of this commonwealth, the United States, or any other state, territory, or foreign country, or dependency.

DEPARTMENT

The Department of Revenue of this commonwealth.

DOCUMENT

Any deed, instrument or writing which conveys, transfers, devises, vests, confirms or evidences any transfer or devise of title to real estate, but does not include wills, mortgages, deeds of trust or other instruments of like character given as security for a debt and deeds of release thereof to the debtor, land contracts whereby the legal title does not pass to the grantee until the total consideration specified in the contract has been paid or any cancellation thereof unless the consideration is payable over a period of time exceeding 30 years or instruments which solely grant, vest or confirm a public utility easement. "Document" shall also include a declaration of acquisition required to be presented for recording under § 96-39.

FAMILY FARM CORPORATION

A corporation of which at least 75% of its assets are devoted to the business of agriculture and at least 75% of each class of stock of the corporation is continuously owned by members of the same family. The business of agriculture shall include the leasing to members of the same family of property which is directly and principally used for agricultural purposes. The business of agriculture shall not be deemed to include:

Recreational activities such as, but not limited to, hunting, fishing, camping, skiing, show competition or racing;

The raising, breeding or training of game animals or game birds, fish, cats, dogs or pets or animals intended for use in sporting or recreational activities;

Fur farming;

Stockyard and slaughterhouse operations; or

Manufacturing or processing operations of any kind.

FAMILY FARM PARTNERSHIP

A partnership of which at least 75% of its assets are devoted to the business of agriculture and at least 75% of the interests in the partnership are continuously owned by members of the same family. The business of agriculture shall include the leasing to members of the same family of property which is directly and principally used for agricultural purposes. The business of agriculture shall not be deemed to include:

Recreational activities such as, but not limited to, hunting, fishing, camping, skiing, show competition or racing;

The raising, breeding or training of game animals or game birds, fish, cats, dogs or pets or animals intended for the use in sporting or recreational activities;

Fur farming;

Stockyard and slaughterhouse operations; or

Manufacturing or processing operations of any kind.

LIVING TRUST

Any trust, other than a business trust, intended as a will substitute by the settlor, which becomes effective during the lifetime of the settlor, but from which trust distributions cannot be made to any beneficiaries other than the settlor prior to the death of the settlor.

Any individual, such individual's brothers and sisters, the brothers and sisters of such individual's parents and grandparents, the ancestors and lineal descendents of any of the foregoing, a spouse of any of the foregoing and the estate of any of the foregoing. Individuals related by the half blood or legal adoption shall be treated as if they were related by the whole blood.

ORDINARY TRUST

Any trust, other than a business trust or a living trust, which takes effect during the lifetime of the settlor and for which the trustees of the trust take title to property primarily for the purpose of protecting, managing or conserving it until distribution to the named beneficiaries of the trust. An ordinary trust does not include a trust that has an objective to carry on business and divide gains, nor does it either expressly or impliedly have any of the following features: the treatment of beneficiaries as associates, the treatment of interests in the trust as personal property, the free transferability of beneficial interests in the trust, centralized management by the trustee or the beneficiaries, or continuity of life.

PERSON

Every natural person, association, or corporation. Whenever used in any clause prescribing and imposing a fine or imprisonment, or both, the term "person" as applied to associations, shall include the responsible members or general partners thereof, and as applied to corporations, the officers thereof.

REAL ESTATE

Any lands, tenements or hereditaments within this commonwealth, including, without limitation, buildings, structures, fixtures, mines, minerals, oil, gas, quarries, spaces with or without upper or lower boundaries, trees and other improvements, immovables or interest which by custom, usage or law pass with a conveyance of land, but excluding permanently attached machinery and equipment in an industrial plant.

A condominium unit.

A tenant-stockholder's interest in a cooperative housing corporation, trust or association under a proprietary lease or occupancy agreement.

REAL ESTATE COMPANY

A corporation or association which is primarily engaged in the business of holding, selling or leasing real estate 90% or more of the ownership interest in which is held by 35 or fewer persons and which:

Derives 60% or more of its annual gross receipts from the ownership or disposition of real estate; or

Holds real estate, the value of which comprises 90% or more of the value of its entire tangible asset holdings exclusive of tangible assets which are freely transferable and actively traded on an established market.

TITLE TO REAL ESTATE

Any interest in real estate which endures for a period of time, the termination of which is not fixed or ascertained by a specific number of years, including, without limitation, an estate in fee simple, life estate or perpetual leasehold; or

Any interest in real estate enduring for a fixed period of years but which, either by reason of the length of the term or the grant of a right to extend the term by renewal or otherwise, consists of a group of rights approximating those of an estate in fee simple, life estate or perpetual leasehold, including, without limitation, a leasehold interest or possessory interest under a lease or occupancy agreement for a term of 30 years or more or a leasehold interest or possessory interest in real estate in which the lessee has equity.

TRANSACTION

The making, executing, delivering, accepting, or presenting for recording of a document.

VALUE

In the case of any bona fide sale of real estate at arm's length or actual monetary worth, the amount of the actual consideration therefor, paid or to be paid, including liens or other encumbrances thereon existing before the transfer and not removed thereby, whether or not the underlying indebtedness is assumed, and ground rents or a commensurate part thereof where such liens or other encumbrances and ground rents also encumber or are charged against other real estate, provided that, where such documents shall set forth a nominal consideration, the "value" thereof shall be determined from the price set forth in or actual consideration for the contract of sale;

In the case of a gift, sale by execution upon a judgment or upon the foreclosure of a mortgage by a judicial officer, transactions without consideration or for consideration less than the actual monetary worth of real estate, a taxable lease, an occupancy agreement, a leasehold or possessory interest, any exchange of properties, or the real estate of an acquired company, the actual monetary worth of real estate determined by adjusting the assessed value of the real estate for local real estate tax purposes for the common level ratio of assessed values to market values of the taxing district as established by the State Tax Equalization Board, or a commensurate part of the assessment where the assessment includes other real estate;

In the case of an easement or other interest in real estate the value of which is not determinable under Subsections A and B, the actual monetary worth of such interest; or

The actual consideration for or actual monetary worth of any executory agreement for the construction of buildings, structures or other permanent improvements to real estate between the grantor and other persons existing before the transfer and not removed thereby or between the grantor, the agent or principal of the grant or a related corporation, association or partnership and the grantee existing before or effective with the transfer.

§ 96-36 Imposition of tax; interest.

Every person who makes, executes, delivers, accepts or presents for recording any document or in whose behalf any document is made, executed, delivered, accepted or presented for recording, shall be subject to pay for and in respect to the transaction or any part thereof, or for or in respect of the vellum parchment or paper upon which such document is written or printed, a tax at the rate of 1/2% of the value of the real estate represented by such document, which tax shall be payable at the earlier of the time the document is presented for recording or within 30 days of acceptance of such document or within 30 days of becoming an acquired company, provided that, in computing the value of the real estate on which the tax shall be paid, any fraction of $100 shall be regarded as a full $100.

The payment of the tax imposed herein shall be evidenced by the affixing of an official stamp or writing by the recorder of deeds whereon the date of the payment of the tax, amount of the tax and the signature of the collecting agent shall be set forth.

Any tax imposed that is not paid by the date the tax is due shall bear interest as prescribed for interest on delinquent municipal claims under the Act of May 16, 1923 (P.L. 207, No. 153) (53 P.S. § 7101 et seq.), as amended, known as the "Municipal Claims and Tax Liens Act." The interest rate shall be the lesser of the interest rate imposed upon delinquent commonwealth taxes as provided in § 806 of the Act of April 9, 1929 (P.L. 343, No. 176) (72 P.S. § 806), as amended, known as the "Fiscal Code," or the maximum interest rate permitted under the Municipal Claims and Tax Liens Act for tax claims.

§ 96-37 Excluded transactions.

The real estate transfer tax shall not be imposed upon:

A transfer to the commonwealth or to any of its instrumentalities, agencies or political subdivisions by gift, dedication or deed in lieu of condemnation or deed of confirmation in connection with condemnation proceedings, or a reconveyance by the condemning body of the property condemned to the owner of record at the time of condemnation, which reconveyance may include property line adjustments, provided said reconveyance is made within one year from the date of condemnation.

A document which the commonwealth is prohibited from taxing under the Constitution or statutes of the United States.

A conveyance to a municipality, township, school district or county pursuant to acquisition by the municipality, township, school district or county of a tax delinquent property at sheriff sale or tax claim bureau sale.

A transfer for no or nominal actual consideration which corrects or confirms a transfer previously recorded, but which does not extend or limit existing record legal title or interest.

(5)

A transfer of division in kind for no or nominal actual consideration of property passed by testate or intestate succession and held by cotenants; however, if any of the parties take shares greater in value than their undivided interest, tax is due on the excess.

(6)

A transfer between husband and wife, between persons who were previously husband and wife who have since been divorced, provided the property or interest therein subject to such transfer was acquired by the husband and wife or husband or wife prior to the granting of the final decree in divorce, between parent and child or the spouse of such child, between brother or sister or spouse of a brother or sister and between a grandparent and grandchild or the spouse of such grandchild, except that a subsequent transfer by the grantee within one year shall be subject to tax as if the grantor were making such transfer.

(7)

A transfer for no or nominal actual consideration of property passing by testate or interest succession from a personal representative of a decedent to the decedent's devisee or heir.

(8)

A transfer for no or nominal actual consideration from a trustee of an ordinary trust where the transfer of the same property would be exempt if the transfer was made directly from the grantor to all of the possible beneficiaries that are entitled to receive the property or proceeds from the sale of the property under the trust, whether or not such beneficiaries are contingent or specifically named. A trust clause which identifies the contingent beneficiaries by reference to the heirs of the trust settlor as determined by the laws of the intestate succession shall not disqualify a transfer from the exclusion provided by this clause. No such exemption shall be granted unless the recorder of deeds is presented with a copy of the trust instrument that clearly identifies the grantor and all possible beneficiaries.

A transfer for no or nominal actual consideration to a trustee of a living trust from the settlor of the living trust. No such exemption shall be granted unless the recorder of deeds is presented with a copy of the living trust instrument.

(9)

A transfer for no or nominal actual consideration from a trustee of an ordinary trust to a specifically named beneficiary that is entitled to receive the property under the recorded trust instrument or to a contingent beneficiary where the transfer of the same property would be exempt if the transfer was made by the grantor of the property into the trust to that beneficiary. However, any transfer of real estate from a living trust during the settlor's lifetime shall be considered for the purposes of this article as if such transfer were made directly from the settlor to the grantee.

A transfer for no or nominal actual consideration from a trustee of a living trust after the death of the settlor of the trust or from a trustee of a trust created pursuant to the will of a decedent to a beneficiary to whom the property is devised or bequeathed.

A transfer for no or nominal actual consideration from the trustee of a living trust to the settlor of the living trust if such property was originally conveyed to the trustee by the settlor.

(10)

A transfer for no or nominal actual consideration from trustee to successor trustee.

(11)

A transfer:

For no or nominal actual consideration between principal and agent or straw party; or

From or to an agent or straw party where, if the agent or straw party were his principal, no tax would be imposed under this article. Where the document by which title is acquired by the grantee from, or for the benefit of, his principal, there is a rebuttable presumption that the property is the property of the grantee in his individual capacity if the grantee claims an exemption from taxation under this clause.

(12)

A transfer made pursuant to the statutory merger or consolidation of a corporation or statutory division of a nonprofit corporation, except where the Department reasonably determines that the primary intent for such merger, consolidation or division is avoidance of the tax imposed by this article.

(13)

A transfer from a corporation or association of real estate held of record in the name of the corporation or association where the grantee owns stock of the corporation or an interest in the association in the same proportion as his interest in or ownership of the real estate being conveyed and where the stock of the corporation or the interest in the association has been held by the grantee for more than two years.

(14)

A transfer from a nonprofit industrial development agency or authority to a grantee of property conveyed by the grantee to that agency or authority as security for a debt of the grantee or a transfer to a nonprofit industrial development agency or authority.

(15)

A transfer from a nonprofit industrial development agency or authority to a grantee purchasing directly from it, but only if:

The grantee shall directly use such real estate for the primary purpose of manufacturing, fabricating, compounding, processing, publishing, research and development, transportation, energy conversion, energy production, pollution control, warehousing or agriculture; and

§ 96-38 Documents relating to associations or corporations and members, partners, stockholders or shareholders thereof.

The agency or authority has the full ownership interest in real estate transferred.

(16)

A transfer by a mortgagor to the holder of a bona fide mortgage in default in lieu of a foreclosure or a transfer pursuant to a judicial sale in which the successful bidder is the bona fide holder of a mortgage, unless the holder assigns the bid to another person.

(17)

Any transfer between religious organizations or other bodies or persons holding title for a religious organization if such real estate is not being or has not been used by such transferor for commercial purposes.

(18)

A transfer to a conservancy which possesses a tax-exempt status pursuant to Section 501(c)(3) of the Internal Revenue Code of 1954 [68A Stat. 3, 26 U.S.C. § 501(c)(3)] and which has as its primary purpose preservation of land for historic, recreational, scenic, agricultural or open space opportunities; or a transfer from such a conservancy to the United States, the commonwealth or to any of their instrumentalities, agencies or political subdivisions; or any transfer from such a conservancy where the real estate is encumbered by a perpetual agricultural conservation easement as defined by the act of June 30, 1981 (P.L. 128, No. 43), known as the "Agricultural Area Security Law," and such conservancy has owned the real estate for at least two years immediately prior to the transfer.

(19)

A transfer of real estate devoted to the business of agriculture to a family farm corporation by a member of the same family which directly owns at least 75% of each class of the stock thereof; or a transfer of real estate devoted to the business of agriculture to a family farm partnership by a member of the same family, which family directly owns at least 75% of the interests in the partnership.

(20)

A transfer between members of the same family of an ownership interest in a real estate company, family farm corporation or family farm partnership which owns real estate.

(21)

A transaction wherein the tax due is $1 or less.

(22)

Leases for the production or extraction of coal, oil, natural gas or minerals and assignments thereof.

In order to exercise any exclusion provided in this section, the true, full and complete value of the transfer shall be shown on the statement of value. For leases of coal, oil, natural gas or minerals, the statement of value may be limited to an explanation of the reason such document is not subject to the tax under this article.

Except as otherwise provided in § 96-37, documents which make, confirm or evidence any transfer or demise of title to real estate between associations or corporations and the members, partners, shareholders or stockholders thereof are fully taxable. For the purposes of this section, corporations and associations are entities separate from their members, partners, stockholders or shareholders.

§ 96-39 Acquired company.

A real estate company is an acquired company upon a change in the ownership interest in the company, however effected, if the change:

Does not affect the continuity of the company; and

Of itself or together with prior changes has the effect of transferring, directly or indirectly, 90% or more of the total ownership interest in the company within a period of three years.

With respect to real estate acquired after February 16, 1986, a family farm corporation is an acquired company when, because of voluntary or involuntary dissolution, it ceases to be a family farm corporation or when, because of issuance of transfer of stock or because of acquisition or transfer of assets that are devoted to the business of agriculture, it fails to meet the minimum requirements of a family farm corporation under this article.

A family farm partnership is an acquired company when, because of voluntary or involuntary dissolution, it ceases to be a family farm partnership or when, because of transfer of partnership interests or because of acquisition or transfer of assets that are devoted to the business of agriculture, it fails to meet the minimum requirements of a family farm partnership under this article.

Within 30 days after becoming an acquired company, the company shall present a declaration of acquisition with the recorder of each county in which it holds real estate for the affixation of documentary stamps and recording. Such declaration shall set forth the value of real estate holdings of the acquired company in such county.

§ 96-40 Credits against tax.

Where there is a transfer of a residential property by a licensed real estate broker which property was transferred to him within the preceding year as consideration for the purchase of other residential property, a credit for the amount of the tax paid at the time of the transfer to him shall be given to him toward the amount of the tax due upon the transfer.

Where there is a transfer by a builder of residential property which was transferred to the builder within the preceding year as consideration for the purchase of new, previously unoccupied residential property, a credit for the amount of the tax paid at the time of the transfer to the builder shall be given to the builder toward the amount of tax due upon the transfer.

Where there is a transfer of real estate which is devised by the grantor, a credit for the amount of tax paid at the time of the devise shall be given the grantor toward the tax due upon the transfer.

Where there is a conveyance by deed of real estate which was previously sold under a land contract by the grantor, a credit for the amount of tax paid at the time of the sale shall be given to the grantor toward the tax due upon the deed.

If the tax due upon the transfer is greater that the credits given under this section, the difference shall be paid. If the credit allowed is greater than the amount of tax due, no refund or carryover credit shall be allowed.

§ 96-41 Extension of lease.

In determining the term of a lease, it shall be presumed that a right or option to renew or extend a lease will be exercised if the rental charge to the lessee is fixed or if a method for calculating a rental charge is established.

§ 96-42 Proceeds of judicial sale.

The tax herein imposed shall be fully paid, and have priority out of the proceeds of any judicial sale of real estate before any other obligation, claim, lien, judgment, estate or costs of the sale and of the writ upon which the sale is made, and the sheriff or other officer conducting said sale shall pay the tax herein imposed out of the first moneys paid to him in connection therewith. If the proceeds of the sale are insufficient to pay the entire tax herein imposed, the purchaser shall be liable for the remaining tax.

§ 96-43 Administration.

The tax imposed under § 96-36 and all applicable interest and penalties shall be administered, collected and enforced under the Act of December 31, 1965 (P.L. 1257 No. 511, as amended, known as the "Local Tax Enabling Act," provided that, if the correct amount of the tax is not paid by the last date prescribed for timely payment, the Borough, pursuant to Section 1102(D) of the Tax Reform Code of 1971 (72 P.S. § 8102-D), authorizes and directs the Department of Revenue of the Commonwealth of Pennsylvania to determine, collect and enforce the tax, interest and penalties.

§ 96-44 Statement of value.

Every document lodged with or presented to the recorder of deeds for recording, shall set forth therein and as part of such document the true, full and complete value thereof, or shall be accompanied by a statement of value executed by a responsible person connected with the transaction showing such connection and setting forth the true, full and complete value thereof or the reason, if any, why such document is not subject to tax under this article. The provisions of this section shall not apply to any excludable real estate transfers which are exempt from taxation based on family relationship. Other documents presented for the affixation of stamps shall be accompanied by a certified copy of the document and statement of value executed by a responsible person connected with the transaction showing such connection and setting forth the true, full and complete value thereof or the reason, if any, why such document is not subject to tax under this article.

§ 96-45 Penalties.

Civil penalties:

If any part of any underpayment of taxes imposed by this article is due to fraud, there shall be added to the tax an amount equal to 50% of the underpayment.