This article shall be known as the "Realty Transfer
Tax Ordinance of the Township of East Hempfield."
This realty transfer tax is levied under the
authority of the Tax Reform Code of 1971, as amended, March 4, 1971,
P.L. 6, No. 2, 72 P.S. § 7101 et seq., and Article XI-D,
entitled "Local Real Estate Transfer Tax," of the Pennsylvania Real
Estate Transfer Tax Act which is a new article added by Act 77-1986
(Act of July 2, 1986, P.L. 318, No. 77) to the Pennsylvania Real Estate
Transfer Tax Act, Act 14-1981 (Act of May 5, 1981, P.L. 36, No. 14),
as amended, and the Local Tax Enabling Act, approved December 31,
1965, P.L. 1257, No. 511, 53 P.S. § 6901 et seq. The Pennsylvania Real Estate Transfer Tax Act is codified
at 72 P.S. § 8101-C et seq., and Article XI-D is codified
at 72 P.S. § 8101-D.
Unless otherwise stated, the following words
shall, for purposes of this article, have the meanings herein indicated.
Words in the present tense include the future tense. Words in the
singular include the plural, and words in the plural include the singular.
ASSOCIATION
A partnership, limited partnership or any other form of unincorporated
enterprise owned or conducted by two or more persons.
COLLECTOR
A corporation, joint-stock association, business trust or
banking institution which is organized under the laws of the Commonwealth
of Pennsylvania, the United States or any other state, territory,
foreign country or dependency.
DOCUMENT
Any deed, instrument or writing which conveys, transfers, demises, vests, confirms or evidences any transfer or demise of title to real estate within the Township 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 §
237-9 of this article.
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 not be deemed to include:
A.
Recreational activities, such as, but not limited
to, hunting, fishing, camping, skiing, show competition or racing.
B.
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.
D.
Stockyard and slaughterhouse operations.
E.
Manufacturing or processing operations of any
kind.
MEMBERS OF THE SAME FAMILY
Any individual, such individual's brothers and sisters, the
brothers and sisters of such individual's parents and grandparents,
the ancestors or lineal descendants 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.
PERSON
Every natural person, association or corporation or entity
of any kind. 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
A.
Any lands, tenements or hereditaments within
this Township, 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 interests which by custom, usage or law pass with a conveyance
of land, but excluding permanently attached machinery and equipment
in an industrial plant.
C.
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:
A.
Derives 60% or more of its annual gross receipts
from the ownership or disposition of real estate.
B.
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
A.
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.
B.
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. 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
the rental charge is established.
TOWNSHIP
The Township of East Hempfield, Lancaster County, Pennsylvania.
TRANSACTION
The making, executing, delivering, accepting or presenting
for recording of a document.
VALUE
A.
In the case of any bona fide sale of real estate
at arm's length for 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.
B.
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 the 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, value shall
be the actual monetary worth of the 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 in which the Township is located as established
by the State Tax Equalization Board, or a commensurate part of the
assessment where the assessment includes other real estate.
C.
In the case of an easement or other interest in real estate, the value of which is not determinable under Subsection
A or
B, the actual monetary worth of such interest.
D.
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 grantor of a related corporation, association or partnership and
the grantee existing before or effective with the transfer.
A tax is hereby levied and imposed for general
Township purposes on every real estate transaction at the rate of
1% of the value of the real estate represented by the document involved
in the real estate transaction.
A. The tax shall be payable at the earlier of the time
the document is presented for recording within 30 days of acceptance
of the document or within 30 days of becoming an acquired company.
B. If the real estate is located partially within and
partially outside the Township, the tax shall be calculated on the
value of the portion within the Township.
C. The tax imposed hereunder shall be due and payable
to the Collector as a joint and several liability by 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. In the case of an acquired company,
the company shall also have liability for payment of the tax. All
such persons shall also be liable for any penalties imposed under
this article.
D. It is the intent of this article that the entire burden
of the tax imposed on a real estate transaction by the Township and
other political subdivisions shall not exceed the limitations prescribed
in Section 8 of the Local Tax Enabling Act, 53 P.S. § 6908, so that, if any other political subdivision imposes a
tax on real estate transactions taxed under this article, the provisions
of said Section 8 shall apply.
The payment of the tax imposed hereunder shall
be evidenced by the Collector affixing on the document an official
stamp or writing, setting forth the date of payment of the tax and
amount of tax paid.
The United States, the Commonwealth of Pennsylvania
or any of their instrumentalities, agencies or political subdivisions
shall be exempt from payment of the tax imposed by this article. The
exemption of such governmental bodies shall not, however, relieve
any other party to a transaction from liability for the tax.
Except as otherwise provided with respect to
excluded transactions, 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 article, corporations
and associations are entities separate from their members, partners,
stockholders or shareholders.
Every document lodged with or presented to the
Collector for recording shall set forth therein and as a 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. A copy of the Pennsylvania
Realty Transfer Tax Statement of Value may be submitted for this purpose.
The provisions of this section shall not apply to any excludable real
estate transfers which are exempt from taxation based on family relationship,
provided the relationship is specified in the deed, instrument or
writing. Documents which are not to be recorded shall be presented
to the Collector and shall be accompanied by a certified copy of the
document and 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. Evidence
of payment shall be affixed to the original document and the certified
copy. The certified copy and statement of value shall be filed with
the Collector.
The tax imposed by this article shall be a lien
against the real estate to which the document relates and, in the
case of an acquired company, the real estate owned by the acquired
company. The lien shall date from the time when the tax is due and
payable and shall continue until discharged by payment in full of
the tax, together with all penalties. In order to enforce the lien,
the Township may proceed under the Municipal Claims and Liens Act
of 1923, 53 P.S. § 7101 et seq., or in any other appropriate
manner.
The tax imposed under this article 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.
The Treasurer of this Township is hereby charged
with enforcement and collection of tax hereunder and is empowered
to promulgate and enforce reasonable regulations incident thereto.