The following words, when used in this article,
shall have the meanings 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 the Commonwealth
of Pennsylvania (and hereinafter referred to as the "commonwealth"),
the United States or any other state, territory or 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, but does not include wills, mortgages, deeds of trust or other instruments of like character given as security for a debt and deeds of releases 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 due 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 §
200-6 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; or
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 and 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. 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
the Borough of Kutztown, 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; or
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; or
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.
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" therefor 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, the actual
monetary worth of the real estate determined by adjusting the assessed
value of the real estate for local real estate 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;
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; or
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 or a related corporation, association or partnership and
the grantee existing before or effective with the transfer.
[Amended 12-26-1995 by Ord. No. 12-1995]
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 local tax
at the rate of 1% of the value of the real estate located within the
Borough of Kutztown represented by such document, which local 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.
The United States, the commonwealth 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 in §
200-4, 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 purpose of this article, corporations and associations are entities separate from their members, partners, stockholders or shareholders.