[Adopted 8-3-1987 by Ord. No. 395
(Ch. XXI, Part 2, of the 1967 Code)]
This article shall be known as the "Realty Transfer Tax Ordinance of
New Wilmington Borough."
A realty transfer tax for general revenue purposes is hereby imposed
upon the transfer of real estate or interest in real estate situated within
New Wilmington Borough, 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-D et seq.
[Amended 1-3-2000 by Ord. No. 442]
As used in this article, the words and phrases defined in 72 P.S. § 8101-C
shall have the meanings ascribed to them in said section.
[Amended 12-3-2007 by Ord. No. 494]
A. 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 a tax at
the rate of 1% 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.
B. 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.
C. It is the intent of this article that the entire burden
of the tax imposed herein on a person or transfer shall not exceed the limitations
prescribed in The Local Tax Enabling Act, Act of December 31, 1965, P.L. 1257,
53 P.S. § 6901 et seq., so that if any other political subdivision
shall impose or hereafter shall impose such tax on the same person or transfer,
then the tax levied by the borough under the authority of that Act shall,
during the time such duplication of the tax exists, except as hereinafter
otherwise provided, be 1/2 of the rate, and such 1/2 rate shall become effective
without any action on the part of the borough; provided, however, that the
borough and any other political subdivision which impose such tax on the same
person or transfer may agree that, instead of limiting their respective rates
to 1/2 of the rate herein provided, they will impose respectively different
rates, the total of which shall not exceed the maximum rate permitted under
the Local Tax Enabling Act.
The United States, the commonwealth or any of their instrumentalities,
agencies or political subdivisions shall be exempt from payment or the tax
imposed by this part. The exemption of such governmental bodies shall not,
however, relieve any other party to a transaction from liability for the tax.
A. The tax imposed by §
230-7 shall not be imposed upon:
(1) 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 fine adjustments, provided that said reconveyance is made within
one year from the date of condemnation.
(2) A document which the borough is prohibited from taxing
under the Constitution or statutes of the United States.
(3) A conveyance to a municipality, township, school district
or county of a tax-delinquent property at Sheriff's sale or Tax Claim
Bureau sale.
(4) 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 or division in kind for no or nominal actual
consideration of property passed by testate or intestate succession and held
by co-tenants; 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
that 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 brother or sister or
the 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 intestate succession from a personal representative
of a decedent to the decedent's devisee or heir.
(8) A transfer for no or nominal actual consideration to
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, whether or not such beneficiaries are contingent or
specifically named. 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.
(9) A transfer for no or nominal actual consideration from
a trustee to a beneficiary of an ordinary trust.
(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 part. Where the document by which title is acquired by a grantee
or statement of value fails to set forth that the property was 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
part.
(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 the agency or authority has the full ownership interest
in the 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 its instrumentalities, agencies or political
subdivisions.
[Amended 1-3-2000 by Ord. No. 442]
(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.
(20) A transfer between members of the same family of an ownership
interest in a real estate company or family farm corporation.
(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.
B. 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. A copy of the Pennsylvania Realty Transfer Tax Statement of Value
may be submitted for this purpose. 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 tax under this article.
Except as otherwise provided in §
230-8, 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 part, corporations and associations are entities separate from their members, partners, stockholders or shareholders.
A. 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.
B. 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 or 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.
C. 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. A copy of the Pennsylvania Realty
Transfer Tax Declaration of Acquisition may be submitted for this purpose.
A. 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.
B. 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 the tax due upon
the transfer.
C. Where there is a transfer of real estate which is leased
by the grantor, a credit for the amount of tax paid at the time of the lease
shall be given the grantor toward the tax due upon the transfer.
D. 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 the grantor toward
the tax due upon the deed.
E. If the tax due upon the transfer is greater than the
credit given under this section, the difference shall be paid. If the credit
allowed is greater than the amount of tax due, no refund or carry-over credit
shall be allowed.
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.
The tax herein imposed shall be fully paid and have priority out of
the proceeds or 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 except the state realty transfer tax, 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.
A. As provided in 16 P.S. § 11011-6, as amended
by Act of July 7, 1983 (P.L. 40, No. 21), the Recorder of Deeds shall be the
collection agent for the local realty transfer tax, including any amount payable
to the school district based on a redetermination of the amount of tax due
by the Commonwealth of Pennsylvania of the Pennsylvania Realty Transfer Tax,
without compensation from the borough.
B. In order to ascertain the amount of taxes due when the
property is located in more than one political subdivision, the Recorder shall
not accept for recording such a deed unless it is accompanied by a statement
of value showing what taxes are due each municipality.
C. On or before the 10th of each month, the Recorder shall
pay over to the borough all local realty transfer taxes collected, less 2%
for use of the county, together with a report containing the information as
is required by the Commonwealth of Pennsylvania in reporting collections of
the Pennsylvania Realty Transfer Tax. The two-percent commission shall be
paid to the county.
D. Upon a redetermination of the amount of realty transfer
tax due by the Commonwealth of Pennsylvania, the Recorder shall rerecord the
deed or record the additional realty transfer tax form only when both the
state and local amounts and a rerecording or recording fee has been tendered.
Every document lodged with or presented to the Recorder of Deeds 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
part. A copy of the Pennsylvania Realty Transfer Tax Statement of Value may
be submitted for this purpose. The provisions of this subsection 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.
[Amended 12-3-2007 by Ord. No. 494]
Any tax imposed under the provisions of this article 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.
The tax imposed by this article shall become a lien upon the lands,
tenements or hereditaments, or any interest therein, lying, being situated,
wholly or in part, within the boundaries of the borough, which lands, tenements,
hereditaments or interest therein are described in or conveyed by or transferred
by the deed which is the subject of the tax imposed, assessed and levied by
this article, said lien to begin at the time when the tax under this article
is due and payable and continue until discharged by payment or in accordance
with the law, and the Solicitor is authorized to file a municipal or tax claim
in the Court of Common Pleas of Lawrence County in accordance with the provisions
of the Municipal Claims and Liens Act of 1923, 53 P.S. § 7101 et
seq., its supplements and amendments.
[Amended 12-3-2007 by Ord. No. 494]
All taxes imposed by this article, together with interest and penalties
prescribed herein, shall be recoverable as other debts of like character are
recovered. Notwithstanding the foregoing, the tax 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 of New Wilmington,
Pennsylvania, pursuant to § 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.
The Recorder of Deeds of Lawrence County, Pennsylvania, is charged with
enforcement and collection of tax and is empowered to promulgate and enforce
reasonable regulations for enforcement and collection of the tax. The regulations
which have been promulgated by the Pennsylvania Department of Revenue under
72 P.S. § 8101-C et seq. are incorporated into and made a part of
this article.