This article shall be known as the "Realty Transfer
Tax Ordinance of Lower Providence Township."
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 Lower Providence Township, 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.
As used in this article, the following terms
shall have the meanings indicated:
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, 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 release thereof to the debtor, land security for 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 recording under §
130-12 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.
All 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, immovable
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 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
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
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 indebtness 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, the actual
monetary worth of the real estate determined by adjusting the value
of the real estate for local real estate tax purposes for the common
level ratio factor developed by the Pennsylvania Department of Revenue
for Pennsylvania realty transfer tax base calculations;
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 of a related corporation, association or partnership and
the grantee existing before or effective with the transfer.
The United States, the commonwealth or any of
their instrumentalities, agencies or political subdivisions shall
be exempt from payment on 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 §
130-16, 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.
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 if 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 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, 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.
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 article. 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.
The tax imposed by this article shall become
a lien upon the lands being situated, wholly or in part within the
boundaries of Lower Providence Township, which lands, tenements, hereditaments
or interests therein are described in or conveyed by or transferred
by the deed which is the subject of the tax imposed, 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 discharge 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 Montgomery
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.
All taxes imposed by this article, together
with interest and penalties prescribed herein, shall be recoverable
as other debts of like character are recovered.
The Township Secretary of Lower Providence Township
is charged with enforcement and collection of tax and is empowered
to promulgate and enforce reasonable regulations for the enforcement
and collection of the tax. The regulations which have been promulgated
by the Pennsylvania Department of Revenue under 72 P.S. § 8101
et seq. are incorporated into and made a part of this article.
Should any section, subsection, sentence, clause
or phrase of this article be declared invalid by a court of competent
jurisdiction, such decision shall not affect the validity of the Article
in its entirety or of any part thereof other than that declared to
be invalid.
This article shall be effective on May 8, 1989.
The provisions of Article
II, §§
130-11 through
130-23, inclusive, are hereby repealed upon the effective date of this article.