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 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,
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 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 § 371-18 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 my 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 or 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 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.
PERSON
Every natural person, estate, trust, 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 Leetsdale, 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" 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 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.
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 of this definition, 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 or a related corporation, association or partnership and
the grantee existing before or effective with the transfer.
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 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.
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 §
271-16, 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 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 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.
No document upon which tax is imposed by this
article shall at any time be made the basis of any action or other
legal proceeding, nor shall proof thereof be offered or received in
evidence in any court of this commonwealth, or recorded in the Office
of any Recorder of Deeds, unless a documentary stamp or stamps as
provided in this article have been affixed thereto.
[Amended 10-9-1991 by Ord. No. 497]
A. 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. 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.
B. The Recorder of Deeds who shall record any document
upon which tax is imposed by this article without the proper documentary
stamp or stamps affixed thereto as required by this article as is
indicated in such document or accompanying statement of value shall,
upon conviction, be sentenced to pay a fine not exceeding $600 and
costs, or in default of payment thereof, shall be subject to imprisonment
for a term not to exceed 30 days.
The Solicitor of the Borough of Leetsdale, upon
approval of the Council of the Borough of Leetsdale, may sue for the
recovery of taxes, interest and penalties due and unpaid.
The Borough of Leetsdale may from time to time
prescribe, adopt, promulgate and enforce rules and regulations relating
to any matter pertaining to the administration, interpretation and
enforcement of this article by a resolution of the Council of the
Borough of Leetsdale.
This article shall be effective from the date
of its adoption.
This article shall be known and may be cited
as "The Real Estate Transfer Tax Ordinance" of the Borough of Leetsdale.