This article shall be known as the "Realty Transfer
Tax Ordinance of Warwick Township."
[Amended 10-2-2006 by Ord. No. 2006-5]
Warwick Township adopts the provisions of Article
XI-D of the Tax Reform Code of 1971 and imposes a realty transfer
tax as authorized under that article, subject to the rate limitations
therein. The tax imposed under this section shall be at the rate of
1%.
[Added 10-2-2006 by Ord. No. 2006-5]
The tax imposed under §
171-16, 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, Warwick Township,
pursuant to Section 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.
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 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 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 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, 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
Warwick 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
or 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.
TOWNSHIP
Warwick Township, Bucks County, Pennsylvania, a Township
of the second class under the laws of the Commonwealth of Pennsylvania.
TRANSACTIONS
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 acquire 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 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 or 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.
The tax imposed by §
171-18 shall not be imposed upon:
A. 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.
B. A document which Warwick Township is prohibited from
taxing under the Constitution or statutes of the United States.
C. A conveyance to a municipality, Township, school district
or county pursuant to acquisition by the municipality, Township, school
district or county of a tax-delinquent property at sheriff sale or
Tax Claim Bureau sale.
D. 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.
E. A transfer of division in kind for no or nominal actual
consideration of property passed by testate or intestate succession
and held by cotenants; however, if any of the parties takes shares
greater in value than their undivided interest, tax is due on the
excess.
F. 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.
G. 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.
H. 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.
I. A transfer for no or nominal actual consideration
from a trustee to a beneficiary of an ordinary trust.
J. A transfer for no or nominal actual consideration
from trustee to successor trustee.
K. 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 article. 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 subsection.
L. A transfer made pursuant to the statutory merger or
consolidation of a corporation or statutory division of a nonprofit
corporation, except where the department and/or Township reasonably
determines that the primary intent for such merger, consolidation
or division is avoidance of the tax imposed by this article.
M. 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 taxable. For the purposes of this article, corporations
and associations are entities separate from their members, partners,
stockholders or shareholders.
Whenever the amount of tax due to the Commonwealth
of Pennsylvania pursuant to 72 P.S. § 8101-C et seq., upon
final determination, redetermination or review by the Department of
Revenue, is more than the amount actually paid to the commonwealth
on account thereof, such amount, including all interest or penalties
thereon, shall be deemed to be the amount due and payable to the Township
pursuant to this article and shall be collectable by the Recorder
of Deeds upon rerecording as hereinafter provided. If the amount of
tax as finally determined is less than the amount actually paid, then
upon application to the Township, together with proof of payment and
final determination by the Department of Revenue, the Township shall
refund such portion of the overpayment that the Township actually
received. All applications for refunds must be received by the Township
within two years of the date of payment for which a refund is requested.
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 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, tenements or hereditaments or any interest
therein lying or being situated, wholly or in part, within the boundaries
of Warwick Township, 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 to 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 Bucks 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.
[Added 10-2-2006 by Ord. No. 2006-5]
Any tax imposed under §
171-16 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 Section 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.
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 Board of Supervisors of Warwick Township
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.