[Adopted 6-14-1983 by Ord. No. 83-4; amended
in its entirety 12-11-2007 (Ch. 84, Art. V, of the 1983 Code)]
This article shall be known as the "Realty Transfer
Tax Ordinance of the Marietta Borough."
The realty transfer tax levied hereunder is
levied under authority of Article XI-D of the Pennsylvania Realty
Transfer Tax Act and the Local Tax Enabling Act. The Pennsylvania
Realty Transfer Tax Act is codified at 72 P.S. § 8101-C
et seq., and Article XI-D is codified at 72 P.S. § 8101-D
et seq. The Local Tax Enabling Act is codified at 53 P.S. § 6924.101
et seq.
Words, phrases, and terms which are used in
this article and defined in the Pennsylvania Realty Transfer Tax Act
and which are not otherwise defined herein shall have the same meanings
as indicated in the Pennsylvania Realty Transfer Tax Act.
A.
A tax is hereby levied and imposed, for general municipal
purposes, upon every transfer of real property and/or every transfer
of an interest of in real property located within the Borough, regardless
of where the instruments making the transfers are made, executed or
delivered or where the actual settlements on the transfers take place,
to the extent authorized under Article XI-D, at the rate of 1% of
the value of the interest in real estate involved in the transaction[1]. It is the intent of the Borough to impose this tax upon
every transaction that is subject to the tax imposed by the Pennsylvania
Realty Transfer Tax Act. Without limiting the foregoing, a real estate
transaction shall include any transaction or series of transactions
whereby a real estate company, family farm corporation or family farm
partnership becomes an acquired company under the Pennsylvania Realty
Transfer Tax Act.
[1]
NOTE: The effective rate of the tax imposed under this Article II is limited to 1/2% in the manner prescribed by Section 8 of the Local Tax Enabling Act (53 P.S. § 6924.311). The tax which is imposed under this Article II and the realty transfer tax imposed by the Donegal School District together shall not exceed 1% as permitted by the Local Tax Enabling Act.
B.
The tax shall be payable at the earlier of the time
the document is presented for recording, within 30 days of acceptance
of such document or within 30 days of becoming an acquired company.
C.
If the real estate is located partially within and
partially outside the Borough, the tax shall be calculated on the
value of the portion within the Borough.
D.
The payment of the tax imposed herein shall be evidenced
by the affixing of an official stamp or writing by the Recorder of
Deeds of Lancaster County ("Recorder") whereon the date of the payment
of the tax, amount of the tax and the signature of the collecting
agent shall be set forth.
E.
The tax imposed hereunder shall be due and payable
to the collector, as a joint and several liability, by every person
who makes, executes, delivers, accepts or presents for recording any
document, or on whose behalf any document is made, executed, delivered,
accepted or presented for recording. In the case of an acquired company,
the company shall also have liability for payment of the tax. Such
persons shall also be liable, jointly and severally, for any interest
and penalties imposed under this article.
F.
It is the intent of this article that the entire burden
of the tax imposed herein on a real estate transaction by the Borough
and other political subdivisions shall not exceed the limitations
prescribed in the Local Tax Enabling Act, 53 P.S. § 6924.101
et seq. ("enabling act"), so that if any other political subdivision
imposes a tax on real estate transactions taxed under this article,
the applicable provisions of the enabling act shall apply.[2]
G.
Any tax imposed under this § 310-17 that is not paid by the date the tax is due shall bear interest as prescribed for interest on delinquent municipal claims under the Municipal Claims and Tax Liens Act, 53 P.S. § 7101 et seq. ("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 Fiscal Code, 72 P.S. § 806, or the maximum interest rate permitted under the Municipal Claims and Tax Liens Act for tax claims.
The United States, the Commonwealth of Pennsylvania,
or any of their municipalities, 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 real estate transaction from liability for the
tax.
The tax imposed by this article shall not be
imposed upon those transactions excluded from such taxation under
the Pennsylvania Realty Transfer Tax Act from time to time. 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 under § 310-19, documents which make, confirm or evidence any transfer or demise of title to real estate between associations or corporations and the members, partners, shareholder 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.
A.
Where there is a transfer subject to tax hereunder
and the Pennsylvania Realty Transfer Tax Act provides for a credit
for the amount of the tax paid at the time of a previous transfer,
such credit shall be given toward the amount of the tax due upon the
transfer under this article.
B.
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 carryover credit shall be allowed.
Every document lodged with or presented to the
Recorder 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 section shall not apply to any excludable real
estate transfers which are exempt from taxation based on family relationship,
provided the relationship is specified in the deed, instrument or
writing. 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. Evidence of payment shall be affixed to
the original document and the certified copy. The certified copy and
statement of value shall be filed with the Borough.
A.
As provided in 16 P.S. § 11011-6 and 72
P.S. 8105-D, the Recorder shall be the collection agent for realty
transfer tax, including any amount payable to the Borough based on
a redetermination of the amount of tax due by the Commonwealth of
Pennsylvania of the Pennsylvania realty transfer tax due without compensation
from the Borough.
B.
In order to ascertain the amount of taxes due when
the property is located in more than one municipality, 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 Lancaster County.
D.
Upon a redetermination of the amount of realty transfer
tax due by the Commonwealth of Pennsylvania, the Recorder shall re-record
the deed or record the additional realty transfer tax form only when
both the state and local amounts and a recording or recording fee
has been tendered.
A.
It shall be unlawful for any person to:
(1)
Accept or present for recording or cause to be accepted
or presented for recording any document without the full amount of
tax thereon being duly paid;
(2)
Make use of any documentary stamp to denote payment
of any tax imposed under this article without canceling such stamp
as required by Article XI-D or as prescribed by the Department;
(3)
Fail, neglect or refuse to comply with or violate
the rules and regulations prescribed, adopted and promulgated by the
Department or the Borough;
(4)
Fraudulently cut, tear or remove from a document any
documentary stamp;
(5)
Fraudulently affix to any document upon which tax
is imposed under this article any documentary stamp which has been
cut, torn or removed from any other document upon which tax is imposed
under Article XI-D, or any documentary stamp of insufficient value,
or any forged or counterfeited stamp, or any impression of any forged
or counterfeited stamp, die, plate or other article;
(6)
Willfully remove or alter the cancellation marks of
any documentary stamp, or restore any such documentary stamp, with
intent to use or cause the same to be used after it has already been
used, or knowingly buy, sell, offer for sale or give away such altered
or restored stamp to any person for use, or knowingly use the same;
(7)
Knowingly have in his possession any altered or restored
documentary stamp which has been removed from any document upon which
a tax is imposed under Article XI-D, provided that the possession
of such stamps shall be prima facie evidence of an intent to violate
the provisions of this clause; or
(8)
Knowingly or willfully prepare, keep, sell, offer
for sale or have in his possession any forged or counterfeited documentary
stamps.
C.
A person who makes a false statement of value or declaration
of acquisition, not believing the statement or declaration to be true,
commits a summary offense.
A.
If any tax owing under the terms of this article shall
not be paid when due, 10% of the amount of the tax shall be added
and collected as an initial penalty for nonpayment or underpayment
of the tax.
B.
In addition, if any tax owing under the terms of this
article shall not be paid when due, a penalty shall accrue on the
amount of the unpaid tax at the rate of 1% per month or fractional
part of a month, on the amount of the unpaid tax, from the due date
until the amount of the tax is paid in full.
C.
In addition, in the case of failure of any acquired
company to record a declaration of acquisition, as required by this
article, unless it is shown to the satisfaction of the Borough that
such failure is due to reasonable cause, a penalty shall accrue on
the amount of the unpaid tax at the rate of 5% per month or fractional
part of a month, on the amount of the unpaid tax, from the due date
until the amount of the tax is paid in full. This penalty shall be
in addition to all other penalties, but shall not in the aggregate
exceed 50% of the amount of the unpaid tax.
D.
In addition, if any part of any nonpayment or underpayment
of tax is due to fraud, there shall be added to the tax an amount
equal to 50% of the nonpayment or underpayment.
E.
In addition, if the Borough engages the services of
an attorney or files suit in order to collect the amount of any tax
not paid when due under this article, any person liable for payment
of the tax shall also be liable for reasonable attorneys' fees incurred
by the Borough in prosecution of the suit.
F.
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 or any county of this commonwealth, unless the tax imposed
hereunder shall have been paid in full and evidence of payment shall
have been affixed thereto by the collector.
A.
Any tax that the Department determines to be due under
this article and remains unpaid after demand for the same, and all
penalties and interest thereon, shall be a lien in favor of the Borough
upon the property, both real and personal, of the person but only
after the lien has been entered and docketed of record by the prothonotary
of the county where such property is situated.
B.
After the Department's determination becomes final,
a writ of execution may directly issue upon the lien without the issuance
and prosecution to judgment of a writ of scire facias, provided that,
not less than 10 days before issuance of any execution on the lien,
notice shall be sent by certified mail to the taxpayer at the taxpayer's
last known post office address. No prothonotary shall require as a
condition precedent to the entry of the liens the payment of any costs
incident thereto.
C.
Priority of liens.
(1)
The lien imposed under this section shall have priority
from the date of its recording and shall be fully paid and satisfied
out of the proceeds of any judicial sale of property subject thereto
before any other obligation, judgment, claim, lien or estate to which
the property may subsequently become subject, except costs of the
sale and of the writ upon which the sale was made, and real estate
taxes and municipal claims against such property, but shall be subordinate
to mortgages and other liens existing and duly recorded or entered
of record prior to the recording of the tax lien.
(2)
In the case of a judicial sale of property subject
to a lien imposed under this section upon a lien or claim over which
the lien has priority, the sale shall discharge the lien to the extent
only that the proceeds are applied to its payment, and the lien shall
continue in full force and effect as to the balance remaining unpaid.
D.
Pursuant to Article XI-D, a lien imposed under this
article shall be equal in priority to the lien imposed under the Pennsylvania
Realty Transfer Tax Act.
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.
The sheriff or other officer conducting the sale shall pay the tax
imposed out of the first moneys paid to the sheriff or officer in
connection therewith. If the proceeds of the sale are insufficient
to pay the entire tax imposed under this article, the purchaser shall
be liable for the remaining tax.
All taxes imposed by this article together with
interest and penalties prescribed herein, shall be recoverable as
other debts of like character are recovered. All taxes imposed by
this article and all applicable interest and penalties shall be administered,
collected and enforced under 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, pursuant to §§ 1102-D
and 1108-D of Article XI-D, authorizes and directs the Department
of the Commonwealth of Pennsylvania to determine, collect and enforce
the tax, interest and penalties.
The Borough is empowered to promulgate and enforce
reasonable regulations for enforcement and collection of the tax levied
hereunder. The regulations which have been promulgated by the Department
under 72 P.S. § 8101-C, et seq. are incorporated into and
made a part of this article.
The Secretary of the Borough is hereby authorized
and directed to have the necessary documentary stamps or other indicia
of payment manufactured and placed in the hands of the Recorder, who
shall at all times hereafter be responsible for the disposition of
said stamps.
The provisions of this article, so far as they
are the same as the provisions contained in the realty transfer tax
ordinance in force immediately prior to the adoption of this article,
are intended as a continuation of said ordinance and not as new enactments.
The tax imposed by this article shall be effective
on January 1, 2008, and shall continue in force hereafter without
annual reenactment.
