[Adopted 7-7-1956 by Ord. No. 9-56 (Ch.
24, Part 2, of the 1988 Code); amended in its entirety 8-15-1988 by Ord. No.
8-88]
This article shall be known as the "Realty Transfer
Tax Ordinance of the Township of Bethlehem."
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 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
et seq.
As used in this article, the following terms
shall have the meanings indicated:
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.
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.
Any deed, instrument or writing which conveys, transfers, demises, vests, confirms or evidences any transfer or demise of title of real estate in this commonwealth, 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 § 240-2.
[Amended 5-4-2014 by Ord.
No. 03-14]
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:
Recreational activities such as, but not limited
to, hunting, fishing, camping, skiing, show competition or racing;
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;
Fur farming;
Stockyard and slaughterhouse operations; or
Manufacturing or processing operations of any
kind.
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.
The Township of Bethlehem.
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.
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, 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.
A condominium unit.
A tenant-stockholder's interest in a cooperative
housing corporation, trust or association under a proprietary lease
or occupancy agreement.
A corporation or association which meets any of the following:
[Amended 5-4-2014 by Ord.
No. 03-14]
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; or
Ninety percent or more of the ownership interest in the corporation
or association is held by 35 or fewer persons and the corporation
or association owns, as 90% or more of the fair market value of its
assets, a direct or indirect interest in real estate company. An indirect
ownership interest is an interest in a corporation or association,
90% or more of the ownership interest which is held by 35 or fewer
persons whose purpose is the ownership of a real estate company.
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
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,
consist 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.
The making, executing, delivering, accepting or presenting
for recording of a document.
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
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;
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 factor developed by the Pennsylvania Department
of Revenue for Pennsylvania realty transfer tax base calculations;
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.
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
Board of Commissioners 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 shall become effective
without any action on the part of the Board of Commissioners; provided,
however, that the Township 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.
D.
If for any reason the tax is not paid when due, interest
at the rate in effect at the time the tax is due, shall be added and
collected.
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.
The tax imposed by § 240-4 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 or 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 line adjustments provided said reconveyance
is made within one year from the date of condemnation.
B.
A document which the 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 or division in kind for no or nominal actual
consideration of property passed by testate or intestate succession
and held by covenants; however, if any of the parties take 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 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 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 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 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.
N.
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.
O.
A transfer from a nonprofit industrial development
agency or authority to a grantee purchasing directly from it, but
only if:
(1)
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
(2)
The
agency or authority has the full ownership interest in the real estate
transferred.
P.
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.
Q.
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.
R.
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.
S.
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.
T.
A transfer between members of the same family of an
ownership interest in a real estate company or family farm corporation.
U.
A transaction wherein the tax is $1 or less.
V.
Leases for the production or extraction of coal, oil,
natural gas or minerals and assignments thereof.
W.
In order to exercise any exclusion provided in this § 240-6, 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.
X.
A transfer of real estate:
[Added 5-4-2014 by Ord.
No. 03-14]
(1)
For no or nominal consideration from the commonwealth or any of its
instrumentalities, agencies or political subdivisions to a volunteer
emergency medical services agency, volunteer fire company or volunteer
rescue company; or
(2)
Between two or more volunteer emergency medical services agencies,
volunteer fire companies or volunteer rescue companies.
Except as otherwise provided in § 240-6, 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 § 240-7, corporations and associations are entities separate from their members, partners, stockholders and shareholders.
[Amended 5-4-2014 by Ord.
No. 03-14]
A real estate company is an acquired company upon a change in
the ownership interest in the company, however effected, if the change:
A.
Does not affect the continuity of the company; and
B.
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.
C.
For the purposes of Subsection B, a transfer occurs within a period of three years of another transfer or transfers if, during the period:
(1)
The transferring party provides a legally binding commitment, enforceable
at a future date, to execute the transfer;
(2)
The terms of the transfer are fixed and not subject to negotiation;
and
(3)
The transferring party receives full consideration, in any form,
in exchange for the transfer, the transferring party provides the
transferee a legally binding commitment or option, enforceable at
a future date, to execute the transfer.
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 a 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 the tax paid at the time of the sale shall
be given the grantor toward the tax due upon the deed.
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.
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 Township 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 Township.
B.
In order to ascertain the amount of the 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 tenth of each month, the recorder
shall pay over to the Township 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
2% 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 article. A copy of the Pennsylvania Realty Transfer Tax Statement of Value may be submitted for this purpose. The provisions of this § 240-13 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.
A.
If any part of any underpayment of taxes imposed by
this article is due to fraud, there shall be added to the tax an amount
equal to 50% of the underpayment.
B.
In the case of failure to record a declaration required
under this article on the date prescribed therefor, unless it is shown
that such failure is due to reasonable cause, there shall be added
to the tax 5% of the amount of such tax if the failure is for not
more than one month, with an additional 5% for each additional month
or fraction thereof during which such failure continues, not exceeding
50% in the aggregate.
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 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 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 Northampton
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 Recorder of Deeds of Northampton County
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.
