STATUTORY REFERENCES
Authority to enact — See Act
No. 511 of 1965, Sec. 2; Act 77 of 1986, Sec. 8101-D.
Annual re-enactment unnecessary — See
Act No. 511 of 1965, Sec. 4.
Limitation on rate — See Act
No. 511 of 1965, Sec. 8(5).
Township and special tax levies — See
2nd Class Secs. 905 et seq.
GENERAL REFERENCES
Real estate tax certification fee — See
Section 208.01(e).
Tax Collector — See Ch. 240.
[Ord. 231. Passed 1-20-1987]
This chapter shall be known and may be cited
as the "Realty Transfer Tax Ordinance of the Township of Lower Gwynedd"
or just the "realty transfer tax."
[Ord. 231. Passed 1-20-1987]
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-D
et seq.
[Ord. 231. Passed 1-20-1987]
As used in this chapter:
(a)
"Association" means 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.
(b)
"Corporation" means a corporation, joint-stock association,
business trust or banking institution which is organized under the
laws of the commonwealth, the United States or any other state, territory,
foreign country or dependency.
(c)
"Document" means any deed, instrument or writing which conveys, transfers, demises or vests title to real estate, or 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 until 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" also includes a declaration of acquisition required to be presented for recording under § 884.08.
(d)
"Family farm corporation" means a corporation, at
least 75% of the assets of which are devoted to the business of agriculture
and at least 75% of each class of stock of which is continuously owned
by members of the same family. The business of agriculture shall not
be deemed to include:
(1)
Recreational activities, including, but not
limited to, hunting, fishing, camping, skiing, show competition or
racing;
(2)
The raising, breeding or training of game animals,
game birds, fish, cats, dogs, pets or animals intended for use in
sporting or recreational activities;
(3)
Fur farming;
(4)
Stockyard and slaughterhouse operations; or
(5)
Manufacturing or processing operations of any
kind.
(e)
"Members of the same family" means 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.
(f)
"Person" means every natural person, association or
corporation. Whenever used in any clause prescribing and imposing
a fine or imprisonment, or both, "person," as applied to associations,
includes the responsible members or general partners thereof, and
as applied to corporations, the officers thereof.
(g)
"Real estate" means:
(1)
All lands, tenements or hereditaments within
the 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;
(2)
Condominium units; or
(3)
A tenant-stockholder's interest in a cooperative
housing corporation, trust or association under a proprietary lease
or occupancy agreement.
(h)
"Real estate company" means a corporation or association
which is primarily engaged in the business of holding, selling or
leasing real estate, and in which ninety percent or more of the interest
is held by 35 or fewer persons, and which:
(1)
Derives 60% or more of its annual gross receipts
from the ownership or disposition of real estate; or
(2)
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.
(i)
"Title to real estate" means:
(1)
Any interest in real estate which endures for
a period of time, the termination of which interest is not fixed or
ascertained by a specific number of years, including, without limitation,
an estate in fee simple, a life estate or a perpetual leasehold; or
(2)
Any interest in real estate enduring for a fixed
period of years, but which interest, 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 approximately those of
an estate in fee simple, a life estate or a 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.
(j)
"Transaction" means the making, executing, delivering,
accepting or presenting for recording of a document.
(k)
"Value" means:
(1)
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 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;
(2)
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;
(3)
In the case of an easement or other interest
in real estate, the value of which is not determinable under Subsection
(k)(1) or (2) hereof, the actual monetary worth of such interest;
or
(4)
The actual consideration for or actual monetary
worth of any executors 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 or 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 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, whichever first occurs.
(b)
The payment of the tax imposed in this chapter 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, the
amount of the tax and the signature of the collecting agent shall
be set forth.
(c)
It is the intent of this chapter that the entire burden
of such tax on a person or transfer shall not exceed the limitations
prescribed in the Local Tax Enabling Act, being the Act of December
31, 1965, P.L. 1257, 53 P.S., § 6901 et seq., as amended,
so that if any other political subdivision has imposed or hereafter
imposes such tax on the same person or transfer, then the tax levied
by the Township under the authority of such Act shall, during the
time such duplication of the tax exists, except as hereinafter otherwise
provided, be 1/2 of the rate, and such one-half rate shall become
effective without any action on the part of the Board of Supervisors.
However, the Township and any other political subdivision which imposes
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
rates shall not exceed the maximum rate permitted under the Local
Tax Enabling Act.
(d)
Any tax imposed under this chapter 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 6% per annum.
[Amended 6-19-2007 by Ord. No. 447]
[Ord. 231. Passed 1-20-1987]
The United States, the commonwealth and all
of their instrumentalities, agencies or political subdivisions shall
be exempt from payment of the tax imposed by this chapter. However,
the exemption of such governmental bodies shall not relieve any other
party to a transaction from liability for the tax.
[Ord. 231. Passed 1-20-1987]
The tax imposed in Section 884.04 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 by 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 such 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 a sheriff sale
or tax claim bureau sale;
(d)
A transfer, for no actual consideration or for 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 actual consideration
or for nominal actual consideration, of property passed by testate
or intestate succession and held by cotenants; provided, however,
that if any party takes shares greater in value than his or her 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 by the 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 the
spouse of a brother or sister and brother or sister or the spouse
of a brother or sister; and between 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 actual consideration or for 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 actual consideration or for nominal
actual consideration, to a trustee of an ordinary trust, where the
transfer of the same property would be exempt if the transfer were
made directly from the grantor to all of the possible beneficiaries,
whether or not such beneficiaries are contingent or specifically named,
except that 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 actual consideration or for nominal
actual consideration, from a trustee to a beneficiary of an ordinary
trust;
(j)
A transfer, for no actual consideration or for nominal
actual consideration, from a trustee to a successor trustee;
(k)
A transfer, for no actual consideration or for nominal
actual consideration, between a principal and agent or straw party,
or from or to an agent or straw party where, if the agent or straw
party were his or her principal, no tax would be imposed under this
chapter, provided that 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 or her
principal, there is a rebuttable presumption that the property is
the property of the grantee in his or her 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 Township reasonably determines that
the primary intent for such merger, consolidation or division is avoidance
of the tax imposed by this chapter;
(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 or her 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 the grantee directly uses 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 if
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 due is $1.00 or less;
and
(v)
Leases for the production or extraction of coal, oil,
natural gas or minerals and assignments thereof.
|
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 chapter.
|
[Ord. 231. Passed 1-20-1987]
Except as otherwise provided in Section 884.08, 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 section, corporations and associations are entities separate from their members, partners, stockholders or shareholders.
[Ord. 231. Passed 1-20-1987]
(a)
A real estate company is an acquired company upon
a change in the ownership interest in the company, however effected,
if the change does not affect the continuity of the company, and if
the change, by itself or together with prior changes, has the effect
of transferring, directly or indirectly, ninety percent or more of
the total ownership interest in the company within three years.
(b)
With respect to real estate acquired after February
16, 1986, a family farm corporation is an acquired company when, because
of voluntary or involuntary dissolution, it ceases to be a family
farm corporation, or when, because of issuance or transfer of stock
or because of acquisition or transfer of assets that are devoted to
the business of agriculture, it fails to meet the minimum requirements
of a family farm corporation under this chapter.
(c)
Within thirty days after becoming an acquired company,
such company shall present a declaration of acquisition to the recorder
of each county in which it holds real estate for the affixation of
documentary stamps and recording. Such declaration shall set forth
the value of real estate holdings of the acquired company in such
county. A copy of the Pennsylvania Realty Transfer Tax Declaration
of Acquisition may be submitted for this purpose.
[Ord. 231. Passed 1-20-1987]
(a)
Where there is a transfer of residential property
by a licensed real estate broker, which property was transferred to
him or her 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 or her shall be given to him
or her 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 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 to 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 tax paid at the time of the sale shall be
given to the grantor toward the tax due upon the deed.
(e)
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 carry-over credit shall be allowed.
[Ord. 231. Passed 1-20-1987]
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.
[Ord. 231. Passed 1-20-1987]
The tax imposed in this chapter shall be fully
paid and shall have priority out of the proceeds of any judicial sale
of real estate before payment of any other obligation, claim, lien,
judgment, estate or cost of the sale, and of the writ upon which the
sale is made, except the State realty transfer tax. The sheriff or
other officer conducting such sale shall pay the tax out of the first
moneys paid to him or her in connection therewith. If the proceeds
of the sale are insufficient to pay the entire tax, the purchaser
shall be liable for the remaining tax.
[Ord. 231. Passed 1-20-1987]
(a)
As provided in 16 P.S. Section 11011-6, as amended
by the 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 the Township based on a redetermination of the
amount of tax due by the Commonwealth of the State realty transfer
tax, without compensation from the Township.
(b)
In order to ascertain the amount of taxes due when
the property is located in more than one political subdivision, the
Recorder shall not accept a deed for recording, unless it is accompanied
by a statement of value showing what taxes are due each municipality.
(c)
On or before the tenth day of each month, the Recorder
shall pay over to the Township all local realty transfer taxes collected,
less two percent for use of the County, together with a report containing
the information as is required by the Commonwealth in reporting collections
of the State realty transfer tax. The two percent commission shall
be paid to the County.
(d)
Upon a redetermination of the amount of realty transfer
tax due by the Commonwealth, 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 re-recording or recording fee has been
tendered.
[Ord. 231. Passed 1-20-1987]
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 chapter. A
copy of the Pennsylvania Realty Transfer Tax Statement of Value may
be submitted for this purpose. This section 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 each document
and 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 chapter.
[Ord. 231. Passed 1-20-1987]
(a)
If any part of any underpayment of tax imposed by
this chapter is due to fraud, there shall be added to the tax an amount
equal to fifty percent of the underpayment.
(b)
In the case of failure to record a declaration required
under this chapter on the date prescribed therefor, unless it is shown
that such failure is due to reasonable cause, there shall be added
to the tax five percent of the amount of such tax if the failure is
for not more than one month, with an additional five percent for each
additional month or fraction thereof during which such failure continues,
not exceeding fifty percent in the aggregate.
[Ord. 231. Passed 1-20-1987]
The tax imposed by this chapter shall become
a lien upon the lands, tenements or hereditaments, or any interest
therein, lying or situated, wholly or in part, within the Township,
which lands, tenements or hereditaments or interests therein, are
described in, conveyed by or transferred by the document which is
the subject of the tax imposed, assessed and levied by this chapter.
Such lien shall begin at the time the tax under this chapter is due
and payable, and shall continue until discharge by payment or in accordance
with law. The Solicitor is hereby authorized to file a Municipal or
tax claim in the County Court of Common Pleas, in accordance with
the Municipal Claims and Liens Act of 1923, 53 P.S. Sections 7101
et seq., its supplements and amendments.
[Ord. 231. Passed 1-20-1987]
All taxes imposed by this chapter, together
with interest and penalties prescribed in this chapter, shall be recoverable
as other debts of like character are recovered.
[Ord. 231. Passed 1-20-1987]
The designee of the Township is hereby charged
with the enforcement and collection of the realty transfer tax and
is hereby authorized to promulgate and enforce reasonable regulations
for such enforcement and collection. The regulations which have been
promulgated by the Pennsylvania Department of Revenue under 72 P.S.
Sections 8101-C et seq., are hereby incorporated into and made a part
of this chapter as if fully set out herein.
[Ord. 231. Passed 1-20-1987]
No person shall:
[Ord. 231. Passed 1-20-1987]
Nothing in this chapter shall be construed to
affect any suit or proceeding pending in any court, or any rights
acquired or liability incurred, or any permit issued, or any cause
of action existing, under any other ordinance or resolution of the
Township, prior to the enactment of this chapter.
[Ord. 231. Passed 1-20-1987]
In addition to the penalty provided for in Section 810.99, whoever violates or fails to comply with any of the provisions of this chapter shall be required to pay the amount of the tax, together with interest as is otherwise provided for herein, which should have been paid on the document or documents.
