[Adopted 7-7-1969 by Ord. No. 156[1] (Part 3, Ch. 2, Art. C, of the 1987 Code)]
[1]
Editor's Note: This article is derived from
Ordinance No. 156, which levied a real estate transfer tax under the
Local Tax Enabling Act of 1965 (P.L. 1257 No. 511), as amended.
A.
By the Act of 1986, P.L. 318, No. 77, the Tax Reform
Code of 1971 (P.L. 6, No. 2) was further amended, particularly in
respect to the provisions on the State Realty Transfer Tax, as added
by the Act of 1981, P.L. 36, No. 14. In addition, the Act of 1986
added provisions allowing various political subdivisions to impose
a realty transfer tax to the extent that the transactions are subject
to the state tax as imposed by Article XI-C of the Tax Reform Code,
as added by the Act of 1981 and amended by the Act of 1986-77. The
tax was to be administered, collected and enforced under the Local
Tax Enabling Act.
B.
Section 1101-D of the Act of 1971, as added by the
Act of 1986, also provided as follows: "In addition, such political
subdivision may impose a local real estate transfer tax upon additional
classes or types of transactions if the tax was imposed by the political
subdivision under the act of December 31, 1965 (P.L. 1257, No. 511),
known as 'the Local Tax Enabling Act,' prior to the effective date
of this article. A tax imposed under this article shall be subject
to rate limitations provided by Section 5 and Section 17 of the Local
Tax Enabling Act."
C.
The tax imposed by Ordinance No. 156 and codified
in this article, being enacted under the Local Tax Enabling Act prior
to the effective date of the Act of 1986-77, meets the criteria stated
in the quoted material in the subsection directly above. It has been
retained in this chapter for possible continued applicability.
This article shall be known and may be cited
as "Real Estate Transfer Tax Ordinance."
[Amended 3-3-1981 by Ord. No. 156-A]
The following words or phrases, when used in
this article, shall have the meanings ascribed to them in this section,
except where the context clearly indicates a different meaning:
Partnership, limited partnership, or any other form of unincorporated
enterprise owned or conducted by two or more persons.
The Borough of Trappe, Montgomery County, Pennsylvania.
A corporation or joint-stock association organized under
the laws of this commonwealth, the United States, or any other state,
territory, or foreign country or dependency, including, but not limited
to, banking institutions.
Any deed, instrument or writing where any lands, tenements
or hereditaments within this commonwealth or any interest therein
shall be quitclaimed, granted, bargained, sold or otherwise conveyed
to the grantee, purchaser or any other person, but does not include
wills; mortgages; transfers between corporations operating housing
projects pursuant to the Housing and Redevelopment Assistance Law
and the shareholders thereof; transfers between nonprofit industrial
development agencies and industrial corporations purchasing from them;
any transfers to nonprofit industrial development agencies; and transfers
between husband and wife; transfers between persons who were previously
husband and wife but who have since been divorced, provided such transfer
is made within three months of the date of the granting of the final
decree in divorce, and 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; transfers between
parent and child or the spouse of such a child, or between parent
and trustee for the benefit of a child or the spouse of such child
by and between a principal and straw party for the purpose of placing
a mortgage or ground rent upon the premises; correctional deeds without
consideration; transfers to the United States, the Commonwealth of
Pennsylvania, or to any of their instrumentalities, agencies or political
subdivisions, by gift, dedication or deed in lieu of condemnation
or deed of confirmation in connection with the condemnation proceedings;
or reconveyance by the condemning body of the property condemned to
the owners 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; leases; a conveyance
to a trust under a recorded trust agreement for the express purpose
of holding title in trust as security for a debt contracted at the
time of the conveyance under which the trustee is not the lender and
requiring the trustee to make reconveyance to grantor-borrower upon
the repayment of the debt; or a transfer by the owner of previously
occupied residential premises to a builder of new residential premises
when such previously occupied residential premises is taken in trade
by such builder as part of the considerations from the purchaser of
a new previously unoccupied residential premises; any transfers from
a purchase money mortgagor to the vendor holding the purchase money
mortgage whether pursuant to a foreclosure or in lieu thereof; or
conveyances to municipalities, townships, school districts and counties
pursuant to acquisition by municipalities, townships, school districts
and counties of tax delinquent properties at sheriff's sale or tax
claim bureau; or any transfer between religious organizations or other
bodies or persons holding title to real estate for a religious organization
if such real estate is not being or has not been used by such transferor
for commercial purposes; or any transfer between a grandparent and
grandchild.
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 mean the
partners or members thereof and, as applied to corporations, the officers
thereof.
The making, executing, delivering, accepting or presenting
for recording of a document.
In the case of any document granting, bargaining, selling
or otherwise conveying any land, tenement or hereditament or interest
therein, the amount of actual consideration thereof, including liens
or other encumbrances thereon and ground rents, or a commensurate
part of the liens or other encumbrances thereon and ground rents,
where such liens or other encumbrances and ground rents also encumber
or are charged against other lands, tenements or hereditaments, provided
that, where such documents shall set forth a small or nominal consideration,
the "value" thereof shall be determined from the price set forth in
or actual consideration for the contract of sale or, in the case of
a gift or any other document without consideration, from the actual
monetary worth of the property granted, bargained, sold or otherwise
conveyed, which, in either event, shall not be less than the amount
of the highest assessment of such lands, tenements or hereditaments
for local tax purposes.
During such time as the commonwealth imposes
and collects a tax of 1% upon the transfer of real estate within the
commonwealth substantially in the same form as provided by the Realty
Transfer Tax Act effective as of the date of Ordinance No. 156, all
definitions in this article shall conform to the definitions of the
said Realty Transfer Tax Act, anything in this article to the contrary
notwithstanding.
A tax to provide revenue for general Borough
purposes is hereby levied, assessed and imposed on 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 at the rate of 1/2 of 1% of the value of
the real property represented by such document, transaction or transfer.
The tax shall be payable at the time the transfer is completed or
concluded, provided that, in the case of any lands, tenements or hereditaments
or interest therein located partly within and partly without the boundaries
of the Borough, such tax is imposed, assessed and levied upon the
value of that portion of such lands, tenements or hereditaments or
any interest therein lying within the boundaries of the Borough.
The payment of the tax imposed by this article
shall be evidenced by a stamped or written impression upon the document
or by a certificate affixed to the document. Said impression or certificate
shall be signed by the Treasurer of or the duly authorized agent of
the Borough. The Council may, by resolution, from time to time provide
for other evidence of payment of the tax.
Council may, from time to time by resolution,
appoint one or more responsible persons as its agent or agents to
collect this tax and provide for evidence of payment thereof.
Every document evidencing a transfer upon which
a tax is imposed by this article shall set forth therein and as a
part of that document the true, full and complete value thereof or
shall be accompanied by a certificate from either a title insurance
company or an affidavit executed by some responsible person connected
with the transaction, setting forth the true, full, complete and actual
value thereof or the reason, if any, why such document is not subject
to tax under this article.
It shall be unlawful for any person to:
A.
Make, execute, deliver, accept or present for recording
or cause to be made, executed, delivered, accepted or presented for
recording any document without the full amount of tax thereon being
duly paid.
B.
Knowingly or willfully affix or cause to be affixed
to any document upon which a tax is imposed by this article, any impression,
stamp, certificate or writing purporting to signify payment of the
tax imposed by this article when such person knows or has reason to
know that the tax has not been paid.
C.
Fail to pay the tax imposed by this article.
D.
Fail, neglect or refuse to comply with or otherwise
violate any rules and regulations that may be prescribed, adopted
or promulgated under the provisions of this article.
E.
Falsely state the "value" as provided in this article.
The tax, with interest and a penalty of 5%,
shall become a lien upon the lands, tenements or hereditaments or
any interest therein lying, being and situate wholly or in part within
the boundaries of the Borough which are the subject of the transfer.
The lien shall begin at the time when the tax is due and payable and
shall continue until discharge by payment in accordance with the law,
and the Borough Solicitor is authorized to file a municipal or tax
claim or lien in the office of the Prothonotary of Montgomery County
as provided by law. The tax may also be collected by suit in assumpsit
from any or all of the parties to the transaction or transfer.
Any person violating any of the provisions of
this article shall be liable to a fine or penalty not exceeding $100
for each and every offense and further shall be required to pay the
amount of the tax together with interest, as is otherwise provided
for in this article, and upon default in the payment of the same,
shall be subject to imprisonment for each offense up to a period of
30 days.
The tax levied, assessed and imposed under this
article shall become effective 30 days after its adoption and approval
as provided by law and shall remain in effect continuously thereafter
until this article may be modified, amended or repealed.
