This article shall be known as the "Derry Township Realty Transfer
Tax Ordinance."
This realty transfer tax for general revenue purposes is hereby
levied and imposed upon the transfer of real estate or an interest
in real estate situated within Derry Township, Mifflin County, Pennsylvania,
regardless of where the documents making the transfer are made, executed
or delivered, or where the actual settlements on such transfer took
place pursuant to and as authorized in relation to Townships of the
Second Class by Article XI-D, 72 P.S. § 8101-D et seq.,
as amended, Local Real Estate Transfer Tax, of the Tax Reform Code
of 1971, Act of March 4, 1971, P.L. 6, No. 2, as amended, and administered,
collected and enforced pursuant to the Local Tax Enabling Act, Act
of December 31, 1965, P.L. 1257, No. 511, Section 1 et seq., as amended.
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.
BOARD
The Derry Township Board of Supervisors, Mifflin County,
Pennsylvania.
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, devises, vests, confirms or evidences any transfer or devise 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 §
193-23 of 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 include the leasing to members of
the same family of property which is directly and principally used
for agricultural purposes. 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.
FAMILY FARM PARTNERSHIP
A partnership of which at least 75% of its assets are devoted
to the business of agriculture and at least 75% of the interests in
the partnership are continuously owned by members of the same family.
The business of agriculture shall include the leasing to members of
the same family of property which is directly and principally used
for agricultural purposes. 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 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 are 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.
Any 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;
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 dispositions 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
Township of Derry, Mifflin County, Pennsylvania.
TRANSACTION
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 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 of assessed values to market values of the taxing district as
established by the State Tax Equalization Board, or a commensurate
part of the assessment where the assessment includes other real estate;
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 of this definition, 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 or 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.
Except as otherwise provided in §
193-21, aforesaid, documents which make, confirm or evidence any transfer or devise 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 article, corporations and associations are entities separate from their members, partners, stockholders or shareholders.
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 under this article 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 shall be accompanied by
a statement of value executed by a responsible person in connection
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 connection with the transaction
showing such connection and setting forth the true, full and complete
value thereof of the reason, if any, why such document is not subject
to tax under this article.
The provisions of this article shall not affect any act done
or liability incurred, nor shall it affect any such suit or prosecution
pending or to be instituted to enforce any right or penalty or to
punish any offense under the authority of any ordinance any ordinance
amended, modified or repealed by this article. The amended, modified
and repealed ordinance or ordinances, or parts thereof, as applicable,
shall remain effective for documents that became subject to the tax
prior to the effective date of this article.
It is the intent of this article, as reenacted, to implement
the provisions of Act No. 40 of 2005, which amended the Tax Reform
Code of 1971, Act of March 4, 1971, P.L. 6, No. 2, as amended, and
which amended and revised Article XI-C, Realty Transfer Tax, and Article
XI-D, Local Real Estate Transfer Act, thereof. Accordingly, it is the intent hereof that this article
shall be interpreted in such a manner as to bring this article into
compliance therewith and to implement the provisions thereof.
This article shall be effective five days after adoption hereof,
and the tax herein levied shall become applicable to any documents
made, executed, delivered, accepted or presented for recording, on
or after the effective date hereof. The provisions of this article
will be in effect for the current Township fiscal year of 2008 and,
thereafter, will be in effect on a fiscal year basis, which fiscal
year for the Township of Derry and for Townships of the Second Class,
generally, coincides with the calendar year and commences on January
1 and ends on December 31 of each year pursuant to the Second Class
Township Code, 53 P.S. § 65101 et seq., and shall remain
in effect thereafter on a fiscal year basis, without reenactment,
until revised, modified or repealed.