[Adopted 12-15-1986 by Ord. No. 1076 (Ch. 892 of the 1982 Code)]
This article shall be known and may be cited as the "Realty Transfer Tax Ordinance of the Borough of Green Tree" or just the "realty transfer tax."
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 Borough, 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.
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.
CORPORATION
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.
DOCUMENT
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 § 310-52.
FAMILY FARM CORPORATION
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:
A. 
Recreational activities, including, but not limited to, hunting, fishing, camping, skiing, show competition or racing;
B. 
The raising, breeding or training of game animals, game birds, fish, cats, dogs, pets or animals intended for use in sporting or recreational activities;
C. 
Fur farming;
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 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.
PERSON
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.
REAL ESTATE
A. 
All lands, tenements or hereditaments within the Borough, 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;
B. 
Condominium units; or
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, and in which 90% or more of the ownership interest is held by 35 or fewer persons, and which:
A. 
Derives 60% or more of its annual gross receipts from the ownership or disposition 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 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
B. 
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.
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 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 factor developed by the Pennsylvania Department of Revenue for Pennsylvania realty transfer tax base calculations;
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 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 article 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 the Borough that the rate of tax as imposed by Ordinance No. 1076, adopted December 15, 1986, and as set forth in Subsection A hereof, shall continue in full force and effect with such sharing of the original one-percent tax rate between the Borough and the School District as may now exist and as may have been required under the Local Tax Enabling Act.[1] The Borough, a home rule municipality, pursuant to such authority granted to it by the Home Rule Charter and Optional Plans Law and the Green Tree Home Rule Charter, reserves unto itself the right, power and authority to impose such additional taxes upon the subject of taxation set forth in this article as it deems proper.
[Amended 2-3-1997 by Ord. No. 1335]
[1]
Editor's Note: See 53 P.S. § 6901 et seq. and 53 P.S. §§ 6924.101 to 6924.312.
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.
[Added 2-3-1997 by Ord. No. 1336]
A. 
Findings. A one-percent realty transfer tax has been imposed by § 310-47, which tax is to be shared equally by and between the Borough and the Keystone Oaks School District, thereby providing for the Borough a net realty transfer tax of 1/2 of 1% for general municipal purposes. However, the Borough has determined that it is necessary and reasonable to impose upon the transfer of realty an additional tax of 1/2 of 1% for general municipal purposes for the sole and exclusive benefit of the Borough, not to be shared with the Keystone Oaks School District.
B. 
Imposition of tax. Effective March 1, 1997, an additional tax is hereby imposed as follows:
(1) 
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, an additional tax at the rate of 1/2 of 1%, such that the total tax imposed by § 310-47 and this section shall equal 1 1/2% 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, within 30 days of acceptance of such document or within 30 days of becoming an acquired company, whichever first occurs.
(2) 
The payment of the tax imposed in this section 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.
(3) 
Section 310-47C is hereby incorporated by reference.
(4) 
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.
C. 
Statutory authority. In the event that it is determined that any word, part, provision or clause of this section imposing an additional tax on the transfer of realty is illegal or invalid under the Local Tax Enabling Law, as amended, then this section shall be deemed enacted pursuant to the Home Rule Charter and Optional Plans Law, as amended.[1]
[1]
Editor's Note: See 53 Pa.C.S.A. § 2901 et seq.
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 article. However, the exemption of such governmental bodies shall not relieve any other party to a transaction from liability for the tax.
A. 
The tax imposed in § 310-47 shall not be imposed upon:
(1) 
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 line adjustments, provided that such reconveyance is made within one year from the date of condemnation;
(2) 
A document which the Borough is prohibited from taxing under the Constitution or statutes of the United States;
(3) 
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's sale or tax claims bureau sale;
(4) 
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;
(5) 
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;
(6) 
A transfer between husband and wife or 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 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;
(7) 
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;
(8) 
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;
(9) 
A transfer, for no actual consideration or for nominal actual consideration, from a trustee to a beneficiary of an ordinary trust;
(10) 
A transfer, for no actual consideration or for nominal actual consideration, from a trustee to a successor trustee;
(11) 
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 article, 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;
(12) 
A transfer made pursuant to the statutory merger or consolidation of a corporation or statutory division of a nonprofit corporation, except where the Borough reasonably determines that the primary intent for such merger, consolidation or division is avoidance of the tax imposed by this article;
(13) 
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;
(14) 
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;
(15) 
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;
(16) 
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;
(17) 
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;
(18) 
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;
(19) 
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;
(20) 
A transfer between members of the same family of an ownership interest in a real estate company or family farm corporation;
(21) 
A transaction wherein the tax due is $1 or less; and
(22) 
Leases for the production or extraction of coal, oil, natural gas or minerals and assignments thereof.
B. 
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 in § 310-50, 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.
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, 90% 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 article.
C. 
Within 30 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.
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 grant or 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.
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 imposed in this article 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.
[Amended 1-7-2008 by Ord. No. 1595]
A. 
As provided in 16 P.S. § 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 Borough based on a redetermination of the amount of tax due by the commonwealth of the state realty transfer tax, without compensation from the Borough.
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 10th day 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 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.
E. 
Upon any redetermination of the realty transfer tax due and owing, the Commonwealth Department of Revenue is hereby authorized to assess, enforce and collect such delinquent realty transfer tax, including interest and penalties when applicable, by and on behalf of the Borough and to remit and disburse the same to the Borough as authorized under and pursuant to Act 40 of 2005 of the Commonwealth of Pennsylvania.
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. 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 article.
A. 
If any part of any underpayment of tax 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 or situated, wholly or in part, within the Borough, which lands, tenements or hereditaments or interests therein, are described in, conveyed by or transferred by the deed which is the subject of the tax imposed, assessed and levied by this article. Such lien shall begin at the time the tax under this article 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. § 7101 et seq., its supplements and amendments.
All taxes imposed by this article, together with interest and penalties prescribed in this article, shall be recoverable as other debts of like character are recovered.
The Borough Manager 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. § 8101-C et seq., are hereby incorporated into and made a part of this article as if fully set out herein.
See Chapter 1, General Provisions, § 1-2, for the general penalty provisions of this Code.