[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:
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 the commonwealth,
the United States or any other state, territory, foreign country or
dependency.
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.
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:
Recreational activities, including, but not limited to, hunting,
fishing, camping, skiing, show competition or racing;
The raising, breeding or training of game animals, game birds,
fish, cats, dogs, 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 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.
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.
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;
Condominium units; or
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 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:
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.
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
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.
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 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;
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 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.
(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.
