[Ord. 101, 10/19/1987, § 1]
The following words when used in this Ordinance shall have the
meanings ascribed to them in this Section:
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 this commonwealth,
the United States, or any other state, territory, or foreign country,
or dependency.
Any deed, instrument or writing which conveys, transfers,
demises, vests, 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 any cancellation thereof
unless due 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 Section 406 of this Ordinance.
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 not be deemed to include:
Recreational activities such as, but not limited to, hunting,
fishing, camping, skiing, show competition or racing;
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;
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 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 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, the term "person" as applied to associations, shall include
the responsible members or general partners thereof, and as applied
to corporations, the officers thereof.
Any lands, tenements or hereditaments within this commonwealth,
including without limitations 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.
A condominium unit.
A tenant-stockholder's interest in cooperative housing
corporation, trust or association under proprietary lease or occupancy
agreement.
A corporation or association which is primarily engaged in
the business of holding, selling or leasing real estate 90% or more
of the ownership in which 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 is not fixed or ascertained by a specific
number of years, including without limitation an estate in fee simple,
life insurance, or perpetual leasehold; or
Any interest in real estate enduring for a fixed period of years
but which, either by reason of the length of the term of the grant
of a right to extend the term by renewal 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.
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 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" therefor shall be determined from the price set forth
in or actual consideration for the contract 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 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.
In the case of an easement or other interest in real estate
the value of which is not determinable under clause (1) or (2), the
actual monetary worth of such interest; or
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.
[Ord. 267, 7/16/2007, § 1]
Lower Heidelberg Township adopts the provisions of Article XI-D
of the Tax Reform Code of 1971, as amended, and imposes a realty transfer
tax as authorized under that article subject to the rate limitations
therein. The tax imposed under this section and all applicable interest
and penalties shall be administered, collected and enforced under
the Act of December 31, 1965 (P.L. 1257, No. 511, as amended, known
as the "Local Tax Enabling Act"); provided, that if the correct amount
of the tax is not paid by the last date prescribed for timely payment,
Lower Heidelberg Township, pursuant to Section 1102-D of the Tax Reform
Code of 1971, as amended (72. P.S. § 8102-D), authorizes
and directs the Department of Revenue of the Commonwealth of Pennsylvania
to determine, collect and enforce the tax, interest and penalties.
[Ord. 101, 10/19/1987, § 2]
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,
or for or in respect of the vellum parchment or paper upon which such
document is written or printed, a local tax at the rate of 1% of the
value of the real estate represented by such document, which local
tax shall be payable at the earlier of 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 that has been conveyed
or transferred within the territory of the Township of Lower Heidelberg
regardless of where the instruments making the transfers are made,
executed or delivered, or where the actual settlements on such transfers
take place, or where the transaction took place.
[Ord. 101, 10/19/1987, § 3]
The United States, the commonwealth, or any of their instrumentalities,
agencies or political subdivisions shall exempt from payment of the
tax imposed by this Ordinance. The exemption of such governmental
bodies shall not, however, relieve any other party to a transaction
from liability for the tax.
[Ord. 101, 10/19/1987, § 4]
The Tax imposed by Section 402 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 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 with
reconveyance is made within one year from the date of condemnation.
(b)
A document which the commonwealth 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 or a tax delinquent property at a sheriff sale or tax claim
bureau sale.
(d)
A transfer for no or 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 of division in kind for no or nominal actual consideration
of property passed by testate or intestate succession and held by
covenants; however, if any of the parties take shares greater in value
than their 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 the property
or interest therein to such transfer was acquired by the husband and
wife or husband and 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.
(g)
A transfer for no or 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 or nominal actual consideration to a trustee or
an ordinary trust where the transfer of the same property would be
exempt if the transfer was made directly from the grantor to all of
the possible beneficiaries, whether or not such beneficiaries are
contingent or specifically named. 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 or nominal actual consideration from a trustee
to a beneficiary of an ordinary trust.
(j)
A transfer for no or nominal actual consideration from trustee to
successor trustee.
(k)
A transfer:
(1)
For no or nominal actual consideration between principal and
agent or straw party; or
(2)
From or to an agent or straw party where, if the agent or straw
party were his principal, no tax would be imposed under this Ordinance.
|
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 principal, there is
a rebuttable presumption that the property of the grantee in his individual
capacity if the grantee claims an exemption from taxation under this
clause.
|
(l)
A transfer made pursuant to the statutory merger or consolidation
of a corporation or statutory division of a nonprofit corporation,
except where the department reasonably determining that the primary
intent for such merger, consolidation or division is avoidance of
the tax imposed by this Ordinance.
(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 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:
(1)
The grantee shall directly use 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
(2)
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 a 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 or less.
(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. 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 Ordinance.
|
[Ord. 101, 10/19/1987, § 5]
Except as otherwise provided in Section 403, 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 Ordinance, corporations and associations are entities separate
from their members, partners, stockholders or shareholders.
[Ord. 101, 10/19/1987, § 6]
(a)
A real estate company is an acquired company upon a change in the
ownership interest in the company, however effected, if the change:
(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 Ordinance.
(c)
Within 30 days after becoming an acquired company, the company shall
present a declaration of acquisition with 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.
[Ord. 101, 10/19/1987, § 7]
(a)
Where there is a transfer of a residential property by a licensed
real estate broker which property was transferred to him 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 shall be given to him toward the amount of the tax
due upon the transfer.
(b)
Where there is a transfer by a builder or 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 demised by the
grantor, a credit for the amount of tax paid at the time of the demise
shall be given 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 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 carryover shall
be allowed.
[Ord. 267, 7/16/2007, § 2]
Any tax imposed under Section 401.1 of this Ordinance 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. § 1701, et seq.) as amended,
known as the "Municipal Claims and Tax Liens Act". The interest rate
shall be the lesser of the interest rate imposed upon delinquent Commonwealth
taxes as provided in Section 806 of the Act of April 9, 1929 (P.L.
343, No. 176) (72 P.S. § 806), as amended, known as the
"Fiscal Code", or the maximum interest rate permitted under Municipal
Claims and Tax Liens Act for tax claims.
[Ord. 101, 10/19/1987, § 8]
If any article, section, subsection provision, regulation, limitation,
restriction, sentence, clause, phrase or word in this Ordinance is,
for any reason declared to be illegal, unconstitutional or invalid,
by any Court of competent jurisdiction, such decision shall not affect
or impair the validity of this Ordinance as a whole, or any other
article, section, subsection, provision, regulation, limitation, restriction,
sentence, clause, phrase, word, or remaining portion of the within
Ordinance. The Board of Supervisors of the Township of Lower Heidelberg,
Pennsylvania, hereby declares that it would have adopted the within
Ordinance and each article, section, subsection, provision, regulation,
limitation, restriction, sentence, clause, phrase and word thereof,
irrespective of the limitations, restrictions, sentences, clauses,
phrases, or word may be declared illegal, unconstitutional or invalid.
