[Adopted 2-16-1987 by Ord. No. 971[1] (Ch. 872 of the 1979 Codified Ordinances)]
[1]
Editor's Note: Ordinance No. 971 was reenacted 2-18-2008 by
Ord. No. 1219.
This article shall be known and may be cited as the "Realty
Transfer Tax Ordinance of the Borough of Bellefonte" or just the "realty
transfer tax."
[Amended 2-18-2008 by Ord. No. 1219[1]]
The Borough of Bellefonte reenacts a realty transfer tax, originally
approved by Ordinance No. 571, dated May 29, 1967, and by subsequent
ordinances thereof, and hereby adopts the provisions of Article XI-D
of the Reform Code of 1971 which imposes a realty transfer tax as
authorized under that article, subject to the rate limitations therein.
The tax imposed under this section shall be at the rate of 1/2% of
the amount of the consideration or sales prices involved in the transaction
of transferring title to real property lying within the Borough of
Bellefonte.
As used in this article, the words and phrases defined in 72
P.S. § 8101-C shall have the meanings ascribed to them in
said section.
[Amended 2-18-2008 by Ord. No. 1219]
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 1/2% of the amount of the consideration or sales
price involved in the transaction, which 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.[1]
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 this article that the entire burden of such tax
on a person or transfer shall not exceed the limitations prescribed
in the Local Tax Enabling Act, being the Act of December 31, 1965,
P.L. 1257, 53 P.S. § 6901 et seq., and 53 P.S. § 6924.101
et seq., as amended, so that if any other political subdivision has
imposed or hereafter imposes such tax on the same person or transfer,
then the tax levied by the Borough under the authority of such Act
shall, during the time such duplication of the tax exists, except
as hereinafter otherwise provided, be 1/2 of the rate, and such 1/2
rate shall become effective without any action on the part of the
Borough. However, the Borough and any other political subdivision
which imposes such tax on the same person or transfer may agree that,
instead of limiting their respective rates to 1/2 of the rate herein
provided, they will impose, respectively, different rates, the total
of which rates shall not exceed the maximum rate permitted under the
Local Tax Enabling Act.
D.
Any tax imposed under this section 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. § 7101 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 the Municipal Claims and Tax
Liens Act for tax claims.
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 § 508-13 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 sale or tax claim
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 covenants; 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; 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 the 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 or nominal actual consideration to a trustee of
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 that are entitled to receive the property
or proceeds from the sale of the property under the trust, whether
or not such beneficiaries are contingent or specifically named. A
trust clause which identifies the contingent beneficiaries by reference
to the heirs of the trust settlor, as determined by the laws of the
intestate succession, shall not disqualify a transfer from the exclusion
provided by this clause. 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;[1]
(9)
A transfer for no or nominal actual consideration to a trustee of
a living trust from the settlor of the living trust. No such exemption
shall be granted unless the Recorder of Deeds is presented with a
copy of the living trust instrument.[2]
(10)
A transfer for no or nominal actual consideration from a trustee
of an ordinary trust to a specifically named beneficiary that is entitled
to receive the property under the recorded trust instrument or to
a contingent beneficiary where the transfer of the same property would
be exempt if the transfer was made by the grantor of the property
into the trust to that beneficiary. However, any transfer of real
estate from a living trust during the settlor's lifetime shall be
considered, for the purposes of this article, as if such transfer
were made directly from the settlor to the grantee;[3]
(11)
A transfer for no or nominal actual consideration from a trustee
of a living trust after the death of the settlor of the trust or from
a trustee of a trust created pursuant to the will of a decedent to
a beneficiary to whom the property is devised or bequeathed;[4]
(13)
A transfer, for no actual consideration or for nominal actual
consideration, from a trustee to a successor trustee;
(14)
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;
(15)
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;
(16)
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;
(17)
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;
(18)
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;
(19)
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;
(20)
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;
(21)
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; or a transfer from such
a conservancy to the United States, the commonwealth, or to any of
their instrumentalities, agencies or political subdivisions; or any
transfer from such a conservancy where the real estate is encumbered
by a perpetual agricultural conservation easement as defined by the
act of June 30, 1981, (P.L. 128, No. 43), known as the "Agricultural
Area Security Law," and such conservancy has owned the real estate
for at least two years immediately prior to the transfer;[6]
(22)
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;
(25)
A transaction wherein the tax due is $1 or less; and
(26)
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 § 508-17, 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.
(1)
A
family farm partnership is an acquired company when, because of voluntary
or involuntary dissolution, it ceases to be a family farm partnership
or when, because of transfer of partnership interests 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 partnership under this article.[1]
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 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 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.
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 rerecord the deed or record the
additional realty transfer tax form only when both the state and local
amounts and a rerecording or recording fee has been tendered.
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 document 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.
[Amended 2-18-2008 by Ord. No. 1219]
A.
The duly appointed and acting agent or designee of Council appointed
to collect and credit the realty transfer tax is hereby charged with
the enforcement and collection of the tax and is hereby authorized
to promulgate and enforce reasonable regulations for the enforcement
and collection of the tax. All regulations, parts of regulations or
requirements, together with their amendments and supplements, which
have been promulgated by the Pennsylvania Department of Revenue (72
P.S. § 8101-C et seq.), are hereby incorporated into and
made a part of this article by reference as if fully set out herein.
At any proceeding, trial or other hearing brought by the Borough or
its agent or designee to enforce this article, such agent or designee
need only provide a certified copy of his or her written appointment
as agent or designee of Council to collect such tax and to enforce
the regulations enacted hereunder. Presentation of such certified
copy of his or her appointment shall be prima facie evidence of the
capacity of such agent or designee to act for the Borough in any such
proceeding.
B.
Notwithstanding the foregoing, the tax imposed under this article
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, the Borough of Bellefonte, pursuant to Section
1102-D of the Tax Reform Code of 1971 (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.