[Adopted 2-9-1987 by Ord. No. 1987-1]
A.
Pursuant to the authority contained in the Local Tax Enabling Act,
Act of December 31, 1965, P.L. 1257[1], a tax for the purpose of providing revenue for general
Township purposes is hereby levied, assessed and imposed upon the
transfer of real property or an interest in real property within the
limits of Newtown Township, regardless of where the instruments making
the transfers are made, executed or delivered or where the actual
settlements on the transfer take place, at the rate of 1% of the amount
of the value of said real property or interest therein, as herein
defined.
[1]
Editor's Note: See 53 P.S. § 6901 et seq. and 53
P.S. § 6924.101 et seq.
B.
This article shall be known and may be cited as the "Newtown Township
Realty Transfer Tax Ordinance."
The following words, when used in this article, shall have the
meanings ascribed to them in this section:
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 of 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 a period of three years.
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
of Pennsylvania, 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 the consideration is payable over a period of time exceeding 30 years or instruments which solely grant, vest or confirm a public utility easement. A "document" shall also include a declaration of acquisition required to be presented for recording pursuant to § 152-16B hereof.
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.
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.
Any individual, such individual's brothers and sisters, the
brothers and sisters of such individual's parents and grandparents,
the ancestors and lineal decedents 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 limitation, buildings,
structures, fixtures, mines, minerals, oil, gas, quarries, spaces
with or without upper or lower boundaries, trees and other improvements,
immovables or interests which by custom, usage or law pass with a
conveyance of land, but excluding permanently attached machinery and
equipment in an industrial plant.
A condominium unit.
A tenant-stockholder's interest in a cooperative housing corporation,
trust or association under a proprietary lease or occupancy agreement.
Real property.
A corporation or association which is primarily engaged in
the business of holding, selling or leasing real estate 90% or more
of the ownership interest in which is held by 35 or fewer persons
and which 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 estate or perpetual leasehold.
Any interest in real estate enduring for a fixed period of years
but which, either by reason of the length of the term or the grant
of a right to extend the term by renewal or otherwise, consists of
a group of rights approximating those of an estate in fee simple,
life estate or perpetual leasehold, including, without limitation,
a leasehold interest or possessory interest under a lease or occupancy
agreement for a term of 30 years or more or a leasehold interest or
possessory interest in real estate in which the lessee has equity;
provided, however, that 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 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 shall set forth a nominal consideration,
the "value" thereof shall be determined from the price set forth in
or actual consideration for the contract of sale;
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;
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.
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 or for
and in respect of the vellum parchment or paper upon which such document
is written or printed a tax payable to the Township of Newtown, Delaware
County, Pennsylvania, at the rate of 1% of the value of the real estate
represented by such document, 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.
B.
The United States, the Commonwealth of Pennsylvania or any of their
instrumentalities, agencies or political subdivisions shall be exempt
from payment of the tax imposed by this article. The exemption of
such governmental bodies shall not, however, relieve any other party
to a transaction from liability for the tax.
The tax imposed by this article shall not be imposed upon the
following transactions:
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, which
reconveyance may include property line adjustments, provided that
said 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 of tax delinquent property at 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
cotenants; 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 that the property
or interest therein subject to such transfer was acquired 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 a 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 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, whether or not such beneficiaries are
contingent or specifically named. No such exemption shall be granted
unless the recorder of deeds is represented 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 article. 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 is 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 determines that the primary
intent for such merger, consolidation or division is avoidance of
the tax imposed by this article.
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 or 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 or 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.
(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 § 501(c) 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 article.
A.
Except as excluded in § 152-15 hereof, 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 article, corporations and associations are entities separate from their members, partners, stockholders or shareholders.
B.
Within 30 days after becoming an acquired company, the company shall
present for recording a declaration of acquisition with the Recorder
of Deeds of Delaware County for the purpose of noting thereon or the
affixation thereto of such documentary stamps or other evidence of
the payment of this tax as required by law. Such declaration shall
set forth the value of the real estate holdings of the acquired company
in Delaware County.
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
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 demised by the
grantor, a credit for the amount of the 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 carry-over credit
shall be allowed.
The tax herein imposed shall be fully paid and have priority
out of the proceeds of any judicial sale of real estate before any
other obligation, claim, lien, judgment, estate or cost of the sale
and of the writ upon which the sale is made, and the sheriff or other
officer conducting such sale shall pay the tax herein imposed out
of the first moneys paid to him in connection herewith. If the proceeds
of the sale are insufficient to pay the entire tax herein imposed,
the purchaser shall be liable for the remaining tax.
Where real estate or an interest in real estate lying partly
within the boundaries of Newtown Township and partly without said
boundaries is transferred, the tax herein imposed shall be calculated
upon such portion of the real estate or interest therein lying within
the boundaries of the Township as determined by the Realty Transfer
Tax Statement of Value filed with the Recorder of Deeds or, if no
such filing is required, by affidavit of the transferor or as separately
stated in the document of transfer; provided, however, that such value
shall in no event be less than the highest assessed valuation for
local tax purposes placed upon the real estate or the interest in
the real estate in the assessment of the property within the Township.
Every document lodged with or presented to the Recorder of Deeds
of Delaware County for recording shall set forth therein and as a
part of such document the true, full and complete value thereof. When
the full, complete and actual consideration for the transfer which
is subject to the tax is not set forth in the document, the person
liable for the tax shall, contemporaneously with the filing of the
document, file with the Recorder of Deeds a Realty Transfer Tax Statement
of Value identical to that promulgated by the Department of Revenue
of the Commonwealth of Pennsylvania or, in the instance of an acquired
company, a Realty Transfer Tax Declaration of Acquisition identical
to that promulgated by the Department of Revenue of the Commonwealth
of Pennsylvania. The provisions of this section shall not apply to
any excludable real estate transfers which are exempt from taxation
based on family relationship.
A.
The tax imposed hereby, including any amount payable to the Township based on a redetermination of the amount of tax due by the Commonwealth of Pennsylvania pursuant to § 152-22 hereof, shall be collected by the Recorder of Deeds of Delaware County who shall act as agent for the Township in the collection of the transfer tax as provided in 16 P.S. § 11011-6, as amended. The tax thus collected shall be payable by the Recorder to the Treasurer of Newtown Township at least monthly or at such other intervals as the Township and the Recorder of Deeds shall mutually determine.
B.
The payment of the tax imposed by this article when received by the
Recorder of Deeds shall be evidenced by the affixing of a documentary
stamp or stamps or other evidence of payment as approved by the Pennsylvania
Department of Revenue.
A.
In the event that a determination or redetermination of transfer
tax due is made by the Pennsylvania Department of Revenue pursuant
to Section 1111-C of Act 1986-77, 72 P.S. § 8111-C, such
determination or redetermination shall be deemed to have been also
made by the Secretary of Newtown Township, and there shall be due
and owing to the Township, as additional transfer tax, the amount
determined or redetermined by the Department to be due the Commonwealth
of Pennsylvania.
B.
Upon a redetermination of the amount of realty transfer tax due by
the Commonwealth of Pennsylvania, the Recorder shall re-record the
document only when the transfer tax imposed by this article has been
paid.
The Secretary of Newtown Township is hereby charged with enforcement
of the provisions of this article and is hereby authorized and empowered
to prescribe, adopt and enforce rules and regulations relating to
the registration and notation of transactions, the collection of transfer
taxes, interest and penalties due hereunder, the prosecution of violations
hereunder, and any other matter pertaining to the administration and
enforcement of the provisions of this article; provided, however,
that the regulations which have been promulgated by the Pennsylvania
Department of Revenue under 72 P.S. § 8101-C et seq., as
the same are from time to time amended, are incorporated into and
made a part of this article and shall be deemed to have been adopted
by the Township Secretary.
A.
If, for any reason the transfer tax is not paid when due, interest
at the rate of 6% per annum on the amount of said tax and an additional
penalty of 1/2 of 1% of the amount of the unpaid tax for each month
or fraction thereof during which the tax remains unpaid shall be added
and collected. Where suit is brought for the recovery of any such
tax, the person liable therefor shall, in addition, be liable for
the cost of collection and the interest and penalties herein imposed.
B.
The transfer tax when due and unpaid, together with all interest
and penalties thereon, shall be a lien in favor of the Township on
the real estate or interest in the real estate which is described
in the document on which the tax is imposed and upon any other property,
both real and personal, of the person failing to pay the tax due,
after said lien has been entered and docketed of record by the Prothonotary
of Delaware County in accordance with the Municipal Claims and Tax
Liens Law.[1]
[1]
Editor's Note: See 53 P.S. § 7101 et seq.
C.
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.
D.
The tax imposed by this article shall be collected and enforced in
accordance with the Local Tax Enabling Act.[2] The Township Solicitor is authorized to pursue any and
all remedies available by law for collection of the tax, and all such
remedies shall be cumulative and not exclusive.
[2]
Editor's Note: See 53 P.S. § 6901 et seq. and 53
P.S. § 6924.101 et seq.
A.
It shall be unlawful for any person to:
(1)
Accept or present for recording or cause to be accepted or presented
for recording any document without the full amount of the tax thereon
being duly paid; or
(2)
Fail, neglect or refuse to comply with or violate the provisions
of this article or the rules and regulations prescribed, adopted and
promulgated by the Secretary under the provisions of this article.
B.
Any person who violates any of the provisions of this section shall
be guilty of a summary offense and shall be liable, upon conviction
thereof, to a fine not exceeding $600, together with the cost of prosecution,
and, in default of payment of such fine and cost, shall be liable
to a term of imprisonment in the county jail for a period not to exceed
30 days.
[Amended 4-24-1995 by Ord. No. 1995-2]
