[Adopted 5-27-1997 by Ord. No. 550 (Ch. 24, Part 4, of the 1992 Code)]
The following words, when used in this article, shall have the meanings ascribed to them in this section:
ASSOCIATION
A partnership, limited partnership or any other form of unincorporated enterprise owned or conducted by two or more persons other than a private trust or decedent's estate.
CORPORATION
A corporation, joint-stock association, business, trust or banking institution, which is organized under the laws of this commonwealth, the United States or any other state, territory or foreign country or dependency.
DOCUMENT(S)
Any deed, instrument or writing which conveys, transfers, devises, vests, confirms or evidences any transfer or devise 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. "Document" shall also include a declaration of acquisition required to be presented for recording under § 195-6 of this article.
FAMILY FARM CORPORATION
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:
A. 
Recreational activities, such as, but not limited to, hunting, fishing, camping, skiing, show competition or racing.
B. 
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.
C. 
Fur farming.
D. 
Stockyard and slaughterhouse operations.
E. 
Manufacturing or processing operations of any kind.
FAMILY FARM PARTNERSHIP
A partnership of which at least 75% of its assets are devoted to the business of agriculture and at least 75% of the interests in the partnership are continuously owned by members of the same family. The business of agriculture shall not be deemed to include:
A. 
Recreational activities, such as, but not limited to, hunting, fishing, camping, skiing, show competition or racing.
B. 
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.
C. 
Fur farming.
D. 
Stockyard and slaughterhouse operations.
E. 
Manufacturing or processing operations of any kind.
MEMBER(S) OF THE SAME FAMILY
Any individual, such individual's brothers and sisters, the brothers and sisters of such individual's parents and grandparents, the ancestors and lineal 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.
MUNICIPALITY
The Borough of Manheim, Lancaster County, Pennsylvania.
PERSON
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.
REAL ESTATE
A. 
Any 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 of land, but excluding permanently attached machinery and equipment in an industrial plant.
B. 
A condominium unit.
C. 
A tenant stockholder's interest in a cooperative housing corporation, trust or association under a proprietary lease or occupancy agreement.
REAL ESTATE COMPANY
A corporation or association which is primarily engaged in the business of holding, selling or leasing real estate, 90% or more of the ownership interest in which is held by 35 or fewer persons and which:
A. 
Derives 60% or more of its annual gross receipts from the ownership or disposition of real estate.
B. 
Holds real estate, the value of which comprises 90% or more of the value of its entire tangible asset holdings exclusive of tangible assets which are freely transferable and actively traded on an established market.
TITLE TO REAL ESTATE
A. 
Any interest in real estate which endures for a period of time, the termination of which is not fixed or ascertained by a specific number of years, including, without limitation, an estate in fee simple, life estate or perpetual leasehold.
B. 
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.
TRANSACTION
The making, executing, delivering, accepting or presenting for recording of a document.
VALUE
A. 
In the case of any bona fide sale of real estate at arm's length for actual monetary worth, the amount of the actual consideration therefor, paid or to be paid, including liens or other encumbrances thereon existing before the transfer and not removed thereby, whether or not the underlying indebtedness is assumed, and ground rents or a commensurate part thereof where such liens or other encumbrances and ground rents also encumber or are charged against other real estate, provided that, where such documents 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.
B. 
In the case of a gift, sale by execution upon a judgment or upon the foreclosure of a mortgage by a judicial officer, transactions without consideration or for consideration less than the actual monetary worth of the real estate, a taxable lease, an occupancy agreement, a leasehold or possessory interest, any exchange of properties or the real estate of an acquired company, the actual monetary worth of the real estate determined by adjusting the assessed value of the real estate for local real estate tax purposes for the common level ratio 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.
C. 
In the case of an easement or other interest in real estate, the value of which is not determinable under Subsection A or B, the actual monetary worth of such interest.
D. 
The actual consideration for or actual monetary worth of any executory agreement for the construction of buildings, structures or other permanent improvements to real estate between the grantor and other persons existing before the transfer and not removed thereby or between the grantor, the agent or principal of the grantor of a related corporation, association or partnership and the grantee existing before or effective with the transfer.
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 tax 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.
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.
[Amended 7-29-1997 by Ord. No. 551]
A. 
The tax imposed by § 195-2 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 deed of confirmation in connection with condemnation proceedings or a reconveyance by the concerning body of the property condemned to the owner of record at the time of condemnation, which reconveyance may include property line adjustments, provided said reconveyance is made within one year from the date of condemnation.
(2) 
A document which the Commonwealth of Pennsylvania 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 sheriff's sale or tax claim bureau sale.
(4) 
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.
(5) 
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.
(6) 
A transfer between husband and wife, between person who were previously husband and wife who have since been divorced, provided the property or interest therein subject to such transfer was acquired by the husband and wife or 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 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.
(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 subsection. 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 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 agreement.
(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.
(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.
(12) 
A transfer for no or nominal actual consideration from the trustee of a living trust to the settlor of the living trust if such property was originally conveyed to the trust by the settlor.
(13) 
A transfer for no or nominal actual consideration from trustee to successor trustee.
(14) 
A transfer: for no or nominal consideration between principal agent or straw party, 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 section.
(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 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:
(a) 
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.
(b) 
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 of Pennsylvania or to any of their instrumentalities or agencies.
(22) 
A transfer of real estate 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.
(23) 
A transfer of real estate devoted to the business of agriculture to a family farm partnership by a member of the same family which family directly owns at least 75% of the interests in the partnership.
(24) 
A transfer between members of the same family of an ownership interest in a real estate company, family farm corporation or family farm partnership which owns real estate.
(25) 
A transaction wherein the tax due is $1 or less.
(26) 
Leases for the production or extraction of coal, oil, natural gas or minerals and assignments thereof.
(27) 
A transfer to a conservancy which possesses a tax-exempt status pursuant to 501(c)(3) of the Internal Revenue Code of 1954 ([8A 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 of Pennsylvania or to any of their instrumentalities, agencies or political subdivision, 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,"[1] and such conservancy has owned the real estate for at least two years immediately prior to the transfer.
[1]
Editor's Note: See 3 P.S. § 901 et seq.
B. 
In order to exercise any exclusion provided in this section, the true, full and complete value of the transfer shall be known 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.
Except as otherwise provided in § 195-4, documents which make, confirm or evidence any transfer or devise of title to real estate between associations or corporations and the members, partners, shareholders or stockholders thereof are fully taxable. For purposes of this article, 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:
(1) 
Does not affect the continuity of the company.
(2) 
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.
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. 
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.
D. 
Within 30 days after becoming an acquired company, the company shall present a declaration of acquisition with the Recorder of Deeds for the affixation of documentary stamps and recording. Such declaration shall set forth the value of real estate holdings of the acquired company in the Borough.
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 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 devised by the grantor, a credit for the amount of tax paid at the time of the devise 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 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 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 costs of the sale and of the writ upon which the sale is made and the sheriff or other officer conducting said sale shall pay the tax herein imposed out of the first moneys paid to him in connection therewith. If the proceeds of the sale are insufficient to pay the entire tax herein imposed, the purchaser shall be liable for the remaining tax.
A. 
The payment of the tax imposed by this article shall be evidenced by the affixing of a stamp or stamps to every document by the person making, executing, delivering or presenting for recording such document. Such stamps shall be affixed in such manner that their removal will require the continuous application of steam or water, and the person using or affixing such stamps shall write or stamp or cause to be written or stamped thereon the initials of his name and the date upon which such stamps are affixed or used so that such stamps may not again be used, provided that the Borough may prescribe such other method of cancellation as it may deem expedient.
B. 
The use of documentary license meter impressions or similar indicia of payment in lieu of stamps as required by this article may be permitted, in the discretion of the Borough.
A. 
The Borough shall allow Lancaster County a commission equal to 1% of the face value of the tax collected. The Recorder of Deeds shall remit to the Borough the gross amount of the tax collected less the commission allowed on or before the 10th day of the month following the month in which the tax was collected.
B. 
All moneys paid to the Borough during the effective period of this article shall be credited to the Borough's general fund.
The Borough is hereby authorized and empowered to prescribe, adopt, promulgate and enforce rules and regulations relating to:
A. 
The method and means to be used in affixing or canceling of stamps in substitution for or in addition to the method and means provided in this article.
B. 
Any other matter or thing pertaining to the administration and enforcement of the provisions of this article.
No document upon which tax is imposed by this article shall, at any time, be made the basis of any action or other legal proceeding, nor shall proof thereof be offered or received in evidence in any court of the Commonwealth of Pennsylvania or recorded in the office of the Recorder of Deeds, unless a stamp or stamps, as provided in this article, have been affixed.
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. The provisions of 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 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.
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 tax thereon being duly paid.
(2) 
Make use of any documentary stamp to denote payment of any tax imposed by this article without canceling such stamp as required by this article or as prescribed by the Borough.
(3) 
Fail, neglect or refuse to comply with or violate the rules and regulations prescribed, adopted and promulgated by the Borough under the provisions of this article.
B. 
Any person violating any of the provisions of Subsection A of this section shall be guilty of a violation of this article and, upon conviction thereof, shall be guilty of a summary offense.
C. 
A person who makes a false statement of value or declaration of acquisition, when he does not believe the statement or declaration to be true, is guilty of a misdemeanor of the second degree.
Where land lying partly within the boundaries of the Borough and partly without said boundaries is transferred, the tax herein imposed shall be calculated on such portion of the value as shall be represented by the portion of such land lying within the boundaries of the Borough.