This article shall be known as the "Realty Transfer Tax Ordinance
of the Borough of Munhall."
A realty transfer tax for general revenue purposes is hereby
imposed upon the transfer of real estate or interest in real estate
situated within the Borough of Munhall, regardless of where the documents
making the transfer are made, executed or delivered, or where the
actual settlements on such transfer took place as authorized by Article
XI-D, "Local Real Estate Transfer Tax," 72 P.S. § 8101-D
et seq.
As used in this article, the following terms shall have the
meanings indicated:
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.
BOROUGH
The Borough of Munhall, Allegheny County, Pennsylvania.
CORPORATION
A corporation, joint-stock association, business trust or
banking institution which is organized under the laws of the commonwealth,
the United States or any other state, territory, foreign county or
dependency.
DOCUMENT
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. "Document" shall also include a declaration of acquisition
required to be presented for recording under § 349-2 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 or 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;
D.
Stockyard and slaughterhouse operations; or
E.
Manufacturing or processing operations of any kind.
MEMBERS 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.
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 of general partners thereof, and as applied
to corporation, the officers thereof.
REAL ESTATE
A.
All lands, tenements or hereditaments within this 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.
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; or
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.
TAX COLLECTOR
Any person, corporation, association, or partnership appointed
from time to time by the Council of the Borough of Munhall to collect
and administer this tax.
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; or
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 any 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 for local real estate tax purposes
for the common level ratio factor developed by the Pennsylvania Department
of Revenue for Pennsylvania realty transfer tax base calculations;
C.
In the case of easement of other interest in real estate the value of which is not determinable under Subsection
A or
B of this definition, the actual monetary worth of such interest; or
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 principle of the grantor of a
related corporation, association or partnership and the grantee existing
before or effective with the transfer.
The United States, the commonwealth or any of their instrumentalities,
agencies or political subdivision 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.
Except as otherwise provided in §
394-6, 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.
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, judgment, estate or costs of the sale and
of the writ upon which the sale is made except the state realty transfer
tax, and the sheriff, or other officer, conducting said sale, shall
pay the tax herein imposed out of the 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.
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. The provisions of this §
394-13 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 document and 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 tax imposed by this article shall become a lien upon the
lands, tenements, or hereditament, or any interest therein lying,
being situated, wholly or in part within the boundaries of the Borough,
which lands, tenements, hereditament or interest therein are described
in or conveyed by or transferred by the deed which is the subject
of the tax imposed, assessed and levied by this article, said lien
to begin at the time when the tax under this article is due and payable,
and continue until discharge by payment, or in accordance with the
law, and the Solicitor is authorized to file a municipal or tax claim
in the Court of Common Pleas of Allegheny County, in accordance with
the provisions of 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 herein, shall be recoverable as other debts of
like character are recovered.
The Tax Collector is charged with enforcement and collection
of tax and is empowered to promulgate and enforce reasonable regulations
for enforcement and collection of the tax. The regulations which have
been promulgated by the Pennsylvania Department of Revenue, under
72 P.S. § 8101-C et seq., are incorporated into and made
a part of this article.
Where the Tax Collector is required to give notice, it shall
be deemed sufficient for said notice to be sent by certified mail
to the person who paid the tax at his last known post office address
and by posting of said notice upon the most prominent place of the
realty.
Any determination, redetermination and the decision of entitlement
to a refund is subject to the review and approval of the majority
of the Council of the Borough of Munhall prior to becoming final.
Any person who has paid the taxes and who is aggrieved by the
decision of the Tax Collector may appeal said decision to the Court
of Common Pleas of Allegheny County as provided by law within 30 days
of the date said decision was received. In the event the person who
paid the taxes cannot be located at his last known post office address,
or has refused delivery of the certified mail, the said appeal must
be made within 30 days of the date of posting of the realty as heretofore
provided.