[Ord. 87-3, 1/8/1987, § 1]
This Part shall be known as the "Susquehanna Township Realty
Transfer Tax Ordinance."
[Ord. 87-3, 1/8/1987, § 2]
This realty transfer tax is levied under the authority of Section
17 of Act 77 of 1986 (72 PS. 8101-D), and under the authority of The
Local Tax Enabling Act, Act of December 31, 1965, PL. 1257, No. 511,
53 PS. 6901, et seq.
[Ord. 87-3, 1/8/1987, § 3]
Unless otherwise expressly stated, the following terms, when used in this Part
4, shall have the meaning 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.
COLLECTOR
The Recorder of Deeds of Dauphin County, Pennsylvania.
CORPORATION
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.
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 §
24-410 of this Part.
FAMILY FARM CORPORATION
1.
At least 75% of its assets are devoted to the business of agriculture.
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;
D.
Stockyard and slaughterhouse operations; or
E.
Manufacturing or processing operations of any kind.
2.
At least 75% of each class of stock of the corporation is continuously
owned by members of the same family.
MEMBERS OF THE SAME FAMILY
An 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 wholeblood.
PERSON
Every natural person, association, or corporation, or entity
of any kind. 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
1.
Any lands, tenements or hereditaments within the geographical
limits of Susquehanna Township, Dauphin County, Commonwealth of Pennsylvania,
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.
3.
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:
1.
Derives 60% or more of its annual gross receipts from the ownership
or disposition of real estate; or
2.
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
1.
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
2.
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, consist 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.
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.
VALUE
1.
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;
2.
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 or 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;
3.
In the case of an easement or other interest in real estate,
the value of which is not determinable under clause (A) or (B), the
actual monetary worth of such interest;
4.
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.
[Ord. 87-3, 1/8/1987, § 4]
1. A tax to provide revenue for general township purposes is hereby
levied, assessed and imposed upon every real estate transaction. 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.
2. The 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.
3. If the real estate is located partially within and partially outside
the Township, the tax shall be calculated on the value of the portion
within the Township.
4. The tax imposed hereunder shall be due and payable to the collector,
as a joint and several liability, by 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. In the case of an acquired company, the company shall
also have liability for payment of the tax. All such persons shall
also be liable for any penalty imposed under this Part.
5. It is the intent of this Part that the entire burden of the tax imposed
on a real estate transaction by the Township and other political subdivisions
shall not exceed the limitations prescribed in § 8 of The
Local Tax Enabling Act, 53 PS. § 6908, so that if any other
political subdivision imposes a tax on real estate transaction taxed
under this Part the provisions of said § 8 shall apply.
[Ord. 87-3, 1/8/1987, § 5]
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 Part. The exemption
of such governmental bodies shall not, however, relieve any other
party to a real estate transaction from liability for the tax.
[Ord. 87-3, 1/8/1987, § 6]
The tax imposed by this Part shall not be imposed upon:
A. A transfer to the Commonwealth of Pennsylvania, or to any of its
instrumentalities, agencies or political subdivisions, by gift, dedication
or deed in lieu of condemnation or deed or 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 said reconveyance is made within one year from the date of
condemnation.
B. A document which the Commonwealth or the Township 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 a 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 or 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 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 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 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 (i) for no or nominal actual consideration between principal
and agent or straw party; or (ii) 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 Part.
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 rebutable 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.
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L. A transfer made pursuant to the statutory merger or consolidation
of a corporation or statutory division of a nonprofit corporation,
except where the primary intent for such merger, consolidation or
division is avoidance of the tax imposed by this Part.
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: (i) 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 (ii) 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 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 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 Part.
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[Ord. 87-3, 1/8/1987, § 7]
Except as otherwise provided in §
24-406 of this Part, 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 Part, corporations and associations are entities separate from their members, partners, stockholders and shareholders.
[Ord. 87-3, 1/8/1987, § 8]
1. 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.
2. Where there is a transfer by a builder of residential property which
was transferred to the builder within the preceding year as a 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.
3. 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.
4. 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 the tax paid at the time of the sale shall be given the grantor
toward the tax due upon the deed.
5. 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.
[Ord. 87-3, 1/8/1987, § 9]
The payment of the tax imposed hereunder shall be evidenced
by the collector's affixing on the document an official stamp
or writing setting forth the date of payment of the tax and the amount
of the tax paid.
[Ord. 87-3, 1/8/1987, § 10]
1. A real estate company is an acquired company upon a change in the
ownership interest in the company, however effected, if the change:
A. Does not affect the continuity of the company; and
B. 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.
2. 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 Part.
3. Within 30 days after becoming an acquired company, the company shall
present a declaration of acquisition to the collector for recording
and for the affixation of the official stamp or writing evidencing
payment of the tax. Such declaration shall set forth the value of
real estate holdings of the acquired company in the Township.
[Ord. 87-3, 1/8/1987, § 11]
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 Part. The provisions of
this section shall not apply to any excludable real estate transfers
which are exempt from taxation based on family relationship, provided
the relationship is specified in the deed, instrument or writing.
Documents which are not to be recorded shall be presented to the collector
and 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 Part. Evidence of payment shall be affixed to the
original document and certified copy. The certified copy and statement
of value shall be filed with the collector.
[Ord. 87-3, 1/8/1987, § 12]
1. It shall be unlawful for any person to:
A. 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;
B. Fail to record a declaration of acquisition, as required by this
Part;
C. Fraudulently affix to any document, any forged evidence of payment;
or
D. Fail, neglect or refuse to comply with or violate any provisions
of this Part or any rules and regulations promulgated by the Township
under this Part, or any rules and regulations of the Pennsylvania
Department of Revenue to the extent applicable to the tax levied hereunder.
2. Any person violating any of the provisions of this § 412
shall be guilty of a summary offense.
3. 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.
[Ord. 87-3, 1/8/1987, § 13]
1. If any tax owing under the terms of this Part shall not be paid when
due, 10% of the amount of the tax shall be added and collected as
an initial penalty for nonpayment or underpayment of the tax.
2. If any tax owing under the terms of this Part shall not be paid when
due, a further penalty shall accrue on the amount of the unpaid tax
at the rate of 1% per month or fractional part of a month, on the
amount of the unpaid tax, from the due date until the amount of the
tax is paid in full.
3. In the case of failure of any acquired company to record a declaration
of acquisition, as required under this Part, unless it is shown to
the satisfaction of the Township that such failure is due to reasonable
cause, a penalty shall accrue on the amount of the unpaid tax at the
rate of 5% per month or fractional part of a month, on the amount
of the unpaid tax, from the due date until the amount of the tax is
paid in full. This penalty shall be in addition to all other penalties,
but shall not in the aggregate exceed 50% of the unpaid tax.
4. If any part of any underpayment of the tax is due to fraud, there
shall be added to the tax an amount equal to 50% of the underpayment.
5. If the Township files suit to collect the amount of any tax not paid
when due under this Part, at the discretion of the court, any person
liable for payment of the tax shall also be liable for reasonable
attorneys' fees incurred by the Township in prosecution of the
suit.
6. No document upon which tax is imposed by this Part shall at any time
be made the basis of any action or other legal proceedings, nor shall
proof thereof be offered or received in evidence in any court of this
Commonwealth, or recorded in the office of any Recorder of Deeds of
any county of this Commonwealth, unless the tax imposed hereunder
shall have been paid in full and evidence of payment shall have been
affixed thereto by the collector.
[Ord. 87-3, 1/8/1987, § 14]
The tax imposed under this Part, together with all penalties,
shall be a lien against the real estate to which the document relates
and, in the case of an acquired company, the real estate owned by
the acquired company. The lien shall date from the time when the tax
is due and payable and shall continue until discharged by payment
in full of the tax, together with all penalties. To enforce the lien,
the Township may proceed under the Municipal Claims and Liens Act
of 1923, 53 PS. § 7101 et seq., or in any other appropriate
manner.
[Ord. 87-3, 1/8/1987, § 15]
The tax imposed under this Part 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.
[Ord. 87-3, 1/8/1987, § 16]
1. To determine whether the proper amount of tax has been paid, without
limiting any other rights of the Township, the Township shall have
the right to review all documents or records relating to any real
estate transaction or any related transactions, and to take such other
steps as the Township shall deem necessary or appropriate, including
a review or audit of any documents or records of any party to a real
estate transaction to determine the fair market value of the real
estate or any other relevant matter. Upon request of the Township,
and at such place and time as specified by the Township, any party
shall make available to the Township any documents or records requested
by the Township.
2. In the event any tax is not paid when due, the Township may enforce
payment of the tax, together with all penalties, by suit in assumpsit
or by any other appropriate means.
[Ord. 87-3, 1/8/1987, § 17]
1. As provided in 16 P.S. § 11011-6, the recorder of deeds
shall be the collection agent for this tax, without compensation from
the Township.
2. When the property is located in more than [one] school district or
political subdivision, the collector shall not accept for recording
any document unless it is accompanied by a statement of value showing
what taxes are due each political subdivision.
3. On or before the 10th day of each month, the collector shall pay
over to the Township all taxes collected under this Part, less 2%
for use of the county, and shall also provide a report containing
the information required by the Commonwealth of Pennsylvania in reporting
collections of the Pennsylvania Realty Transfer Tax. The 2% commission
shall be paid to the county.
4. In accordance with Act 77-1986, any recorder of deeds who shall record
any document upon which tax is imposed under this Part without receiving
payment of the tax shall, upon summary conviction, be sentenced to
pay a fine of $50, and costs of prosecution.
[Ord. 87-3, 1/8/1987, § 19]
The Township may promulgate and enforce reasonable rules and
regulations for the interpretation, collection, and enforcement of
the tax.
[Ord. 87-3, 1/8/1987, § 20]
1. To the extent this Part imposes a tax on a real estate transaction
which is subject to the Commonwealth of Pennsylvania realty transfer
tax imposed by Act 77 of 1986, and to the extent not inconsistent
herewith or with rules or regulations adopted by the Township, this
Part shall be interpreted in the same manner as Act 77 of 1986 and
in accordance with regulations promulgated thereunder.
2. The provisions of this Part, so far as they are the same as those
of ordinances in force immediately prior to adoption of this Part,
are intended as a continuation of such ordinances, and not as new
enactments.
3. This Part is intended to supplement the realty transfer tax in effect
prior to adoption of this Part by imposing a tax to the fullest extent
permissible, on all real estate transactions not covered by prior
ordinances and now taxable under Act 77 of 1986.
4. In the event this Part is declared invalid, the prior ordinance or
ordinances of the Township levying a realty transfer tax shall remain
in full force and effect, and shall not be affected in any way by
adoption of this Part.
5. The provisions of this Part shall not affect any act done or liability
incurred, nor shall they affect any suit or prosecution pending or
to be instituted to enforce any right or penalty or to punish any
offense, under the authority of any ordinance in force prior to adoption
of this Part.
6. Subject to the provisions of this Section, this Part shall supersede,
replace and repeal all ordinances levying a realty transfer tax in
force immediately prior to adoption of this Part.
7. The singular shall include the plural, and the masculine shall include
the feminine and neuter.