[Ord. No. 160,
passed 2-18-1987]
This chapter shall be known and may be cited as the "Realty
Transfer Tax Ordinance of the Township of Upper Providence" or just
the "realty transfer tax."
[Ord. No. 160,
passed 2-18-1987]
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 Township, 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. Sections 8101-D et seq.
[Ord. No. 160,
passed 2-18-1987]
As used in this chapter:
(a) ASSOCIATION — Means 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.
(b) CORPORATION — Means 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 country or dependency.
(c) DOCUMENT — Means any deed, instrument or writing which conveys, transfers, demises or vests title to real estate, or 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 until 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" also includes a declaration of acquisition required to be presented for recording under Section
884.08.
(d) FAMILY FARM CORPORATION — Means a corporation, at least 75%
of the assets of which are devoted to the business of agriculture
and at least 75% of each class of stock of which is continuously owned
by members of the same family. The business of agriculture shall not
be deemed to include:
(1)
Recreational activities, including, but not limited to, hunting,
fishing, camping, skiing, show competition or racing;
(2)
The raising, breeding or training of game animals, game birds,
fish, cats, dogs, pets or animals intended for use in sporting or
recreational activities;
(4)
Stockyard and slaughterhouse operations; or
(5)
Manufacturing or processing operations of any kind.
(e) MEMBERS OF THE SAME FAMILY — Means any individual, such individual's
brothers and sisters, the brothers and sisters of such individual's
parents and grandparents, the ancestors and lineal descendents 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.
(f) PERSON — Means every natural person, association or corporation.
Whenever used in any clause prescribing and imposing a fine or imprisonment,
or both, "person," as applied to associations, includes the responsible
members or general partners thereof, and as applied to corporations,
the officers thereof.
(g) REAL ESTATE — Means:
(1)
All lands, tenements or hereditaments within the Township, 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 or 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.
(h) REAL ESTATE COMPANY — Means a corporation or association which
is primarily engaged in the business of holding, selling or leasing
real estate, and in which 90% or more of the interest 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.
(i) TITLE TO REAL ESTATE — Means:
(1)
Any interest in real estate which endures for a period of time,
the termination of which interest is not fixed or ascertained by a
specific number of years, including, without limitation, an estate
in fee simple, a life estate or a perpetual leasehold; or
(2)
Any interest in real estate enduring for a fixed period of years,
but which interest, 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 approximately those of an estate in fee simple,
a life estate or a 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.
(j) TRANSACTION — Means the making, executing, delivering, accepting
or presenting for recording of a document.
(k) VALUE — Means:
(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 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 factor developed by the Pennsylvania Department of Revenue for
Pennsylvania realty transfer tax base calculations;
(3)
In the case of an easement or other interest in real estate,
the value of which is not determinable under paragraph (k)(1) or (2)
hereof, the actual monetary worth of such interest; or
(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 or 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. No. 160,
passed 2-18-1987; Ord. No. 363, passed 1-9-2003; Ord. No. No. 418, passed 10-12-2006; Ord. No. 457, passed 2-25-2010]
(a) Every person who makes, executes, delivers, accepts or presents for
recording any document or in whose behalf any document is made, executed,
delivered, accepted or presented for recording, shall be subject to
pay for and in respect to the transaction or any part thereof, a tax
for the benefit of the Township at the rate of 1 1/2% 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 payment of the tax imposed in this chapter shall be evidenced
by the affixing of an official stamp or writing by the Recorder of
Deeds whereon the date of the payment of the tax, the amount of the
tax and the signature of the collecting agent shall be set forth.
(c) If any other political subdivision shall have imposed or hereafter
shall impose a tax on the same person or transfer, then the said tax
levied by said political subdivision shall be in addition to the tax
of the Township hereunder, and the tax imposed hereby for the benefit
of the Township shall be 1 1/2% of the value of the real estate
as provided hereinabove. Provided that in the event a court of competent
jurisdiction shall determine that the rate of tax prescribed hereunder,
either considered in isolation or in combination with the taxes imposed
by other political subdivisions, exceeds the maximum permitted by
law, then it is the intent of this section that the total of all taxes
imposed or with respect to the transactions taxable hereunder not
exceed the maximum rate permitted by law and during such time as a
duplication of taxes exist then the tax levied by the Township shall
be at the maximum rate permitted by law.
(d) Any tax imposed under this chapter that is not paid by the date the
tax is due shall bear interest as prescribed for interest on delinquent
municipal claims under the Act of May 16, 1923 (P.L. 207, No. 153)
(53 P.S. Sec. 7101 et seq.), as amended, known as "The Municipal Claims
and Tax Liens Act." The interest rate shall be the lesser of the interest
rate imposed under delinquent Commonwealth taxes as provided in Section
806 of the Act of April 9, 1929 (P.L. 343, No. 176) (72 P.S. Sec.
806), as amended, known as "The Fiscal Code," or the maximum interest
rate permitted under the Municipal Claims and Tax Liens Act for tax
claims.
[Ord. No. 160,
passed 2-18-1987]
The United States, the Commonwealth and all of their instrumentalities,
agencies or political subdivisions shall be exempt from payment of
the tax imposed by this chapter. However, the exemption of such governmental
bodies shall not relieve any other party to a transaction from liability
for the tax.
[Ord. No. 160,
passed 2-18-1987]
The tax imposed in Section
884.04 shall not be imposed upon:
(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 by deed of confirmation in connection with
condemnation proceedings, or a reconveyance by the condemning body
of the property condemned to the owner of record at the time of condemnation,
which reconveyance may include property fine adjustments, provided
that such reconveyance is made within one year from the date of condemnation;
(b) A document which 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 a sheriff sale or tax claim
bureau sale;
(d) A transfer, for no actual consideration or for nominal actual consideration,
which corrects or confirms a transfer previously recorded, but which
does not extend or limit existing record legal title or interest;
(e) A transfer or division in kind, for no actual consideration or for
nominal actual consideration, of property passed by testate or intestate
succession and held by cotenants, provided, however, that if any party
takes shares greater in value than his or her 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
and wife or by the husband or wife prior to the granting of the final
decree in divorce; between parent and child or the spouse of such
child; between brother or sister or the spouse of a brother or sister
and brother or sister or the spouse of a brother or sister; and between
grandparent and grandchild or the spouse of such grandchild; except
that a subsequent transfer by the grantee within one year shall be
subject to tax as if the grantor were making such transfer;
(g) A transfer, for no actual consideration or for nominal actual consideration,
of property passing by testate or intestate succession from a personal
representative of a decedent to the decedent's devisee or heir;
(h) A transfer, for no actual consideration or for nominal actual consideration,
to a trustee of an ordinary trust, where the transfer of the same
property would be exempt if the transfer were made directly from the
grantor to all of the possible beneficiaries, whether or not such
beneficiaries are contingent or specifically named, except that 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 actual consideration or for nominal actual consideration,
from a trustee to a beneficiary of an ordinary trust;
(j) A transfer, for no actual consideration or for nominal actual consideration,
from a trustee to a successor trustee;
(k) A transfer, for no actual consideration or for nominal actual consideration,
between a principal and agent or straw party, or from or to an agent
or straw party where, if the agent or straw party were his or her
principal, no tax would be imposed under this chapter, provided that
where the document by which title is acquired by a grantee or statement
of value fails to set forth that the property was acquired by the
grantee from, or for the benefit of, his or her principal, there is
a rebuttable presumption that the property is the property of the
grantee in his or her individual capacity if the grantee claims an
exemption from taxation under this subsection;
(l) A transfer made pursuant to the statutory merger or consolidation
of a corporation or statutory division of a nonprofit corporation,
except where the Township reasonably determines that the primary intent
for such merger, consolidation or division is avoidance of the tax
imposed by this chapter;
(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 or her interest in or ownership of the
real estate being conveyed, and where the stock of the corporation
or the interest in the association has been held by the grantee for
more than two years;
(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 the grantee
directly uses such real estate for the primary purpose of manufacturing,
fabricating, compounding, processing, publishing, research and development,
transportation, energy conversion, energy production, pollution control,
warehousing or agriculture, and if the agency or authority has the
full ownership interest in the real estate transferred;
(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. Section 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; and
(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. A copy of the Pennsylvania Realty Transfer
Tax Statement of Value may be submitted for this purpose. For leases
of coal, oil, natural gas or minerals, the statement of value may
be limited to an explanation of the reason such document is not subject
to tax under this chapter.
|
[Ord. No. 160,
passed 2-18-1987]
Except as otherwise provided in Section
884.08, documents which make, confirm or evidence any transfer or demise of title to real estate between associations or corporations and the members, partners, shareholders or stockholders thereof are fully taxable. For the purposes of this section, corporations and associations are entities separate from their members, partners, stockholders or shareholders.
[Ord. No. 160,
passed 2-18-1987]
(a) A real estate company is an acquired company upon a change in the
ownership interest in the company, however effected, if the change
does not affect the continuity of the company, and if the change,
by itself or together with prior changes, has the effect of transferring,
directly or indirectly, 90% or more of the total ownership interest
in the company within three years.
(b) With respect to real estate acquired after February 16, 1986, a family
farm corporation is an acquired company when, because of voluntary
or involuntary dissolution, it ceases to be a family farm corporation,
or when, because of issuance or transfer of stock or because of acquisition
or transfer of assets that are devoted to the business of agriculture,
it fails to meet the minimum requirements of a family farm corporation
under this chapter.
(c) Within 30 days after becoming an acquired company, such company shall
present a declaration of acquisition to the recorder of each county
in which it holds real estate for the affixation of documentary stamps
and recording. Such declaration shall set forth the value of real
estate holdings of the acquired company in such county. A copy of
the Pennsylvania Realty Transfer Tax Declaration of Acquisition may
be submitted for this purpose.
[Ord. No. 160,
passed 2-18-1987]
(a) Where there is a transfer of residential property by a licensed real
estate broker, which property was transferred to him or her within
the preceding year as consideration for the purchase of other residential
property, a credit for the amount of the tax paid at the time of the
transfer to him or her shall be given to him or her toward the amount
of the tax due upon the transfer.
(b) Where there is a transfer by a builder of residential property which
was transferred to the builder within the preceding year as consideration
for the purchase of new, previously unoccupied residential property,
a credit for the amount of the tax paid at the time of the transfer
to the builder shall be given to the builder toward the amount of
the tax due upon the transfer.
(c) Where there is a transfer of real estate which is leased by the grantor,
a credit for the amount of tax paid at the time of the lease shall
be given to the grantor toward the tax due upon the transfer.
(d) Where there is a conveyance by deed of real estate which was previously
sold under a land contract by the grantor, a credit for the amount
of tax paid at the time of the sale shall be given to the grantor
toward the tax due upon the deed.
(e) If the tax due upon the transfer is greater than the credit given
under this section, the difference shall be paid. If the credit allowed
is greater than the amount of tax due, no refund or carry-over credit
shall be allowed.
[Ord. No. 160,
passed 2-18-1987]
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.
[Ord. No. 160,
passed 2-18-1987]
The tax imposed in this chapter shall be fully paid and shall
have priority out of the proceeds of any judicial sale of real estate
before payment of any other obligation, claim, lien, judgment, estate
or cost of the sale, and of the writ upon which the sale is made,
except the State realty transfer tax. The sheriff or other officer
conducting such sale shall pay the tax out of the first moneys paid
to him or her in connection therewith. If the proceeds of the sale
are insufficient to pay the entire tax, the purchaser shall be liable
for the remaining tax.
[Ord. No. 160,
passed 2-18-1987]
(a) As provided in 16 P.S. Section 11011-6, as amended by the Act of
July 7, 1983 (P.L. 40, No. 21), the Recorder of Deeds shall be the
collection agent for the local realty transfer tax, including any
amount payable to the Township based on a redetermination of the amount
of tax due by the Commonwealth of the State realty transfer tax, without
compensation from the Township.
(b) In order to ascertain the amount of taxes due when the property is
located in more than one political subdivision, the Recorder shall
not accept a deed for recording, unless it is accompanied by a statement
of value showing what taxes are due each municipality.
(c) On or before the tenth day of each month, the Recorder shall pay
over to the Township all local realty transfer taxes collected, less
2% for use of the County, together with a report containing the information
as is required by the Commonwealth in reporting collections of the
State realty transfer tax. The 2% commission shall be paid to the
County.
(d) Upon a redetermination of the amount of realty transfer tax due by
the Commonwealth, the Recorder shall re-record the deed or record
the additional realty transfer tax form only when both the State and
local amounts and a re-recording or recording fee has been tendered.
[Ord. No. 160,
passed 2-18-1987]
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 chapter. A copy of the Pennsylvania
Realty Transfer Tax Statement of Value may be submitted for this purpose.
This section shall not apply to any excludable real estate transfers
which are exempt from taxation based on family relationship. Other
documents presented for the affixation of stamps shall be accompanied
by a certified copy of each document and a statement of value executed
by a responsible person connected with the transaction showing such
connection and setting forth the true, full and complete value thereof
or the reason, if any, why such document is not subject to tax under
this chapter.
[Ord. No. 160,
passed 2-18-1987]
(a) If any part of any underpayment of tax imposed by this chapter 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
chapter 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.
[Ord. No. 160,
passed 2-18-1987]
The tax imposed by this chapter shall become a lien upon the
lands, tenements or hereditaments, or any interest therein, lying
or situated, wholly or in part, within the Township, which lands,
tenements or hereditaments or interests therein, are described in,
conveyed by or transferred by the document which is the subject of
the tax imposed, assessed and levied by this chapter. Such lien shall
begin at the time the tax under this chapter is due and payable, and
shall continue until discharge by payment or in accordance with law.
The Solicitor is hereby authorized to file a Municipal or tax claim
in the County Court of Common Pleas, in accordance with the Municipal
Claims and Liens Act of 1923, 53 P.S. Sections 7101 et seq., its supplements
and amendments.
[Ord. No. 160,
passed 2-18-1987]
All taxes imposed by this chapter, together with interest and
penalties prescribed in this chapter, shall be recoverable as other
debts of like character are recovered.
[Ord. No. 160,
passed 2-18-1987]
The designee of the Township is hereby charged with the enforcement
and collection of the realty transfer tax and is hereby authorized
to promulgate and enforce reasonable regulations for such enforcement
and collection. The regulations which have been promulgated by the
Pennsylvania Department of Revenue under 72 P.S. Sections 8101-C et
seq., are hereby incorporated into and made a part of this chapter
as if fully set out herein.
No person shall:
(a) Fail to place upon a document the certificate required by this chapter
or make any false statement in such certificate; or
(b) Fail, neglect or refuse to comply with, or violate, the rules and
regulations adopted and promulgated under this chapter.
Nothing in this chapter shall be construed to affect any suit
or proceeding pending in any court, or any rights acquired or liability
incurred, or any permit issued, or any cause of action existing, under
any other ordinance or resolution of the Township, prior to the enactment
of this chapter.
In addition to the penalty provided for in Section
202.99(b),
(c) and
(d), whoever violates or fails to comply with any of the provisions of this chapter shall be required to pay the amount of the tax, together with interest as is otherwise provided for herein, which should have been paid on the document or documents.