This article shall be known as "The Adamstown Realty Transfer
Tax Ordinance."
This realty transfer tax is levied under authority of Article
XI-D, entitled "Local Real Estate Transfer Tax," of the Pennsylvania
Real Estate Transfer Tax Act, which is a new article added by Act
77-1986 (Act of July 2, 1986, No. 77, P.L. 381) to the Pennsylvania
Real Estate Transfer Act, Act 14-1981 (Act of May 5, 1981, No. 14,
P.L. 36) as amended. The Pennsylvania Real Estate Transfer Tax Act
is codified at 72 P.S. § 8101-C et seq., and Article XI-D
is codified at 72 P.S. § 8101-D et seq. This realty transfer
tax is also levied under authority of "The Local Tax Enabling Act,"
Act of December 31, 1965, P.L. 1257, as amended.
A tax is hereby levied and imposed for general Borough purposes
on every real estate transaction at the rate of 1% of the value of
the real estate represented by the document involved in the real estate
transaction.
A. The tax shall be payable at the earlier of the time the document
is presented for recording, within 30 days of acceptance of the document,
or within 30 days of becoming an acquired company.
B. If the real estate is located partially within and partially outside
the Borough, the tax shall be calculated on the value of the portion
within the Borough.
C. 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 penalties imposed under this article.
D. It is the intent of this article that the entire burden of the tax
imposed on a real estate transaction by the Borough and other political
subdivisions shall not exceed the limitations prescribed in Section
8 of the Local Tax Enabling Act, 53 P.S. § 6908, so that
if any other political subdivision imposes a tax on real estate transactions
taxed under this article, the provisions of said Section 8 shall apply.
The payment of the tax imposed hereunder shall be evidenced
by the collector affixing on the document an official stamp or writing
setting forth the date of payment of the tax and amount of tax paid.
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 real estate transaction from liability for the tax.
Except as otherwise provided in §
274-15, 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.
Every document lodged with or presented to the collector for recording shall set forth therein and as 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 §
274-19 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 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. Evidence of payment shall be affixed to the original document and the certified copy. The certified copy and statement of value shall be filed with the collector.
[Amended 10-2-1990 by Ord. No. 244]
A. It shall be unlawful for any person to:
(1) Make, execute, deliver, accept or present for recording or cause
to be made, executed, delivered, accepted or presented for recording
any document without the full amount of tax thereon being duly paid;
(2) Fail to record a declaration of acquisition as required by this article;
(3) Fraudulently affix to any document any forged evidence of payment;
or
(4) Fail, neglect or refuse to comply with or violate other provisions
of this article or any rules and regulations promulgated by the Borough
under this article or any rules and regulations of the Pennsylvania
Department of Revenue to the extent applicable to the tax levied hereunder.
B. Any person violating any of the provisions of this §
274-20, except as provided in Subsection
C herein, shall be guilty of a summary offense and, upon conviction thereof, shall be sentenced to pay a fine of not less than $50 and not more than $600 and, in default of payment, shall be committed to the county jail for a period not to exceed 30 days.
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.
The tax imposed by this article, 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. In order to enforce
the lien, the Borough may proceed under the Municipal Claims and Liens
Act of 1923, 53 P.S. § 7101 et seq., or in any other appropriate
manner.
The tax imposed under this article 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 monies 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.
[Amended 10-2-1990 by Ord. No. 244]
A. As provided in 16 P.S. § 11011-6 and in §
274-11 of this article, the Recorder of Deeds of Lancaster County and the Recorder of Deeds of Berks County shall be the collection agents for this tax, without compensation from the Borough.
B. In order to ascertain the amount of taxes due when the property is
located in more than one 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.
C. On or before the 10th day of each month, the collector shall pay
over to the Borough all taxes collected under this article, 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 two-percent
commission shall be paid to the county.
D. In accordance with Act 77-1986, any Recorder of Deeds who shall record
any document upon which tax is imposed under this article without
payment of tax as required under this article as is indicated in the
document or accompanying statement of value shall, upon summary conviction,
be sentenced to pay a fine of not more than $600 and costs of prosecution.
The Borough may promulgate and enforce reasonable rules and
regulations for the interpretation, collection and enforcement of
this tax.
This article shall become effective immediately, or on the earliest
date permitted by law, and shall continue in force hereafter without
annual reenactment.