[Ord. 421, 6/4/2007]
This Part
3 shall be known as the "Realty Transfer Tax Ordinance" of the Borough of New Oxford.
[Ord. 421, 6/4/2007]
The Borough of New Oxford adopts the provisions of Article XI-D
of the Tax Reform Code of 1971 and imposes a realty transfer tax as authorized under
that Article, subject to rate limitations therein. The tax imposed
under this Part shall be at the rate of 1%.
[Ord. 421, 6/4/2007]
The tax authorized under this Part and all applicable interest
and penalties shall be administered, collected and enforced under
the Act of December 31, 1965 (P.L. 1257, No. 511, as amended), known
as "The Local Tax Enabling Act;" provided that if the correct amount of the tax is not
paid by the last date prescribed for timely payment, the Borough of
New Oxford, pursuant to Section 1102-D of the Tax Reform Code of 1971
(72 P.S. § 8102-D), authorizes and directs the Department
of Revenue of the Commonwealth of Pennsylvania to determine, collect
and enforce the tax, interest and penalties.
[Ord. 421, 6/4/2007]
As used in this Part
3, 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 New Oxford, Adams County, Pennsylvania.
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.
DEPARTMENT
The Department of Revenue of this commonwealth.
DOCUMENT
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 Section 1102-C5 of the
Tax Reform Code of 1971.
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 include the leasing to members of
the same family of property which is directly and principally used
for agricultural purposes. 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.
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 include the leasing to members of
the same family of property which is directly and principally used
for agricultural purposes. 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.
LIVING TRUST
Any trust, other than a business trust, intended as a will
substitute by the settlor, which becomes effective during the lifetime
of the settlor, but from which trust distributions cannot be made
to any beneficiaries other than the settlor prior to the death of
the settlor.
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 descendents of any of the foregoing, a spouse
of any of the foregoing and the estate of any of the foregoing. Individuals
related by half blood or legal adoption shall be treated as if they
were related by whole blood.
ORDINARY TRUST
Any trust, other than a business trust or a living trust,
which takes effect during the lifetime of the settlor and for which
the trustees of the trust take title to property primarily for the
purpose of protecting, managing or conserving it until distribution
to the named beneficiaries of the trust. An ordinary trust does not
include a trust that has an objective to carry on business and divide
gains, nor does it either expressly or impliedly have any of the following
features: the treatment of beneficiaries as associates, the treatment
of the interests in the trust as personal property, the free transferability
of beneficial interests in the trust, centralized management by the
trustee or the beneficiaries, or continuity of life.
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 this commonwealth,
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.
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 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; 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 principal of the grantor or a
related corporation, association or partnership and the grantee existing
before or effective with the transfer.
[Ord. 421, 6/4/2007]
Any tax imposed under § 302 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), 72 P.S. § 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 upon delinquent commonwealth
taxes as provided in Section 806 of the Act of April 9, 1929 (P.L.
343, No. 176), 72 P.S. § 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. 421, 6/4/2007]
The United States, the commonwealth 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 transaction from
liability for the tax.
[Ord. 421, 6/4/2007]
Except as otherwise provided in § 307, 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 the purposes
of this Part, corporations and associations are entities separate
from their members, partners, stockholders or shareholders.
[Ord. 421, 6/4/2007]
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. 421, 6/4/2007]
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. The Sheriff or other
officer conducting the sale shall pay the tax imposed under this Part
out of the first moneys paid to the Sheriff or officer in connection
therewith. If the proceeds of the sale are insufficient to pay the
entire tax imposed under this Part, the purchaser shall be liable
for the remaining tax.
[Ord. 421, 6/4/2007]
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. 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 Part.
[Ord. 421, 6/4/2007]
The Recorder of Deeds of Adams County is charged with enforcement
and collection of tax and is empowered to promulgate and enforce reasonable
regulations for enforcement and collection of the tax. In addition,
the Department is authorized to determine, collect and enforce the
tax, interest and penalties in the case of unpaid taxes. 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 Part.
[Ord. 421, 6/4/2007]
Notwithstanding the provisions of any other laws, an officer
of the Borough of New Oxford imposing a local real estate transfer
tax or an authorized representative of the officer may divulge to
the Department of Revenue information concerning the administration
or collection of the local real estate transfer tax authorized by
Article XI-D of the Tax Reform Code of 1971.
[Ord. 421, 6/4/2007]
Resolution 2/4/1980B, as revised by Ordinance No. 384, 6/7/1999,
is hereby repealed. The repealed ordinance or parts thereof remain
in effect for documents that became subject to tax prior to the effective
date of this Part. All other ordinances and parts of ordinances inconsistent
herewith are hereby repealed.
[Ord. 421, 6/4/2007]
The provisions of this Part shall become effective on and be
applicable to any document made, executed, delivered, accepted or
presented for recording on or after June 5, 2007.