[Section 1101-C, Act 77 of 1986; Ord. 1153, 11/7/1986, Section
1{60}]
The following words, when used in this Ordinance shall have
the meanings ascribed to them in this section:
a.
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.
b.
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.
c.
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 public
utility easements. "Document" shall also include a declaration or
acquisition required to be presented for recording under § 17-406
of this Ordinance.
d.
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 not
be deemed to include
(1)
Recreational activities such as, but not limited to, hunting,
fishing, camping, skiing, show competition or racing;
(2)
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;
(3)
Fur farming;
(4)
Stockyard and slaughterhouse operations; or,
(5)
Manufacturing or processing operations of any kind.
e.
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
f.
MUNICIPALITY — The Borough of State College
g.
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
h.
REAL ESTATE —
(1)
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.
(2)
A condominium unit.
(3)
A tenant-stockholder's interest in a cooperative housing corporation,
trust or association under a proprietary lease or occupancy agreement.
i.
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.
j.
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, 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.
k.
TRANSACTION — The making, executing, delivering, accepting
or presenting for recording of a document.
l.
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
therefore, 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 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 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;
(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; 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, the agent or principle of the grantor of a
related corporation, association or partnership and the grantee existing
before or effective with the transfer.
[Section 1102-C, Act 77 of 1986; Ord. 1153, 11/7/1986, Section
1; amended by Ord. 1691, 12/17/2001; Ord. 1916, 12/15/2008, Section
1; Ord. 2058, 12/15/2014, Section 1]
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 1.50%
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 a document,
or within 30 days of becoming an acquired company.
[Section 1102-C.2, Act 77 of 1986; Ord. 1153, 11/7/1986,
Section 1]
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 Ordinance. The exemption of such governmental
bodies shall not, however, relieve any other party to a transaction
from liability for the tax.
[Section 1102-C.3.(1) through (22), Act 77 of 1986; Ord.
1153, 11/7/1986, Section 1]
The tax imposed by § 17-402 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 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 line adjustments, provided said
reconveyance is made within one year from the date of condemnation.
b.
A document which the Commonwealth 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 of division in kind for no or nominal actual consideration
of property passed by testate or intestate succession and held by
cotenants; 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 brother
or sister or the 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:
(1)
For no or nominal consideration between principal and agent
or straw party; or,
(2)
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 Ordinance.
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 rebuttable 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.
l.
A transfer made pursuant to the statutory merger or consolidation
of a corporation or statutory division of a nonprofit corporation,
except where the municipality reasonably determines that the primary
intent for such merger, consolidation or division is avoidance of
the tax imposed by this Ordinance.
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:
(1)
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
(2)
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 Sections 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.
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 Ordinance.
[Section 1102-C.4, Act 77 of 1986; Ord. 1153, 11/7/1986,
Section 1]
Except as otherwise provided in § 17-404, 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 Ordinance, corporations and associations
are entities separate from their members, partners, stockholders or
shareholders.
[Section 1102-C.5(a), (b), (c), Act 77 of 1986; Ord. 1153,
11/7/1986, Section 1]
a.
A real estate company is an acquired company upon a change in the
ownership interest in the company, however effected, if the change:
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 Ordinance.
c.
Within 30 days after becoming an acquired company, the company shall
present a declaration of acquisition with the Recorder of Deeds for
the affixation of stamps and recording. Such declaration shall set
forth the value of real estate holdings of the acquired company in
the municipality.
[Section 1103-C(a) through (e), Act 77 of 1986; Ord. 1153,
11/7/1986, Section 1]
a.
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.
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 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.
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 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 carryover credit
shall be allowed.
[Section 1103-C.1, Act 77 of 1986; Ord. 1153, 11/7/1986,
Section 1]
In determining the term of a lease, it shall be presumed that
a right of 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.
[Section 1104-C, Act 77 of 1986; Ord. 1153, 11/7/1986, Section
1]
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, 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.
[Section 1105-C(a) and (b), Act 77 of 1986; Ord. 1153, 11/7/1986,
Section 1]
a.
The payment of the tax imposed by this Ordinance shall be evidenced
by the affixing of a stamp or stamps to every document by the person
making, executing, delivering or presenting for recording such document,
and the person using or affixing such stamps shall write or stamp
or cause to be written or stamped thereon the initials of his name
and the date upon which such stamps are affixed or used so that such
stamps may not again be used: Provided: That the municipality may
prescribe such other method of cancellation, as it may deem expedient.
b.
The use of documentary license meter impressions or similar indicia
of payment in lieu of stamps as required by this Ordinance may be
permitted, in the discretion of the municipality.
[Section 1106-C(a) and (b), Act 77 of 1986; Ord. 1153, 11/7/1986,
Section 1]
a.
The municipality shall allow Centre County a commission equal to
1% of the face value of the tax collected. The Recorder of Deeds shall
remit to the municipality the gross amount of the tax collected less
the commission allowed on or before the 15th day of the month following
the month in which the tax was collected.
b.
All moneys paid to the municipality during the effective period of
this Ordinance shall be credited to the General Fund.
[Section 1107-C(1) and (2), Act 14 of 1981; Ord. 1153, 11/7/1986,
Section 1]
The municipality is hereby authorized and empowered to prescribe,
adopt, promulgate and enforce rules and regulations relating to:
[Section 1108-C, Act 77 of 1986; Ord. 1153, 11/7/1986, Section
1]
No document upon which tax is imposed by this Ordinance shall,
at any time, be made the basis of any action or other legal proceeding,
nor shall proof thereof be offered or received in evidence in any
court of this Commonwealth, or recorded in the office of the Recorder
of Deeds, unless a stamp or stamps, as provided in this Ordinance,
have been affixed thereto.
[Section 1109-C, Act 77 of 1986; Ord. 1153, 11/7/1986, Section
1]
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 Ordinance. 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 Ordinance.
[Section 1109-C.1(a) and (b), Act 77 of 1986; Ord. 1153,
11/7/1986, Section 1]
a.
If any part of any underpayment of tax imposed by this Ordinance
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
Ordinance 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.
[Section 1110-C(a)(1), (2), (3) and (b), Act 77 of 1986;
Ord. 1153, 11/7/1986, Section 1]
a.
It shall be unlawful for any person to:
(1)
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; or,
(2)
Make use of any stamp to denote payment of any tax imposed by
this Ordinance without canceling such stamp, as required by this Ordinance
or as prescribed by the municipality; or,
(3)
Fail, neglect or refuse to comply with or violate the rules
and regulations prescribed, adopted and promulgated by the municipality
under the provisions of this Ordinance.
b.
Any person violating any of the provisions of Subsection (a) shall be guilty of a violation of this Ordinance and, upon conviction thereof, shall be sentenced to pay a fine of not more than $500 and costs of prosecution, or to undergo imprisonment of not more than 10 days, or both, in the discretion of the court.
[Section 11, Act 77 of 1986; Ord. 1153, 11/7/1986, Section
1]
Where land lying partly within the boundaries of the municipality
and partly without said boundaries is transferred, the tax herein
imposed shall be calculated on such portion of the value as shall
be represented by the portion of such land lying within the boundaries
of the municipality.
