[Ord. 1986-21, --/--/1987, § 1; as amended by Ord.
2007-01, 3/1/2007]
The Board of Supervisors of the Township of Vernon enacts this
Part to levy a tax of 1% on the transfer of real property and real
estate in the Township of Vernon, Crawford County, Pennsylvania, in
order to provide for additional and sufficient revenues for the Township
of Vernon, Crawford County, Pennsylvania, to meet the general obligations
of the Township of Vernon, Crawford County, Pennsylvania, now and
in the future and specifically imposes this tax under the provisions
of Article XI-D of the Tax Reform Code of 1971 as amended and supplemented
from time to time.[1]
[1]
Editor's Note: See 72 P.S. § 8101-D et seq.
[Ord. 1986-21, --/--/1987, § 2]
The following words, when used in this Part, shall have the
meanings ascribed to them in this section:
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.
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.
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 § 24-108 of this Part.
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:
Recreational activities such as, but not limited to, hunting,
fishing, camping, skiing, show competition or racing.
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.
Fur farming.
Stockyard and slaughterhouse operations.
Manufacturing or processing operations of any kind.
Any individual, such as individual's bothers and sisters,
the brothers and sisters of such individual's parents and grand-parents,
the ancestors and lineal descendants of any of the foregoing, a spouse
of any of the foregoing and the estate of any of the forgoing. Individuals
related by the half blood or legal adoption shall be treated as if
they were related by the whole blood.
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.
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.
A condominium unit.
A tenant-stockholder's interest in a cooperative housing
corporation, trust or association under a proprietary lease or occupancy
agreement.
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:
Derives 60% or more of its annual gross receipts from the ownership
or disposition of real estate.
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 graded on an established
market.
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.
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.
The making, executing, delivering, accepting or presenting
for recording of a document.
In the case of an 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 a nominal consideration
the "value" thereof shall be determined from the price set forth in
or actual consideration for the contract of sale.
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.
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. 1986-21, --/--/1987, § 3]
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 on which such
document is written or printed, a realty transfer tax at the rate
of 1% of the value of the real estate represented by such document,
which realty transfer tax shall be payable at the earlier of the time
the document is presented for recording or within 30 days of making,
execution, delivery or acceptance of such document or within 30 days
of becoming an acquired company.
[Ord. 1986-21, --/--/1987, § 4]
1.
The tax levied and imposed in this Part shall be payable to the persons
hereinafter indicated.
2.
In the case of a document presented for recording the tax shall be
paid, at the time of the presenting for recording of such document,
to the Recorder of Deeds of Crawford County, Pennsylvania, or his/her
duly authorized agent.
3.
In the case of a document made, executed, delivered or accepted but
not presented for recording the tax herein imposed shall be payable
to the Township Secretary or his/her duly authorized agent.
4.
The Township may, from time to time, provide additional methods for
the collection of the tax herein imposed and may adopt instructions,
additional regulations and policies for administering and enforcing
this Part and may in order to facilitate and expedite the collection
of said tax said Township may appoint one or more additional responsible
persons as their agent, or agents, for the collection thereof.
[Ord. 1986-21, --/--/1987, § 5]
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. 1986-21, --/--/1987, § 6]
1.
The tax imposed by this Part 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 or 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 that 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 for no or nominal actual consideration between principal
and agent or straw party or 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 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 Part.
L.
A transfer made pursuant to the statutory merger or consolidation
of a corporation or statutory division of a nonprofit corporation
except where it is reasonably determined that 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:
(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.
(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 § 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 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 where the tax due is $1 or less.
V.
Leases for the production or extraction of coal, oil, natural gas
or minerals and assignments thereof.
2.
In order to exercise any exclusion provided in this Part, 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 reasons such document
is not subject to tax under this Part.
[Ord. 1986-21, --/--/1987, § 7]
Except as otherwise provided in § 24-106, 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 or shareholders.
[Ord. 1986-21, --/--/1987, § 8]
1.
A real estate company is an acquired company upon a change in the
ownership interest in the company, however effected, if the change:
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 with 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.
[Ord. 1986-21, --/--/1987, § 9]
1.
Where there is a transfer of a residential property by a licensed
real estate broker, which property was transferred to him/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/her shall be given to him/her 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 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
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 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 the tax due, no refund or carryover
credit shall be allowed.
[Ord. 1986-21, --/--/1987, § 10]
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. 1986-21, --/--/1987, § 11]
To the extent authorized and permitted by the laws of the Commonwealth
of Pennsylvania, the tax herein imposed shall be fully paid and have
priority out of the proceeds of any judicial sale of real estate.
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. 1986-21, --/--/1987, § 12]
The payment of the tax imposed by this Part shall be evidenced
by the affixing of a stamp to every document by the Recorder of Deeds
of Crawford County, Pennsylvania, or by the Township Secretary or
by their duly authorized agent. Said stamp shall indicate the date
of payment, the amount of tax paid and to whom the tax was paid. Said
stamp shall be furnished by the Township and shall only be given to
the Recorder of Deeds of Crawford County and to the Township Secretary
and shall be kept in the sole possession, custody and control of said
persons or their duly authorized agents and shall only be affixed
to a document upon the payment of the tax imposed by this Part.
[Ord. 1986-21, --/--/1987, § 13]
1.
The Reorder of Deeds of Crawford County, Pennsylvania, along with
the Township Secretary, shall be the collection agents for the tax
imposed by this Part. On or before the tenth of each month the Recorder
or Deeds of Crawford County, Pennsylvania, shall pay over the Township
Secretary all taxes collected pursuant to this Part, less the 2% for
the use of Crawford County together with a report containing the information
as is required by the Commonwealth of Pennsylvania realty transfer
tax.
2.
The Township may, from time to time, by separate ordinance or resolution,
require any collection agent collecting the tax imposed by this Part
to post a bond before entering upon his official duties conditioned
upon the faithful discharge by such collection agent, including his
appointees and agents, of all duties imposed upon such agent by this
Part and the applicable provisions of the laws of the Commonwealth
of Pennsylvania. The amount of such bond or bonds shall be determined
by the Township, from time to time, by separate ordinance or resolution.
[Ord. 1986-21, --/--/1987, § 14]
The Recorder of Deeds of Crawford County, Pennsylvania, in his
or her sole discretion and to the extent permitted by the applicable
laws of the Commonwealth of Pennsylvania, shall have authority on
behalf of the Township to refuse to record any document which in his
or her opinion a tax hereby imposed applies and upon which document
such tax has not been paid and/or upon which document the stamp provided
for hereinabove has not been imprinted or stamped.
[Ord. 1986-21, --/--/1987, § 15]
Every document, lodged with or presented to the Recorder of
Deeds of Crawford County, Pennsylvania, for recording and every document
which is not presented for recording but which is presented to the
Township Secretary for the payment of the tax herein imposed 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.
[Ord. 1986-21, --/--/1987, § 16; as amended by
Ord. 2007-01, 3/1/2007]
1.
The tax imposed under § 24-101 and all applicable interest and penalty shall be administered, collected and enforced under the Act of December 31, 1965, P.L. 1257, No. 511, as amended and supplemented from time to time, and 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 Township of Vernon, Crawford County, Pennsylvania, 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.
2.
Any tax imposed under § 24-101 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. § 3101 et seq.), as amended and supplemented from time to time, and 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. 1761 (72 P.S. § 806), as amended, and known as the "Fiscal Code" or the maximum interest rate permitted under the Municipal Claims and Tax Liens Act for tax claims.
[Ord. 1986-21, --/--/1987, § 17; as amended by
Ord. 1997-2, 3/6/1997; and by Ord. 1998-2, 3/5/1998]
1.
Enforcement and Remedies.
A.
If it appears to the Township that a violation of this Part has occurred,
the Township shall initiate enforcement proceedings by sending an
enforcement notice as provided in this section.
B.
The enforcement notice shall be sent to the violator and, if applicable,
the owner of record of the parcel on which the violation has occurred,
to any person who has filed a written request to receive enforcement
notices regarding that parcel and to any other person requested in
writing by the owner of record.
C.
An enforcement notice shall state at least the following:
(1)
The name of the violator and, if applicable, the owner of record
and any other person against whom the Township intends to take action.
(2)
The location of the violation and, if applicable, the property
in violation.
(3)
The specific violation with a description of the requirements
which have not been met, citing in each instance the applicable provisions
of this Part.
(4)
The date before which the steps for compliance must be commenced
and the date before which the steps must be completed.
(5)
That the recipient of the notice has the right to appeal to
the Board of Supervisors within a period of 10 days.
(6)
That failure to comply with the notice within the time specified,
unless extended by appeal to the Board of Supervisors, constitutes
a violation, with possible sanctions clearly described.
2.
Enforcement Remedies.
A.
Any person, partnership or corporation who or which has violated
or permitted the violation of the provisions of this Part shall, upon
being found liable therefore in a civil enforcement proceeding commenced
by the Township, pay a judgment of not more than $600 plus all court
costs, including reasonable attorneys' fees incurred by the Township
as a result thereof. No judgment shall commence or be imposed, levied
or payable until the date of the determination of a violation by the
District Justice. If the defendant neither pays nor timely appeals
the judgment, the Township may enforce the judgment pursuant to the
applicable rules of civil procedure. Each day that a violation continues
or each section of this Part which shall be found to have been violated
shall constitute a separate violation.
B.
Nothing contained in this section shall be construed or interpreted
to grant to any person or entity other than the Township the right
to commence any action for enforcement pursuant to this section.
C.
District Justices shall have initial jurisdiction over proceedings
brought under this section.
[Ord. 1986-21, --/--/1987, § 18]
Amendments to the Tax Reform Code, Act of July 2, 1986, Act
77, and to the Local Tax Enabling Act, Act of December 31, 1965, P.L.
1257, Act 511, as may be passed by the Pennsylvania Legislature and
which relate to and modify any provision of this Part shall be deemed
incorporated into this Part by reference as of the effective date
of said legislative act without official action by the Board of Supervisors.
