[Ord. A-4-9-1987, 4/9/1987, § 1]
This Part 2 shall be known as the "Realty Transfer Tax Ordinance
of Montour Township."
[Ord. A-4-9-1987, 4/9/1987, § 2]
A realty transfer tax for general revenue purposes is hereby
imposed upon the transfer of real estate or an interest in real estate
situated within Montour Township, regardless of where the documents
effecting the transfer are made, executed or delivered, or where the
actual settlement on such transfer takes place, as authorized by Article
IX-D, Local Real Estate Transfer Tax, 72 P.S. § 8101-D et
seq.
[Ord. A-4-9-1987, 4/9/1987, § 3]
As used in this Part 2, the following terms shall have the meanings
indicated:
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, foreign county 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 declaration of acquisition required to be presented for recording under § 24-208 of this Part 2.
A corporation which has at least 75% of its assets devoted
to the business of agriculture and which has at least 75% of each
class of stock thereof 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 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.
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.
All lands, tenements or hereditaments within Montour Township,
including, without limitation, buildings, structures, fixtures, mines,
minerals, oil, gas, quarries, open spaces[1] with or without upper or lower boundaries, trees and other
improvements, immovables or interest which by custom, usage or law
pass with a conveyance or 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; or
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.
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
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.
Montour Township, Columbia County, Pennsylvania.
The making, executing, delivering, accepting, or presenting
for recording of a document.
In case of any bona fide sale of real estate at arm's length
for actual monetary worth, the amount of the total 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 which 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 factor developed by the Pennsylvania Department of Revenue for
Pennsylvania realty transfer tax base calculations.
The actual consideration for or actual monetary worth of an
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.
[1]
Editor's Note: Word omitted from ordinance which is based
on state law.
[Ord. A-4-9-1987, 4/9/1987, § 4]
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, a
tax at the rate of 1% 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.
2.
The payment of the tax imposed herein 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.
3.
It is the intent of this Part 2 that the entire burden of the tax imposed herein on a person or transfer shall not exceed the limitations prescribed in the Local Tax Enabling Act, Act of December 31, 1965, P.L. 1257, 53 P.S. § 6901 et seq.,[1] so that if any other political subdivision shall impose
or hereafter shall impose such tax on the same person or transfer,
then the tax levied by the Township under the authority of that Act
shall, during the time such duplication of the tax exists, except
as hereinafter otherwise provided, be 1/2 of the rate, and such 1/2
rate shall become effective without any action on the part of the
Township; provided, however, that the Township and any other political
subdivision which imposes such tax on the respective rates to 1/2
of the rate herein provided, they will impose respectively different
rates, the total of which shall not exceed the maximum rate permitted
under the Local Tax Enabling Act.[2]
4.
If for any reason the tax is not paid when due, interest at the rate
in effect at the time the tax is due shall be added and collected.
[Ord. A-4-9-1987, 4/9/1987, § 5]
The United States, the Commonwealth of Pennsylvania and any
of their instrumentalities, agencies or political subdivisions shall
be exempt from payment of the tax imposed by this Part 2. The exemption
of such government bodies shall not, however, relieve any other party
to a transaction from liability for the tax.
[Ord. A-4-9-1987, 4/9/1987, § 6]
1.
The tax imposed by this Part 2 shall not be imposed upon:
A.
A transfer to the Commonwealth of Pennsylvania, 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 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 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
co-tenants. 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 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 were 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 not 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 2. Where the documents by which title is acquired
by a grantee or statement of value filed therewith fail 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 provision.
L.
A transfer made pursuant to the statutory merger or consolidation
of a corporation or statutory division of a nonprofit corporation,
except where the Pennsylvania Department of Revenue reasonably determines
that the primary intent for such merger, consolidation or division
is avoidance of the tax imposed by this Part 2.
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 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. § 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 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 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 § 24-206, 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 Part 2.
[Ord. A-4-9-1987, 4/9/1987, § 7]
Except as otherwise provided in § 24-206 hereof, 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 2, corporations and associations are entities separate from their member, partners, stockholders or shareholders.
[Ord. A-4-9-1987, 4/9/1987, § 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
does not affect the continuity of the company and of 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
a period of three years.
2.
With respect to real estate acquired after the effective date hereof,
a family farm corporation is an acquired company when, because of
issuance of 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 2.
3.
Within 30 days after becoming an acquired company, the company shall
present a declaration of acquisition to the Recorder of Deeds 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. A-4-9-1987, 4/9/1987, § 9]
1.
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.
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
the tax due upon the transfer.
3.
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 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.
[Ord. A-4-9-1987, 4/9/1987, § 210]
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. A-4-9-1987, 4/9/1987, § 211]
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 except the state realty
transfer tax, 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.
[Ord. A-4-9-1987, 4/9/1987, § 12]
1.
As provided in 16 P.S. § 11011-6, as amended by Act of
July 7, 1983 (P.L. 40, No. 21), the Recorder of Deeds in and for Columbia
County (hereafter referred to as "Recorder") 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 Pennsylvania of the Pennsylvania realty transfer
tax, without compensation from the Township.
2.
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 for recording such a deed unless it is accompanied by a
statement of value showing what taxes are due each municipality.
3.
On or before the 10th of each month, the Recorder shall pay over
to 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 of Pennsylvania in reporting collections
of the Pennsylvania realty transfer tax. The 2% commission shall be
paid to the County.
4.
Upon a redetermination of the amount of realty transfer tax due by
the Commonwealth of Pennsylvania, the Recorder shall rerecord the
deed or record the additional realty transfer tax form only when both
the state and local amounts and a rerecording or recording fee have
been tendered.
[Ord. A-4-9-1987, 4/9/1987, § 13]
Every document lodged with or presented to the Recorder 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 2. A copy of the Pennsylvania realty transfer tax statement of value may be submitted for this purpose. 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 full and complete value thereof or the reason, if any, why such document is not subject to tax under this Part 2.
[Ord. A-4-9-1987, 4/9/1987, § 14]
1.
If any part of any underpayment of tax imposed by this Part 2 is
due to fraud, there shall be added to the tax an amount equal to 50%
of the underpayment.
2.
In the case of failure to record a declaration required under this
Part 2 on the date prescribed therefore, 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. A-4-9-1987, 4/9/1987, § 15]
The tax imposed by this Part 2 shall become a lien upon the lands, tenements, or hereditaments, or any interest therein, lying or being situated, wholly or in part, within the boundaries of the Township, which lands, tenements, hereditaments, or interest therein, are described in or conveyed by or transferred by the deed which is the subject of the tax imposed, assessed and levied by this Part 2, said lien to begin at the time when the tax under this Part 2 is due and payable and to continue until discharged by payment, or in accordance with the law, and the Township's Solicitor is authorized to file a municipal or tax claim in the Court of Common Pleas of the appropriate county, in accordance with the provisions of the Municipal Claims and Liens Act of 1923, 53 P.S. § 7101 et seq., its supplements and amendments.
[Ord. A-4-9-1987, 4/9/1987, § 16]
All taxes imposed by this Part 2, together with interest and
penalties prescribed herein, shall be recoverable as other debts of
like character are recovered.
[Ord. A-4-9-1987, 4/9/1987, § 17]
The Recorder is charged with enforcement and collection of the
tax and is empowered to promulgate and enforce reasonable regulations
for enforcement and collection thereof. 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 chapter.
