[Adopted 3-14-1955 by Ord. No. 341, approved 3-14-1955; last reenacted 12-11-1967]
This article shall be known and may be cited as the "Deed Transfer Tax Ordinance."
[Amended 12-7-1987 by Ord. No. 954, approved 12-7-1987]
The following words or phrases, when used in this article, shall have the meanings ascribed to them in this section, except in those instances where the context clearly indicates a different meaning:
- A partnership, limited partnership or any other form of unincorporated enterprise owned by two or more persons.
- Any "deed," instrument or writing whereby any lands, tenements, hereditaments or any interest herein, including leasehold interests as defined in this article, shall be granted, bargained, sold or otherwise conveyed to a grantee, purchaser or any other person under such circumstances as to be subjected to the tax imposed by this article.
- LEASEHOLD INTEREST
- Only those leaseholds where the minimum term or years, exclusive of options to renew, shall exceed 30 years, but leasehold shall not include the ordinary lease from week to week, month to month or year to year.
- Every natural person, copartnership, association or corporation. Whenever used in any clause prescribing or imposing a penalty, or both, the term "person" or "personnel," as to copartnerships or associations, shall mean the partners or members thereof and, as applied to corporations, the officers thereof.
- REAL ESTATE TRANSFER TAX COLLECTOR
- The person designated by the Council of the Borough of Middletown to enforce and administer this article.
- The transfer or change of possession of real property from the grantor to the grantee by the surrender of possession by the grantor or his agent and the entry or constructive entry into possession by the grantee or his agent, which transfer or change of possession takes place at the sites of the real property involved, regardless of where the deed is prepared, executed, delivered, accepted or reported or where settlement is consummated.
- In case of any deed granting, bargaining, selling or otherwise conveying any land, tenement or hereditament or interest therein, including leases, the amount of the actual consideration therefor, including all liens, mortgages or other encumbrances thereon. "Actual consideration" shall be construed to mean the cash paid for the execution and delivery of the deed, together with the face value of all liens, judgments, mortgages or other encumbrances secured on the real estate conveyed or transferred by said deed, together with any other evidence of indebtedness or promises, either oral or written, given by or on behalf of the grantee to the grantor or anyone in his behalf as full or part consideration for the deed of conveyance, provided that, where such deeds shall set forth a smaller or nominal consideration, the value thereof shall be determined from the price set forth in or actual consideration for the contract or agreement of sale, which, in any event, shall not be less than the amount of the highest assessment of such lands, tenements or hereditaments for local tax purposes.
[Amended 4-6-1987 by Ord. No. 943, approved 4-6-1987; 12-7-1987 by Ord. No. 954, approved 12-7-1987]
Under the authority of the Local Tax Enabling Act and the Tax Reform Code, from and after the effective date of this article, the grantor, grantors or sellers of any real estate, land, hereditaments or any interest therein, including sellers of any real estate, land, hereditaments or any interest therein, including leasehold interest as defined in this article, or the grantor, grantors, sellers or transferors of real property or an interest in real property (regardless of where the instruments making the transactions are made, executed or delivered or where the actual settlements on the transfer take place), to the extent that such transactions are subject to the tax imposed by Article XI-C of the Tax Reform Code, situated wholly or in part within the Borough of Middletown, shall pay a tax upon the privilege of transferring said real property or interest therein at the rate of 1% of the value of the real estate, land, hereditaments or interest therein which is conveyed or transferred, provided that, where any lands, hereditaments or interest therein is situated partly within and partly without the boundaries of the Borough of Middletown, the tax imposed by this section shall be calculated on the value of that portion of such lands and tenements lying within the Borough limits.
This tax shall be due and payable and shall be paid by the grantor or grantors named in the deed at the time of the making and executing of said deed; provided, however, that it shall be the duty of the grantee or grantees named in said deed to ascertain that said tax has been paid by the grantor or grantors before accepting delivery of said deed, and it is further provided that if said grantee or grantees accept delivery of a deed which does not reflect, by official stamp or writing, that the tax has been paid, then the grantee or grantees shall become jointly liable with the grantor or grantors for the payment of said tax.
Notwithstanding any other provisions of this article, the tax imposed hereby shall not apply where the transfer involved is a gift from one person to another or where either the grantee or grantor is a corporation, association, organization or foundation organized exclusively for charitable, religious or educational purposes and from which no income inures to the benefit of any private shareholder, member or individual or where such transfer is exempt by the Local Tax Enabling Act or regulations adopted pursuant thereto.
[Amended 4-6-1987 by Ord. No. 943, approved 4-6-1987]
Editor's Note: See 53 P.S. § 6924.101 et seq.
The payment of the tax imposed by this article shall be evidenced by an official stamp and/or writing affixed to every deed, indicating the amount of the tax paid, the date paid and the signature of the Real Estate Transfer Tax Collector.
The Real Estate Transfer Tax Collector may prescribe, prepare and furnish adhesive stamps of such denominations and quantities as may be necessary for the payment of the tax imposed and assessed by this article.
The Real Estate Transfer Tax Collector is hereby charged with the enforcement of the provisions of this article and is hereby authorized to prescribe, adopt, promulgate and enforce rules and regulations relating to:
The method and means to be used in the affixing or canceling of stamps in substitution for or in addition to the method and means provided in this article.
The denominations and sale of stamps.
Any other matter or thing pertaining to the administration and enforcement of the provisions of this article.
Every deed upon which a tax is imposed by this article and which does not reflect the actual value of the land, tenements or hereditaments or interest therein granted, bargained, sold or conveyed by said deed shall be accompanied by an affidavit executed by a responsible person connected with the transaction showing such connection and setting forth the true, full, complete and actual value thereof.
It shall be unlawful for any person to:
Fail to pay the tax imposed by this article.
Make use of any stamps to denote payment of any tax imposed by this article without canceling such stamp as required by this article or as prescribed by the Real Estate Transfer Tax Collector.
Fail, neglect or refuse to comply with, or violate, the rules and regulations adopted and promulgated by the Real Estate Transfer Tax Collector under the provisions of this article.
All taxes imposed by this article not paid when due shall bear interest thereon at the rate of 1/2 of 1% per month until paid.
All taxes imposed by this article, together with interest from the due date, shall be recovered as other debts of like character are recovered.
The tax imposed by this article shall become a lien upon the lands, tenements or hereditaments or any interest therein lying, being and situated, wholly or in part, within the boundaries of the Borough of Middletown, which lands, tenements, hereditaments or interest therein are described in or conveyed or transferred by the deed which is the subject of the tax imposed, assessed and levied by this article, said lien to begin at the time when the tax under this article is due and payable and to continue until discharged by payment or in accordance with law. The Solicitor is authorized to file a municipal or tax claim in the Court of Common Pleas of Dauphin County in accordance with the provisions of the Municipal Lien Act of 1923, its supplements and amendments.
Editor's Note: See 53 P.S. § 7101 et seq.
[Amended 4-6-1987 by Ord. No. 943, approved 4-6-1987; 7-11-1988 by Ord. No. 972, approved 7-11-1988]
Any person violating any of the provisions of this article shall be liable to a penalty not exceeding $600 for each and every offense, and further shall be required to pay the amount of the tax, together with interest, and, upon conviction before the District Justice, shall be sentenced to pay the fine as above stated and, in default of the payment of the fine and the tax due, shall undergo an imprisonment in the Dauphin County Prison for a period of not to exceed 30 days.