[Adopted 10-19-1966 by Ord. No. 1514[1]]
[1]
Editor's Note: This ordinance was reenacted 9-20-1967 by Ord. No. 1535 for the year 1968 and 9-18-1968 by Ord. No. 1564 for the year 1969. [Annual reenactment of taxation ordinances is no longer required pursuant to a 1967 amendment to Section 7 of the Local Tax Enabling (see 53 P.S. § 6907).]
[Amended 1-21-1987 by Ord. No. 3029]
As used in this article, 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 a decedent's estate.
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, foreign country or dependency.
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 a public utility easement. "Document" shall also include a declaration of acquisition required to be presented for recording under § 138-11 of this chapter.
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 half-blood or legal adoption shall be treated as if they were related by whole-blood.
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. 
All lands, tenements or hereditaments within the Township of Lower Merion, 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.
B. 
A condominium unit.
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 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 factor developed by the Pennsylvania Department of Revenue for Pennsylvania realty transfer tax base calculations;
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 or 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 the transfer and not removed thereby or between the grantor, the agent or principal of the grantor of a related corporation, association or partnership and the grantee existing before or effective with the transfer.
[Amended 1-21-1987 by Ord. No. 3029]
A. 
The Township of Lower Merion 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 the rate limitations therein. 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.
[Amended 11-21-2007 by Ord. No. 3831]
B. 
It is the intent of this article 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. 1256, 53 P.S. § 6901 et seq., 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 of Lower Merion 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 one-half rate shall become effective without any action on the part of the Board of Commissioners; provided, however, that the Township of Lower Merion and any other political subdivisions which impose such tax on the same person or transfer may agree that, instead of limiting their 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.
C. 
Any tax imposed under this article 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, 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, as amended, known as the “Fiscal Code,” or the maximum interest rate permitted under the Municipal Claims and Tax Liens Act for tax claims.
[Amended 11-21-2007 by Ord. No. 3831]
[Amended 1-21-1987 by Ord. No. 3029]
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 the 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 article. A copy of the Pennsylvania realty transfer tax statement of value may be submitted for this purpose. The provisions of this subsection 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 article.
The tax hereby imposed shall be paid to the Township Treasurer, and the person liable for the tax shall file with the Township Treasurer, upon payment of the tax, a record of the real estate transfer, setting forth the true, complete and actual value of the real estate involved, the names of the parties, the location of the real estate and such other information as may be required. The report shall be signed by the person liable for the tax or for him by a title insurance company, licensed real estate broker or attorney at law.
[Amended 11-21-2007 by Ord. No. 3831]
The tax imposed under §138-2 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, Lower Merion Township, pursuant to Section 1102-D of the Tax Reform Code of 1971, authorizes and directs the Department of Revenue of the Commonwealth of Pennsylvania to determine, collect and enforce the tax, interest and penalties.
Every document, when lodged with or presented to any recorder of deeds for recording or to the Township Engineer or his agent for registration in accordance with Ordinance No. 475 of the Township requiring the registration of deeds,[1] shall set forth therein and as part of such document the true, full, complete and actual value thereof or shall be accompanied by either a certificate from a title company or 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.
[1]
Editor's Note: See Ch. 119, Real Estate Registry.
[Amended 1-21-1987 by Ord. No. 3029]
The Township Engineer is authorized and directed to refuse to register any document unless the tax imposed under § 138-2 hereof has been paid and unless the payment of the tax is evidenced by the certificate upon the document as required hereby.
[Amended 1-21-1987 by Ord. No. 3029]
The United States, the commonwealth or any of their instrumentalities, agencies or political subdivisions shall be exempt from payment or the tax imposed by this article. The exemption of such governmental bodies shall not, however, relieve any other party to a transaction from liability of the tax.
[Amended 1-21-1987 by Ord. No. 3029]
A. 
The tax imposed by § 138-2 shall not be imposed upon:
(1) 
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 that said reconveyance is made within one year from the date of condemnation.
(2) 
A document in which the Township of Lower Merion is prohibited from taxing under the Constitution or statutes of the United States.
(3) 
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 a Sheriff's sale or Tax Claim Bureau sale.
(4) 
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.
(5) 
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.
(6) 
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.
(7) 
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.
(8) 
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.
(9) 
A transfer for no or nominal actual consideration from a trustee to a beneficiary of an ordinary trust.
(10) 
A transfer for no or nominal actual consideration from trustee to successor trustee.
(11) 
A transfer:
(a) 
For no or nominal actual consideration between principal and agent or straw party; or
(b) 
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 article. 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 subsection.
(12) 
A transfer made pursuant to the statutory merger or consolidation of a corporation or statutory division of a nonprofit corporation, except where the department reasonably determines that the primary intent for such merger, consolidation or division is avoidance of the tax imposed by this article.
(13) 
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.
(14) 
A transfer from a nonprofit industrial development agency of authority to a grantee or 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.
(15) 
A transfer from a nonprofit industrial development agency or authority to a grantee purchasing directly from it, but only if 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 only if the agency or authority has the full ownership interest in the real estate transferred.
(16) 
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.
(17) 
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.
(18) 
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.
(19) 
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.
(20) 
A transfer between members of the same family of an ownership interest in a real estate company or family farm corporation.
(21) 
A transaction wherein the tax due is $1 or less.
(22) 
Leases for the production or extraction of coal, oil, natural gas or minerals and assignments thereof.
B. 
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. 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 article.
[Amended 1-21-1987 by Ord. No. 3029]
Except as otherwise provided in § 138-9, 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 purposes of this article, corporations and associations are entities separate from their members, partners, stockholders or shareholders.
[Amended 1-21-1987 by Ord. No. 3029]
A. 
A real estate company is an acquired company upon a change in the ownership interest in the company, however affected, 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.
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 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 article.
C. 
Within 30 days after becoming an acquired company, the company shall present a declaration of acquisition to 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. A copy of the Pennsylvania realty transfer tax declaration of acquisition may be submitted for this purpose.
[Amended 1-21-1987 by Ord. No. 3029[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 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 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.
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 the tax paid at the time of the sale shall be given to 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 carry-over credit shall be allowed.
[1]
Editor's Note: This ordinance also renumbered former §§ 138-12 and 138-13 as §§ 138-13 and 138-14, respectively, and repealed former § 138-14, Determination of transfer date.
[Added 1-21-1987 by Ord. No. 3029]
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 of calculating the rental charge is established.
[Added 1-21-1987 by Ord. No. 3029]
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.
[Added 1-21-1987 by Ord. No. 3029]
A. 
If any part of any underpayment of tax imposed by this article 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 article 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.
[Added 1-21-1987 by Ord. No. 3029]
The tax imposed by this article shall become a lien upon the lands, tenements or hereditaments, or any interest therein, lying, being situated, wholly or in part, within the boundaries of the Township of Lower Merion, which lands, tenements, hereditaments or interest therein are described in or conveyed by or transferred by the document 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 discharge by payment, or in accordance with the law, and the solicitor is authorized to file a municipal or tax claim in the Court of Common Pleas of Montgomery 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.
[Added 1-21-1987 by Ord. No. 3029]
A. 
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 shall be the collection agent for the local realty transfer tax, including any amount payable to the Township of Lower Merion 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 of Lower Merion.
B. 
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.
C. 
On or before the 10th of each month, the Recorder shall pay over to the Township of Lower Merion 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 two-percent commission shall be paid to the county.
D. 
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.
[Added 11-21-2007 by Ord. No. 3831]
A. 
If any person fails to pay any tax imposed under this article for which that person is liable, the Department of Revenue of the Commonwealth of Pennsylvania is authorized to make a determination of additional tax, penalty and interest due by the person pursuant to regulations applicable to such determinations.
B. 
Any tax that the Department of Revenue determines to be due under this article and that remains unpaid after demand for the same, and all penalties and interest thereon, shall be a lien in favor of the Township upon the property, both real and personal, of the person but only after the lien has been entered and docketed of record by the prothonotary of Montgomery County.
[Added 11-21-2007 by Ord. No. 3831]
A. 
Whenever the amount due upon determination, redetermination or review is less than the amount paid on account thereof, the Township shall refund the difference.
B. 
Where there has been no determination of unpaid tax, application for refund shall be made to the Township in the manner prescribed by the Act of December 31, 1965 (P.L. 1257, No. 511), known as "The Local Tax Enabling Act," or as otherwise provided by law.
It shall be unlawful for any person to:
A. 
Fail to pay the tax imposed by this article.
B. 
Fail to place upon a document the certificate required by this article or make any false statement in such certificate.
C. 
Fail, neglect or refuse to comply with or violate the rules and regulations adopted and promulgated by the Treasurer under the provisions of this article or by the Department of Revenue.
[Amended 11-21-2007 by Ord. No. 3831]
[Amended 9-21-1977 by Ord. No. 1802; 11-21-2007 by Ord. No. 3831]
A. 
Any person violating any of the provisions of this article shall be liable to a fine or penalty not exceeding $600 and, further, shall be required to pay the amount of the tax, together with interest as is otherwise provided for herein, which should have been paid on the document or documents.
B. 
If any part of any underpayment of tax imposed under this article is due to fraud, an amount equal to 50% of the underpayment shall be added to the tax.