[Adopted 1-5-1987 by Ord. No. 3]
This article shall be known as the "Realty Transfer
Tax Ordinance of Richland Township, Cambria County, Pennsylvania."
A realty transfer tax for general revenue purposes
is hereby imposed upon the transfer of real estate or any interest
in real estate situated within Richland Township, Cambria County,
regardless of where the documents making the transfer are made, executed
or delivered, or where the actual settlements on such transfer took
place as authorized by Article XI-D, Local Real Estate Transfer Tax,
72 P.S. § 8101-D et seq.
As used in this article, the words and phrases
defined in 72 P.S. § 8101-C shall have the meanings ascribed
to them in that section.
A.
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.
B.
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, amount of the tax
and the signature of the collecting agent shall be set forth.
C.
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. 1257, 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 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 township; provided, however, that the
township and any other political subdivision 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.
D.
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 (P.L.
207, No. 153) (53 P.S. § 7101 et seq.), 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 (P.L.
343, No. 176) (71 P.S. § 806), 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 3-5-2007 by Ord. No. 309]
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 article. The exemption
of such governmental bodies shall not, however, relieve any other
party to a transaction from liability for the tax.
A.
The tax imposed by § 220-63 of this article 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 fine adjustments, provided that
said reconveyance is made within one year from the date of condemnation.
(2)
A document which the township 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 sheriff 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 of 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.
(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 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)
Transfers between principal, agent or straw
party.
(b)
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.
(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 or authority to a grantee of property conveyed by the grantee
to that agency or authority as security for a debt or 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:
(a)
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
(b)
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; or
a transfer from such a conservancy to the United States, commonwealth
or to any of its instrumentalities, agencies or political subdivisions.[1]
(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.
(22)
A transaction wherein the tax due is $1 or less.
(23)
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.
Except as otherwise provided in § 220-65 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 article, corporations and associations are entities separate from their members, partners, stockholders or shareholders.
A.
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.
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 article.
C.
A family farm partnership is an acquired company when,
because of voluntary or involuntary dissolution, it ceases to be a
family farm partnership or when, because of transfer of partnership
interests 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 partnership under this article.[1]
D.
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.
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
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 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 carry-over credit shall be allowed.
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.
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.
A.
The Recorder of Deeds shall be the collection agent
for the local realty transfer tax; provided, however, that if the
correct amount of tax is not paid by the last date prescribed for
timely payment, the Township, 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.
[Amended 3-5-2007 by Ord. No. 309]
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 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.
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 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 an 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.
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.
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, 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
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. The Township Solicitor is authorized to
file a municipal or tax claim in the Court of Common Pleas of Cambria
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.
All taxes imposed by this article, together
with interest and penalties prescribed herein, shall be recoverable
as other debts of like character are recovered.
The Treasurer of the township is charged with
the enforcement and collection of tax and is empowered to promulgate
and enforce reasonable regulations for enforcement and collection
of the tax. 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 article.
[Added 10-10-2011 by Ord. No. 321]
A.
This section is enacted pursuant to the authority granted by the
Local Tax Enabling Act, P.L. 1257, known as Act No. 511 of 1965, effective
January 1, 1966, as thereafter amended through in Act 166 of 2002
and Act No. 32 of 2008, 53 P.S. § 6924.101 et seq. (known
as and herein referred to as the "LTEA"). The provisions contained
herein are made for the purpose of amending and supplementing the
Richland Township Ord. No. 288, adopted on May 17, 2004.
B.
Incorporation by reference. The Supervisors hereby adopt by reference the LTEA and the amended provisions of Act 32 (53 P.S. § 6924.101 through 53 P.S. § 6924.901) and its definitions, duties, directives, rules, regulations, powers and penalties as if the same had been set forth herein. Amendments pursuant to Act 32 include but are not limited to the following: amendments to the definitions contained in Richland Township Code § 220-78 insofar as they do not include or are inconsistent with the definitions contained in 53 P.S. § 6924.501; amendments to the Richland Township Code § 220-82, Powers and duties of Officer, insofar as it is inconsistent with 53 P.S. § 6924.509; and amendments to Richland Township Code § 220-85, Fines and penalties, insofar as it is inconsistent with 53 P.S. § 6924.509(j) 1-4. As set forth above, it is the intention of the Supervisors to incorporate the provisions of Act 32 of 2008 in the Richland Township Code, and, to the extent any provisions of the Richland Township Code are inconsistent with the language of Act 32 the language of Act 32, shall control.
C.
Imposition of tax. The rate of 1% on each dollar is hereby reimposed
on all earned income and net profits, as defined by Act 32, earned
by residents of the Richland Township and on all earned income and
net profits earned by nonresidents of the Township of Richland employed
in or receiving work assignments within the Township of Richland.
All changes shall remain in effect on a calendar year basis without
annual reenactment unless the rate of tax is subsequently changed.
D.
Administrative: powers and duties of Officer. The collection and
administration of the tax provided for in this section shall be performed
by the Tax Officer appointed by the Cambria County Tax Collection
Committee ("CCTCC"). Said Tax Officer shall receive such compensation
for his services and expenses as determined from time to time by the
CCTCC. Such Tax Officer shall have the powers and duties as provided
for by Act 32 and the Local Tax Enabling Act.
E.
Severability. Should any section, subsection, sentence, clause or
phrase of this section be declared invalid by a Court of competent
jurisdiction, such decision shall not affect the validity of the section
in its entirety or of any part thereof other than that part declared
to be invalid.
F.
When effective. This section shall be effective January 1, 2012.
It is the intention of the governing body of Richland Township that
this section shall provide procedural modification only to the previously
adopted Earned Income Tax Ordinance, and no gap as to imposition of
the tax set forth herein should be inferred.
