Township of Falls, PA Construction Impact Tax

The following words and 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:

ASSOCIATION

Any partnership, limited partnership or any other form of unincorporated enterprise owned or conducted by two or more persons.

BUILDING PERMIT

The permit, certificate, document, approval or authorization required by Falls Township for a person to make improvements to real estate, including the installation, assemblage or placement of mobile homes, modular units or prefabricated units on residential sites.

BOARD

The Falls Township Board of Supervisors.

COMMERCIAL UNIT

A group of rooms within a structure separate and independent from other room groups within the same structure, whether or not one or more facilities are shared by the occupants of other room groups, which is used for commercial purposes.

CONSTRUCT

Any activity by a person in connection with the building, erection, assembling, fabrication, placing or affixing an improvement to real estate, including the installation, assemblage or placement of mobile homes, modular units or prefabricated units on residential sites.

CONVERT

Any activity whereby an improvement to real estate not heretofore used as a residence is changed to a residence or whereby the number of residential units within a residence are increased in number. Also, any activity whereby an improvement to real estate not heretofore used for a commercial or industrial purpose is changed to a commercial or industrial use or whereby the number of commercial or industrial units within a commercial or industrial use are increased in number.

CORPORATION

A corporation or joint-stock association, organization under the law of this commonwealth, the United States or any other state, territory or foreign country or dependency, including but not limited to banking institutions.

GROSS FLOOR AREA

Total floor area in commercial and industrial units to include basements, mezzanine, garages, porches, etc., as measured from outside walls or from the center of an interior party wall, as the case may be.

INDUSTRIAL UNIT

A group of rooms within a structure, separate and independent from other room groups within the same structure, whether or not one or more facilities are shared by the occupants of other room groups, which is used for industrial purposes.

MOBILE HOME

A transportle single-family dwelling, also known as an independent trailer coach, used for nontransit residential purposes, which will be connected to a piped water supply, sewerage facilities and electrical services in a mobile home park.

MULTI-FAMILY RESIDENCE

A residence consisting of more than one residential unit including semidetached houses, row houses, townhouses, condominiums, apartment houses and the like.

MUNICIPALITY

Falls Township.

PERSON

Every natural person, association, corporation, partnership, condominium association or cooperative. Whenever used in any clause prescribing or imposing a penalty, the term "person" as applied to associations or cooperatives shall mean the partners or members thereof and as applied to corporations, the officers thereof.

PLACE or PLACEMENT

The installation of a completed structure such as a mobile home or modular unit on a parcel of real property or the assemblage on a parcel of real property of sections of a structure that have been constructed off-site and brought to the real property for assemblage.

RESIDENCE

Any improvement to a real estate constructed and intended as a place of residence for one or more persons, including single-family and multifamily residences and mobile homes, but not including accommodations for transient occupancy such as motels, hotels, tourists homes, hospitals and convalescent homes.

RESIDENTIAL UNIT

A group of rooms within a residence for occupancy by one or more persons separate and independant from other room groups within the same residence, whether or not one or more facilities, such as heating, toilet, laundry and the like, are shared by the occupants of two or more room groups.

SINGLE-FAMILY RESIDENCE

A residence consisting of a single residential unit.

TAX

The tax imposed, assessed and levied by this article.

TOWNSHIP

Falls Township.

TREASURER

The Treasurer of Falls Township.

Throughout this article, the singular shall include the plural, and the masculine shall include the feminine and neuter.

§ 198-19 Imposition of tax; liability; rate; date payable.

Residential.

(1)

Every person who applies for a building permit from Falls Township to construct and/or install a residence or to convert an improvement to real estate into a residence within the Township shall pay for and in respect of the privilege of making such application and of the transaction regarding same a tax at the rate set forth in Subsection D(1). The tax provided for by this subsection shall be due and payable at the time of issuance of such permit.

(2)

Where a building permit for the construction and/or installation of a residence or the conversion of an improvement to real estate into a residence was issued before the effective date of this article, and where work thereon is less than 1/2 completed before said effective date, or the mobile home is not yet installed in place and connected to utilities, then in all such cases the person so constructing such residence or converting an improvement to real estate into a residence within the Township shall pay for in respect of the privilege of constructing and or in-stalling a residence or converting an improvement to real estate into a residence and of the transaction regarding same a tax at the rate set forth in Subsection D(1) below. Where such construction and or installation or conversion has commenced but is less than 1/2 completed at the effective date of this article, such tax shall be due on the effective date of this article. For the purposes of this subsection, work on the construction of a residence or a conversion of an improvement to real estate into a residence is less than 1/2 completed where the construction or conversion has not been placed under roof or the mobile home has not been installed in place and connected to utilities.

Commercial and industrial.

(1)

Every person who applies for a building permit from Falls Township to construct a commercial unit or an industrial unit or to convert an improvement to real estate into a commercial unit or industrial unit within the Township shall pay for in respect of the privilege of making such application and of the transaction regarding same a tax at the rate set forth in Subsection D(1) below. The tax provided for by this subsection shall be due and payable at the time of issuance of such permit.

(2)

Where a building permit for the construction of a commercial unit or industrial unit or the conversion of an improvement to real estate into a commercial unit or industrial unit was issued before the effective date of this article and where work thereon is less than 1/2 completed before said effective date, then, in all such cases, the person so constructing such commercial unit or industrial unit or converting an improvement to real estate into a commercial unit or industrial unit within the Township shall pay for in respect of the privilege of constructing a commercial unit or industrial unit or converting an improvement to real estate into a commercial unit or industrial unit and of the transaction regarding same a tax at the rate set forth in Subsection D(2) set below. Where such construction or conversion has commenced but is less than 1/2 completed at the effective date of this article, such tax shall be due on the effective date of this article. For the purposes of this subsection, work on the construction of a commercial unit or industrial unit or the conversion of an improvement on real estate into a commercial unit or industrial unit is less than 1/2 completed where the construction or conversion has not been placed under roof.

Liability. As among the various persons who are involved in the construction or conversion of improvements to real property subject to the tax imposed by this article, the obligation to pay the tax shall be upon the legal owner of the real estate upon which the construction or conversion takes place.

Rate.

(1)

There is hereby imposed a tax upon the privileges and transactions specified in Subsection A above at the following rates:

(a)

For each family residence: $500.

(b)

For each multifamily residential unit: $300.

(c)

For each mobile home residence: $300.

(2)

There is hereby imposed a tax upon the privileges and transactions specified in Subsection B above at the rate of $0.30 for each square foot of gross floor area for each commercial or industrial unit to be constructed or to be added by conversion, with a minimum of $400 per unit and a maximum of $2,000 per unit.

(3)

The above rates shall be reduced by 1/3 for any residence, commercial unit or industrial unit for which a building permit has been obtained prior to the enactment of this article.

Certificate of occupancy. No certificate of occupancy shall be issued for any unit to be constructed or to be added by conversion until such time as the tax imposed by this article has been collected.

Date payable. The tax imposed by Subsections A(2) and B(2) above shall be payable within 60 days after the effective date of this article or upon issuance of a certificate of occupancy, whichever shall occur first, at which time if same is not paid the provisions of §§ 198-21 and 198-22 of this article shall be applicable.

§ 198-20 Collection and disposition.

The Manager of the Township shall be and hereby is appointed the collecting agent for the collection of the tax.

The payment of the tax shall be evidenced by a receipt setting forth the date and amount of payment, the name of the payee, the location of the real property for which the tax is paid, the tax parcel number, the number of units, the building permit number, the gross floor area for commercial and industrial units and the signature of the collecting agent.

The collecting agent shall submit a written report to the Treasurer on or before the tenth day of each month setting forth the total amount of tax collected during the preceding month and forward with such report a check for the amount of tax collected during such period.

The collecting agent is authorized and empowered to prescribe, adopt and promulgate rules, regulation and forms relating to any matter or thing pertaining to the administration and enforcement of this article and the collection of the tax, interest and penalties hereby imposed and may appoint assistants to collect the tax and administer this article, subject to the approval of the Board of Supervisors.

§ 198-21 Interest on unpaid taxes.

All taxes imposed by this article not paid when due shall bear interest from the due date at the rate of 1 1/2% per month until paid.

§ 198-22 Violations and penalties.

A penalty of 10% is hereby imposed upon all taxes which are unpaid more than 30 days after they are due and payable in accordance with the provisions of this article. Any penalties imposed pursuant to the terms of this section shall be a penalty upon the entire unpaid balance which shall include the tax plus any accumulated interest to date.

§ 198-23 Recovering of taxes and penalties.

All taxes imposed by this article, together with interest from due date and the penalty thereon, may be recovered as other debts of like character are now by law recoverable.

§ 198-24 Unpaid tax to become lien.

The tax, interest and penalty imposed by this article shall become a lien upon the real estate upon which there is a construction or conversion subject to the tax imposed by this article, said lien to begin at the time when the tax is due and payable, and continue until the discharge by payment or in accordance with law; and the Solicitor of the Township is authorized to file a tax claim for said tax in accordance with the provisions of the Municipal Lien Act of 1923, as amended and supplemented.

§ 198-25 Prohibitions.

It shall be unlawful for any person to:

(1)

Obtain any building permit or commence or complete the construction and/or installation or conversion of any residence, commercial unit or industrial unit without first having paid the tax imposed by this article; or

(2)

Obtain a certificate of occupancy without first having paid the tax imposed by this article; or

(3)

Fail, neglect or refuse to comply with or violate the rules and regulations prescribed, adopted and promulgated under the provisions of this article.

Any person convicted before a District Justice of violating any of the provisions of this section shall be liable to a fine not exceeding $300 for each and every offense and upon default in the payment of same shall be subject to 30 days' imprisonment, provided that the default in payment is not due to indigence or lack of sufficient assets. The payment of such fine or the serving of such imprisonment shall not relieve the person liable for such tax to pay such tax, interest and penalties. Each day that an offense continues shall constitute a separate violation of this section.