[Adopted 1-20-1987 by Ord. No. 75]
A.
Pursuant to the authority contained in the Local Tax
Enabling Act of December 31, 1965, P.L. 1257, a tax for the purpose
of providing revenue for general Township purposes is hereby levied,
assessed and imposed upon the transfer of real property or an interest
in real property within the limits of East Goshen Township, regardless
of where the instruments making the transfers are made, executed or
delivered or where the actual settlements on the transfer take place,
at the rate of 1% of the amount of the value of said real property
or interest therein as herein defined.
B.
This article shall be known and may be cited as the
"East Goshen Township Realty Transfer Tax Ordinance."
The following words, when used in this article,
shall have the meanings ascribed to them in this section.
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 the Commonwealth
of Pennsylvania, the United States or any other state, territory,
foreign country or dependency.
Any deed, instrument or writing which conveys, transfers, demises, vests, confirms or evidences any transfer or device 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. A "document" shall also include a declaration of acquisition required to be presented for recording pursuant to § 211-17C hereof.
A corporation of which at least 75% of its assets are devoted
to the business of agriculture and at least 75% of each class of stock
of the corporation is continuously owned by members of the same family.
The business of agriculture shall not be deemed to include:
Recreational activities, including but not limited
to hunting, fishing, camping, skiing, show competition or racing.
Raising, breeding or training of game animals,
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.
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 or agriculture, it fails to meet the minimum requirements
of a family farm corporation under this article.
A partnership of which at least 75% of its assets are
devoted to the business of agriculture and at least 75% of the interests
in the partnership are continuously owned by members of the same family.
The business of agriculture shall not be deemed to include
[Added 12-1-1998 by Ord. No. 129]
Recreational activities, including 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 decedents 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.
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.
Any lands, tenements or hereditaments within
the Commonwealth of Pennsylvania, including but not limited to 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.
A condominium unit.
A tenant-stockholder's interest in a cooperative
housing corporation, trust or association under a proprietary lease
or occupancy agreement.
Real property.
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 but not limited to an estate
in fee simple, life estate or perpetual leasehold.
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 but not
limited to 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; provided, however, that 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 making, executing, delivering, accepting or presenting
for recording of a document.
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;
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 of assessed values to market values of the taxing
district as established by the State Tax Equalization Board or a commensurate
part of the assessment where the assessment includes other real estate;
The actual consideration for or actual monetary
worth of 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 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.
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 or for and in respect to the vellum parchment
or paper upon which such document is written or printed, a tax payable
to East Goshen Township, Chester County, Pennsylvania, 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.
The United States and the Commonwealth of Pennsylvania
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 this article shall not be imposed
upon the following transactions:
(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 which the commonwealth 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 an 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 cotenants; however, if any of the parties takes 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 a 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 or successor trustee.
(11)
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 or 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 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:
(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.
(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 § 501(c) 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 their instrumentalities, agencies or political subdivisions.
[Amended 12-1-1998 by Ord. No. 129]
(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 of real estate devoted to the business
of agriculture to a family farm partnership by a member of the same
family, which family directly owns at least 75% of the interests in
the partnership.
[Added 12-1-1998 by Ord. No. 129]
(21)
A transfer between members of the same family
of an ownership interest in a real estate company, family farm corporation
or family farm partnership which owns real estate.
[Amended 12-1-1998 by Ord. No. 129]
(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. 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 excluded in § 211-15 hereof, documents which make, confirm or evidence any transfer or device 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.
Real estate company is an acquired company upon a
change in the ownership interest in the company, however effected,
if the change:
B.
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 act.
[Added 12-1-1998 by Ord. No. 129]
C.
Within 30 days after becoming an acquired company,
the company shall present for recording a declaration of acquisition
with the Recorder of Deeds of Chester County for the purpose of noting
thereon or the affixation thereto of such documentary stamps or other
evidence of the payment of this tax as required by law. Such declaration
shall set forth the value of the real estate holdings of the acquired
company in Chester County.
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 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
demised by the grantor, a credit for the amount of the tax paid at
the time of the device shall be given to 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 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.
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 cost
of the sale and of the writ upon which the sale is made, and the sheriff
or other officer conducting such 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.
Where real estate or an interest in real estate
lying partly within the boundaries of East Goshen Township and partly
without said boundaries is transferred the tax herein imposed shall
be calculated upon such portion of the value as shall be represented
by the portion of the real estate or interest therein lying within
the boundaries of the Township as determined by the realty transfer
tax statement of value filed with the Recorder of Deeds or, if no
such filing is required, by affidavit of the transferor or as separately
stated in the document of transfer; provided, however, that such value
shall in no event be less than the highest assessed valuation for
local tax purposes placed upon the real estate or the interest in
the real estate in the assessment of the property within the Township.
Every document lodged with or presented to the
Recorder of Deeds of Chester County for recording shall set forth
therein and as a part of such document the true, full and complete
value thereof. When the full, complete and actual consideration for
the transfer which is subject to the tax is not set forth in the document,
the person liable for the tax shall, contemporaneously with the filing
of the document, file with the Recorder of Deeds a realty transfer
tax statement of value identical to that promulgated by the Department
of Revenue of the Commonwealth of Pennsylvania or in the instance
of an acquired company a realty transfer tax declaration of acquisition
identical to that promulgated by the Department of Revenue of the
Commonwealth of Pennsylvania. The provisions of this section shall
not apply to any excludable real estate transfers which are exempt
from taxation based on family relationship.
The tax imposed hereby, including any amount payable to the Township based on a redetermination of the amount of tax due by the Commonwealth of Pennsylvania pursuant to § 211-24 hereof, shall be collected by the Recorder of Deeds of Chester County who shall act as agent for the Township in the collection of the transfer tax as provided in 16 P.S. § 11011-6, as amended. The tax thus collected shall be payable by the Recorder to the Treasurer of East Goshen Township at least monthly or at such other intervals as the Township and the Recorder of Deeds shall mutually determine.
The payment of the tax imposed by this article
when received by the Recorder of Deeds shall be evidenced by the affixing
of a documentary stamp or stamps or other evidence of payment as approved
by the Pennsylvania Department of Revenue.
A.
In the event that a determination or redetermination
of transfer tax due is made by the Pennsylvania Department of Revenue
pursuant to § 1111-C of Act 1986-77, 72 P.S. § 8111-C,
such determination or redetermination shall be deemed to have been
also made by the Secretary of East Goshen Township, and there shall
be due and owing to the Township as additional transfer tax the amount
determined or redetermined by the Department to be due the Commonwealth
of Pennsylvania.
B.
Upon a redetermination of the amount of realty transfer
tax due by the Commonwealth of Pennsylvania, the Recorder shall rerecord
the document only when the transfer tax imposed by this article has
been paid.
The Secretary of East Goshen Township is hereby
charged with the enforcement of the provisions of this article and
is hereby authorized and empowered to prescribe, adopt and enforce
rules and regulations relating to the registration and notation of
transactions, the collection of transfer taxes, interest and penalties
due hereunder, the prosecution of violations hereunder and any other
matter pertaining to the administration and enforcement of the provisions
of this article; provided, however, that the regulations which have
been promulgated by the Pennsylvania Department of Revenue under 72
P.S. § 8101-C et seq. as the same are from time to time
amended are incorporated into and made a part of this article and
shall be deemed to have been adopted by the Township Secretary.
A.
If for any reason the transfer tax is not paid when
due, interest at the rate of 6% per annum on the amount of said tax
and an additional penalty of 1/2 of 1% of the amount of the unpaid
tax for each month or fraction thereof during which the tax remains
unpaid shall be added and collected. Where suit is brought for the
recovery of any such tax, the person liable therefor shall, in addition,
be liable for the cost of collection and the interest and penalties
herein imposed.
B.
The transfer tax when due and unpaid, together with
all interest and penalties thereon, shall be a lien in favor of the
Township on the real estate or interest in the real estate which is
described in the document on which the tax is imposed and upon any
other property, both real and personal, of the person failing to pay
the tax due, after said lien has been entered and docketed of record
by the Prothonotary of Chester County in accordance with the municipal
claims and tax liens law.
C.
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.
D.
The tax imposed by this article shall be collected
and enforced in accordance with the Local Tax Enabling Act. The Township
Solicitor is authorized to pursue any and all remedies available by
law for collection of the tax and all such remedies shall be cumulative
and not exclusive.
A.
It shall be unlawful for any person to:
(1)
Accept or present for recording or cause to be accepted
or presented for recording any document without the full amount of
the tax thereon being duly paid; or
(2)
Fail, neglect or refuse to comply with or violate
the provisions of this article or the rules and regulations prescribed,
adopted and promulgated by the Secretary under the provisions of this
article.
B.
Any person who violates any of the provisions of this
section shall be guilty of a summary offense and shall be liable,
upon conviction thereof, to a fine not exceeding $300, together with
the cost of prosecution, and in default of payment of such fine and
cost shall be liable to a term of imprisonment in the county jail
for a period not to exceed 30 days.
[Amended 12-1-1998 by Ord. No. 129]
