[Adopted 12-1-1986 by Ord. No. 71 (Ch.
104, Art. I, of the 1987 Code)]
This article shall be known as the "Realty Transfer
Tax of Girard Township."
A realty transfer tax for general revenue purposes
is hereby imposed upon the transfer of real estate or interest in
real estate situated within the Girard Township, 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 said 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 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.,[1] 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 Girard 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 1/2
rate shall become effective without any action on the part of Girard
Township; provided, however, that Girard 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.
[1]
Editor's Note: See now 53 P.S. § 6924.101 et seq.
D.
If for any reason the tax is not paid when due, interest
at the rate in effect at the time the tax is due shall be added and
collected.
The United States, the commonwealth or any of
their instrumentalities, agencies or political subdivisions shall
be exempt from payment of 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 § 180-4 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 which Girard 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 as 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 of division in kind for no or nominal actual
consideration of property passed by testate or intestate succession
and held by covenants; 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 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 decendent'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 that are entitled to receive
the property or proceeds from the sale of the property under the trust,
whether or not such beneficiaries are contingent or specifically named.
A trust clause which identifies the contingent beneficiaries by reference
to the heirs of the trust settlor as determined by the laws of the
intestate succession shall not disqualify a transfer from the exclusion
provided by this clause. 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.[1]
(9)
A transfer for no or nominal actual consideration to a trustee of
a living trust from the settlor of the living trust. No such exemption
shall be granted unless the Recorder of Deeds is presented with a
copy of the living trust instrument.[2]
(10)
A transfer for no or nominal actual consideration
from a trustee of an ordinary trust to a specifically named beneficiary
that is entitled to receive the property under the recorded trust
instrument or to a contingent beneficiary where the transfer of the
same property would be exempt if the transfer was made by the grantor
of the property into the trust to that beneficiary. However, any transfer
of real estate from a living trust during the settlor's lifetime shall
be considered for the purposes of this article as if such transfer
were made directly from the settlor to the grantee.[3]
(11)
A transfer for no or nominal actual consideration from a trustee
of a living trust after the death of the settlor of the trust or from
a trustee of a trust created pursuant to the will of a decedent to
a beneficiary to whom the property is devised or bequeathed.[4]
(13)
A transfer for no or nominal actual consideration
from a trustee to a successor trustee.
(14)
A transfer for no or nominal actual consideration
between principal and agent or straw party or 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 claim.
(15)
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.
(16)
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.
(17)
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.
(18)
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 the
agency or authority has the full ownership interest in the real estate
transferred.
(19)
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.
(20)
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.
(21)
A transfer to a conservancy which possesses a tax
exempt status pursuant to Section 501(c)(3) of the Internal Revenue
Code of 1954, [68 A Stat. 3, 26 U.S.C. § 501(c)(3)] and
which has as it 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, the commonwealth
or to any of their instrumentalities, agencies or political subdivisions;
or any transfer from such a conservancy where the real estate is encumbered
by a perpetual agricultural conservation easement as defined by the
act of June 30, 1981 (P.L. 128, No. 43), known as the "Agricultural
Area Security Law," and such conservancy has owned the real estate
for at least two years immediately prior to the transfer.[6]
(22)
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.
(25)
A transaction wherein the tax due is $1 or less.
(26)
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 § 180-6, 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 requirement
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 with 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 or tax due, no refund
or carryover 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.
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 Girard Township based on a redetermination of
the amount of tax due by the Commonwealth of Pennsylvania of the Pennsylvania
realty transfer tax, without compensation from Girard Township.
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 Girard 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
has been tendered.
E.
If additional realty transfer tax is determined to
be due to the commonwealth, the Recorder of Deeds for Erie County
shall collect a like amount for Girard Township, but without interest
and penalty; if a refund is determined to be due by the commonwealth,
the Recorder of Deeds for Erie County shall refund a like amount,
without interest, and charge said refund to Girard Township on the
monthly report for the month in which the refund is made.
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 section 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.
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 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 Girard 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 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 Erie 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 Secretary/Treasurer of Girard Township is
charged with 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.