[Adopted 12-22-1987 by Ord. No. 3117]
This article shall be known as the "Realty Transfer
Tax."
The following words, when used in this article,
shall have the meanings set forth in this section, except where the
context clearly indicates a contrary or different meaning:
A partnership, limited partnership or other form of unincorporated
enterprise owned or conducted by two or more persons.
The City of Bradford.
The Recorder of Deeds of McKean County, Pennsylvania, shall
collect the tax imposed by this article.
A corporation or joint-stock association organized under
the law of this commonwealth, the United States or any other state,
territory, foreign government or dependency, including but not limited
to banking institutions.
Any deed, instrument or writing whereby any
real property within the City or any interest therein shall be quitclaimed,
granted, bargained, sold, conveyed or otherwise transferred to any
person, but not including a transfer of any interest in real property
when the transfer is by will or mortgage or the intestate laws of
the commonwealth; a transfer by the owner of previously occupied residential
premises when such previously occupied residential premises is taken
in trade by such builder as part of the consideration from the purchaser
of a new, previously unoccupied single-family residential premises;
a transfer between corporations operating housing projects pursuant
to the Housing and Redevelopment Assistance Law[1] and the shareholders thereof; a transfer to or from nonprofit
industrial development agencies; a transfer between husband and wife;
a transfer between persons who were previously husband and wife but
who have since been divorced, provided that such transfer is made
within three months of the date of the granting of the final decree
and the property 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; a transfer between parent and child
or spouse of such child or between parent and trustee for benefit
of a child or the spouse of such child; a transfer between grandparent
and grandchild or spouse of such grandchild; a transfer between brother
and sister or brother and brother or sister and sister or spouse of
such brother or sister; a transfer to a conservancy which possesses
a tax-exempt status pursuant to Section 501(c)(3) of the Internal
Revenue Code and which has as its primary purpose the preservation
of land for historic, recreational, scenic, agricultural or open-space
opportunities; a transfer by and between a principal and straw party
for the purpose of placing a mortgage or ground rent upon the premises;
a correctional deed without consideration; a transfer to the United
States, the Commonwealth of Pennsylvania or any of their instrumentalities,
agencies or political subdivisions by gift, dedication or deed in
lieu of condemnation or deed of confirmation in connection with condemnation
proceedings or reconveyance by the condemning body of 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; leases; a conveyance
to a trustee under a recorded trust agreement for the express purpose
of holding a title in trust as security for a debt contracted at the
time of the conveyance under which the trustee is not the lender and
requiring the trustee to make reconveyance to the grantor-borrower
upon the repayment of the debt; a transfer by a sheriff pursuant to
any sheriff sale instituted by a mortgagee in which the purchaser
at said sheriff sale is the mortgagee who instituted such sale; any
transfer from a mortgagor to a mortgagee, whether pursuant to a foreclosure
or in lieu thereof; any conveyance to a municipality, township, county
or Tax Claim Bureau of tax delinquent properties at sheriff sale;
or any transfer between religious organizations or other bodies or
persons holding title to real estate for a religious organization,
if such real estate is not being or has not been used by such transferor
for commercial purposes.
"Document" shall include any instrument, such
as an installment sale agreement or an assignment of an installment
sale agreement, whereby beneficial ownership of any real property
or interest therein is transferred to any person; provided, however,
that it shall not include a deed conveying real property pursuant
to the terms of an installment sale agreement or an assignment of
an installment sale agreement, if the tax imposed by this article
was paid, as required herein, at the time of making, executing, delivering,
accepting or presenting for recording of the installment sale agreement
or assignment of installment sale agreement.
"Document" shall further include any deed, instrument
or writing whereby any real property within the City or any other
legal or beneficial or other interest therein shall be quitclaimed,
granted, bargained, sold, conveyed or transferred from a shareholder
to a corporation in which the shareholder has or will have an interest,
including a transfer from a parent corporation to a subsidiary. Any
such transfer shall be taxable unless the transfer qualifies under
one of the express exceptions included herein.
Any natural person, association, corporation or entity of
any kind. When used in a provision prescribing a fine or penalty,
the term "person," as applied to association, shall mean the partners
or members thereof and, as applied to a corporation, shall mean the
officers.
The making, executing, delivering, accepting or presenting
for recording of a document.
The amount of actual consideration for the real property
or the interest in real property, including liens or other encumbrances
thereon, ground rents, etc. Where the actual consideration is less
than fair market value or where the document sets forth a small or
nominal consideration or otherwise does not accurately reflect the
fair market value of the real property or interest, including gifts,
"value" shall mean the fair market value. In order to determine whether
the proper amount of tax has been paid, the City shall have the right
to review all documents or records relating to the transfer and to
take any and all steps necessary, including a review or audit, to
determine the fair market value.
[1]
Editor's Note: See 35 P.S. § 1661
et seq.
[Amended 9-11-2007 by Ord. No. 3117.1]
The City of Bradford 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. The tax imposed under this section shall be at the rate of
1% of the value of the real property conveyed or transferred.
[Added 9-11-2007 by Ord. No. 3117.1]
The tax imposed under § 196-52 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");[1] provided that if the correct amount of the tax is not
paid by the last date prescribed for timely payment, the City of Bradford,
pursuant to § 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.
[1]
Editor's Note: See 53 P.S. § 6901
et seq.
The tax imposed herein shall be due and payable
to the collector at the time of making, executing, delivering, accepting
or presenting for recording of a document, whichever occurs first,
as a joint and several liability, by which every person who makes,
executes, delivers or presents for recording such document is held
responsible.
The payment of the tax imposed herein shall
be evidenced by a stamp certificate impressed by the collector on
each document.
Every deed, instrument or writing transferring
any real property or interest therein shall be presented to the collector
at the time when such deed, instrument or writing is to be recorded.
Every such deed, instrument or writing shall have set therein the
true, full and complete value of the real property or interest transferred
or shall be accompanied by an affidavit executed by a responsible
person connected with the transaction indicating the connection and
setting forth the true, full and complete value of the real property
or interest transferred or the reason, if any, why the real estate
transfer is not subject to the tax.
A.
Except as stated in this section, the tax shall not
apply to a transfer within a family from a sole-proprietor family
member to a family farm corporation.
B.
"Family farm corporation" means a Pennsylvania corporation
at least 75% of the assets of which are devoted to the business of
agriculture, which business does not include recreational activities,
such as, but not limited to, hunting, fishing, camping, skiing, etc.;
raising, breeding or training game animals or birds, fish, cats, dogs
or pets or animals intended for use in sports or recreation; raising
animals for fur; stockyard or slaughterhouse operations; or manufacturing
or processing operations of any kind; provided, however, that at least
75% of all the stock of the corporation must be owned by members of
the same family, that is, an individual, his/her brothers and sisters,
the brothers and sisters of the individual's parents and grandparents,
the ancestors and lineal descendants of any of the foregoing and a
spouse of any of the foregoing, together with the individual's own
lineal ancestors or descendants and their spouses. Individuals related
by half-blood or by legal adoption shall be treated as if related
by whole blood.
C.
If the stock of a family farm corporation is transferred
to a person who is not a family member within 10 years from the date
of the conveyance by the sole proprietor family member to a family
farm corporation, the tax imposed herein shall become immediately
due and payable on the original conveyance from the sole proprietor
to the family farm corporation as recapture.
It shall be unlawful for any person to:
A.
Make, execute, deliver, accept or present for recording,
or cause to be made, executed, delivered, accepted or presented for
recording, any document without the full amount of tax thereon being
duly paid; or
B.
Fraudulently affix to any document any impression
of any forged or counterfeited stamp, die-plate or other forged evidence
of payment.
[Added 9-11-2007 by Ord. No. 3117.1]
Any tax imposed under § 196-52 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 § 806 of the Act of April 9, 1929 (P.L. 343, No. 176) (72 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 9-11-2007 by Ord. No. 3117.1]
A.
The repealed provisions of § 196-58 remain effective for documents that become subject to the tax prior to the effective date of Ord. No. 3117.1.
B.
The provisions of Ord. No. 3117.1 shall become effective
on and be applicable to any document made, executed delivered, accepted
or presented for recording on or after September 12, 2007.
