This article shall be known as the "Realty Transfer
Tax Ordinance of 1987 of the Borough of Silverdale."
A realty transfer tax for general revenue purposes
imposed upon the transfer of real estate or an interest in real estate
situated within the Borough, regardless of where the documents making
the transfer are made, executed or delivered or where the actual settlement
on such transfer took place, is authorized by Article XI-D, Local
Real Estate Transfer Tax, of the Tax Reform Code of 1971. Pursuant to Section 1101-D of the Tax Reform Code of 1971,
as enacted by Act 1986-77, the Borough is also authorized to impose
a real estate transfer tax upon all such classes or types of transactions,
in addition to those subject to tax under Article XI-C of the Tax
Reform Code of 1971, as the Borough taxed before July 2, 1986, under
provisions of the Local Tax Enabling Act. The Borough hereby states
its intention that all such additional classes or types of transactions
shall continue to be subject to the real estate transfer tax imposed
by the Real Estate Transfer Tax Ordinance of the Borough of Silverdale
enacted by Ordinance 83, January 3, 1966, and amended and reenacted
by Ordinance 128, August 15, 1977. If the Tax Reform Code of 1971 or the Local Tax Enabling
Act, or both, are amended after the date of the enactment of this
article, the Borough hereby states its intention that its transfer
tax be imposed upon the broadest class of transactions involving real
estate, or an interest in real estate, as the Borough is authorized
to levy under applicable state law or home rule charter.
As used in this article, the following terms
shall have the meanings indicated:
ASSOCIATION
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.
BOROUGH
The Borough of Silverdale, Bucks County, Pennsylvania.
CORPORATION
A corporation, joint-stock association, business trust, or
banking institution which is organized under the laws of this commonwealth,
the United States, or any other state, territory, foreign country
or dependency.
DOCUMENT
Any deed, instrument or writing which conveys, transfers, demises, vests, confirms or evidences any transfer or demise 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. "Document" shall also include a declaration of acquisition required to be presented for recording under §
303-38 of this article.
FAMILY FARM CORPORATION
A corporation of which at least 70% 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:
A.
Recreational activities, such as but not limited
to hunting, fishing, camping, skiing, show competition or racing;
B.
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;
D.
Stockyard and slaughterhouse operations; or
E.
Manufacturing or processing operations of any
kind.
LOCAL TAX ENABLING ACT
The Pennsylvania Local Tax Enabling Act of 1965, P.L. 1257,
No. 511, December 31, 1965, as amended from time to time, 53 P.S.
§§ 6901-6924.
MEMBERS OF THE SAME FAMILY
Any individual, such individual's brothers and sisters, the
brothers and sisters of such individual's parents and grandparents,
the ancestors and lineal descendants 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.
PERSON
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.
REAL ESTATE
A.
All lands, tenements or hereditaments within
this Borough, including, without limitation, 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.
C.
A tenant-stockholder's interest in a cooperative
housing corporation, trust or association under a proprietary lease
or occupancy agreement.
REAL ESTATE COMPANY
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:
A.
Derives 60% or more of its annual gross receipts
from the ownership or disposition of real estate; or
B.
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.
TAX REFORM CODE OF 1971
The Pennsylvania Tax Reform Code of 1971, P.L. 6, No. 2,
March 4, 1971, as amended from time to time, 72 P.S. §§ 7101-10004.
TITLE TO REAL ESTATE
A.
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, without limitation, an estate
in fee simple, life estate, or perpetual leasehold; or
B.
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 approximately those of an estate in
fee simple, life estate or perpetual leasehold, including, without
limitation, 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.
TRANSACTION
The making, executing, delivering, accepting, or presenting
for recording of a document.
VALUE
A.
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;
B.
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 factor developed by the Pennsylvania Department
of Revenue for Pennsylvania realty transfer tax base calculations;
C.
In the case of an easement or other interest in real estate, the value of which is not determinable under Subsection
A or
B of this definition, the actual monetary worth of such interest; or
D.
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 of a related corporation, association or partnership and
the grantee existing before or effective with the transfer.
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.
Except as otherwise provided in §
303-36, 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.
In determining the terms 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. 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.
Every document lodged with or presented to the
Recorder 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 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.
The tax imposed by this article shall become
a lien upon the lands, tenements, or hereditaments, or any interest
therein, lying or being situated, wholly or in part, within the boundaries
of the Borough, which lands, tenements, hereditaments, or interest
therein are the subject of a transfer taxable under 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 Bucks 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.
[Amended 12-15-2008 by Ord. No. 288]
The designee of the Borough is charged with
enforcement and collection of the tax and is empowered to promulgate
and enforce reasonable regulations for enforcement and collection
of the tax. The regulations which have been or will be promulgated
by the Pennsylvania Department of Revenue under Article XI-C of the
Tax Reform Code of 1971 are incorporated into and made a part of this
article.
[Amended 12-15-2008 by Ord. No. 288]
A. This article shall be effective on the earliest date
permitted by law.
B. The provisions of Ordinance 83, January 3, 1966, as
amended and reenacted by Ordinance 128, August 15, 1977, are repealed only to the extent expressly inconsistent
with the terms hereof and otherwise shall remain in full force and
effect.