Source: https://ecode360.com/28480991
Timestamp: 2019-04-23 16:17:09+00:00

Document:
§ 884.02 Authority to tax.
§ 884.04 Imposition of tax; interest.
§ 884.05 Exception for governmental bodies.
§ 884.07 Documents relating to associations or corporations.
§ 884.10 Extensions of leases.
§ 884.11 Disposition of proceeds of judicial sales.
§ 884.12 Collection of tax; duties of Recorder of Deeds.
§ 884.13 Statements of value.
§ 884.14 Underpayments: failure to record declarations.
§ 884.15 Unpaid taxes as liens.
§ 884.16 Recoverability of tax.
§ 884.18 Falsification of certificates; compliance with regulations.
§ 884.19 Effect of chapter on pending proceedings.
884.04 Imposition of tax; interest.
884.05 Exception for governmental bodies.
884.07 Documents relating to associations or corporations.
884.11 Disposition of proceeds of judicial sales.
884.12 Collection of tax; duties of Recorder of Deeds.
884.14 Underpayments: failure to record declarations.
884.15 Unpaid taxes as liens.
884.18 Falsification of certificates; compliance with regulations.
884.19 Effect of chapter on pending proceedings.
This chapter shall be known and may be cited as the "Realty Transfer Tax Ordinance of the Township of Upper Providence" or just the "realty transfer tax."
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 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. Sections 8101-D et seq.
ASSOCIATION — Means 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.
CORPORATION — Means a corporation, joint-stock association, business trust or banking institution which is organized under the laws of the Commonwealth, the United States or any other state, territory, foreign country or dependency.
DOCUMENT — Means any deed, instrument or writing which conveys, transfers, demises or vests title to real estate, or 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 until 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" also includes a declaration of acquisition required to be presented for recording under Section 884.08.
MEMBERS OF THE SAME FAMILY — Means any individual, such individual's brothers and sisters, the brothers and sisters of such individual's parents and grandparents, the ancestors and lineal descendents of any of the foregoing, a spouse of any of the foregoing and the estate of any of the foregoing. Individuals related by the half-blood or legal adoption shall be treated as if they were related by the whole-blood.
PERSON — Means every natural person, association or corporation. Whenever used in any clause prescribing and imposing a fine or imprisonment, or both, "person," as applied to associations, includes the responsible members or general partners thereof, and as applied to corporations, the officers thereof.
Any interest in real estate enduring for a fixed period of years, but which interest, 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, a life estate or a 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 — Means the making, executing, delivering, accepting or presenting for recording of a document.
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 or the agent or principal of the grantor of 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, a tax for the benefit of the Township at the rate of 1 1/2% 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 payment of the tax imposed in this chapter shall be evidenced by the affixing of an official stamp or writing by the Recorder of Deeds whereon the date of the payment of the tax, the amount of the tax and the signature of the collecting agent shall be set forth.
If any other political subdivision shall have imposed or hereafter shall impose a tax on the same person or transfer, then the said tax levied by said political subdivision shall be in addition to the tax of the Township hereunder, and the tax imposed hereby for the benefit of the Township shall be 1 1/2% of the value of the real estate as provided hereinabove. Provided that in the event a court of competent jurisdiction shall determine that the rate of tax prescribed hereunder, either considered in isolation or in combination with the taxes imposed by other political subdivisions, exceeds the maximum permitted by law, then it is the intent of this section that the total of all taxes imposed or with respect to the transactions taxable hereunder not exceed the maximum rate permitted by law and during such time as a duplication of taxes exist then the tax levied by the Township shall be at the maximum rate permitted by law.
Any tax imposed under this chapter 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. Sec. 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 under delinquent Commonwealth taxes as provided in Section 806 of the Act of April 9, 1929 (P.L. 343, No. 176) (72 P.S. Sec. 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.
The United States, the Commonwealth and all of their instrumentalities, agencies or political subdivisions shall be exempt from payment of the tax imposed by this chapter. However, the exemption of such governmental bodies shall not relieve any other party to a transaction from liability for the tax.
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 chapter.
Except as otherwise provided in Section 884.08, 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 section, 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 does not affect the continuity of the company, and if the change, by 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 three years.
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 requirements of a family farm corporation under this chapter.
Within 30 days after becoming an acquired company, such company shall present a declaration of acquisition to 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.
Where there is a transfer of residential property by a licensed real estate broker, which property was transferred to him or her 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 or her shall be given to him or her toward the amount of the tax due upon the transfer.
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 to the grantor toward the tax due upon the transfer.
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.
The tax imposed in this chapter shall be fully paid and shall have priority out of the proceeds of any judicial sale of real estate before payment of any other obligation, claim, lien, judgment, estate or cost 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 such sale shall pay the tax out of the first moneys paid to him or her in connection therewith. If the proceeds of the sale are insufficient to pay the entire tax, the purchaser shall be liable for the remaining tax.
As provided in 16 P.S. Section 11011-6, as amended by the 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 the Township based on a redetermination of the amount of tax due by the Commonwealth of the State realty transfer tax, without compensation from the Township.
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 a deed for recording, unless it is accompanied by a statement of value showing what taxes are due each municipality.
On or before the tenth day of each month, the Recorder shall pay over to the 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 in reporting collections of the State realty transfer tax. The 2% commission shall be paid to the County.
Upon a redetermination of the amount of realty transfer tax due by the Commonwealth, the Recorder shall re-record the deed or record the additional realty transfer tax form only when both the State and local amounts and a re-recording or recording fee has been tendered.
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 chapter. A copy of the Pennsylvania Realty Transfer Tax Statement of Value may be submitted for this purpose. 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 each document and 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 chapter.
If any part of any underpayment of tax imposed by this chapter is due to fraud, there shall be added to the tax an amount equal to 50% of the underpayment.
In the case of failure to record a declaration required under this chapter 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 for 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 chapter shall become a lien upon the lands, tenements or hereditaments, or any interest therein, lying or situated, wholly or in part, within the Township, which lands, tenements or hereditaments or interests therein, are described in, conveyed by or transferred by the document which is the subject of the tax imposed, assessed and levied by this chapter. Such lien shall begin at the time the tax under this chapter is due and payable, and shall continue until discharge by payment or in accordance with law. The Solicitor is hereby authorized to file a Municipal or tax claim in the County Court of Common Pleas, in accordance with the Municipal Claims and Liens Act of 1923, 53 P.S. Sections 7101 et seq., its supplements and amendments.
All taxes imposed by this chapter, together with interest and penalties prescribed in this chapter, shall be recoverable as other debts of like character are recovered.
The designee of the Township is hereby charged with the enforcement and collection of the realty transfer tax and is hereby authorized to promulgate and enforce reasonable regulations for such enforcement and collection. The regulations which have been promulgated by the Pennsylvania Department of Revenue under 72 P.S. Sections 8101-C et seq., are hereby incorporated into and made a part of this chapter as if fully set out herein.
Fail, neglect or refuse to comply with, or violate, the rules and regulations adopted and promulgated under this chapter.
Nothing in this chapter shall be construed to affect any suit or proceeding pending in any court, or any rights acquired or liability incurred, or any permit issued, or any cause of action existing, under any other ordinance or resolution of the Township, prior to the enactment of this chapter.
In addition to the penalty provided for in Section 202.99(b), (c) and (d), whoever violates or fails to comply with any of the provisions of this chapter shall be required to pay the amount of the tax, together with interest as is otherwise provided for herein, which should have been paid on the document or documents.

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