[Adopted 5-13-1975 by Ord. No. 48]
This article shall be known as the "Realty Transfer
Ordinance," and the provisions hereof shall become effective on and
after July 1, 1975.
[Amended 1-8-1987 by Ord. No. 100; 1-8-1987 by Ord. No.
O-87-02]
The following words, when used in this article,
shall have the meanings ascribed to them in this section, except in
those instances where the context clearly indicates a different meaning:
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 this commonwealth,
the United States or any other state, territory or foreign country
or dependency.
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 public utility easements. "Document" shall also include a declaration or acquisition required to be presented for recording under § 184-3 of this article.
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 such as but not limited
to hunting, fishing, carping, 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 descendents 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.
Any lands, tenements or hereditaments within
this commonwealth, 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.
A condominium unit.
A tenant stockholder's interest in a cooperative
housing corporation, trust or association under a proprietary lease
or occupancy agreement.
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, without limitation, 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 taxable lease or 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 principle of
the grantor or a related corporation, association or partnership and
the grantee existing before or effective with the transfer.
[Amended 1-8-1987 by Ord. No. O-87-02]
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, or for or in respect of the vellum parchment or paper
upon which such document is written or printed, a tax at the rate
of 1/2 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.
This tax shall apply to the privilege of transferring
title to real estate lying within the Township of College or any interest
therein as herein defined.
[Amended 1-8-1987 by Ord. No. O-87-02]
The tax imposed by this article shall not be
imposed upon:
A.
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.
B.
A document which the commonwealth is prohibited from
taxing under the Constitution or statutes of the United States.
C.
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's sale
or Tax Claim Bureau sale.
D.
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.
E.
A transfer or 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 take shares
greater in value than their undivided interest, tax is due on the
excess.
F.
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 tax as if the grantor
were making such transfer.
G.
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.
H.
A transfer for no or nominal actual consideration
to a trustee of an ordinary trust where the transfer of the sale 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.
I.
A transfer for no or nominal actual consideration
from a trustee to a beneficiary of an ordinary trust.
J.
A transfer for no or nominal actual consideration
from trustee to successor trustee.
K.
A transfer for no or nominal actual consideration
between principal and agent or straw party, and 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 clause.
L.
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.
M.
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.
N.
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 of the grantee
or a transfer to a nonprofit industrial development agency or authority.
O.
A transfer from a nonprofit industrial development
agency or authority to a grantee purchasing directly from it, but
only if:
(1)
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
(2)
The agency or authority has the full ownership interest
in the real estate transferred.
P.
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.
Q.
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.
R.
A transfer to a conservancy which possesses a tax-exempt
status pursuant to Section 501(c)(3) 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.
S.
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.
T.
A transfer between members of the same family of an
ownership interest in a real estate company or family farm corporation.
U.
A transaction wherein the tax due is $1 or less.
V.
Leases for the production or extraction of coal, oil,
natural gas or minerals and assignments thereon. 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 or the reason such document is not
subject to tax under this article.
The Recorder of Deeds of Centre County, Pennsylvania,
is hereby appointed the agent of the Township for the collection of
the tax imposed herein, and the Township shall allow the County of
Centre or Recorder of Deeds of Centre County a commission equal to
1% of the face value of the stamps or $250, whichever is greater.
The payment of the tax imposed by this article
shall be evidenced by the affixing of a documentary stamp or stamps
to every document by the person making, executing, delivering or presenting
for recording of such document. Such stamps shall be affixed in such
manner that their removal will require the continued application of
steam or water, and the person using or affixing such stamps shall
write or stamp or cause to be written or stamped thereon the initials
of his name and the date upon which such stamps are affixed or used
so that such stamps may not again be used. The Recorder of Deeds shall
pay the commission herein allowed to the general fund of Centre County.
Every document, when 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 an affidavit 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.
It shall be unlawful for any person to:
(1)
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.
(2)
Fail, neglect or refuse to comply with, or violate,
the rules and regulations prescribed, adopted or promulgated by the
Township under the provisions of this article.
B.
Any person violating any of the provisions of this
section shall, upon conviction thereof, be sentenced to pay a fine
of not more than $300 and costs of prosecution or to undergo imprisonment
of not more than 30 days, or both, in the discretion of the court.
[Amended 1-8-1987 by Ord. No. 100]
[Added 1-8-1987 by Ord. No. O-87-02]
Except as otherwise provided, 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.
[Added 1-8-1987 by Ord. No. O-87-02]
A.
A real estate company is an acquired company upon
a change in the ownership interest in the company, however effected,
if the change:
B.
With respect to real estate acquired after February
6, 1986, a family farm corporation is an acquired company when, because
of voluntary or involuntary disposition, 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 article.
C.
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.
[Added 1-8-1987 by Ord. No. O-87-02]
A.
Where there is a transfer of 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 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
demised by the grantor, a credit for the amount of tax paid at the
time of the demise 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 credit allowed is greater than the amount of
tax due, no refund or carry-over credit shall be allowed.
The Treasurer of the Township may sue in the
name of the Township for recovery of taxes due and unpaid under this
article. Suit may be brought against any or all of the persons whose
obligation it is to pay this tax under the terms of this article.
Any suit brought to recover the tax imposed by this article will be
begun within six years after any document subject to tax is recorded.
If for any reason the tax imposed by this article is not paid at the
time of recording of the document, interest at the rate of 6% per
annum on the amount of tax which remains unpaid and an additional
penalty of 1/2 of 1% of the unpaid tax 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 penalty herein imposed.
