Municipality of Murrysville, PA Article IV Residential Construction Tax

[Adopted 7-24-1979 by Ord. No. 32-79]

§ 206-26 Title.

This article shall be known and may be cited as the "Municipality of Murrysville Residential Construction Tax Ordinance."

§ 206-27 Definitions.

A. The following words and phrases, when used in this article, shall have the meanings ascribed to them in this section, except in those instances the context clearly indicates a different meaning.

ASSOCIATION

Any partnership, limited partnership or any other form of unincorporated enterprise owned or conducted by two or more persons.

BUILDING PERMIT

The permit, certificate, document, approval or authorization required by the Municipality for a person to make improvements to real estate within the boundaries of the Municipality.

CHIEF ADMINISTRATOR

The Chief Administrator of the Municipality of Murrysville.

CODE ENFORCEMENT OFFICER

The Building Code Enforcement Officer of the Municipality of Murrysville.

CONSTRUCT

Any activity by a person in connection with the building, erection, assembling, fabrication, placing or affixing of an improvement to real estate.

CONVERT

Any activity whereby an improvement to real estate not theretofore used as a residence is changed to a residence or whereby the number of residential units within a residence is increased in number.

CORPORATION

A corporation or joint-stock association, organized under the laws of this commonwealth, the United States or any other state, territory or foreign country or dependency, including but not limited to banking institutions.

DIRECTOR OF THE DEPARTMENT OF TAX COLLECTION

The tax collector for the Municipality.

[Amended 3-7-2001 by Ord. No. 563-01]

MULTIFAMILY RESIDENCE

A residence consisting of more than one residential unit, including semidetached houses, rowhouses, townhouses, condominiums, apartment houses and the like.

PERSON

Every natural person, association or corporation. Whenever used in any clause prescribing or imposing a penalty, the term "person," as applied to associations, shall mean the partners or members thereof, and as applied to corporations, shall include the officers thereof.

RESIDENCE

Any improvement to real estate constructed and intended as a place of residence for one or more persons, including single-family and multifamily residences, but not including accommodations for transient occupancy, such as motels, hotels, tourist homes, hospitals and convalescent homes.

RESIDENTIAL UNIT

A group of rooms within a residence for occupancy by one or more persons separate and independent from other room groups within the same residence, whether or not one or more facilities, such as heating, toilet, laundry and the like, are shared by the occupants of two or more room groups. Any improvements to real estate increasing the number of rooms of any existing single-family residence but which is to continue in use as a single-family residence shall not be deemed a taxable residential unit.

SINGLE-FAMILY RESIDENCE

A residence consisting of a single residential unit.

TAX

The tax imposed, assessed and levied by this article.

B. Throughout this article, the singular shall include the plural, and the masculine shall include the feminine and neuter.

§ 206-28 Application and rate.

A. Every person who applies for a building permit from this Municipality to construct a residence or to convert an improvement to real estate into a residence within the Municipality shall pay for and in respect of the privilege of making such application and of the transaction regarding the same, a tax at the rate set forth in Subsection D below. The tax provided by this subsection shall be due and payable at the time of issuance of such permit.

B. In those cases where a person constructs a residence or converts an improvement to real estate into a residence without obtaining a building permit or where a building permit for the construction of a residence or the conversion of an improvement to real estate into a residence was issued before the effective date of this article and where work thereon has not progressed beyond the completion of the footers before said effective dates, then in all such cases, the person so constructing such residence or converting an improvement to real estate into a residence within the Municipality shall pay for and in respect of the privilege of constructing a residence or converting an improvement to real estate into a residence and of the transaction regarding the same a tax at the rate set forth in Subsection D below. The tax provided for by this subsection shall be due and payable at the time of making application for a building permit in connection with such construction or conversions and in those cases where such construction or conversion has commenced but has not progressed beyond the completion of the footers at the effective date of this article, such tax shall be due and payable on the effective date of this article.

C. As among the various persons who are involved in the construction or conversion of a residence subject to the tax imposed by this article, the obligation to pay the tax shall be upon the legal owner of the real estate upon which the construction or conversion takes place.

D. There is hereby imposed a tax upon the privileges and transactions specified in Subsections A and B above at the rate of $500 for each residential unit to be constructed or to be added by conversion.

E. A residential unit that is torn down, removed from the recorded lot or destroyed by fire, flood or other similar act of God and replaced by a structure containing equal or fewer residential units will be exempted from this tax. This exemption will be valid only after the building permit for the replacement structure is applied for within 180 days of the removal or destruction of the original residential unit. In the event that a new residential unit is to be constructed prior to the demolition of the residential unit which it will replace, the tax imposed hereunder shall be paid as required herein. Said tax will be refunded upon application with 180 days of issuance of the occupancy permit for the new unit, accompanied by satisfactory evidence of the removal or demolition of the prior residential unit.

[Added 7-24-1979 by resolution]

§ 206-29 Collection and disposition.

[Amended 3-7-2001 by Ord. No. 563-01]

A. The Director of the Department of Tax Collection of the Municipality shall be and is hereby appointed the collecting agent for the collection of the tax, which shall be made payable to the Director of the Department of Tax Collection.

B. The payment of the tax shall be evidenced by a receipt setting forth the date and amount of payment, the name and address of the payee, the location of the residence for which the tax is paid, the number of residential units and the signature of the Director of the Department of Tax Collection or authorized agent. No building permit shall be issued by the Code Enforcement Officer unless the applicant submits the Director of the Department of Tax Collection's receipt confirming payment of this tax.

C. The Director of the Department of Tax Collection shall submit a written report to the Chief Administrator on or before the 10th day of each month setting forth the total amount of tax collected during the preceding month. The Director of the Department of Tax Collection shall forward each payment as received to the Chief Administrator.

D. The Director of the Department of Tax Collection is authorized and empowered to enforce this article and to collect the tax, interest and penalties hereby imposed on behalf of the Municipality.

§ 206-30 Refunds.

A. The real party in interest for any refund ordered by any court of all or a part of the tax imposed by this article shall be deemed to be:

[Amended 7-24-1979 by resolution]

(1) The first legal real estate homeowner occupant of a single-family residence; and

(2) The legal owner of the real estate at the time of the issuance of the occupancy permit(s) of a multifamily residential dwelling.

B. Every person who applies for a building permit and the legal owner of the real estate at the time of making said application shall execute an assignment and release of all his, her or its right, title, interest, claim or demand in and to all or any part of a refund of the tax imposed by this article. The assignment and release shall be for the benefit of and authorize distribution of aforesaid refund by the Municipality to the aforesaid first legal real estate homeowner occupant with respect to a single-family residence or the legal owner of the real estate at the time of issuance of the occupancy permit(s) with respect to a multifamily residential dwelling.

§ 206-31 Public hearing.

The Council shall give notice of a public hearing, which shall be held annually 90 days prior to the end of each fiscal year, to consider proposed uses for the general revenues to be collected during the ensuing fiscal year by means of this article.

§ 206-32 Interest.

All taxes imposed by this article not paid when due shall bear interest from the due date at the rate of 1/2 of 1% per month until paid.

§ 206-33 Late payment penalty.

A penalty of 10% is hereby imposed upon all taxes which are unpaid more than 30 days after they are due and payable in accordance with the provisions of this article.

§ 206-34 Collection.

All taxes imposed by this article, together with interest from due date and the penalty thereon, may be recovered as other debts of like character are now by law recoverable.

§ 206-35 Liens.

The tax, interest and penalty imposed by this article shall become a lien upon the real estate upon which there is a construction or conversion of a residence subject to the tax imposed by this article, said lien to begin at the time when the tax is due and payable and continue until the discharge by payment, or in accordance with law; and the Solicitor of the Municipality is authorized to file a tax claim for said tax in accordance with the provisions of the Municipal Lien Act of 1923,[1] as amended and supplemented.

[1] Editor's Note: See 53 P.S. § 7101 et seq.

§ 206-36 Prohibited acts.

It shall be unlawful for any person to:

A. Obtain a building permit or commence or complete the construction or conversion of any residence without first having paid the tax imposed by this article; or

B. Fail, neglect or refuse to comply with the provisions of this article.

§ 206-37 Violations and penalties.

[Amended 12-16-1991 by Ord. No. 305-91]

Any person convicted before a District Justice of violating any of the provisions of this article shall be liable to a fine not exceeding $300 for each and every offense and, upon default in the payment of the same, shall be subject to 30 days' imprisonment. The payment of such fine or the serving of such imprisonment shall not relieve the person liable for such tax to pay such tax, interest and penalties.

§ 206-38 Continuation of provisions.

The tax levied under this article shall become effective on the 24th day of July, 1979, and shall continue in force for successive fiscal years without annual enactment.