[Adopted 6-1-1987 by Ord. No. 198-87]
This article shall be known as the "Realty Transfer
Tax Ordinance of the Municipality of Murrysville."
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 Municipality of Murrysville, 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 the Local Real Estate Transfer Tax, 72 P.S. § 8101-D
et seq.
As used in this article, the following terms
shall have the meanings indicated:
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, 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 a public utility easement. "Document" shall also include a declaration of acquisition required to be presented for recording under § 206-52A 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 or agriculture shall not be deemed to include:
Recreational activities, such as but not limited
to hunting, fishing, camping, 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 the half-blood or legal adoption shall be treated as if
they were related by the 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 and, as applied
to corporations, the officers thereof.
All lands, tenements or hereditaments within
the Municipality of Murrysville, 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 or 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; or
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 approximating 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.
The making, executing, delivering, accepting or presenting
for recording of a document.
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;
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;
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.
[Amended 11-3-2021 by Ord. No. 1048-21]
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, a
tax at the rate 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 the acquired
company. This article sets the tax rate of 1% to start tax year 2022
for its sole benefit, commencing January 1, 2022, through December
31, 2022, and continuing in effect for each year thereafter, unless
otherwise revised by ordinance of the Murrysville Council.
B.
The payment of the tax imposed herein shall be evidenced by the affixing
of an official stamp or writing by the Recorder of Deeds of Westmoreland
County, whereon the date of the payment of the tax, amount of the
tax and the signature of the collecting agent shall be set forth.
C.
If for any reason the tax is not paid when due, interest at the rate
in effect at the time the tax is due shall be added and collected.
The United States, the commonwealth or any of
their instrumentalities, agencies or political subdivisions shall
be exempt from payment or 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.
A.
The tax imposed by § 206-52 shall not be imposed upon:
(1)
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 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.
(2)
A document which the Municipality of Murrysville is
prohibited from taxing under the Constitution or statutes of the United
States.
(3)
A conveyance to a municipality, school district or
county pursuant to acquisition by the municipality, school district
or county of a tax-delinquent property at sheriff sale or Tax Claim
Bureau sale.
(4)
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.
(5)
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.
(6)
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 brother or sister or the 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.
(7)
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.
(8)
A transfer for no or nominal actual consideration
to a trustee of an ordinary trust where the transfer of the same 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.
(9)
A transfer for no or nominal actual consideration
from a trustee to a beneficiary of an ordinary trust.
(10)
A transfer for no or nominal actual consideration
from trustee to successor trustee.
(11)
A transfer for no or nominal actual consideration
between principal and agent or straw party; or 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/her principal, there is a rebuttal presumption
that the property is the property of the grantee in his/her individual
capacity if the grantee claims an exemption from taxation under this
subsection.
(12)
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.
(13)
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 of 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.
(14)
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 or the grantee
or a transfer to a nonprofit industrial development agency or authority.
(15)
A transfer from a nonprofit industrial development
agency or authority to a grantee purchasing directly from it, but
only if 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 if
the agency or authority has the full ownership interest in the real
estate transferred.
(16)
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.
(17)
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 transferrer
for commercial purposes.
(18)
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.
(19)
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.
(20)
A transfer between members of the same family
of an ownership interest in a real estate company or family farm corporation.
(21)
A transaction wherein the tax due is $1 or less.
(22)
Leases for the production or extraction of coal,
oil, natural gas or minerals and assignments thereof.
B.
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 article.
Except as otherwise provided in § 206-54A(13) of this article, 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 purpose of this article, corporations and associations are entities separate from their members, partners, stockholders or shareholders.
A.
A real estate company is an acquired company upon
a change in the ownership interest in the company, however affected,
if the change does not affect the continuity of the company and, of
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 a period of three years.
B.
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 article.
C.
Within 30 days after becoming an acquired company,
the company shall present a declaration of acquisition to the Recorder
of Deeds of Westmoreland County for the affixation of documentary
stamps and recording. Such declaration shall set forth the value of
the 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.
A.
Where there is a transfer of a residential property
by a licensed real estate broker, which property was transferred to
him/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/her shall be given to him
toward the amount of the 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
leased by the grantor, a credit for the amount of tax paid at the
time of the lease 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 tax due upon the transfer is greater than the
credit given under this section, the difference shall be paid. If
the credit allowed is greater than the amount of tax due, no refund
or carryover credit shall be allowed.
In determining the term 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 or 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, and 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.
A.
As provided in 16 P.S. § 11011-6, as amended
by Act of July 7, 1983, P.L 40, No. 21, the Recorder of Deeds of Westmoreland
County shall be the collection agent for the local realty transfer
tax, including any amount payable to the Municipality of Murrysville
based on a redetermination of the amount of tax due by the Commonwealth
of Pennsylvania of the Pennsylvania realty transfer tax, without compensation
from the Municipality of Murrysville.
B.
In order to ascertain the amount of taxes due when
the property is located in more than one political subdivision, the
Recorder of Deeds shall not accept for recording such a deed unless
it is accompanied by a statement of value showing what taxes are due
each municipality.
C.
On or before the 10th of each month, the Recorder
of Deeds of Westmoreland County shall pay over to the Municipality
of Murrysville 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 of Pennsylvania in reporting collections
of the Pennsylvania realty transfer tax. The two-percent commission
shall be paid to the county.
D.
Upon a redetermination of the amount of realty transfer
tax due by the Commonwealth of Pennsylvania, the Recorder of Deeds
shall rerecord the deed or record the additional realty transfer tax
form only when both the state and local amounts and a rerecording
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 article. A
copy of the Pennsylvania realty transfer tax statement of value may
be submitted for this purpose. The provisions of this section shall
not apply to any excludable real estate transfer which is 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.
A.
If any part of any underpayment of tax imposed by
this article is due to fraud, there shall be added to the tax an amount
equal to 50% of the underpayment.
B.
In the case of failure to record a declaration required
under this article 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 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 Municipality of Murrysville, which lands, tenements, hereditaments
or interest therein are described in or conveyed by or transferred
by the deed which is the subject of the tax imposed, assessed and
levied by this article, said lien to begin at the time when the tax
under this article is due and payable and to 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 Westmoreland
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.
The Recorder of Deeds of Westmoreland County
is charged with enforcement and collection of tax and is empowered
to promulgate and enforce reasonable regulations for enforcement and
collection of the tax. The regulations which have been promulgated
by the Pennsylvania Department of Revenue under 72 P.S. § 8101-C
et seq. are incorporated into and made a part of this article.
[Amended 12-16-1991 by Ord. No. 305-91]
The imposition of this tax and the provisions
of this article shall remain in effect on an annual basis without
annual reenactment unless the rate of tax is subsequently changed,
in which event the higher rate of tax shall prevail. All ordinances
and all resolutions or parts thereof inconsistent with this article
are hereby repealed, with the exception that this article shall be
a continuation of the taxes, interest and penalties levied and imposed
by prior ordinances and resolutions of the Municipality of Murrysville
to the extent that such taxes, interest and penalties as of the effective
date of this article remain unpaid and/or uncollected. It is the intention
of the Council that this article shall constitute a continuation of
the imposition and levying of the real estate transfer tax upon residents
of the Municipality, either by prior ordinances and resolutions of
the Municipality or under this article. The amendments to Article
XI-C and the new provisions of Article XI-D of the Tax Reform Code
of 1971,[1] and this article shall apply to any document made, executed,
delivered, accepted or presented for recording subsequent to the effective
date of §§ 8 through 17, inclusive, of Act 77 of 1986,
approved July 2, 1986, amending the Tax Reform Code of 1971, and shall
not apply to any document made, executed and delivered prior to the
effective date of §§ 8 through 17, inclusive, of Act
No. 77 of 1986, provided that such document is presented for recording
prior to August 1, 1986.
[1]
Editor's Note: See 72 P.S. § 8101-C
et seq.
