This article shall be known as the "Derry Township
Realty Transfer Tax Ordinance."
A realty transfer tax for general revenue purposes
is hereby imposed upon the transfer of real estate or interests in
real estate situate within Derry Township, regardless of where the
documents making the transfer are made, executed or delivered, or
where actual settlements or such transfer took place as authorized
by authority of Section 17 of Act 77 of 1986 (72 P.S. § 8101-D),
and under the authority of The Local Tax Enabling Act, Act of December
31, 1965, P.L. 1257, No. 511, 53 P.S. § 6901 et seq.
Unless otherwise expressly stated, the following
terms, when used in this article, shall have the meaning ascribed
to them in this section:
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.
COLLECTOR
The Recorder of Deeds of Dauphin County, Pennsylvania.
CORPORATION
A corporation, joint-stock association, business trust or
banking institution which is organized under the laws of the Commonwealth
of Pennsylvania, 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 §
189-49 of this article.
FAMILY FARM CORPORATION
A corporation of which:
A.
At least 75% of its assets are devoted to the
business of agriculture, which business 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; or manufacturing
or processing operations of any kind; and,
B.
At least 75% of each class of stock of the corporation
is continuously owned by members of the same family.
MEMBERS OF THE SAME FAMILY
An 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 the half blood or by legal adoption shall be treated as
if they were related by the 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.
Any lands, tenements or hereditaments within
the Township of Derry, Dauphin County, Commonwealth of Pennsylvania,
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 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.
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.
B.
Any interest in real estate enduring for a fixed
period of years but which, either by reason of length of the term
or of 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. 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.
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
others 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 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.
C.
In the case of an easement or other interest
in real estate the value of which is not determinable under Subsection
(A) and (B), above, the actual monetary worth of such interest.
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 or a related corporation, association or partnership and
the grantee existing before or effective with the transfer.
The United States, the Commonwealth of Pennsylvania,
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 real estate transaction from liability for the
tax.
Except as otherwise provided in §
189-45 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 purposes of this article, corporations and associations are entities separate from their members, partners, stockholders or shareholders.
The payment of the tax imposed hereunder shall
be evidenced by the Collector's affixing on the document an official
stamp or writing setting forth the date of payment of the tax and
the amount of the tax paid.
Every document lodged with or presented to the
Collector for recording shall set forth therein and as 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. The provisions
of this section shall not apply to any excludable real estate transfers
which are exempt from taxation based on family relationship; provided,
the relationship is specified in the deed, instrument or writing.
Documents which are not to be recorded shall be presented to the Collector
and shall be accompanied by a certified copy of the 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 article. Evidence of payment shall
be affixed to the original document and the certified copy. The certified
copy and statement of value shall be filed with the Collector.
The tax imposed by this article, together with
all penalties, shall be a lien against the real estate to which the
document relates and, in the case of an acquired company, the real
estate owned by the acquired company. The lien shall date from the
time when the tax is due and payable and shall continue until discharged
by payment in full of the tax, together with all penalties. To enforce
the lien, the Township may proceed under the Municipal Claims and
Liens Act of 1923, 53 P.S. § 7101 et seq., or in any other
appropriate manner.
The tax imposed under this article 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, and the sheriff or other officer conducting said sale shall
pay the tax herein imposed out of the first monies 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.
The Township may promulgate and enforce reasonable
rules and regulations for the interpretation, collection and enforcement
of the tax.