[Adopted 6-10-1987 by Ord. No. 55]
This article shall be known as the "Realty Transfer
Tax Ordinance of the Township of Potter, Beaver County, Pennsylvania."
A realty transfer tax for general revenue purposes
is hereby imposed upon the transfer of real estate or interest in
real estate situated within Potter 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. § 8101-D
et seq.
[Amended 4-14-2004 by Ord. No. 99]
As used in this article, the words and phrases
defined in 72 P.S. § 8101-C shall have the meanings ascribed
to them in said section.
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 to
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. The payment of the tax imposed herein 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, amount of the tax
and the signature of the collecting agent shall be set forth.
C. It is the intent of this article that the entire burden
of the tax imposed herein on a person or transfer shall not exceed
the limitations prescribed in the Local Tax Enabling Act, Act of December
31, 1965, P.L. 1957, 53 P.S. § 6901 et seq., so that if
any other political subdivision shall impose or hereafter shall impose
such tax on the same person or transfer, then the tax levied by the
Township of Potter under the authority of that Act shall, during the
time such duplication of the tax exists, except as hereinafter otherwise
provided, be 1/2 of the rate, and such 1/2 rate shall become effective
without any action on the part of the Township of Potter; provided,
however, that the Township of Potter and any other political subdivision
which impose such tax on the same person or transfer may agree that,
instead of limiting their respective rates to 1/2 of the rate herein
provided, they will impose respectively different rates, the total
of which shall not exceed the maximum rate permitted under the Local
Tax Enabling Act.
D. 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 §
190-30 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 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 said
reconveyance is made within one year from the date of condemnation.
(2) A document which the Township of Potter is prohibited
from taxing under the Constitution or statutes of the United States.
(3) 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 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 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.
(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 that are entitled to receive
the property or proceeds from the sale of the property under the trust,
whether or not such beneficiaries are contingent or specifically named.
A trust clause which identifies the contingent beneficiaries by reference
to the heirs of the trust settlor as determined by the laws of intestate
succession shall not disqualify a transfer from the exclusion provided
by this clause. 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.
[Amended 4-14-2004 by Ord. No. 99]
(9) A transfer for no or nominal actual consideration
to a trustee of a living trust from the settlor of the living trust.
No such exemption shall be granted unless the Recorder of Deeds is
presented with a copy of the living trust instrument.
[Added 4-14-2004 by Ord.
No. 99]
(10)
A transfer for no or nominal actual consideration
from a trustee of an ordinary trust to a specifically named beneficiary
that is entitled to receive the property under the recorded trust
instrument or to a contingent beneficiary where the transfer of the
same property would be exempt if the transfer was made by the grantor
of the property into the trust to that beneficiary. However, any transfer
of real estate from a living trust during the settlor's lifetime shall
be considered for the purposes of this article as if such transfer
were made directly from the settlor to the grantee.
[Amended 4-14-2004 by Ord. No. 99]
(11)
A transfer for no or nominal actual consideration
from a trustee of a living trust after the death of the settlor of
the trust or from a trustee of a trust created pursuant to the will
of a decedent to a beneficiary to whom the property is devised or
bequeathed.
[Added 4-14-2004 by Ord.
No. 99]
(12)
A transfer for no or nominal actual consideration
from the trustee of a living trust to the settlor of the living trust
if such property was originally conveyed to the trustee by the settlor.
[Added 4-14-2004 by Ord.
No. 99]
(13)
A transfer for no or nominal actual consideration
from trustee to successor trustee.
(14)
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.
(a)
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 subsection.
(15)
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.
(16)
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.
(17)
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.
(18)
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 the
agency or authority has the full ownership interest in the real estate
transferred.
(19)
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.
(20)
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 transferer
for commercial purposes.
(21)
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 or
a transfer from such a conservancy to the United States, the commonwealth
or to any of their instrumentalities, agencies or political subdivisions;
or any transfer from such a conservancy where the real estate is encumbered
by a perpetual agricultural conservation easement as defined by the
Act of June 30, 1981 (P.L. 128, No. 43), known as the "Agricultural
Area Security Law," and such conservancy has owned the real estate for at
least two years immediately prior to the transfer.
[Amended 4-14-2004 by Ord. No. 99]
(22)
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 stock thereof.
(23)
A transfer of real estate devoted to the business
of agriculture to a family farm partnership by a member of the same
family, which family directly owns at least 75% of the interests in
the partnership.
[Added 4-14-2004 by Ord.
No. 99]
(24)
A transfer between members of the same family
of an ownership interest in a real estate company, family farm corporation
or family farm partnership which owns real estate.
[Amended 4-14-2004 by Ord. No. 99]
(25)
A transaction wherein the tax due is $1 or less.
(26)
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 §
190-32, 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.
A. 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, of
itself or together with prior changes, has the effect of transferring,
directly or indirectly, 90% or more 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. A family farm partnership is an acquired company when,
because of voluntary or involuntary dissolution, it ceases to be a
family farm partnership or when, because of transfer of partnership
interests 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 partnership under this article.
[Added 4-14-2004 by Ord.
No. 99]
D. 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. 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 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 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 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 or 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 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, 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 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.
[Amended 3-12-2008 by Ord. No. 117]
The tax imposed under this article and all applicable interest
and penalties shall be administered, collected and enforced under
the Act of December 31, 1965 (P.L. 1257, No. 511), as amended, known
as "the Local Tax Enabling Act"; provided that, if the correct amount
of tax is not paid by the last date prescribed for timely payment,
Potter Township, pursuant to Section 1102-D of the Tax Reform Code
of 1971 (72 P.S. § 8102-D), authorizes and directs the Department
of Revenue of the Commonwealth of Pennsylvania to determine, collect
and enforce the tax, interest and penalties.
Every document lodged with or presented to the
Recorder of Deeds 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. 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 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 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.
C. Other violations and penalties.
[Added 11-14-2001 by Ord. No. 88]
(1) Any person who violates any other provision of this
article shall be subject to all of the following:
(a)
Shall be liable for civil enforcement penalties.
(b)
Shall, upon judgment, pay the following judgment
amount:
[1]
For a first violation, a sum of not less than
$200 nor more than $600.
[2]
For a second or subsequent offense, a sum of
not less than $300 nor more than $600.
(c)
Shall, upon failure or refusal to timely pay
the total amount of the civil penalty, pay, upon judgment, all court
costs, including all reasonable attorneys' fees incurred by the Township
as a result of the violation, including the prosecution of all civil
enforcement proceedings.
(2) Each day that a violation is continued shall constitute
a separate offense.
D. Interest. Any tax imposed under this article 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. § 7101 et seq.), as amended, known
as "the Municipal Claims and Tax Liens Act." The interest rate shall
be lesser of the interest rate imposed upon delinquent commonwealth
taxes as provided in Section 806 of the Act of April 9, 1929 (P.L.
343, No. 176) (72 P.S. § 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.
[Added 3-12-2008 by Ord.
No. 117]
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 Township of Potter, 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 continue until discharged
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 Beaver
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 Secretary of the Township of Potter 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.