[Adopted 11-20-2006 by Ord. No. 701]
This article shall be known as the "Realty Transfer Tax Ordinance of the Borough of Hellertown."
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 Borough of Hellertown, 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.
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.
- FAMILY FARM CORPORATION
- 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:
- A. Recreational activities, such as, but not limited to, hunting, fishing, camping, skiing, show competition or racing;
- B. 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;
- C. Fur farming;
- D. Stockyard and slaughterhouse operations; or
- E. Manufacturing or processing operations of any kind.
- LIVING TRUST
- Any trust, other than a business trust, intended as a will substitute by the settler which becomes effective during the lifetime of the settler which becomes effective during the lifetime of the settler, but from which trust distributions cannot be made to any beneficiaries other than the settler prior to the death of the settler.
- MEMBERS OF THE SAME FAMILY
- Any 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, 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.
- ORDINARY TRUST
- Any trust, other than a business trust or a living trust, which takes effect during the lifetime of the settler and for which the trustees of the trust take title to property primarily for the purpose of protecting, managing or conserving it until distribution to the named beneficiaries of the trust. An ordinary trust does not include a trust that has an objective to carry on business and divide gains, nor does it either expressly or impliedly have any of the following features: the treatment of beneficiaries as associates, the treatment of the interests in the trust as personal property, the free transferability of beneficial interests in the trust, centralized management by the trustee or the beneficiaries, or continuity of life.
- 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.
- A. All lands, tenements or hereditaments within this Borough of Hellertown, 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.
- B. A condominium unit.
- 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:
- A. Derives 60% or more of its annual gross receipts from the ownership or disposition of real estate; or
- B. 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.
- 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; or
- B. 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.
- 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 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;
- 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 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;
- 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 of a related corporation, association or partnership and the grantee existing before or effective with the transfer.
The Borough of Hellertown adopts the provisions of Article XI-D, Local Real Estate Transfer Tax, 72 P.S. § 8101-D et seq., (Tax Reform Code of 1971) and imposes a realty transfer tax authorized under that article, subject to the rate limitations therein. The tax imposed under this section shall be at a rate set forth in Subsection C.
The tax imposed under Subsection A 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, 53 P.S. § 6901 et seq., provided that, if the correct amount is not paid by the last date prescribed in 72 P.S. § 8102-C for timely payment, the Borough of Hellertown, pursuant to 72 P.S. § 8102-D of the Local Real Estate Transfer Tax (Tax Reform Code of 1971), authorizes and directs the Department of Revenue of the Commonwealth of Pennsylvania to determine, collect and enforce the tax, interest and penalties. Whenever a declaration is required to be filed under 72 P.S. § 8101-C et seq., a declaration is also required to be filed under this article.
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, 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 an acquired company.
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.
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. 1257, 53 P.S. § 6901 et seq. and 53 P.S. §§ 6924.101 to 6924.312, 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 Borough of Hellertown 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 Borough of Hellertown; provided, however, that the Borough of Hellertown 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."
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. Any tax imposed under this section 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 the 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.
Disbursements. The tax, interest and penalty that the Department of Revenue collects under this article shall be remitted in the manner provided by law to the appropriate recorder of deeds along with the state tax payment imprint receipt which shall provide sufficient information for the Recorder of Deeds to determine which political subdivision are entitled to the collection. The recorder of deeds shall record the state tax payment imprint receipt whether or not signed and acknowledged by the Department of Revenue and shall index in the grantor/grantee index to the original document upon which the tax has been paid. The Department shall collect from the taxpayer, as part of its determination process, the county recording fee for the state tax payment imprint receipt.
The United States, the commonwealth, 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 transaction from liability for the tax.
The tax imposed by § 405-13 shall not be imposed upon:
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 fine adjustments, provided said reconveyance is made within one year from the date of condemnation.
A document which the Borough of Hellertown is prohibited from taxing under the Constitution or statutes of the United States.
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.
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.
A transfer of 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.
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.
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.
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.
A transfer for no or nominal actual consideration to a trustee of a living trust from the settler 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.
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 settler's lifetime shall be considered for the purposes of this article as if such transfer were made directly from the settler to the grantee.
A transfer for no or nominal actual consideration from a trustee of a living trust after the death of the settler of the trust or from a trustee of a trust created pursuant to the will of decedent to a beneficiary to whom the property is devised or bequeathed.
A transfer for no or nominal actual consideration from the trustee of a living trust to the settler of the living trust if such property was originally conveyed to the trustee by the settler.
A transfer for no or nominal actual consideration from trustee to successor trustee.
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 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.
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.
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.
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.
A transfer from a nonprofit industrial development agency or authority to a grantee purchasing directly from it, but only if: (i) 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 (ii) the agency or authority has the full ownership interest in the real estate transferred.
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.
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.
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,
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.
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.
A transfer between members of the same family of an ownership interest in a real estate company or family farm corporation or family farm partnership which owns real estate.
A transaction wherein the tax due is $1 or less.
Leases for the production or extraction of coal, oil, natural gas or minerals and assignments thereof. 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 each document is not subject to tax under this article.
Except as otherwise provided in § 405-15, relating to executed transaction, 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 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 of the total ownership interest in the company within a period of three years.
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 Act.
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 act.
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.
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.
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.
Where there is a transfer of real estate which is devised by the grantor, a credit for the amount of tax paid at the time of the devise shall be given the grantor toward the tax due upon the transfer.
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.
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 carry-over 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 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. The Sheriff or other officer conducting said sale shall pay the tax imposed under this article out of the first moneys paid to the Sheriff or officer in connection therewith. If the proceeds of the sale are insufficient to pay the entire tax herein imposed under this article, the purchaser shall be liable for the remaining tax.
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 shall be the collection agent for the Borough of Hellertown levying a local realty transfer tax under this article. The Recorder of Deeds shall pay tax, interest and penalties collected under this article over to the Borough of Hellertown in accordance with 16 P.S. § 11011-6, as amended, including any amount payable to the Borough of Hellertown 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 Borough of Hellertown.
In order to ascertain the amount of taxes due when the property is located in more than one political subdivision, the Recorder shall not accept for recording such a deed unless it is accompanied by a statement of value showing what taxes are due each municipality.
On or before the 10th of each month, the Recorder of Deeds shall pay over to the Borough of Hellertown 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 Recorder of Deeds shall pay the 2% withheld to the County. The County shall obtain and pay the premiums or premiums on any bond or bonds necessary to cover the performance of the Recorder of Deeds' duties under this subsection.
Upon a redetermination of the amount of realty transfer tax due, the deed shall be recorded or the additional realty transfer tax form shall be recorded, at the option of the Recorder of Deeds, but the Recorder of Deeds shall rerecord the deed or record the additional realty transfer tax form only when both state and local amounts payable and a fee to cover the costs of rerecording or recording have 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 subsection 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.
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,
In the case of failure to record a declaration required under this article on the date prescribed thereof, 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.
Any tax that the Department of Revenue determines to be due under this article and remains unpaid after demand for the same, and all penalties and interest thereon, shall be a lien in favor of the affected political subdivision upon the property, both real and personal, of the person but only after the lien has been entered and docketed of record by the prothonotary of the county where such property is situated.
Actions of prothonotaries.
At any time after it makes a determination of additional tax, penalty or interest under this article, the Department may transmit to the prothonotaries of the respective counties certified copies of all liens for the taxes, penalties and interest under this article or copies of all liens under 72 P.S. § 8101-C et seq., and this article on a single form.
A prothonotary receiving the lien shall enter and docket the lien on record in the prothonotary's office, which lien shall be indexed as judgments are now indexed.
After the Department's determination becomes final, a writ of execution may directly issue upon the lien without the issuance and prosecution to judgment of a writ of scire facias, provided that, not less than 10 days before issuance of any execution of the lien, notice shall be sent by certified mail to the taxpayer at the taxpayer's last know post office address. No prothonotary shall require as a condition precedent to the entry of the liens the payment of any costs incident thereto.
Priority of lien.
The lien imposed under this section shall have priority from the date of its recording and shall be fully paid and satisfied out of the proceeds of any judicial sale of property subject thereto before any other obligation, judgment, claim, lien or estate to which the property may subsequently become subject, except costs of the sale and of the writ upon which the sale was made, and real estate taxes and municipal claims against such property, but shall be subordinate to mortgages and other liens existing and duly recorded or entered of record prior to the recording of the tax lien.
In the case of a judicial sale of property subject to a lien imposed under this section, upon a lien or claim over which the lien has priority, the sale shall discharge the lien to the extent only that the proceeds are applied to its payment, and the lien shall continue in full force and effect as to the balance remaining unpaid.
A lien imposed under this article shall be equal in priority to the lien imposed under 72 P.S. § 8101-C et seq.
Whenever the amount due upon determination, redetermination or review is less than the amount paid on account thereof, the political subdivisions shall refund the difference.
Where there has been no determination of unpaid tax, application for refund shall be made to the political subdivision in the manner prescribed by the Act of December 31, 1965 (P.L. 1257, No. 511), 53 P.S. § 6901 et seq. and 53 P.S. §§ 6924.101 to 6924.312, known as "The Local Tax Enabling Act," and 53 Pa.C.S.A. § 8421 et seq. (relating to the Local Taxpayers Bill of Rights), or as otherwise provided by law.
Notwithstanding the provisions of any other act, the Officer of the Borough of Hellertown imposing a local real estate transfer tax or the authorized representative of the Officer may divulge to the Department of Revenue information concerning the administration or collection of local real estate transfer tax authorized by this article.
The Borough of Hellertown is charged with 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.
The payment of the tax imposed under 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 such document. The 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 the stamps shall write, stamp or cause to be written or stamped thereon the initials of that person's name and the date upon which the stamps are affixed or used so that the stamps may not again be use, provided that the Department of Revenue may prescribe such other method of cancellation as it may deem expedient.
The Department may, in its discretion, use documentary license meter impressions or similar indicia of payment in lieu of stamps.
No document upon which tax is imposed under this article shall at any time be made the basis of any action or other legal proceeding, nor shall proof thereof be offered or received in evidence in any court of this commonwealth or recorded in the office of any recorder of deeds of any county of this commonwealth unless a documentary stamp or stamps, as provided in this article, have been affixed thereto.
If any person fails to pay any tax imposed under this article for which that person is liable, the Borough of Hellertown may authorize the Department of Revenue to make a determination of additional tax, penalty and interest due under this section by the person. The determination will be based upon any information which is within the possession or which will come into the possession of the Department. The determination will be made within three years after the date of the recording of the document, subject to the following:
If the taxpayer underpays the correct amount of the tax by 25% or more, the tax may be assessed at any time within six years after the date of the recording of the document.
If any part of an underpayment of tax is due to fraud or an undisclosed international disregard of rules and regulations, the full amount of the tax may be assessed at any time.
Notification of determination; petition for redetermination.
Promptly after the date of such determination, the Department shall send by mail a copy thereof to the person against whom it was made. Within 90 days after the date upon which the copy of the determination was mailed, the person may file with the Department a petition for redetermination of the taxes.
Every petition for redetermination must state specifically the reasons which the petitioner believes to be entitled to redetermination and shall be supported by affirmation that it is not made for the purpose of delay and that the facts set forth therein are true.
The Department, within six months after the date of filing of a petition for redetermination, shall dispose of the petition. Notice of the action taken upon a petition for redetermination shall be given to the petitioner promptly after the date of redetermination by the Department.
A person shall have the right to review by the Board of Finance and Revenue and appeal in the same manner and within the same time as provided by law in the case of capital stock and franchise taxes imposed upon corporations.
Notice of action; rights to appeal.
Notice of the action of the Board of Finance and Revenue shall be given by mail to the Borough of Hellertown. The Borough of Hellertown shall have the right to appeal in the same manner and within the same time as provided by law for the commonwealth in the case of capital stock and franchise taxes imposed upon corporation.
The Borough of Hellertown may request in writing the Office of General Counsel to render such legal advice and such representation as are required concerning every matter and issue arising in connection with an appeal from a decision of the Board of Finance and Revenue.
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 balance of all ordinances and resolutions relating to transfer taxes not inconsistent herewith are hereby preserved and are incorporated herein by reference.