This article shall be known as the "Mount Joy Borough Realty
Transfer Tax Ordinance."
This realty transfer tax is levied under the authority of Article
XI-D, entitled "Local Real Estate Transfer Tax," of the Pennsylvania
Real Estate Transfer Tax Act, which is a new article added by Act
77-1986 (Act of July 2, 1986) to the Pennsylvania Real Estate Transfer
Tax Act, Act 14-1981 (Act of May 5, 1981), as amended. The Pennsylvania
Real Estate Transfer Tax Act is codified at 72 P.S. § 8101-C
et seq., and Article XI-D is codified at 72 P.S. § 8101-D
et seq. This realty transfer tax is also levied under authority of
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 et
seq., as amended.
A tax is hereby levied and imposed, for general municipal purposes,
on every real estate transaction at the rate of 1% of the value of
the real estate represented by the document involved in the real estate
transaction.
A. The tax shall be payable at the earlier of the time the document
is presented for recording, within 30 days of acceptance of the document,
or within 30 days of becoming an acquired company.
B. If the real estate is located partially within and partially outside
the Borough, the tax shall be calculated on the value of the portion
within the Borough of Mount Joy.
C. The tax imposed hereunder shall be due and payable to the Collector,
as a joint and several liability, by 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. In the case of an acquired company, the company shall
also have liability for payment of the tax. All such persons shall
also be liable for any penalties imposed under this article.
D. It is the intent of this article that the entire burden of the tax
imposed on a real estate transaction by the Borough and other political
subdivisions shall not exceed the limitations prescribed in Section
8 of the Local Tax Enabling Act, 53 P.S. § 6924.311, so
that if any other political subdivision imposes a tax on real estate
transactions taxed under this article, the provisions of said Section
8 shall apply.
The payment of the tax imposed hereunder shall be evidenced
by the Collector affixing on the document an official stamp or writing
setting forth the date of payment of the tax and amount of tax paid.
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 §
245-21, 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.
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. In order to enforce
the lien, the Borough may proceed under the Municipal Claims and Tax
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 Borough of Mount Joy may promulgate and enforce reasonable
rules and regulations for the interpretation, collection and enforcement
of the tax.