[Adopted 4-28-1987 by Ord. No. 372 (Ch. 24, Part 2, of the
1995 Code of Ordinances)]
From and after the effective date hereof, the Township of Hampton
does levy and assess a tax upon a transfer of real property or an
interest in real property situate within the limits of the Township
of Hampton, regardless of where the instruments making the transfers
are made, executed or delivered, or where the actual settlements on
the transfer take place, to the extent that the transactions are subject
to the tax imposed by Article XI-C of Act 77 of 1986.[1]
[1]
Editor's Note: See 72 P.S. § 8101-C et seq.
For the purpose of this article, the following definitions shall
have the meanings ascribed to them herein, except in those instances
where the context of the article clearly indicates a different meaning:
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, or foreign country,
or dependency (including, but not limited to, banking institutions).
The Department of Revenue of this commonwealth.
Any deed, instrument or writing (whereby any lands, tenements
or hereditaments within this commonwealth or any interest therein
shall be quitclaimed, granted, bargained, sold, or otherwise conveyed
to the grantee, purchaser, or any other person) which conveys, transfers,
demises, vests, confirms or evidences any transfer or demise of title
to real estate, but does not include: wills; mortgages; transfers
between corporations operating housing projects pursuant to housing
and redevelopment assistance law and the shareholders thereof; transfers
between nonprofit industrial development agencies and industrial corporations
purchasing from them; any transfers to a nature conservancy or similar
organization which possesses a tax-exempt status pursuant to Section
501(c)(3) of the Internal Revenue Code, and which has as its primary
purpose the preservation of land for historic, recreational, scenic,
agricultural or open space opportunities; and transfers between husband
and wife; transfers between persons who were previously husband and
wife but who have since been divorced, provided such transfer is made
within three months of the date of the granting of the final decree
in divorce or the decree of equitable distribution of marital property,
whichever is later, and 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; transfers between
parent and child or the spouse of such child; transfers between a
grandparent and grandchild or the spouse of such grandchild; by and
between a principal and straw party for the purpose of placing a mortgage
or ground rent upon the premises; correctional deeds without consideration;
transfers to the United States, the Commonwealth of Pennsylvania,
or to any of their instrumentalities, agencies or political subdivisions,
by gift, dedication or deed in lieu of condemnation, or deed of confirmation
in connection with condemnation proceedings, or 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; leases; a conveyance to a trustee under
a recorded trust agreement for the express purpose of holding title
in trust as security for a debt contracted at the time of the conveyance
under which the trustee is not the lender and requiring the trustee
to make reconveyance to the grantor-borrower upon the repayment of
the debt; or a transfer by the owner of previously occupied residential
premises to a builder of new residential premises taken in trade by
such builder as part of the consideration from the purchaser for a
new previously unoccupied residential premises; or any transfer from
a mortgagor to the mortgagee whether pursuant to a foreclosure or
in lieu thereof; or conveyances to municipalities, townships, school
districts and counties pursuant to acquisition by municipalities,
townships, school districts and counties of tax delinquent properties
at sheriff sale or tax claim bureau sale; any transfer of a publicly
owned multipurpose stadium having a seating capacity of at least 50,000
where such transfer occurs before January 1, 1986; or any transfer
between religious organizations or other bodies or persons holding
title to real estate for a religious organization if such real estate
is not being or has not been used by such transferor for commercial
purposes; or a transfer within a family from a sole proprietor family
member to a family farm corporation; or in any sheriff sale instituted
by a mortgage in which the purchaser of said sheriff sale is the mortgagee
who instituted said sale; 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 Section 1102-C.5 of Act 77 of 1986.[1]
A Pennsylvania 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 of 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; or
Manufacturing or processing operations of any kind; provided,
however, that at least 75% of all of the stock of the corporation
must be owned by 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 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 mean
and include the responsible members or general partners or members
thereof and, as applied to corporations, the officers thereof.
Any lands, tenements or hereditaments within this commonwealth,
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.
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, whether 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 document granting, bargaining, selling, or
otherwise conveying any land, tenement or hereditament, or interest
therein, 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
of the liens or other encumbrances thereon and ground rents thereof
where such liens or other encumbrances and ground rents also encumber
or are charged against other lands, tenements or hereditaments, or
real estate, provided that, where such documents shall set forth a
small or 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 or any other document without consideration;
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 property granted, bargained,
sold, or otherwise conveyed, which in either event shall not be less
than the amount of the highest assessment of such lands, tenements
or hereditaments 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.
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.
[1]
Editor's Note: See 72 P.S. § 8102-C.5.
[Amended 12-13-2006 by Ord. No. 686]
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 the Township of Hampton, pursuant to the authority
of the Local Tax Enabling Act, Act of December 31, 1965, P.L. 1257,
as amended, 53 P.S. § 6924.101 et seq., 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 the Township of Hampton 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.
It is the intent of this subsection that the entire burden of the
one-percent tax imposed by the Township of Hampton by this subsection
on a person or transfer, pursuant to the authority granted to it by
the Local Tax Enabling Act, shall not exceed the limitations prescribed
in the Local Tax Enabling Act, Act of December 31, 1965 P.L. 1257,
as amended, 53 P.S. § 6924.101 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 Hampton in this subsection under the authority of the Local Tax
Enabling 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 Hampton, and any other political subdivision which
imposes 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.
B.
Every person who makes, executes, delivers, accepts or presents for recording any document or in whose benefit any document is made, executed, delivered, accepted or presented for recording shall (in addition to the tax imposed by Subsection A of this section) also be subject to pay to the Township of Hampton, pursuant to the authority of the Home Rule Charter for the Township of Hampton and the Pennsylvania Home Rule Charter and Optional Plans Law, for and in respect to the transaction or any part thereof, an additional tax at the rate of 1/2% of the value of the real estate represented by such document, which tax shall be payable solely to the Township of Hampton 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. It is the intent of this subsection that the additional tax of 1/2% imposed herein be and is imposed pursuant to the authority granted to the Township of Hampton by the Home Rule Charter for the Township of Hampton and the Pennsylvania Home Rule Charter and Optional Plans Law and, as such, is in addition to the tax set forth in Subsection A of this section and is not subject to any of the limitations set forth either in Subsection A of this section or in the Local Tax Enabling Act, Act of December 31, 1965, P.L. 1257, as amended, 53 P.S. § 6924.101 et seq.
C.
The payment to the Township of Hampton of the taxes imposed by Subsections A and B of this section shall be evidenced by the affixing of an official stamp or writing by the Recorder of Deeds, wherein the date of the payment of the taxes, the amount thereof, and the signature of the collecting agent shall be set forth.
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.
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,
or for or in respect of the vellum parchment or paper upon which such
document is written or printed, a Township tax at the rate of 1% of
the value of the real estate represented by such document, unless
a like tax shall be imposed by the Hampton School District, in which
event the rate of tax shall be 1/2% of the value of the real estate
represented by such document. The tax shall be payable at the earlier
of the time the document is presented for recording or within 30 days
of the making, execution, delivery, acceptance or presenting for recording
of such document or within 30 days of becoming an acquired company.
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.
A.
The tax imposed by this article 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 commonwealth is prohibited from taxing under
the Constitution or statutes of the United States.
(3)
A conveyance to the Township of Hampton, the Hampton School District
or Allegheny County, pursuant to acquisition by either or all of the
aforesaid entities of a tax delinquent property at sheriff's
sale or at a 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
covenants; 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 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 devisees or heirs.
(8)
A transfer for no or nominal actual consideration to a trustee or
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 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.
(12)
A transfer made pursuant to the statutory merger or consolidation
of a corporation or statutory division of a nonprofit corporation,
except where the Pennsylvania Department of Revenue 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 of 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:
(a)
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
(b)
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 transferor 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 article, the
true, full and complete value of the transfer shall be shown on the
statement of value. 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 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 effected, if the change:
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.
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 part of the 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 a 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 demised by the
grantor, a credit for the amount of tax paid at the time of the demise
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.
A.
The payment of the tax imposed by 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. Such 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 such stamps shall write or stamp
or cause to be written or stamped thereon the initials of his name
and the date upon which such stamps are affixed or used so that such
stamps may not again be used.
B.
The use of documentary license meter impressions or similar indicia
of payment in lieu of stamps as required by this article may be permitted
in the discretion of the Pennsylvania Department of Revenue.
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.
[Amended 4-26-1995 by Ord. No. 505]
A.
It shall be unlawful for any person to:
(1)
Make, execute, deliver, accept or present for recording or cause
to be made, executed, delivered, accepted or presented for recording
any document without the full amount of tax thereon being duly paid;
or
(2)
Make use of any documentary stamp to denote payment of any tax imposed
by this article without cancelling such stamp as required by this
article or as prescribed by the Pennsylvania Department of Revenue.
B.
Any person violating any of the provisions of Subsection A shall be guilty of an offense and, upon conviction thereof, shall be sentenced to pay a fine of not more than $600 and costs of prosecution and, in default of payment of said fine and costs, to undergo imprisonment of not more than 30 days.
