ORDINANCE NUMBER 22
AN ORDINANCE OF THE TOWNSHIP OF PINE, COUNTY OF INDIANA AND COMMONWEALTH OF PENNSYLVANIA PROVIDING FOR THE LEVYING, ASSESS¬MENT AND COLLECTION OF A TAX FOR GENERAL REVENUE PURPOSES UPON A TRANSFER OF REAL PROPERTY OR AN INTEREST IN REAL PROPERTY WITHIN THE TOWNSHIP OF PINE TO THE EXTENT THAT SUCH TRANSFERS ARE SUBJECT TO TAX IMPOSED BY THE COMMONWEALTH OF PENNSYLVANIA PURSUANT TO 72 P.S. § 8101-C ET SEQ, AUTHORIZED BY ARTICLE XI-D, "LOCAL REAL ESTATE TRANSFER TAXY” 72 P.S. § 8101-D ET SEQ AND ADMINISTERED, COLLECTED AND ENFORCED UNDER THE "LOCAL TAX ENABLING ACT," 53 P.S. § 6901 ET SEQ; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the Township of Pine has previously adopted an ordinance providing for the levying, assessment and collection of a tax for general revenue purposes in connection with the making, executing, delivering or accepting of any document evidencing or pertaining to the transfer of real property or an interest in real property within the Township of Pine; and
WHEREAS, the Township of Pine desires to amend said ordinance in its entirety and to substitute therefore the within ordinance for the purpose of levying, assessing and collecting a tax for general revenue purposes upon a transfer of real property or an interest in real property within the Township of Pine.
NOW, THEREFORE, BE IT ORDAINED AND ENACTED by the Board of Supervisors of the Township of Pine and it is hereby ordained and enacted as follows:
§ 101. Short Title. This ordinance shall be known as the "Realty Transfer Tax Ordinance of the Township of Pine."
§ 102. Authority. A realty transfer tax for general revenue purposes is hereby imposed upon the transfer of real property or an interest in real property situated within the Township of Pine, regardless of where the documents making the transfer are made, executed or delivered, or where the actual settlements on such transfer take place as authorized by Article XI-D, "Local Real Estate Transfer Tax," 72 P.S. § 8101-D et seq.§ 103. Definitions. The following words when used in this section shall have the meanings 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.
"Corporation." 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
"Department." The Department of Revenue of the Commonwealth of Pennsylvania.
"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 or 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 thirty 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 102 of this ordinance.
"Family farm corporation". A corporation of which at least seventy-five percent of its assets are devoted to the business of agriculture and at least seventy-five percent of each class of stock of the corporation is continuously owned by members of the same family. The business or agriculture shall not de deemed to include:
(1)Recreational activities such as, but not limited to, hunting, fishing, camping, skiing, show competition or racing; (2)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;
(3)Fur farming; (4)Stockyard and slaughterhouse operations; or (5)Manufacturing or processing operations of any kind.
"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, 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.
"Person." Every natural person, association, or corporationration. 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.
(1) Any lands, tenements or hereditaments within the Township of Pine, 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. (2)A condominium unit. (3)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, ninety percent or more of the ownership interest in which is held by thirty-five or fewer persons and which: (a)derives sixty percent 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 ninety percent 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."
(1)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
(2)Any interest in real estate enduring for a fixed period of years but which, either by reason of the length 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 thirty years or more
or a leasehold interest or possessory interest in real estate in which the lessee has equity.
"Transaction." The making, executing, delivering, accept¬ing, or presenting for recording of a document.
(1)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 therefore, 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 party 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;
(2)In the case of a gift, sale by execution upon a judgment of 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 factor developed by the Pennsylvania Department of Revenue for Pennsylvania realty transfer tax base calculations; (3)In the case of an easement or other interest in real estate the value of which is not determinable under clause (1) or (2), the actual monetary worth of such interest; or (4)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 principle of the grantor of a related corporation, association or partnership and the grantee existing before or effective with the transfer.
§ 104. Imposition of Tax; Documentary Stamps; Interest.
(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, or for or in respect of the vellum parchment or paper upon which such document is written or
printed, a tax at the rate of one percent 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 thirty days of acceptance of such document or
within thirty days of becoming an acquired company.
(b)The payment of the tax imposed herein shall be evidenced by the affixing of a documentary stamp or stamps to every
document by the Recorder. Such stamps shall be affixed in such manner that their removal will require continued application of
steam or water, and the Recorder shall write or stamp or cause to be written or stamped thereon the initials of his name and date
upon such stamps are affixed or use so that such stamps may not again be used.
(c)It is the intent of this ordinance 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.,
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 Pine under the authority of that Act shall during the time such duplication of the tax
exists, except as hereinafter otherwise provided, be one-half of the rate and such one-half rate shall become effective without
any action on the part of the Township of Pine provided, however, that the Township of Pine 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 one-half 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.
§ 105. Exempt Parties. 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.
§ 106. Excluded Transactions. The tax imposed by Section 104 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 re-conveyance by the condemning body of the property condemned to the owner of record at the time the condemnation which re-conveyance may include property fine adjustments provided said re-conveyance is made within one year from the date of condemnation. (2)A document which the Township of Pine 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 of division in kind for no or nominal actual consideration of property passed by testate or intestate succession and held by co-tenants; 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, 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 (i) for no or nominal actual consideration between principal and agent or straw party; or (ii) 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 princpal, there is a reputable presumption that the property is the property of the grantee in his individual capacity if the grantee claims an exemption form 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 department 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 or 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: (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. (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 seventy-five percent 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 one dollar ($1.00) or less. (22)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 such document is not subject to tax under this ordinance.
§ 107. Documents Relating to Associations or Corporations and Members, Partners, Stockholders or Shareholders Thereof.
Except as otherwise provided in section 106,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.
§ 108. Acquired company.
(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, ninety percent or more of 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 ordinance.
(c) Within thirty 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.
§ 109. Credits Against Tax.
(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 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 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.
§ 110. Extension of Lease. 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.
§ 111. Proceeds of Judicial Sale. The tax herein imposed shall be fully paid, and have priority out of the proceeds or 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 moneys 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.
§ 112. Duties of Recorder of Deeds.
(a)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 local realty transfer tax, including any amount payable to the Township of Pine based on a re-determination
of the amount of tax due by the Commonwealth of Pennsylvania of the Pennsylvania realty transfer tax, without compensation from the Township of Pine.
(b)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. (c)On or before the tenth of each month, the recorder shall pay over to the all local realty transfer taxes collected, less two percent 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 two percent commission shall be paid to the county. (d)Upon a re-determination of the amount of realty transfer tax due by the Commonwealth of Pennsylvania, the recorder shall
rerecord the deed or record the additional realty transfer tax form only when both the state and local amounts and a rerecording
or recording fee has been tendered.
§ 113. Failure to Affix Stamps. No document upon which tax is imposed by 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.
§ 114. Statement of Value. 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 docu¬ments 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.
§ 115. Civil Penalties.
(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 fifty percent of the underpayment. (b)In the case of failure to record a declaration required under this article on the date prescribed therefore, unless it is shown that such failure is due to reasonable cause, there shall be added to the tax five percent of the amount of such tax if the failure is for not more than one month, with an additional five percent for each additional month of fraction thereof during with such failure continues, not exceeding fifty percent in the aggregate.
§ 116. Unlawful Acts; Penalty.
(a)It shall be unlawful for any person to:
(1)accept or present for recording or cause to be 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 department; or (3)fail, neglect or refuse to comply with or violate the rules and regulations prescribed, adopted and promulgated by the
department under the provisions of this article.
(b)Any person violating any of the provisions of subsection (a) shall be guilty of a summary offense. (c)It shall be unlawful for any person to: (1)fraudulently cut, tear or remove from a document any documentary stamp; or, (2)fraudulently affix to any document upon which tax is imposed by this article any documentary stamp which has been cut,
torn or removed from any other document upon which tax is imposed by this article, or any documentary stamp of insufficient value,
or any forged or counterfeited stamp, or any impression of any forged or counterfeited stamp, die, plate or other article; or,
(3)willfully remove or alter the cancellation marks of any documentary stamp, or restore any such documentary stamp, with
intent to use or cause the same to be used after it has already been used, or knowingly buy, sell, offer for sale, or give any
such altered or restored stamp to any person for use, or knowingly use the same; or knowingly have in his possession any altered or
restored documentary stamp which has been removed from any document upon which tax is imposed by this article. Provided, that the possession of such stamps shall be prima facie evidence of an intent to violate the provisions of this clause, or
(4) knowingly or willfully prepare, keep, sell, offer for sale, or have in his possession, any forged or counterfeited documentary stamps.
(a)Any person violating any of the provisions of subsection (c) shall be guilty of a misdemeanor of the second degree. (b)A person who makes a false statement of value or declaration of acquisition, when he does not believe the statement or declaration to be true, is guilty of a misdemeanor of the second degree.
§ 117. Lien. The tax imposed by this ordinance shall become a lien upon the lands, tenements, or hereditaments, or any interest therein, lying, being situated, wholly or in part within the boundaries of the Township of Pine, which lands, tenements, hereditaments, or interest therein, are described in or conveyed by or transferred by the document which is the subject of the tax imposed, assessed and levied by this ordinance, said lien to begin at the time when the tax under this ordinance is due and payable, and continue until discharge by payment, or in accordance with the law, and the Township of Pine is authorized to file a municipal or tax claim in the Court of Common Pleas of Indiana County, in accordance with the provisions of the Munici¬pal Claims and Liens Act of 1923, 53 P.S. § 7101 et seq., its supplements and amendments.
§ 118. Enforcement. All taxes imposed by this ordinance togeth¬er with interest and penalties prescribed herein, shall be recoverable as other debts of like character are recovered
§ 119. Regulations. The Board of Supervisors of the Township of Pine is charged with enforcement and collection of the within 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 ordinance.
§ 120. Severability. If any section, subsection, sentence, clause, phrase or part of this ordinance shall, for any reason, be found to be unconstitutional, illegal or invalid, such unconstitutionality, illegality or invalidity shall not affect or impair any of the remaining provisions, sections, subsections, sentences, clauses or phrases of this ordinance; it is hereby declared to be the legal intent of the Board of Supervisors of the Township of Pine that this ordinance would have been adopted had such unconstitutional, illegal or invalid section, sub¬section, sentence, clause, part or phrase thereof not been included herein.
§ 121. Repeal of Prior Ordinances. Any and all prior ordinances of the Township of Pine levying, assession and providing for the collection of a tax upon a transfer of real property or an interest in real property within the Township of Pine including Ordinance No. 690 as supplemented, amended and reenacted, are hereby repealed.
§ 122. Effective Date. This ordinance shall be effective immediately upon its enactment.
ORDAINED AND ENACTED this 2nd day of November, 1987.
David L. Beatty
William A. Benko
Attest: Kathryn A. Malenich