CHAPTER 888
Realty Transfer Tax
EDITOR’S NOTE: This chapter, previously titled Real Estate Transfer Tax and being a codification of Ordinance 267, passed January 1, 1962, was repealed and re-enacted in its entirety by Ordinance 613, passed February 18, 1987.
888.01 Short title.
888.02 Authority to tax.
888.03 Definitions.
888.04 Imposition of tax; interest.
888.05 Exception for governmental bodies.
888.06 Excluded transactions.
888.07 Documents relating to associations or corporations.
888.08 Acquired companies.
888.09 Tax credits.
888.10 Extensions of leases.
888.11 Disposition of proceeds of judicial sales.
888.12 Collection of tax; duties of Recorder of Deeds.
888.13 Statements of value.
888.14 Underpayments; failure to record declarations.
888.15 Unpaid taxes as liens.
888.16 Recoverability of tax.
888.17 Enforcement; regulations.
888.99 Penalty.
CROSS REFERENCES:
Real Estate Registry - see 1st Class §1310 et seq.
Authority to enact - see Act No. 511 of 1965, §2; Act 77 of 1986, §8101-D
Annual re-enactment unnecessary - see Act No. 511 of 1965, §4
Limitation on rate - see Act No. 511 of 1965, §8(5)
Real Estate Tax - see B. R. & T. Ch. 886
This chapter shall be known and may be cited as the “Realty Transfer Tax Ordinance of Aston Township” or just the “realty transfer tax.” (Ord. 613. Passed 2-18-87.)
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 Township, regardless of where the documents making the transfer are made, executed or delivered, or where the actual settlements on such transfer took place, as authorized by Article XI-D, Local Real Estate Transfer Tax, 72 P.S. Sections 8101-D et seq. (Ord. 613. Passed 2-18-87.)
As used in this chapter:
(a) “Association” means 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.
(b) “Board” means the Board of Township Commissioners.
(c) “Corporation” means a corporation, joint-stock association, business trust or banking institution which is organized under the laws of the Commonwealth, the United States or any other state, territory, foreign country or dependency.
(d) “District” means Aston Township, Delaware County, Pennsylvania.
(e) “Document” means any deed, instrument or writing which conveys, transfers, demises or vests title to real estate, or 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 until 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” also includes a declaration of acquisition required to be presented for recording under Section 888.08.
(f) “Family farm corporation” means a corporation, at least seventy-five percent of the assets of which are devoted to the business of agriculture and at least seventy-five percent of each class of stock of which is continuously owned by members of the same family. The business of agriculture shall not be deemed to include:
(1) Recreational activities, including, but not limited to, hunting, fishing, camping, skiing, show competition or racing;
(2) The raising, breeding or training of game animals, game birds, fish, cats, dogs, 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.
(g) “Members of the same family” means any individual, such Individual’s brothers and sisters, the brothers and sisters of such individual’s parents and grandparents, the ancestors and lineal descendents 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.
(h) “Person” means every natural person, association or corporation. Whenever used in any clause prescribing and imposing a fine or imprisonment, or both, “person,” as applied to associations, includes the responsible members or general partners thereof, and as applied to corporations, the officers thereof.
(i) “Real estate” means:
(1) All lands, tenements or hereditaments within the Township, including, without limitation, buildings, structures, fixtures, mines, minerals, oil, gas, quarries, spaces with or without upper or lower boundaries, trees and other improvements, immovable 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;
(2) Condominium units; or
(3) A tenant-stockholder’s interest in a cooperative housing corporation, trust or association under a proprietary lease or occupancy agreement.
(j) “Real estate company” means a corporation or association which is primarily engaged in the business of holding, selling or leasing real estate, and in which ninety percent or more of the interest is held by thirty-five or fewer persons, and which:
(1) Derives sixty percent or more of its annual gross receipts from the ownership or disposition of real estate; or
(2) 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.
(k) “Title to real estate” means:
(1) Any interest in real estate which endures for a period of time, the termination of which interest is not fixed or ascertained by a specific number of years. including, without limitation, an estate in fee simple, a life estate or a perpetual leasehold; or
(2) Any interest in real estate enduring for a fixed period of years, but which interest, 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 approximately those of an estate in fee simple, a life estate or a 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.
(1) “Transaction” means the making, executing, delivering, accepting or presenting for recording of a document.
(m) “Value” means
(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 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 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 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 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 paragraph (m) (l) or (2) hereof, 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 or the agent or principal of the grantor of a related corporation, association or partnership and the grantee existing before or effective with the transfer.
(Ord. 813. Passed 2-18-87.)
888.04 IMPOSITION OF TAX; 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, 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 In this chapter 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, the amount of the tax and the signature of the collecting agent shall be set forth.
(c) It is the Intent of this chapter that the entire burden of such tax on a person or transfer shall not exceed the limitations prescribed in the Local Tax Enabling Act, being the Act of December 31. 1965, P. L. 1257, 53 P.S., Sections 6901 et seq., as amended, so that if any other political subdivision has Imposed or hereafter imposes such tax on the same person or transfer, then the tax levied by the Township under the authority of such 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.
(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. (Ord. 613. Passed 2-18-87.)