PRINTER'S NO. 1752
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
1268
Session of
2024
INTRODUCED BY COLEMAN AND ROTHMAN, JUNE 21, 2024
REFERRED TO FINANCE, JUNE 21, 2024
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," repealing provisions relating to realty transfer
tax; and making editorial changes.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Article XI-C of the act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971, is repealed:
[ARTICLE XI-C
REALTY TRANSFER TAX
Section 1101-C. Definitions.--The following words when used
in this article shall have the meanings ascribed to them in this
section:
"Agricultural production." As defined in section 3 of the
act of June 30, 1981 (P.L.128, No.43), known as the
"Agricultural Area Security Law."
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"Association." A general partnership, limited partnership,
limited liability 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.
"Conservancy." A corporation or association that possesses a
tax-exempt status pursuant to section 501(c)(3) of the Internal
Revenue Code of 1986 (Public Law 99-514, 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.
"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
state, territory, or foreign country, or dependency.
"Department." The Department of Revenue of this
Commonwealth.
"Document." Any deed, instrument or writing which conveys,
transfers, demises, vests, confirms or evidences any transfer or
demise of title to real estate in this Commonwealth, 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 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 1102-C.5 of
this article.
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"Family farm business." A corporation or association of
which at least seventy-five per cent of its assets are devoted
to the business of agriculture and at least seventy-five per
cent of each class of stock of the corporation or the interests
in the association is continuously owned by members of the same
family. The business of agriculture shall include the leasing to
members of the same family or the leasing to a corporation or
association owned by members of the same family of property
which is directly and principally used for agricultural
purposes. The business of agriculture shall not be 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.
"Living trust." Any trust, other than a business trust,
intended as a will substitute by the settlor which becomes
effective during the lifetime of the settlor, but from which
trust distributions cannot be made to any beneficiaries other
than the settlor prior to the death of the settlor.
"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 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
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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
settlor 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.
"Person." 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.
"Qualified beginner farmer." A person that:
(1) Has demonstrated experience in the agriculture industry
or related field or has transferable skills as determined by the
Department of Agriculture.
(2) Has not received Federal gross income from agricultural
production for more than the ten most recent taxable years.
(3) Intends to engage in agricultural production within the
borders of this Commonwealth and to provide the majority of the
labor and management involved in that agricultural production.
(4) Has obtained written certification from the Department
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of Agriculture confirming qualified beginner farmer status.
"Real estate."
(1) Any lands, tenements or hereditaments, 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
meets any of the following:
(1) Is primarily engaged in the business of holding, selling
or leasing real estate ninety per cent or more of the ownership
interest in which is held by thirty-five or fewer persons and
which:
(i) derives sixty per cent or more of its annual gross
receipts from the ownership or disposition of real estate; or
(ii) holds real estate, the value of which comprises ninety
per cent 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.
(2) Ninety per cent or more of the ownership interest in the
corporation or association is held by thirty-five or fewer
persons, and the corporation or association owns, as ninety per
cent or more of the fair market value of its assets, a direct or
indirect interest in a real estate company. An indirect
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ownership interest is an interest in a corporation or
association, ninety per cent or more of the ownership interest
which is held by thirty-five or fewer persons whose purpose is
the ownership of a real estate company.
"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 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 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, accepting,
or presenting for recording of a document.
"Value."
(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
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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
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 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;
(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 principal of the grantor or a related corporation,
association or partnership and the grantee existing before or
effective with the transfer.
"Veterans' service organization." A not-for-profit
organization that has been chartered by the Congress of the
United States to service veterans or is a member of the State
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Veterans' Commission under 51 Pa.C.S. Ch. 17 (relating to State
Veterans' Commission and Deputy Adjutant General for Veterans'
Affairs).
"Volunteer emergency medical services agency." The term
shall have the same meaning as given to the term "volunteer
ambulance service" in 35 Pa.C.S. § 7802 (relating to
definitions).
"Volunteer fire company." As defined in 35 Pa.C.S. § 7802
(relating to definitions).
"Volunteer rescue company." As defined in 35 Pa.C.S. § 7802
(relating to definitions).
Section 1102-C. Imposition of Tax.--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 State tax at
the rate of one per cent of the value of the real estate within
this Commonwealth represented by such document, which State 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.
Section 1102-C.2. Exempt Parties.--The United States, the
Commonwealth or any of their instrumentalities, agencies or
political subdivisions, or veterans' service organizations shall
be exempt from payment of the tax imposed by this article. The
exemption under this section shall not, however, relieve any
other party to a transaction from liability for the tax.
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Section 1102-C.3. Excluded Transactions.--The tax imposed by
section 1102-C 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 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 cotenants; 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
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prior to the granting of the final decree in divorce, between
parent and child or the spouse of such child, between a
stepparent and a stepchild or the spouse of the stepchild,
between brother or sister or spouse of a brother or sister and
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 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 that are
entitled to receive the property or proceeds from the sale of
the property under the trust, whether or not such beneficiaries
are contingent or specifically named. A trust clause which
identifies the contingent beneficiaries by reference to the
heirs of the trust settlor as determined by the laws of the
intestate succession shall not disqualify a transfer from the
exclusion provided by this clause. 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.
(8.1) A transfer for no or nominal actual consideration to a
trustee of a living trust from the settlor of the living trust.
No such exemption shall be granted unless the recorder of deeds
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is presented with a copy of the living trust instrument.
(9) 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 settlor's lifetime shall be considered for the
purposes of this article as if such transfer were made directly
from the settlor to the grantee.
(9.1) A transfer for no or nominal actual consideration from
a trustee of a living trust after the death of the settlor of
the trust or from a trustee of a trust created pursuant to the
will of a decedent to a beneficiary to whom the property is
devised or bequeathed.
(9.2) A transfer for no or nominal actual consideration from
the trustee of a living trust to the settlor of the living trust
if such property was originally conveyed to the trustee by the
settlor.
(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
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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 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 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:
(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
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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) Any of the following:
(i) A transfer to a conservancy.
(ii) A transfer from a conservancy to the United States, the
Commonwealth or to any of their instrumentalities, agencies or
political subdivisions.
(iii) A transfer from a conservancy where the real estate is
encumbered by a perpetual agricultural conservation easement as
defined by the act of June 30, 1981 (P.L.128, No.43), known as
the "Agricultural Area Security Law," and such conservancy has
owned the real estate for at least two years immediately prior
to the transfer.
(iv) A transfer of an agricultural conservation easement to
or from the Commonwealth, a county, a local government unit or a
conservancy under authority of the "Agricultural Area Security
Law."
(v) A transfer of a conservation easement or preservation
easement under the act of June 22, 2001 (P.L.390, No.29), known
as the "Conservation and Preservation Easements Act."
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(vi) A transfer of a perpetual historic preservation
easement, a perpetual public trail easement or other perpetual
public recreational use easement, a perpetual scenic
preservation easement or a perpetual open-space preservation
easement to or from the United States, the Commonwealth, a
county, a local government unit or a conservancy.
(vii) A transfer of real estate that is subject to an
agricultural conservation easement established under authority
of the act of June 30, 1981 (P.L.128, No.43), known as the
"Agricultural Area Security Law," to a qualified beginner
farmer.
(19) A transfer of real estate devoted to the business of
agriculture to a family farm business by:
(i) a member of the same family which directly owns at least
seventy-five per cent of each class of the stock thereof or the
interests in that family farm business; or
(ii) a family farm business, which family directly owns at
least seventy-five per cent of each class of stock thereof or
the interests in that family farm business.
(20) A transfer between members of the same family of an
ownership interest in a real estate company or family farm
business that owns real estate.
(21) A transaction wherein the tax due is one dollar ($1) 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. For leases of coal, oil, natural gas or
minerals, the statement of value may be limited to an
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explanation of the reason such document is not subject to tax
under this article.
(23) A transfer of real estate to or by a volunteer EMS
company, volunteer fire company or volunteer rescue company as
those terms are defined in 35 Pa.C.S. § 7802 (relating to
definitions).
(24) A transfer of real estate to or by a land bank. For the
purposes of this clause, the term "land bank" shall have the
same meaning as given to it in 68 Pa.C.S. § 2103 (relating to
definitions).
(25) Beginning on or after December 31, 2015, a transfer of
real estate by a housing authority created under the act of May
28, 1937 (P.L.955, No.265), referred to as the Housing
Authorities Law, to a nonprofit organization which is utilizing
the real estate for the purpose of Rental Assistance
Demonstration administered by the United States Department of
Housing and Urban Development under the Consolidated and Further
Continuing Appropriations Act, 2012 (Public Law 112-55, 125
Stat. 552).
Section 1102-C.4. Documents Relating to Associations or
Corporations and Members, Partners, Stockholders or Shareholders
Thereof.--Except as otherwise provided in sections 1102-C.3 and
1102-C.5, 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.
Section 1102-C.5. Acquired Company.--(a) A real estate
company is an acquired company upon a change in the ownership
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interest in the company, however effected, if the change:
(1) does not affect the continuity of the company; and
(2) of itself or together with prior changes has the effect
of transferring, directly or indirectly, ninety per cent or more
of the total ownership interest in the company within a period
of three years.
(3) For the purposes of paragraph (2), a transfer occurs
within a period of three years of another transfer or transfers
if, during the period, the transferring party provides the
transferee a legally binding commitment or option, enforceable
at a future date, to execute the transfer.
(b.2) A family farm business is an acquired company when,
because of voluntary or involuntary dissolution, it ceases to be
a family farm business or when, because of the issuance or
transfer of stock in the corporation or transfer of interests in
the association 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 business under
this article.
(b.3) The conveyance of assets held by one family farm
business to another family farm business shall not be considered
a transfer of assets under this article if the same individuals
hold at least fifty per cent of the ownership interest in each
family farm business.
(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.
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Section 1102-C.6. Transfer of Tax.--(a) Subject to
subsection (b), beginning July 31, 2019, and each July 31
thereafter, the State Treasurer shall transfer from the General
Fund to the Housing Affordability and Rehabilitation Enhancement
Fund under Article IV-D of the act of December 3, 1959
(P.L.1688, No.621), known as the "Housing Finance Agency Law,"
an amount equal to forty per cent of the difference between:
(1) the total amount of the tax imposed under section 1102-C
and collected by the Commonwealth for the prior fiscal year; and
(2) the total dollar amount of such tax estimated for the
fiscal year beginning July 1, 2014, and as contained in the
final estimate signed by the Governor for that fiscal year as
required by section 618 of the act of April 9, 1929 (P.L.177,
No.175), known as "The Administrative Code of 1929."
(b) The amount transferred under subsection (a) may not
exceed the following:
(1) For each fiscal year beginning after June 30, 2019, and
ending prior to July 1, 2023, forty million dollars
($40,000,000).
(2) For the fiscal year beginning July 1, 2023, and each
fiscal year thereafter, sixty million dollars ($60,000,000).
(c) Nothing in this section shall be construed to reduce or
prohibit increased funding for the Housing Affordability and
Rehabilitation Enhancement Fund or the Keystone Recreation, Park
and Conservation Fund as provided in the "Housing Finance Agency
Law" or other law.
Section 1103-C. 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
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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
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.
Section 1103-C.1. 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.
Section 1104-C. Proceeds of Judicial Sale.--The tax herein
imposed shall be fully paid, and have priority out of the
proceeds of any judicial sale of real estate before any other
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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 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.
Section 1105-C. Documentary Stamps.--(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: Provided, That
the department may prescribe such other method of cancellation
as it may deem expedient.
(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 department.
Section 1106-C. Stamps, Commissions, Payments and
Transfers.--(a) The department shall prescribe, prepare and
furnish stamps to each recorder of deeds, of such denominations
and quantities as may be necessary, for the payment of the tax
imposed and assessed by this article.
(b) The department shall allow each county a commission
equal to one per cent of the face value of the stamps sold or
two hundred fifty dollars ($250) whichever is greater. The
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recorder of deeds shall pay the commission herein allowed to the
general fund of the county. The department shall pay the premium
or premiums on any bond or bonds required by law to be procured
by recorder of deeds for the performance of their duties under
this article.
(c) All moneys paid in accordance with this article shall be
credited to the General Fund.
(d) At the end of each month, the State Treasurer shall
transfer from the General Fund to the Keystone Recreation, Park
and Conservation Fund an amount equal to the tax credited to the
General Fund under subsection (c) for the previous month
multiplied by the applicable transfer factor. The applicable
transfer factor for each month shall be as follows:
Month Transfer Factor
July 1994 through
December 2001 0.15
January 2002 through
June 2002 0.10
July 2002 through
June 2003 0.075
July 2003 through
June 2006 0.15
July 2006 through
June 2007 0.021
July 2007 and each
month thereafter 0.15
Section 1107-C. Enforcement; Rules and Regulations.--The
department is hereby charged with the enforcement of the
provisions of this article and is hereby authorized and
empowered to prescribe, adopt, promulgate and enforce rules and
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regulations relating to:
(1) The method and means to be used in affixing or
cancelling of stamps in substitution for or in addition to the
method and means provided in this article.
(2) The denominations and sale of stamps.
(3) Any other matter or thing pertaining to the
administration and enforcement of the provisions of this
article.
Section 1108-C. 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.
Section 1109-C. Statement of Value; Penalty.--(a) Every
document lodged with or presented to any recorder of deeds in
this Commonwealth 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. 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
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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.
(b) Any recorder of deeds who shall record any document upon
which tax is imposed by this article without the proper
documentary stamp or stamps affixed thereto as required by this
article as is indicated in such document or accompanying
statement of value shall, upon summary conviction, be sentenced
to pay a fine of fifty dollars ($50) and costs of prosecution,
and in default of payment thereof, undergo imprisonment for not
more than thirty days.
Section 1109-C.1. 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 per
cent 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 five per cent of the amount of such tax if
the failure is for not more than one month, with an additional
five per cent for each additional month or fraction thereof
during which such failure continues, not exceeding fifty per
cent in the aggregate.
Section 1110-C. 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
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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) wilfully 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 away
any such altered or restored stamp to any person for use, or
knowingly use the same; or,
(4) 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,
(5) knowingly or wilfully prepare, keep, sell, offer for
sale, or have in his possession, any forged or counterfeited
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documentary stamps.
(d) Any person violating any of the provisions of subsection
(c) shall be guilty of a misdemeanor of the second degree.
(e) 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.
Section 1111-C. Assessment and Notice of Tax; Review.--(a)
If any person shall fail to pay any tax imposed by this article
for which he is liable, the department is hereby authorized and
empowered to make an assessment of additional tax and interest
due by such person based upon any information within its
possession or that shall come into its possession. All of such
assessments shall be made within three years after the date of
the recording of the document, subject to the following:
(1) If the taxpayer underpays the correct amount of the tax
by twenty-five per cent or more, the tax may be assessed at any
time within six years after the date of the recording of the
document.
(2) If any part of an underpayment of tax is due to fraud or
an undisclosed, intentional disregard of rules and regulations,
the full amount of the tax may be assessed at any time.
(b) Promptly after the date of such assessment, the
department shall send a copy thereof, including the basis of the
assessment, to the person against whom it was made. Any taxpayer
against whom an assessment is made may petition the department
for a reassessment pursuant to Article XXVII.
Section 1112-C. Lien.--(a) Any tax determined to be due by
the department and remaining unpaid after demand for the same,
and all penalties and interest thereon, shall be a lien in favor
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of the Commonwealth upon the property, both real and personal,
of such person but only after said lien has been entered and
docketed of record by the prothonotary of the county where such
property is situated.
(a.1) At any time after it makes an assessment of additional
tax, penalty or interest, the department may transmit to the
prothonotaries of the respective counties certified copies of
all liens for such taxes, penalties and interest, and it shall
be the duty of each prothonotary receiving the lien to enter and
docket the same of record in his office, which lien shall be
indexed as judgments are now indexed. After the department's
assessment becomes final, a writ of execution may directly issue
upon such lien without the issuance and prosecution to judgment
of a writ of scire facias: Provided, That not less than ten days
before issuance of any execution on the lien, notice shall be
sent by certified mail to the taxpayer at his last known post
office address. No prothonotary shall require as a condition
precedent to the entry of such liens, the payment of any costs
incident thereto.
(b) The lien imposed hereunder shall have priority from the
date of its recording as aforesaid, 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 said 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 hereunder
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upon a lien or claim over which the lien imposed hereunder has
priority, as aforesaid, such sale shall discharge the lien
imposed hereunder to the extent only that the proceeds are
applied to its payment, and such lien shall continue in full
force and effect as to the balance remaining unpaid.
(c) The lien imposed hereunder shall continue for five years
from the date of its entry of record, and may be renewed and
continued in the manner now or hereafter provided for the
renewal of judgments, or as may be provided in the act of April
9, 1929 (P.L.343, No.176), known as "The Fiscal Code."
Section 1113-C. Refunds.--(a) Whenever the amount due upon
assessment or review is less than the amount paid to the
department on account thereof, the department shall enter a
credit in the amount of such difference to the account of the
person who paid the tax.
(b) Where there has been no assessment of unpaid tax, the
department shall have the power, and its duty shall be, to hear
and decide any application for refund and, upon the allowance of
such application, to enter a credit in the amount of the
overpayment to the account of the person who paid the tax. Such
application must be filed under Article XXVII.
Section 1114-C. Sharing Information.--Notwithstanding the
provisions of any other act, the department may divulge to the
proper officer of a political subdivision imposing a local real
estate transfer tax, or the authorized representative of that
officer, information gained pursuant to the department's
administration or collection respecting the collection of realty
transfer tax under this article.]
Section 2. Sections 1101-D, 1102-D, 1103-D(a) and 1110-D(b)
(1) and (d) of the act are amended to read:
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Section 1101-D. Imposition.--The duly constituted
authorities of the following political subdivisions--cities of
the second class, cities of the second class A, cities of the
third class, boroughs, incorporated towns, townships of the
first class, townships of the second class, school districts of
the first class A, school districts of the second class, school
districts of the third class and school districts of the fourth
class, in all cases including independent school districts--may,
in their discretion, by ordinance or resolution, for general
revenue purposes, levy, assess and collect or provide for the
levying, assessment and collection of a tax upon a transfer of
real property or an interest in real property within the limits
of the political subdivision, 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]. A tax imposed under this article shall be
subject to rate limitations provided by section 5, section 8 and
section 17 of the act of December 31, 1965 (P.L.1257, No.511),
known as "The Local Tax Enabling Act."
Section 1102-D. Administration.--(a) The tax authorized
under this article shall be administered, collected and enforced
under the act of December 31, 1965 (P.L.1257, No.511), known as
"The Local Tax Enabling Act," provided, however, that, if the
correct amount of the tax is not paid by the last date
prescribed for timely payment [as provided for in section 1102-
C], the department may determine the tax, interest and penalty
as provided for in section 1109-D [and may collect and enforce
the tax, interest and penalty in the same manner as tax,
interest and penalty imposed by Article XI-C].
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[(b) Whenever a declaration is required to be filed under
Article XI-C, a declaration is also required to be filed under
this article.]
Section 1103-D. Regulations.--[(a) The regulations
promulgated under Article XI-C shall be applicable to the taxes
imposed under this article.]
* * *
Section 1110-D. Lien.--* * *
(b) (1) 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
Article XI-C and this article] on a single form.
* * *
[(d) A lien imposed under this article shall be equal in
priority to the lien imposed under Article XI-C.]
Section 3. The Department of Revenue may promulgate
regulations as necessary to implement this act.
Section 4. This act shall apply to taxable years beginning
after December 31, 2024.
Section 5. This act shall take effect immediately.
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