TAXATION
ARTICLE I
Earned Income Tax
§ 78-1. Definitions; word usage.
§ 78-2. Imposition of tax.
§ 78-3. Collector.
§ 78-4. Filing of return.
§ 78-5. Deductions by employers
. § 78-6. Authority to examine records;confidentiality.
§ 78-7. Board of Appeal and Review.
§ 78-8. Interest and penalty on unpaid
§ 78-9. Recovery of unpaid taxes.
§ 78-10. Violations and penalties.
§ 78-11. Applicability. unpaid taxes
. ARTICLE II
Per Capita Tax
§ 78-12. Imposition of tax.
§ 78-13. Residency list.
§ 78-14. Collection and enforcement.
§ 78-15. Collector.
ARTICLE III
Occupational Privilege Tax
§ 78-16. Title.
§ 78-17. Definitions.
§ 78-18. Levy of tax.
§ 78-19. Collection through employers.
§ 78-20. Direct payment by taxpayers.
§ 78-21. Nonresident taxpayers.
§ 78-22. Administration and enforcement.
§ 78-23. Collection; unpaid taxes.
§ 78-24. Violations and penalties.
§ 78-25. Applicability and severability.
§ 78-26. When effective; continuation.
ARTICLE IV
Realty Transfer Tax
§ 78-27. Title. taxes.
§ 78-28. Authority.
§ 78-29. Definitions.
§ 78-30. Imposition of tax; interest on
§ 78-31. Exempt parties
§ 78-32. Excluded transactions.
§ 78-33. Documents relating to associations or corporations.
§ 78-34. Acquired company.
§ 78-35. Credits against tax.
§ 78-36. Extension of lease.
§ 78-37. Proceeds ofjudicial sale.
§ 78-38. Duties of Recorder of Deeds.
§ 78-39. Statement of value.
§ 78-40. Civil penalties.
§ 78-41. Unpaid tax to become lien.
§ 78-42. Taxes recoverable as like debt.
§ 78-43. Enforcement; regulations.
ARTICLE I
Earned Income Tax
[Adopted 12-9-1965 by Ord. No. 55]
§ 78-1. Definitions; word usage.
A. 1Unless otherwise expressly stated, the following terms shall, for purpose of this article, have the meaning herein indicated except where the context indicates or requires a different meaning:
ASSOCIATION -A partnership, limited partnership or any other form of unincorporated enterprise, owned by two or more persons.
BOROUGH OF CALLERY -The Borough of Callery, Butler County, Pennsylvania.
BUSINESS -Any enterprise, activity, profession or undertaking of any nature conducted for profit or ordinarily conducted for profit, whether by an individual, partnership association or other entity.
COMPENSATION EARNED or COMPENSATION PAID or EARNINGS -All salaries, wages, commissions, bonuses, incentive payments, and/or other forms of compensation or remuneration, in cash or in property, received by an. individual and paid, directly or through an agent, by an employer for services rendered.
DOMICILE -The place where one lives and has his permanent home and to which he has the intention of returning whenever he is absent. Actual residence is not necessarily domicile, for domicile is the fixed place of abode which, in the intention of the taxpayer, is permanent rather than transitory. Domicile is the voluntarily fixed place of habitation of a person, not for a mere special or limited purpose, but with the present intention of making a permanent home, until some event occurs to induce him to adopt some other permanent home. In the case of businesses or associations, the domicile is that place considered as the center of business affairs and the place where its functions are discharged.
EMPLOYER -Any individual, partnership, association, corporation, governmental body or unit or agency or any other entity, who, or that employs one or more persons on a salary, wage, commission, or other compensation basis.
NET PROFITS -The net gain from the operation of a business, profession, or enterprise, except any corporation which is exempt from this tax under Act of Assembly No. 481, approved June 25, 1947, as amended, after provision for all costs and expenses incurred in the conduct thereof, either paid or accrued in accordance with the accounting system used, and without deduction of taxes based on income.
PERSON -Natural person, partnership, association, firm or fiduciary. Whenever used in any clause presclibing and imposing a penalty, the term "person," as applied to associations, shall mean the partners or members thereof, and as applied to corporations, the officers thereof.
RESIDENT -An individual, partnership, association, or other entity domiciled in the Borough of Callery, Butler County, Pennsylvania.
TAXABLE PERIOD -The calendar year, a fiscal year, or period of less than 12 months for which a return is required to be filed by a taxpayer.
TAXPAYER -A person, whether an individual, partnership, association,or any other entity, required hereunder to file a return on earnings or net profits or to pay a tax thereon.
B. The singular shall include the plural and the masculine shall include the feminine and the neuter.
§ 78-2. Imposition of tax.
A. The following annual taxes are hereby imposed for general revenue purposes: An annual tax of 1% of all compensation earned on and after the 1st of January, 1966, by residents of the Borough of Callery, Butler County, Pennsylvania, and of the net profits earned on and after the 1st day of January, 1966, of businesses, professions, and other activities conducted by residents of the said Borough of Callery. The taxes levied under the first part of this section shall relate to and be imposed upon compensation paid by an employer or on his behalf to any person who is employed by or renders services to him. The taxes levied under the second part of this section shall relate to and be imposed upon the net profits of any business, profession, or enterprise carried on by any person or owner or proprietor, either individually or in association with some other person or persons. Said tax shall first be levied, collected and paid with respect to the salaries, wages, and commissions and other compensations earned on and, after the first of January, 1966, and with respect to the net profits of business, professions or other activities earned during the period from January 1, 1966, to December 31, 1966.
B. Provided, however, that where the fiscal year of a business, profession or other activity differs from the calendar year, the tax shall be applicable only to that part of the net profits for the fiscal year as shall be earned on and after the first of January 1966.
§ 78-3. Collector.
A. A Collector of Income Tax shall be elected annually by the Borough of Callery, Butler County, Pennsylvania, to serve during the calendar year, or part thereof, who shall receive such compensation for his services as determined by the Borough of Callery.
B. The Income Tax Collector is hereby designated receiver of the taxes imposed by this article. He shall collect and receive all such taxes, shall furnish a receipt for their payment, and shall keep a record showing the amount received by him from each taxpayer under this article and the date of each receipt. The Income Tax Collector is empowered to prescribe rules and regulations relating to any matter or thing pertaining to the administration and enforcement of the provisions of this article including provisions for the re-examination and correction of returns and payments, subject to the approval of the Solicitor and the Borough of Callery. Such rules and regulations shall be inscribed by the Income Tax Collector in a book kept for that purpose and open to the inspection of the public.
§ 78-4. Filing of return.
A. Every person whose earnings or profits are subject to the tax imposed by this article shall, on or before April 15 of every year, or such other times as designated by the regulations, beginning in the year 1967, make and file a return with the Income Tax Collector. Such returns shall be filed on a form prescribed by the Income Tax Collector, furnished at the expense of the Borough of Callery, and obtained from the Income Tax Collector. The infonnation on such return shall include the name and address of the taxpayer, his place of employment or business, the aggregate amount of compensation or net profits earned by him during the preceding year and subject to such tax, the amount of tax due to the Borough of Callery under this article, the amount of tax on salaries, wages, commissions, and other compensation or net profits paid by such taxpayer during the period covered by such return to the Borough of Callery, and/or to any other political subdivision of the Commonwealth of Pennsylvania, together with such other pertinent information as may be required.
B. Provided, however, that where a return is made for a fiscal year or for any other period different from a calendar year, such return shall be made within 75 days after the close of the fiscal year or other period.
C. The person making such a return shall, at the time of the filing thereof, pay to the Income Tax Collector the amount of tax as shown to be due thereon.
D. Provided further, however, that where any portion of the tax so due shall have been deducted at the source and shall have been paid to the Income Tax Collector by the person making such deduction pursuant to § 78-5 of this article, credit for the amount so paid shall be deducted from the amount to be due and only the balance, if any, shall be due and payable at the time of filing said return.
E. Provided, further, that in any case where the sole income of any person subject to tax under this article is in the form of compensation paid by an employer and where the entire tax due by such employee has been deducted by his employer and return thereof made to the Income Tax Collector, such employee shall not be required to file a return thereof, except as may be required under the rules and regulations.
§ 78-5. Deductions by employers.
A. Every employer within the Borough of Callery shall deduct, monthly or more frequently than montWy, at the time of payment of compensation due by him to an employee, the tax of 1% of the amount of compensation for such period. Such employer shall make a return and pay over to the Income Tax Collector the amount of tax so deducted 30 days after each quarter year computed an a calendar year basis. Such return shall be on a form prescribed by the Income Tax Collector and approved by the Solicitor and the Borough of Callery, procured at the expense of the Borough of Callery, and furnished by or obtained from the Income Tax Collector. Said return shall set forth the name and residence of each employee subject to this tax, employed during all or part of the preceding quarter period of the year, the amount of compensation earned by each such employee during the preceding quarter period of the year, and any other pertinent information that may be required.
B. Provided, however, that the failure or omission by an employer residing within the Borough of Callery to deduct such tax and to make such return to the Income Tax Collector shall not relieve any employee from the payment of such tax and the compliance with such regulations, with respect to making returns and payment thereof, as may be established under this article or by virtue thereof.
§ 78-6. Authority to examine records; confidentiality.
A. The Income Tax Collector or any other person designated by the Borough of Callery for the purpose is hereby authorized to examine the books, papers, and records of any employer or supposed employer or of any taxpayer or supposed taxpayer in order to verify the accuracy of any return made, or, if no return is made, to ascertain the amount of tax due by any person under this article. Every such employer or supposed employer or taxpayer or supposed taxpayer is hereby directed and required to give to the Income Tax Collector or such other authorized person the means, facilities and opportunity for such examinations and investigations as are hereby authorized. The Income Tax Collector is hereby authorized to examine any person under oath concerning any income which was or should have been returned for taxation, and to this end the Income Tax Collector may compel the production of books, papers, and records and the attendance of all persons before such Income Tax Collector, whether as parties or witnesses, whom the Income Tax Collector believes to have knowledge of such income.
B. Any information gained by the Income Tax Collector or any other employee, agent or other official of the Borough of Callery as a result of any returns, investigations, hearings or verifications required or authorized by this article shall be confidential, except for official purposes, and except in accordance with proper judicial order, or as otherwise provided by law. Any disclosure of any such information, contrary to the provisions of this section shall constitute a violation of this article and any person divulging such infonnation, whether or not at the time of divulging it, a Collector, employee, agent or other official, as aforesaid, shall be guilty of a misdemeanor of the third degree and upon conviction shall be fined not more than $2,500, and costs for each offense, or be imprisoned for not more than one year or both. And if the offender be an officer or employee of the Borough of Callery, Butler County, Pennsylvania, he shall be dismissed from office or discharged from employment.2
§ 78-7. Board of Appeal and Review.
A. A Board of Appeal and Review consisting of three members shall be elected by the Borough of Callery. The members of the Board of Appeal and Review shall receive such compensation for their services as the Borough of Callery shall determine.
B. Any person dissatisfied with any ruling or decision of the Tax Collector, which is made under authority conferred by this article, may appeal therefrom to the Board of Appeal and Review in accordance with the Local Taxpayers Bill of Rights,3 as follows: the taxpayer shall file an appeal within three years after the due date for filing the report as extended or within one year after actual payment of the tax, whichever is later; if no report is required the petition shall be filed within three years after the due date for payment of an eligible tax or within one after the actual payment, whichever is later; an appeal to a deficiency assessment must be filed within 90 days from the the date of assessment. The Board of Appeal and Review shall, on hearing, have jurisdiction and authority by the vote of a majority of said Board to affinn, reverse, or modify any such ruling or decision or any part thereof. A majority of the members of the Board of Appeal and Review shall constitute a quorum. The Board of Appeal and Review shall adopt its own procedural rules and shall keep a record of its transactions. All hearings of the Board shall be conducted privately and the provisions of § 78-6 hereof with reference to the confidential character of infonnation shall apply to such matters as may be heard before the Board of Appeal and Review on appea1.
4
§ 78-8. Interest and penalty on unpaid taxes.
All taxes, imposed by this article, remaining unpaid after they shall have become due shall bear interest, in addition to the amount of the unpaid tax, at the rate of 6% per annum, and the persons from whom such taxes are due shall be further liable to a penalty of 1/2 of 1% of the amount of the unpaid tax for each month or fraction of a month for the first six months of nonpayment.
§ 78-9. Recovery of unpaid taxes.
All taxes imposed by this article, together with all interest and penalties, shall be recoverable by the Solicitor as other debts of like amount are recoverable. Upon the failure of any taxpayer to file a return as required by this article, the Tax Collector is authorized to make an investigation to ascertain the amount of tax due by the taxpayer, and is hereby authorized to assess such taxpayer the amount which he deems is due the Borough of Callery. The taxpayer shall be given notice of the assessment which shall be prima facie the amount of tax due the Borough of Callery.
§ 78-10. Violations and penalties.5
Any taxpayer, employer or person who shall fail, neglect, or refuse to make any return required by this article, or any employer who shall refuse to deduct and withhold the tax, or any taxpayer or employer who shall refuse to pay the tax, penalties, and interest imposed by this article, or any person who shall refuse to permit the Tax Collector, or any duly authorized agent or employee, to examine his books, records, papers, or who shall knowingly make any incomplete, false, or fraudulent return, or who shall attempt to do anything whatever to evade payment of the whole or any part of the tax, shall be guilty of a summary offense and upon conviction shall be fined not more than $500 and costs for each offense, and in default of payment of such fine and costs, shall be imprisoned for not more than 30 days. The failure of anyone required to file a return to receive or procure a return form shall not excuse him from making a return or from paying the tax.
§ 78-11. Applicability.
This article shall not apply to any person or property as to whom or which it is beyond the legal power of the Borough of Callery to impose the tax or duties herein provided for.
ARTICLE II
Per Capita Tax
[Adopted 12-18-1969 by Ord. No. 62]
§ 78-12. Imposition of tax. [Amended 3-7-1974 by Ord. No. 69]
There is hereby levied and assessed for general revenue purposes a five-dollar per capita tax on each and every resident over the age of 18 years of age in the Borough of Callery, Butler County, Pennsylvania, for the fiscal year commencing the first day of January 1974, and ending the first Monday of January 1975.
§ 78-13. Residency list.6
The duly elected Assessor of the Borough of Callery shall annually prepare a list of residents of said Borough over 18 years of age, and return the same with the other taxable property as provided by law, and shall be certified to Council of the Borough of Callery.
§ 78-14. Collection and enforcement.
The assessment, collection, notices, exonerations, reports of omitted names, liability of husband for wife's tax, collection from employer, Collector, penalty for refusal or failure to pay tax, and the compensation of the Collector shall all be as provided in the Local Tax Collection Law of 1945, P.L. 1050, as amended,7 it being the intent and purpose of this article that the collection and enforcement of this tax shall be subject to and controlled by all of the provisions of said Local Tax Collection Law.
§ 78-15. Collector.
The local Tax Collector of the Borough of Callery, Butler County, Pennsylvania, shall collect said tax.
ARTICLE III
Occupational Privilege Tax
[Adopted 1-7-1971 by Ord. No. 65]
§ 78-16. Title.
This article shall be known and may be cited as the "Occupation Privilege Tax Ordinance."
§ 78-17. Definitions.
As used in this article, unless the context indicates clearly a different meaning, the following words shall have the meanings set forth below:
BOROUGH -Callery Borough, Butler County, Pennsylvania.
COLLECTOR -The duly elected Tax Collector of said Borough.
COMPENSATION -Salaries, wages, commissions, tips, bonuses, fees, gross receipts, or any other earned income.
EMPLOYER -Any person, partnership, limited partnership, unincorporated association, institution, trust, corporation, governmental agency, or any other body engaged in business or situated in the Borough employing one or more employees engaged in any occupation.
OCCUPATION -Any livelihood, job, trade, profession, business or enterprise of any kind, including services, domestic or other, for which any compensation is received.
TAXPAYER -Any natural person liable for the tax levied by this article.
§ 78-18. Levy of tax.
For general revenue purposes, a tax is hereby levied upon the privilege of engaging in an occupation within the Borough in 1971, from the effective date of this article. Each natural person who exercises such privilege for any length of time and earning any moneys shall pay tax in the amount of $10 in accordance with the provisions of this article.
§ 78-19. Collection through employers.
A. Every employer shall, within 15 days after the effective date of this article or within 15 days after first becoming an employer, register with the Collector the employer's name, address and such other information as the Collector may require.
B. As to each taxpayer employed and earning any moneys for any length of time on or before March 31, 1971, each employer shall deduct the tax from compensation payable to the taxpayer, file a return on the form prescribed by the Collector and pay the Collector the full amount of all such taxes on or before April 30, 1971. Thereafter as to each taxpayer for whom no prior deduction has been made, who is employed for any length of time in any of the three-month periods ending June 30, 1971, September 30, 1971, and December 31, 1971, each employer shall deduct the tax from any compensation payable to the taxpayer, file a return on a form prescribed by the Collector and pay to the Collector the full amount of all taxes deducted for each such three-month period, on or before July 31, 1971, October 31, 1971, and January 31, 1972, respectively.
C. Any employer who discontinues business or ceases operation before December 31, 1971, shall, within 15 days after discontinuing business or ceasing operation, file the return hereinabove required and pay the tax to the Collector.
D. The failure of the employer to deduct tax shall not relieve the employee from the duty to file a return and pay the tax. Any employer who fails to deduct the tax as required by this section, or who fails to pay such tax to the Collector, shall be liable for such tax in full, without deduction of the fee hereunder provided, as though the tax had originally been levied against such employer.
E. As to employees who present official receipts evidencing prior payment of the tax either directly or by collection through other employers, the employer shall not deduct the tax but shall maintain adequate records concerning such employees.
F. Each employer may deduct and retain a fee equal to 2% of the total amount of tax collected through the employer pursuant to this section.
§ 78-20. Direct payment by taxpayers.
Every taxpayer who is self-employed or whose tax for any reason is not collected under § 78-19 of this article shall file a return on a form prescribed by the Collector and shall pay the tax directly to the Collector. Each such taxpayer who first becomes subject to the tax on or before March 30, 1971, shall file the return and pay the tax on or before April 30, 1971, and each taxpayer who first becomes subject to the tax after March 31, 1971, shall file the return and pay the tax on or before July 31, 1971, October 31, 1971, and January 31, 1972, whichever of such payment dates first occurs at least 30 days after the taxpayer first becomes subject to the tax.
§ 78-21. Nonresident taxpayers.
Both resident and nonresident taxpayers shall, by virtue of engaging in an occupation with the Borough, be subject to the tax and the provisions of this article.
§ 78-22. Administration and enforcement.
The Collector, on behalf of the Borough, shall collect and receive the taxes, interest, fines and penalties imposed by this article, and shall maintain records showing the amounts were received and the dates such amounts were received. The Collector shall prescribe and issue all forms necessary for the administration of the tax and may adopt and enforce regulations relating to any matter pertaining to the administration of this article including, but not limited to, requirements for evidence of records, and provisions for the examination and correction of returns. The Collector and agents designated by him may examine the records of any employer or supposed employer or any taxpayer or supposed taxpayer in order to ascertain the tax due or verify the accuracy of any return. Every employer or supposed employer and every taxpayer or
supposed taxpayer shall give the Collector and any agent designated by him the means, facilities and opportunity for the examinations hereby authorized.
§ 78-23. Collection; unpaid taxes.
The Collector shall collect, by suit or otherwise, all taxes, interest, costs, fines, and penalties due under this article and unpaid. If for any reason, any tax is not paid when due, interest at the rate of 6% per year of the amount of unpaid tax and an additional penalty of 1/2 of 1% of the amount of unpaid tax, for each month or fraction of month during which the tax remains unpaid, shall be added and collected. Whenever suit is brought for the recovery of unpaid tax, the taxpayer shall, in addition, be liable for the costs of collection as well as for interest and penalties. The Collector may accept payment under protest to the tax claimed by the Borough in any case where any person disputes the Borough claim for the tax. If a court of competent jurisdiction thereafter decides that there has been overpayment to the person who paid under protest, said overpayment shall be returned to the protestant.
§ 78-24. Violations and penalties.
Any person who violates any provision of this article or any regulation adopted pursuant to it shall, upon conviction thereof before any District Justice, be subject to a fine of not more than $300, or in default of payment of such fine shall be subject to imprisonment in the Butler County Jail for a period not exceeding 30 days.
§ 78-25. Applicability and severability.
The tax shall not apply to any subject of tax or person not within the taxing power of the Borough under the Constitution of the United States and the laws and Constitution of the Commonwealth of Pennsylvania. If a final decision of a court of competent jurisdiction holds any provision of this article, or the application of any provision of this article, or the application of any provision to any circumstances, to be illegal or unconstitutional, the other provisions of this article, or the application of such provision to other circumstances, shall remain in full force and effect. The intention of Council is that the provisions of this article shall be severable and that this article would have been adopted if any such illegal or unconstitutional provisions had not been included.
§ 78-26. When effective; continuation.
This article shall become effective in accordance with the Act No. 511 of 1965, and any amendments thereto,8 and shall remain in effect thereafter for the year 1971 and thereafter.
ARTICLE IV
Realty Transfer Tax
[Adopted 2-4-1988 by Ord. No. 81]
§ 78-27. Title.
This article shall be known as the "Realty Transfer Tax Ordinance of the Borough of Callery."
§ 78-28. Authority.
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 Borough of Callery, 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. § 8101-D et seq.
§ 78-29. Definitions.9
As used in this article, the words and phrases defined In 72 P.S. § 8101-C shall have the meanings ascribed to them in said section.
§ 78-30. Imposition of tax; interest on unpaid taxes.
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 of 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 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.
B. The payment of the tax imposed herein shall be evidenced by the affixing of an official stamp or writing by the Recorder whereon the date of the payment of the tax, amount of the tax and the signature of the collecting agent shall be set forth.
C. It is the intent of this article 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 Borough of Callery under the authority of that Act shall during the time such duplication of the tax exists, except as hereinafter otherwise provided, be V2 of the rate, and such V2 rate shall become effective without any action on the part of the Borough of Callery; provided, however, that the Borough of Callery, 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 IJ2 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.
§ 78-31. Exempt parties.
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.
§ 78-32. Excluded transactions.
A. The tax imposed by § 78-30 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 Borough of Callery is prohibited from taxing under the Constitution or statutes of the United States.
(3) A conveyance to the 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 interstate 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 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 department reasonably determines that the primary intent for such merger, consolidation or division is avoidance of the tax imposed by t~is 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 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.
(15) 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.
(16) A transfer by a mortgagor to the holder of a bona fide mortgage in a 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 purposes preservation of land for historic, recreational, scenic, agricultural or open space opportunities, or a transfer from such a conservancy to the United States, the commonwealth or to any of their instrumentalities, agencies or political subdivisions; or any transfer from such 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,"IO and such conservancy has owned the real estate for at least two years immediately prior to the transfer. II
(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 of real estate devoted to the business of agriculture to a family farm partnership by a member of the same family, which family directly owns at least 75% of the interests in the partnership.I2
(21) A transfer between members of the same family of an ownership interest in a real estate company, family fann corporation or family fann partnership which owns real estate.I3
(22) A transaction wherein the tax due is $1 or less.
(23) 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 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 article.
§ 78-33. Documents relating to associations or corporations.
Except as otherwise provided in § 78-32, documents which make, confinn 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.
§ 78-34. 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, 90% 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 article.
C. A family farm partnership is an acquired company when, because of voluntary or involuntary dissolution, it ceases to be a family farm partnership or when, because of transfer of partnership interests 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 fann partnership under this act.14
D. Within 30 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.
§ 78-35. 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 tax due.
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 tax due, no refund or carryover credit shall be allowed.
§ 78-36. Extension of lease.
In determining the tenn 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.
§ 78-37. Proceeds ofjudicial 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 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.
§ 78-38. 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 borough based on a redetermination of the amount of tax due by the Commonwealth of Pennsylvania of the Pennsylvania Realty Transfer Tax, without compensation from the Borough.
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 10th of each month, the Recorder shall pay over to the Borough all local realty transfer taxes collected less than 2% 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 2% commission shall be paid to the county.
D. Upon a redetermination 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 rerecording or recording fee has been tendered.
§ 78-39. 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 section 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 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.
§ 78-40. 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 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.
§ 78-41. Unpaid tax to become lien.
The tax imposed by this article 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 borough, which lands, tenements, hereditaments or interest therein described in, or conveyed by, or transferred by the deed which is the subject of the tax imposed, assessed and levied by this article, said lien to begin at the time when the tax under this article is due and payable and continue until discharged by payment or in accordance with the law, and the Solicitor is authorized to file a municipal or tax claim in the Court of Common Pleas of Butler County in accordance with the provisions of the Municipal Claims and Liens Act of 1923, 53 P.S. § 7101 et seq., its supplements and amendments.
§ 78-42. Taxes recoverable as like debt.
All taxes imposed by this article, together with interest and penalties prescribed herein, shall be recoverable as other debts of like character are recovered.
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§ 78-43. Enforcement; regulations.
The Borough Council of the Borough of Callery is charged with enforcement and collection of 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 article.
