§ 19-1403. Imposition of Tax and Demolition Fund Fee. 264

   (1)   Every person who transfers ownership of real estate situate within the City or 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, or who accepts ownership of real estate situate within the City, shall be subject to pay for and in respect to the transaction or any part thereof, or for or in respect of the vellum parchment or paper upon which such document is written or printed, a tax based on the value of the real estate represented by such document, which tax shall be payable at the earlier of the time the document is presented for recording or within thirty (30) days of acceptance of such document or within thirty (30) days of becoming an acquired real estate company or family farm corporation. For documents made, executed, delivered or accepted or presented for recording during each of the following fiscal years, the amount of tax shall be computed by multiplying the value of the real estate represented by such document by the following rates of tax: 265

      (a)   four and seven hundredths percent (4.07%) for the fiscal year of the City commencing July 1, 1988 and ending June 30, 1989; Provided that, in the event that a court of competent jurisdiction enters a final order from which all appeals have been exhausted, determining that City Council lacked the authority to impose this rate effective July 1, 1988, the rate shall revert to two and one-half percent (2.5%) for the fiscal year commencing July 1, 1988 and ending June 30, 1989;

      (b)   four and seven hundredths percent (4.07%) for the fiscal year of the City commencing July 1, 1989 and ending June 30, 1990;

      (c)   three and ninety-two hundredths percent (3.92%) for the fiscal year of the City commencing July 1, 1990 and ending June 30, 1991;

      (d)   three and sixty-nine hundredths percent (3.69%) for the fiscal year of the City commencing July 1, 1991 and ending June 30, 1992;

      (e)   three and forty-six hundredths percent (3.46%) for the fiscal year of the City commencing July 1, 1992 and ending June 30, 1993;

      (f)   three and twenty-three hundredths percent (3.23%) for the fiscal year of the City commencing July 1, 1993 and ending June 30, 1994;

      (g)   three percent (3%) for the fiscal years of the City commencing July 1, 1994 and ending June 30, 2016, and for the period commencing July 1, 2016 and ending December 31, 2016;

      (h)   three and one tenth percent (3.1%) for the period commencing January 1, 2017 and ending June 30, 2018; and

      (i)   three and two hundred seventy-eight thousandths percent (3.278%) for the period commencing July 1, 2018, and ending December 31, 2036; and

      (j)   three and one hundred seventy-eight thousandths percent (3.178%) for the period commencing January 1, 2037 and thereafter.

   (2)   Philadelphia County Demolition Fund Fee.  265.1

      (a)   Definitions. As used in this section, the words and phrases shall mean the following unless the context clearly indicates otherwise:

         (.1)   Blighted property. A property which meets at least three of the criteria listed under Section 5(d)(5) of the Act of November 26, 2008, P.L. 1672, No. 135, known as the Abandoned and Blighted Property Conservatorship Act, as determined by the Department of Licenses and Inspections.

         (.2)   Philadelphia County Demolition Fund. A City fund used exclusively for the demolition of blighted properties for the purpose of increasing economic development situated in the City and County of Philadelphia, created in accordance with and maintained pursuant to Section 2.2 of the Act of April 8, 1982, P.L. 310, No. 87, as amended, known as the Recorder of Deeds Fee Law.

      (b)   In addition to the tax collected under subsection (1) of this section, every person who transfers ownership of real estate situate within the City or who makes, executes, delivers, accepts or presents for recording any deed or mortgage or in whose behalf any deed or mortgage is made, executed, delivered, accepted or presented for recording, or who accepts ownership of real estate situate within the City, shall be subject to pay a Philadelphia County Demolition Fund fee of fifteen dollars ($15), which fee shall be payable at the earlier of the time the document is presented for recording or within thirty (30) days of acceptance of such document or within thirty (30) days of becoming an acquired real estate company or family farm corporation.

      (c)   The fees collected under subsection (2)(b) shall be deposited into a separately maintained City fund known as the Philadelphia County Demolition Fund and shall be used exclusively for the demolition of blighted properties for the purpose of increasing economic development.

      (d)   Within ninety (90) days of start of collection of fees pursuant to this subsection, the Mayor shall cause an initial report to be filed with the Pennsylvania Department of Community and Economic Development. The initial report shall include an explanation of the Mayor's plan for how the fees collected pursuant to this section will be spent, the number of properties likely to be demolished, and any other relevant information.

      (e)   Within twelve (12) months of start of collection of fees pursuant to this subsection, and annually thereafter, the Mayor shall cause an annual report to be filed with the Pennsylvania Department of Community and Economic Development. The annual report shall include the number of properties demolished, the cost of demolition per property, and any other relevant information.

      (f)   The fees imposed under subsection (2)(b) of this section are authorized pursuant to Section 2.2 of the Act of April 8, 1982, P.L. 310, No. 87, as amended, 42 P.S. § 21052.2, known as the Recorder of Deeds Fee Law, and shall only be collectable pursuant to the grant of authority under such portion of that Act, which by its current terms is scheduled to expire January 3, 2027, or pursuant to any successor acts.

      (g)   No fees shall be collected under subsection (2)(b) unless and until the Finance Director has certified to the Recorder of Deeds and the Chief Clerk of Council that the Philadelphia County Demolition Fund has been established by the City and, in no event, no earlier than sixty (60) days from the date of adoption of the ordinance adding this subsection 19-1403(2) to the Code.

   (3)   The payment of the tax and fee 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 and fee, amount of the tax and fee and the signature of the collecting agent shall be set forth. 265.2

 

Notes

264	Amended, 1988 Ordinances, p. 695 (Bill No. 164). Section 2 of Bill No. 164 states: "This Ordinance shall be effective July 1, 1988 and shall apply to any document made, executed, delivered or accepted or presented for recording on or after July 1, 1988." Amended, 1989 Ordinances, p. 773 (Bill No. 440). Section 2 of Bill No. 440 includes certain effective date provisions in the event of litigation. See City of Philadelphia v. Weiner, 121 Pa. Commw. 139, 550 A.2d 274 (1989), appeal denied; Haas v. Philadelphia Dept. of Revenue, No. 7152 October Term 1989 (Philadelphia Court of Common Pleas). Caption amended, Bill No. 220288 (approved June 27, 2022).
265	Amended, Bill No. 160471 (approved June 20, 2016). Section 2 of Bill No. 160471 states: "This Ordinance shall be effective for all transactions taking place on or after July 1, 2016." Amended, Bill No. 180167 (approved June 20, 2018).
265.1	Added, Bill No. 220288 (approved June 27, 2022).
265.2	Renumbered and amended, Bill No. 220288 (approved June 27, 2022).