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(1) Association. A partnership, limited partnership, or any other form of unincorporated enterprise owned or conducted by two or more persons other than a private trust or decedent's estate.
(2) Certificate of transfer. An instrument representing the transfer of equitable ownership in real estate situate in Philadelphia.
(3) City. The City of Philadelphia.
(4) 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, foreign country or dependency.
(5) Department. The Department of Revenue of the City of Philadelphia.
(6) Document. 265 Any deed, instrument or writing which conveys, transfers, demises, vests, confirms or evidences any transfer or demise of title to real estate situate in Philadelphia presented for recording, 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 unless the land contract is deemed a capital lease pursuant to subsection 19-1402(12)(b)(.1), or instruments which solely grant, vest or confirm a public utility easement. "Document" shall also include a Certificate of Transfer required to be presented for recording under this Chapter.
(7) Family farm corporation. A corporation of which at least seventy-five percent (75%) of its assets are devoted to the business of agriculture and at least seventy-five percent (75%) of each class of stock of the corporation is continuously owned by members of the same family. The business of agriculture shall not be deemed to include:
(a) Recreational activities such as, but not limited to, hunting, fishing, camping, skiing, show competition or racing;
(b) 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;
(c) Fur farming;
(d) Stockyard and slaughterhouse operations; or
(e) Manufacturing or processing operations of any kind.
(7.1) Financially interdependent persons. Persons who live together as a single household and who, for at least six months, have agreed to share the common necessities of life and to be responsible for each other's common welfare. 266
(8) Members of the same family. Any individual, such individual's brothers and sisters, the brothers and sisters of such individual's parents and grandparents, the ancestors and lineal descendants of any of the foregoing, a spouse of any of the foregoing, and the estate of any of the foregoing. Individuals related by the halfblood or legal adoption shall be treated as if they were related by the wholeblood.
(9) 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.
(10) Real estate.
(a) All lands, tenements or hereditaments within this City, 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 or land, but excluding permanently attached machinery and equipment in an industrial plant.
(b) A condominium unit.
(c) A tenant-stockholder's interest in a cooperative housing corporation, trust or association under a proprietary lease or occupancy agreement, except interest excluded under Section 19-1405.
(a) A corporation or association which is primarily engaged in the business of holding, selling or leasing real estate, ninety percent (90%) or more of the ownership interest in which is held by thirty-five or fewer persons and which:
(.1) derives sixty percent (60%) or more of its annual gross receipts from the ownership or disposition of real estate or title to real estate; or 268
(.2) holds real estate or title to real estate, the value of which comprises fifty percent (50%) 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; or 269
(b) A corporation or association which holds, directly or indirectly, as ninety percent (90%) or more of the value of its assets, an interest in a real estate company.
(c) For purposes of this definition only, real estate shall not be limited to interests located within this City.
(a) 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
(b) Any interest in real estate enduring for a fixed period of years but which, either by reason of the length of the term of 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 (30) years or more or a leasehold interest or possessory interest in real estate in which the lessee has equity.
(.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.
(13) Transaction. The making, executing, delivering, accepting, or presenting for recording of a document.
(a) 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; Provided, that where such documents to be recorded 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; 272
(b) In the case of a gift of real estate where the transfer is not arms length, sale by execution upon a judgment or upon the foreclosure of a mortgage by a judicial officer, or upon a deed in lieu of foreclosure, transactions without consideration or for consideration less than the actual monetary worth of the real estate, a lease subject to tax pursuant to subsection 19-1402(12)(b), an occupancy agreement, a leasehold or possessory interest, any exchange of properties, a transfer by merger, consolidation, or acquisition, a transfer effectuated pursuant to a plan of liquidation and dissolution, or the real estate of an acquired real estate company that is a family farm corporation, the actual monetary worth of the real estate as determined by adjusting the assessed value of the real estate, as determined by the Board of Revision of Taxes for City real estate tax purposes, for the common level ratio factor for the City as established by the State Tax Equalization Board: Provided, that the value of real estate shall never be less than the readily ascertainable market value of any property (including cash) for which the real estate is exchanged; and provided, further, that this subsection (b) shall not apply to any exchange of real estate exclusively for property (including cash) with a readily ascertainable fair market value; 273
(c) In the case of an easement or other interest in real estate the value of which is not determinable under subsection (a) or (b), the actual monetary worth of such interest; or
(d) 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.
(e) In the case of the real estate of an acquired real estate company other than a family farm corporation, the monetary value of the real estate directly or indirectly held by the company. Where the change in ownership is part of a bona fide arm's length sale, there shall be a rebuttable presumption that the monetary value is the actual consideration paid for the company, provided that the taxpayer may rebut that presumption by alternative proof of the actual value of the included real estate. 274
(f) As used in this subsection (14) ("Value"), the term "actual consideration" shall include any liens or other encumbrances on the real estate 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. 275
Notes
| 265 | Amended, 1988 Ordinances, p. 333. |
| 266 | Added, Bill No. 070541 (approved November 15, 2007). |
| 267 | Amended, 1988 Ordinances, p. 333; amended, Bill No. 960397 (approved July 5, 1996), 1996 Ordinances, p. 612; amended, Bill No. 980303 (approved December 9, 1999). Section 2 of Bill No. 980303 states: "This Ordinance shall be effective for all transactions taking place on or after July 1, 2000." |
| 268 | Amended, Bill No. 160810 (approved December 20, 2016), effective July 1, 2017. |
| 269 | Amended, Bill No. 160810 (approved December 20, 2016), effective July 1, 2017. |
| 270 | Amended, 1988 Ordinances, p. 333; amended, 1993 Ordinances, p. 920. |
| 271 | Amended, 1988 Ordinances, p. 333. |
| 272 | Amended, Bill No. 190135 (approved May 15, 2019). |
| 273 | |
| 274 | Added, Bill No. 160810 (approved December 20, 2016), effective July 1, 2017. |
| 275 | Added, Bill No. 190135 (approved May 15, 2019). |
(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: 277
(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.
(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. 279
Notes
| 276 | 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). |
| 277 | |
| 278 | |
| 279 |
The United States, the Commonwealth, or any of their instrumentalities, agencies or political subdivisions and the Philadelphia Land Bank 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.
Notes
| 280 | Amended, Bill No. 170205 (approved May 17, 2017). |
The tax imposed by Section 19-1403 shall not be imposed upon:
(1) A transfer to the Commonwealth, or to any of its instrumentalities, agencies or political subdivisions, or to the Philadelphia Land Bank, 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. 281
(2) A document which the City is prohibited from taxing under the Constitution or statutes of the United States.
(3) A conveyance to a municipality, township, school district, land bank or county pursuant to acquisition by such entity of a tax delinquent property at sheriff sale or tax claim bureau sale. 282
(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 spouses, between persons who were previously spouses who have since been divorced, provided the property or interest therein subject to such transfer was acquired by the spouses or one spouse prior to the granting of the final decree in divorce, between parent and child or the spouse of such child, between stepparent and stepchild or the spouse of a stepchild, between brother or sister or spouse of a brother or sister, between a grandparent and grandchild or the spouse of such grandchild and between any life partners, except that a subsequent transfer by the grantee within one year shall be subject to tax as if the grantor were making such transfer. The parties to any such a transfer shall jointly sign the Philadelphia Real Estate Transfer Tax Certification Affidavit as issued by the Revenue Department. For purposes of this subsection (6), the term "life partner" shall mean a member of a Life Partnership that is verified pursuant to Section 9-1123. 283
(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:
(a) for no or nominal actual consideration between principal and agent or straw party; or
(b) 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:
(a) 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
(b) to a nonprofit industrial development agency or authority; or
(c) any transfer from a nonprofit industrial development agency or authority of a property conveyed to the agency or authority prior to July 1, 1987.
(13) 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.
(14) A transfer between two natural persons by a mortgagor to the original grantor holding the purchase money mortgage whether such a transfer is pursuant to a deed in lieu of a foreclosure or a transfer pursuant to a judicial sale. 284
(15) 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.
(16) A transfer to a conservancy which possesses a tax exempt status pursuant to Section 501(c)(3) of the Internal Revenue Code of 1986, and which has as its primary purpose preservation of land for historic, recreational, scenic, agricultural or open space opportunities.
(17) A transfer of real estate devoted to the business of agriculture to a family farm corporation by a member of the same family which directly owns at least seventy-five percent (75%) of each class of the stock thereof.
(18) A transfer between members of the same family of an ownership interest in a real estate company or family farm corporation.
(19) A transaction wherein the tax due is one dollar ($1.00) or less.
(20) Leases for the production or extraction of coal, oil, natural gas or minerals and assignments thereof.
(21) A transfer of a tenant-stockholder, cooperative unit owner or membership interest in stock, a proprietary lease or an occupancy agreement in:
(a) a cooperative housing corporation, trust or association organized for the transfer of interest in property on a not for profit basis; or
(b) a corporation organized for the transfer of interest in property on a not for profit basis in accordance with the guidelines set forth in Section 213 of Title II of the National Housing Act as amended from time to time.
In order to exercise any exclusion provided in this Section, the true, full and complete value of the transfer shall be shown on the affidavit attached to the document to be filed of record or on the Certificate of Transfer where applicable. 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 Chapter.
(22) A transfer for no or nominal actual consideration of property conveyed pursuant to the provisions of Chapter 16-400 or Chapter 16-700 of The Philadelphia Code. 285
(23) A transfer pursuant to the Urban Redevelopment Law of 1945 for no or nominal actual consideration or for a consideration which is substantially less than value, as defined herein. 286
(24) A transfer to or from non-profit housing corporations incorporated by officials of the City for the purpose of promoting the development of low cost housing in the City of Philadelphia, however, if the transfer is from such a corporation to a for profit grantee or to a person who does not qualify as a low to moderate income person as defined by the Housing and Community Development Act of 1987, as amended, then the transfer is subject to tax. 287
(25) A transfer to or from an organization which possesses a tax exempt status pursuant to Section 501(c)(3) of the Internal Revenue Code of 1986, and which has as its primary purpose to act as a clearing house for surplus foods and food commodities and for the distribution of such surplus foods and food commodities to non-profit agencies or groups which use food either in feeding programs or in emergency food distribution for the poor and needy. 288
(26) A transfer to a non-profit housing organization, if the non-profit housing organization intends to renovate the real estate and to further transfer the renovated real estate within three (3) years of the transfer, to an eligible transferee; or a transfer from a non-profit housing organization to an eligible transferee if the non-profit housing organization has renovated the real estate. 289
(a) For purposes of this subsection, the following definitions shall apply:
(.1) Non-profit Housing Organization. A not-for-profit organization which has as its primary purpose the promotion of development of low cost housing, and which possesses a tax exempt status pursuant to Section 501(c)(3) or (c)(4) of the Internal Revenue Code.
(.2) Eligible Transferee. A person or persons of low income or moderate income, as defined by 42 U.S.C. § 5302(a)(20); or a tenant participating in the Philadelphia Housing Authority's Homeownership Program.
(.3) Renovate. To make an uninhabitable or substantially uninhabitable property habitable.
(b) In order to exercise any exclusion provided in this subsection, a sworn affidavit certifying the following information must be filed with the Department of Records:
(.1) The organization's status as a non-profit housing organization.
(.2) If the transfer is to a non-profit housing organization, the organization's intent to renovate the real estate and to further transfer the renovated real estate to an eligible transferee within three (3) years of transfer.
(.3) If the transfer is from a non-profit housing organization, the fact that the transferee is an eligible transferee, and that the organization has renovated the real estate.
(c) In the event an exclusion is claimed for a transfer to a non-profit housing organization and, three (3) years after the transfer, the property has not been renovated and further transferred to an eligible transferee, the exclusion shall be void, and transfer tax shall be due on the transfer, with interest at the rate set forth in subsection 19-509(2)(a) of this Title, dating from the date of transfer or the date of recordation, as applicable, to the date of payment. No penalty shall be owing unless the affidavit filed with the Department of Records was untrue at the time of filing.
(d) Any eligible transferee shall fund an escrow account for purposes of payment of real estate taxes owing on the transferred property. The eligible transferee shall deposit to the account each month an amount equal to one-twelfth the annual real estate taxes owing on the property. An escrow account established by the eligible transferee's mortgage for purposes of payment of real estate taxes shall satisfy the requirement of this subsection.
(27) A sub-sublease by the Fairmount Park Historic Preservation Trust, Inc. ("Trust") of a property that has been leased by the City to the Philadelphia Authority for Industrial Development ("PAID") under a Master Lease Agreement and subleased by PAID to the Trust under a Master Sublease Agreement, all as authorized by and subject to the provisions of Bill No. 505 (approved June 8, 1993). 290
(28) A transfer between financially interdependent persons, except that a subsequent transfer by the grantee within one year shall be subject to tax as if the grantor were making such transfer, and provided such persons first file a sworn affidavit with the Revenue Department certifying their status as financially interdependent persons. The Revenue Department shall by regulation specify any additional evidence such persons must submit to establish their eligibility for this exemption except where individuals are registered as Life Partners pursuant to Section 9-1123, in which case such registration shall be deemed adequate evidence of eligibility. 291
(29) A transfer between the Philadelphia Housing Authority (PHA) and a Pennsylvania Limited Partnership (PLP) whose General Partner PHA owns and controls (PLP), including both (a) a transfer from PHA to the PLP and (b) any subsequent transfer from the PLP to PHA; and a transfer from PHA or a PLP controlled by PHA to a wholly owned subsidiary of PHA. 292
Notes
| 281 | Amended, Bill No. 170205 (approved May 17, 2017). |
| 282 | Amended, Bill No. 170205 (approved May 17, 2017). |
| 283 | |
| 284 | Amended, 1988 Ordinances, p. 333 ; amended, Bill No. 980303 (approved December 9, 1999). Section 2 of Bill No. 980303 states: "This Ordinance shall be effective for all transactions taking place on or after July 1, 2000." |
| 285 | Added, 1988 Ordinances, p. 333; amended, Bill No. 170205 (approved May 17, 2017). |
| 286 | Added, 1988 Ordinances, p. 333. |
| 287 | Added, 1988 Ordinances, p. 333. |
| 288 | Added, 1991 Ordinances, p. 1447. Section 2 of the Ordinance states: "This Ordinance shall be effective November 1, 1991 and shall apply to any document made, executed, delivered, or accepted or presented for recording on or after November 1, 1991." |
| 289 | Added, Bill No. 834 (approved January 6, 1995), 1995 Ordinances, p. 8; amended, Bill No. 1097 (approved July 24, 1995), 1995 Ordinances, p. 1187; amended, Bill No. 960595 (approved January 22, 1997). Section 2 of Bill No. 960595 provided: "This Ordinance shall be effective for all transactions taking place on or after July 1, 1996." |
| 290 | Added, Bill No. 050016 (approved July 8, 2005). |
| 291 | Added, Bill No. 070541 (approved November 15, 2007). Cross-reference updated by Code editor. |
| 292 | Added, Bill No. 180096 (approved April 18, 2018). |
Except as otherwise provided in Section 19-1405 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.
(1) A real estate company is an acquired real estate company upon a change in the ownership interest in the company, however effected, if the change:
(a) does not affect the continuity of the company; and
(b) of itself or together with prior changes has the effect of transferring, directly or indirectly, seventy- five percent (75%) or more of the total ownership interest in the company within a period of six (6) years. A transfer shall be considered to have occurred within a period of six years of another transfer or transfers, if a legally binding commitment to execute that transfer was made within that period. 294
The tax is measured by the value of the cumulative percentage of change.
(2) With respect to real estate acquired after February 16, 1986, a family farm corporation is an acquired real estate 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 Chapter.
(3) Within thirty (30) days after becoming an acquired real estate company or family farm corporation, the company shall present a Certificate of Transfer with the Department of Records for the affixation of documentary stamps and recording. Such Certificate shall set forth the value of real estate holdings of the acquired real estate company in Philadelphia and the tax is measured from such value.
Notes
| 293 | Amended, Bill No. 980303 (approved December 9, 1999). Section 2 of Bill No. 980303 states: "This Ordinance shall be effective for all transactions taking place on or after July 1, 2000." |
| 294 | Amended, Bill No. 160810 (approved December 20, 2016), effective July 1, 2017. |
(1) 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.
(2) 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.
(3) 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.
(4) 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.
(5) 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.
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