Ordinance #325-90: An Ordinance imposing Real Estate Tax on Sales or Conveyance

An Ordinance of the Borough of Darlington, Beaver County, Pennsylvania, imposing a Real Estate tax on every sale or Conveyance of Real Estate within the Borough.

Be it ordained and enacted by the Council of the Borough of Darlington, Beaver County, Pennsylvania, and it is hereby ordained and enacted by the Borough as follows:

Sec. 1.   Statement of Intent

Borough Council of the Borough of Darlington shall impose a transfer tax on each and every sale or conveyance of Real Estate within lying within the geographical limits of the Borough.

Sec. 2.   Definitions

The following words & phrases when used in this ordinance, except when otherwise clearly indicate a different meaning:

Association……..      A partnership, limited partnership or any other incorporated group of two (2) or persons

Corporation……..A corporation or joint-stock association organized under the laws of the United States, the Commonwealth, any other state, territory, or foreign county or dependency.

Document……….Any deed, instrument or writing whereby any lands, tenements or hereditments within this Commonwealth or any interest therein shall be granted, bargained, sold, or otherwise conveyed to the granter, purchases or any other person, but shall not include such documents as are exempt under the Pennsylvania Realty Transfer Tax Law, 72 P. S. Section 8101-C et seq. and/or the Regulations at the Department of Revenue, interpreting and enforcing said act as they appear in 61 Pa. Code, Section 91.101 et seq.

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 mean the partners or members thereof, and as applied to corporations, the officers thereof.

Tax Collector…..That person, persons or corporation that may from time to time be designated by Council as the Collector of the tax imposed

Value……………..In the case of any document granting, bargaining, selling or otherwise conveying land, tenement, or hereditament or interest therein, the amount of the actual consideration therefore, including liens or other encumbrances thereon, and ground rents, or a commensurate part of the liens or other encumbrances thereon, and rents, where such liens or other encumbrances and ground rents, also encumber or are charged against other lands, tenements or hereditament: provided, that where that document shall set forth a small or nominal consideration, the “Value” thereof shall be determined from the price set forth in, or actual consideration for, the contract of property granted bargained, sold, or otherwise conveyed, which in either event shall not be less than the amount of the highest assessment of those lands tenements or hereditament for local tax purpose.

Sec. 3.   Imposition of Tax

On and after the effective date of the Ordinance, a tax of one (1%) percent of the value of the realty conveyed, transferred, demised or released by the grantor under the document shall be paid to the Borough of Darlington. If at any time that this ordinance is in effect the Blackhawk Area School District shall have a similar tax ordinance in effect then one-half of the tax so imposed shall be payable by the Tax Collector to the Borough of Darlington and the other one-half of the tax so imposed shall be paid to the Blackhawk Area School District. The duty for payment of this tax shall be upon the person who delivers a document for acceptance or recording and the person who accepts or presents for recording the document or on whose behalf the document is accepted or presented for recording.

Except as otherwise provided by state law or regulation exempting or excluding a particular transaction it is the joint and several legal duty of the parties to the transaction to pay the proper tax due. This duty may be discharged by the parties as they agree but without prejudice to the rights of the Borough of Darlington against the parties.

Sec. 4.   When Tax Due and Payable; Evidence of Payment

The tax shall be due and payable at the time of the actual transfer as evidenced by the delivery of the deed or other document of conveyance. Payment of the tax shall be evidenced on the deed itself by the affixing of stamps or in such manner as the Tax Collector shall determine. Whatever method of indicating payment is used, the notation on the deed shall show the date of payment, the amount of tax paid, and the name of the Borough of Darlington.

Sec. 5.   Manner of Determining Value of Property Transferred

The Tax Collector may require of each grantee that he make an affidavit as to the actual consideration paid for the transfer, or in the event there is no actual consideration, the grantee shall make an affidavit as to the actual value of the real estate transferred. In lieu of such an affidavit, the Tax Collector may accept a copy of the sales agreement as sufficient evidence of the purchase price and determine the tax on that basis.

Sec 6.   Examination of Records of Recorder of Deeds

To determine whether or not there is an evasion of the tax, the Tax Collector may request the solicitor to examine the records in the Office of the Recorder of Deeds of Beaver County and Council shall pay the solicitor for the services of rendered.

Sec. 7.   Prohibited Acts

It shall be unlawful for any person to:

  1. Fail or refuse to pay the tax imposed by this ordinance.
  2. Fail or refuse to comply with the provisions of this ordinance or regulations adopted by the Tax Collector.
  3. Make any notation upon any deed or other document of conveyance indicating payment of the tax.

Sec. 8.   Interest Added to Unpaid Tax

In the event that the tax is not paid when due, the Tax Collector shall collect in addition to the tax, interest at the rate of six (6%) percent per annum or the unpaid which interest shall accrue from the date of delivery of the deed or other documents of conveyance.

Sec. 9.   Record of Collections

The Tax Collector shall keep a record of all collections of taxes showing the parties to the transfer for which the tax was paid.

Sec. 10.   Suit for Enforcement of Collection

The Tax Collector shall have the right to bring a suit before a district justice, or the Court of Common Pleas of Beaver County, to enforce the collection of any tax under the terms of this ordinance.

Sec. 11.   Penalty for Violation

Any person, firm or corporation who shall violate any provision of this ordinance, shall, upon conviction thereof be sentenced to pay a fine of not more than three hundred ($300.00) dollars and/or to imprisonment for a term not to exceed ninety (90) days.

Sec. 12.   Severability Claus

If any section, paragraph, sentence or phrase of this ordinance should be declared invalid for any reason whatsoever, such decision shall not affect the remaining portions of this ordinance which shall remain in full force and effect. For this purpose, the provisions of this ordinance hereby declare to be severable.

Enacted and ordained, by the Borough Council of the Borough of Darlington, Beaver County, Pennsylvania, this 21st day of June, 1990.

  1.                                     Benois Ellis, President of Council

Attest:                                                            Virginia Martin, Secretary of Council

Approval of Mayor

And now, this 21st day of June, 1990, I, the undersigned Mayor of the Borough of Darlington, do hereby approve the above and within Ordinance No. 325.90.

Earl W. Shugars, Mayor

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