SB 238 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, repealing provisions relating to realty transfer tax; and making editorial changes.

PRINTER'S NO.   192

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                        SENATE BILL
                        No. 238
                                                 Session of
                                                   2025

     INTRODUCED BY COLEMAN AND ROTHMAN, FEBRUARY 13, 2025

     REFERRED TO FINANCE, FEBRUARY 13, 2025


                                     AN ACT
 1   Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
 2      act relating to tax reform and State taxation by codifying
 3      and enumerating certain subjects of taxation and imposing
 4      taxes thereon; providing procedures for the payment,
 5      collection, administration and enforcement thereof; providing
 6      for tax credits in certain cases; conferring powers and
 7      imposing duties upon the Department of Revenue, certain
 8      employers, fiduciaries, individuals, persons, corporations
 9      and other entities; prescribing crimes, offenses and
10      penalties," repealing provisions relating to realty transfer
11      tax; and making editorial changes.
12      The General Assembly of the Commonwealth of Pennsylvania
13   hereby enacts as follows:
14      Section 1.    Article XI-C of the act of March 4, 1971 (P.L.6,
15   No.2), known as the Tax Reform Code of 1971, is repealed:
16                               [ARTICLE XI-C
17                            REALTY TRANSFER TAX
18      Section 1101-C.    Definitions.--The following words when used
19   in this article shall have the meanings ascribed to them in this
20   section:
21      "Agricultural production."    As defined in section 3 of the
22   act of June 30, 1981 (P.L.128, No.43), known as the
23   "Agricultural Area Security Law."
 1      "Association."   A general partnership, limited partnership,
 2   limited liability partnership or any other form of
 3   unincorporated enterprise, owned or conducted by two or more
 4   persons other than a private trust or decedent's estate.
 5      "Conservancy."   A corporation or association that possesses a
 6   tax-exempt status pursuant to section 501(c)(3) of the Internal
 7   Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3))
 8   and which has as its primary purpose preservation of land for
 9   historic, recreational, scenic, agricultural or open-space
10   opportunities.
11      "Corporation."   A corporation, joint-stock association,
12   business trust or banking institution which is organized under
13   the laws of this Commonwealth, the United States, or any other
14   state, territory, or foreign country, or dependency.
15      "Department."    The Department of Revenue of this
16   Commonwealth.
17      "Document."   Any deed, instrument or writing which conveys,
18   transfers, demises, vests, confirms or evidences any transfer or
19   demise of title to real estate in this Commonwealth, but does
20   not include wills, mortgages, deeds of trust or other
21   instruments of like character given as security for a debt and
22   deeds of release thereof to the debtor, land contracts whereby
23   the legal title does not pass to the grantee until the total
24   consideration specified in the contract has been paid or any
25   cancellation thereof unless the consideration is payable over a
26   period of time exceeding thirty years or instruments which
27   solely grant, vest or confirm a public utility easement.
28   "Document" shall also include a declaration of acquisition
29   required to be presented for recording under section 1102-C.5 of
30   this article.

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 1      "Family farm business."     A corporation or association of
 2   which at least seventy-five per cent of its assets are devoted
 3   to the business of agriculture and at least seventy-five per
 4   cent of each class of stock of the corporation or the interests
 5   in the association is continuously owned by members of the same
 6   family. The business of agriculture shall include the leasing to
 7   members of the same family or the leasing to a corporation or
 8   association owned by members of the same family of property
 9   which is directly and principally used for agricultural
10   purposes. The business of agriculture shall not be deemed to
11   include:
12      (1)     recreational activities such as, but not limited to,
13   hunting, fishing, camping, skiing, show competition or racing;
14      (2)     the raising, breeding or training of game animals or
15   game birds, fish, cats, dogs or pets or animals intended for use
16   in sporting or recreational activities;
17      (3)     fur farming;
18      (4)     stockyard and slaughterhouse operations; or
19      (5)     manufacturing or processing operations of any kind.
20      "Living trust."     Any trust, other than a business trust,
21   intended as a will substitute by the settlor which becomes
22   effective during the lifetime of the settlor, but from which
23   trust distributions cannot be made to any beneficiaries other
24   than the settlor prior to the death of the settlor.
25      "Members of the same family."        Any individual, such
26   individual's brothers and sisters, the brothers and sisters of
27   such individual's parents and grandparents, the ancestors and
28   lineal descendents of any of the foregoing, a spouse of any of
29   the foregoing and the estate of any of the foregoing.
30   Individuals related by the half blood or legal adoption shall be

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 1   treated as if they were related by the whole blood.
 2      "Ordinary trust."    Any trust, other than a business trust or
 3   a living trust, which takes effect during the lifetime of the
 4   settlor and for which the trustees of the trust take title to
 5   property primarily for the purpose of protecting, managing or
 6   conserving it until distribution to the named beneficiaries of
 7   the trust. An ordinary trust does not include a trust that has
 8   an objective to carry on business and divide gains, nor does it
 9   either expressly or impliedly have any of the following
10   features: the treatment of beneficiaries as associates, the
11   treatment of the interests in the trust as personal property,
12   the free transferability of beneficial interests in the trust,
13   centralized management by the trustee or the beneficiaries, or
14   continuity of life.
15      "Person."    Every natural person, association, or corporation.
16   Whenever used in any clause prescribing and imposing a fine or
17   imprisonment, or both, the term "person" as applied to
18   associations, shall include the responsible members or general
19   partners thereof, and as applied to corporations, the officers
20   thereof.
21      "Qualified beginner farmer."     A person that:
22      (1)     Has demonstrated experience in the agriculture industry
23   or related field or has transferable skills as determined by the
24   Department of Agriculture.
25      (2)     Has not received Federal gross income from agricultural
26   production for more than the ten most recent taxable years.
27      (3)     Intends to engage in agricultural production within the
28   borders of this Commonwealth and to provide the majority of the
29   labor and management involved in that agricultural production.
30      (4)     Has obtained written certification from the Department

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 1   of Agriculture confirming qualified beginner farmer status.
 2      "Real estate."
 3      (1)    Any lands, tenements or hereditaments, including,
 4   without limitation, buildings, structures, fixtures, mines,
 5   minerals, oil, gas, quarries, spaces with or without upper or
 6   lower boundaries, trees and other improvements, immovables or
 7   interests which by custom, usage or law pass with a conveyance
 8   of land, but excluding permanently attached machinery and
 9   equipment in an industrial plant.
10      (2)    A condominium unit.
11      (3)    A tenant-stockholder's interest in a cooperative housing
12   corporation, trust or association under a proprietary lease or
13   occupancy agreement.
14      "Real estate company."     A corporation or association which
15   meets any of the following:
16      (1)    Is primarily engaged in the business of holding, selling
17   or leasing real estate ninety per cent or more of the ownership
18   interest in which is held by thirty-five or fewer persons and
19   which:
20      (i)    derives sixty per cent or more of its annual gross
21   receipts from the ownership or disposition of real estate; or
22      (ii)    holds real estate, the value of which comprises ninety
23   per cent or more of the value of its entire tangible asset
24   holdings exclusive of tangible assets which are freely
25   transferable and actively traded on an established market.
26      (2)    Ninety per cent or more of the ownership interest in the
27   corporation or association is held by thirty-five or fewer
28   persons, and the corporation or association owns, as ninety per
29   cent or more of the fair market value of its assets, a direct or
30   indirect interest in a real estate company. An indirect

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 1   ownership interest is an interest in a corporation or
 2   association, ninety per cent or more of the ownership interest
 3   which is held by thirty-five or fewer persons whose purpose is
 4   the ownership of a real estate company.
 5      "Title to real estate."
 6      (1)    Any interest in real estate which endures for a period
 7   of time, the termination of which is not fixed or ascertained by
 8   a specific number of years, including, without limitation, an
 9   estate in fee simple, life estate or perpetual leasehold; or
10      (2)    any interest in real estate enduring for a fixed period
11   of years but which, either by reason of the length of the term
12   or the grant of a right to extend the term by renewal or
13   otherwise, consists of a group of rights approximating those of
14   an estate in fee simple, life estate or perpetual leasehold,
15   including, without limitation, a leasehold interest or
16   possessory interest under a lease or occupancy agreement for a
17   term of thirty years or more or a leasehold interest or
18   possessory interest in real estate in which the lessee has
19   equity.
20      "Transaction."   The making, executing, delivering, accepting,
21   or presenting for recording of a document.
22      "Value."
23      (1)    In the case of any bona fide sale of real estate at
24   arm's length for actual monetary worth, the amount of the actual
25   consideration therefor, paid or to be paid, including liens or
26   other encumbrances thereon existing before the transfer and not
27   removed thereby, whether or not the underlying indebtedness is
28   assumed, and ground rents, or a commensurate part thereof where
29   such liens or other encumbrances and ground rents also encumber
30   or are charged against other real estate: Provided, That where

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 1   such documents shall set forth a nominal consideration, the
 2   "value" thereof shall be determined from the price set forth in
 3   or actual consideration for the contract of sale;
 4      (2)   in the case of a gift, sale by execution upon a judgment
 5   or upon the foreclosure of a mortgage by a judicial officer,
 6   transactions without consideration or for consideration less
 7   than the actual monetary worth of the real estate, a taxable
 8   lease, an occupancy agreement, a leasehold or possessory
 9   interest, any exchange of properties, or the real estate of an
10   acquired company, the actual monetary worth of the real estate
11   determined by adjusting the assessed value of the real estate
12   for local real estate tax purposes for the common level ratio of
13   assessed values to market values of the taxing district as
14   established by the State Tax Equalization Board, or a
15   commensurate part of the assessment where the assessment
16   includes other real estate;
17      (3)   in the case of an easement or other interest in real
18   estate the value of which is not determinable under clause (1)
19   or (2), the actual monetary worth of such interest; or
20      (4)   the actual consideration for or actual monetary worth of
21   any executory agreement for the construction of buildings,
22   structures or other permanent improvements to real estate
23   between the grantor and other persons existing before the
24   transfer and not removed thereby or between the grantor, the
25   agent or principal of the grantor or a related corporation,
26   association or partnership and the grantee existing before or
27   effective with the transfer.
28      "Veterans' service organization."   A not-for-profit
29   organization that has been chartered by the Congress of the
30   United States to service veterans or is a member of the State

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 1   Veterans' Commission under 51 Pa.C.S. Ch. 17 (relating to State
 2   Veterans' Commission and Deputy Adjutant General for Veterans'
 3   Affairs).
 4      "Volunteer emergency medical services agency."   The term
 5   shall have the same meaning as given to the term "volunteer
 6   ambulance service" in 35 Pa.C.S. § 7802 (relating to
 7   definitions).
 8      "Volunteer fire company."   As defined in 35 Pa.C.S. § 7802
 9   (relating to definitions).
10      "Volunteer rescue company."    As defined in 35 Pa.C.S. § 7802
11   (relating to definitions).
12      Section 1102-C.   Imposition of Tax.--Every person who makes,
13   executes, delivers, accepts or presents for recording any
14   document or in whose behalf any document is made, executed,
15   delivered, accepted or presented for recording, shall be subject
16   to pay for and in respect to the transaction or any part
17   thereof, or for or in respect of the vellum parchment or paper
18   upon which such document is written or printed, a State tax at
19   the rate of one per cent of the value of the real estate within
20   this Commonwealth represented by such document, which State tax
21   shall be payable at the earlier of the time the document is
22   presented for recording or within thirty days of acceptance of
23   such document or within thirty days of becoming an acquired
24   company.
25      Section 1102-C.2.   Exempt Parties.--The United States, the
26   Commonwealth or any of their instrumentalities, agencies or
27   political subdivisions, or veterans' service organizations shall
28   be exempt from payment of the tax imposed by this article. The
29   exemption under this section shall not, however, relieve any
30   other party to a transaction from liability for the tax.

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 1      Section 1102-C.3.    Excluded Transactions.--The tax imposed by
 2   section 1102-C shall not be imposed upon:
 3      (1)   A transfer to the Commonwealth or to any of its
 4   instrumentalities, agencies or political subdivisions by gift,
 5   dedication or deed in lieu of condemnation or deed of
 6   confirmation in connection with condemnation proceedings, or a
 7   reconveyance by the condemning body of the property condemned to
 8   the owner of record at the time of condemnation, which
 9   reconveyance may include property line adjustments provided said
10   reconveyance is made within one year from the date of
11   condemnation.
12      (2)   A document which the Commonwealth is prohibited from
13   taxing under the Constitution or statutes of the United States.
14      (3)   A conveyance to a municipality, township, school
15   district or county pursuant to acquisition by the municipality,
16   township, school district or county of a tax delinquent property
17   at sheriff sale or tax claim bureau sale.
18      (4)   A transfer for no or nominal actual consideration which
19   corrects or confirms a transfer previously recorded, but which
20   does not extend or limit existing record legal title or
21   interest.
22      (5)   A transfer of division in kind for no or nominal actual
23   consideration of property passed by testate or intestate
24   succession and held by cotenants; however, if any of the parties
25   take shares greater in value than their undivided interest, tax
26   is due on the excess.
27      (6)   A transfer between husband and wife, between persons who
28   were previously husband and wife who have since been divorced,
29   provided the property or interest therein subject to such
30   transfer was acquired by the husband and wife or husband or wife

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 1   prior to the granting of the final decree in divorce, between
 2   parent and child or the spouse of such child, between a
 3   stepparent and a stepchild or the spouse of the stepchild,
 4   between brother or sister or spouse of a brother or sister and
 5   brother or sister or the spouse of a brother or sister and
 6   between a grandparent and grandchild or the spouse of such
 7   grandchild, except that a subsequent transfer by the grantee
 8   within one year shall be subject to tax as if the grantor were
 9   making such transfer.
10      (7)     A transfer for no or nominal actual consideration of
11   property passing by testate or intestate succession from a
12   personal representative of a decedent to the decedent's devisee
13   or heir.
14      (8)     A transfer for no or nominal actual consideration to a
15   trustee of an ordinary trust where the transfer of the same
16   property would be exempt if the transfer was made directly from
17   the grantor to all of the possible beneficiaries that are
18   entitled to receive the property or proceeds from the sale of
19   the property under the trust, whether or not such beneficiaries
20   are contingent or specifically named. A trust clause which
21   identifies the contingent beneficiaries by reference to the
22   heirs of the trust settlor as determined by the laws of the
23   intestate succession shall not disqualify a transfer from the
24   exclusion provided by this clause. No such exemption shall be
25   granted unless the recorder of deeds is presented with a copy of
26   the trust instrument that clearly identifies the grantor and all
27   possible beneficiaries.
28      (8.1)     A transfer for no or nominal actual consideration to a
29   trustee of a living trust from the settlor of the living trust.
30   No such exemption shall be granted unless the recorder of deeds

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 1   is presented with a copy of the living trust instrument.
 2      (9)     A transfer for no or nominal actual consideration from a
 3   trustee of an ordinary trust to a specifically named beneficiary
 4   that is entitled to receive the property under the recorded
 5   trust instrument or to a contingent beneficiary where the
 6   transfer of the same property would be exempt if the transfer
 7   was made by the grantor of the property into the trust to that
 8   beneficiary. However, any transfer of real estate from a living
 9   trust during the settlor's lifetime shall be considered for the
10   purposes of this article as if such transfer were made directly
11   from the settlor to the grantee.
12      (9.1)    A transfer for no or nominal actual consideration from
13   a trustee of a living trust after the death of the settlor of
14   the trust or from a trustee of a trust created pursuant to the
15   will of a decedent to a beneficiary to whom the property is
16   devised or bequeathed.
17      (9.2)    A transfer for no or nominal actual consideration from
18   the trustee of a living trust to the settlor of the living trust
19   if such property was originally conveyed to the trustee by the
20   settlor.
21      (10)    A transfer for no or nominal actual consideration from
22   trustee to successor trustee.
23      (11)    A transfer:
24      (i)     for no or nominal actual consideration between principal
25   and agent or straw party; or
26      (ii)    from or to an agent or straw party where, if the agent
27   or straw party were his principal, no tax would be imposed under
28   this article.
29   Where the document by which title is acquired by a grantee or
30   statement of value fails to set forth that the property was

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 1   acquired by the grantee from, or for the benefit of, his
 2   principal, there is a rebuttable presumption that the property
 3   is the property of the grantee in his individual capacity if the
 4   grantee claims an exemption from taxation under this clause.
 5      (12)   A transfer made pursuant to the statutory merger or
 6   consolidation of a corporation or statutory division of a
 7   nonprofit corporation, except where the department reasonably
 8   determines that the primary intent for such merger,
 9   consolidation or division is avoidance of the tax imposed by
10   this article.
11      (13)   A transfer from a corporation or association of real
12   estate held of record in the name of the corporation or
13   association where the grantee owns stock of the corporation or
14   an interest in the association in the same proportion as his
15   interest in or ownership of the real estate being conveyed and
16   where the stock of the corporation or the interest in the
17   association has been held by the grantee for more than two
18   years.
19      (14)   A transfer from a nonprofit industrial development
20   agency or authority to a grantee of property conveyed by the
21   grantee to that agency or authority as security for a debt of
22   the grantee or a transfer to a nonprofit industrial development
23   agency or authority.
24      (15)   A transfer from a nonprofit industrial development
25   agency or authority to a grantee purchasing directly from it,
26   but only if:
27      (i)    the grantee shall directly use such real estate for the
28   primary purpose of manufacturing, fabricating, compounding,
29   processing, publishing, research and development,
30   transportation, energy conversion, energy production, pollution

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 1   control, warehousing or agriculture; and
 2      (ii)    the agency or authority has the full ownership interest
 3   in the real estate transferred.
 4      (16)    A transfer by a mortgagor to the holder of a bona fide
 5   mortgage in default in lieu of a foreclosure or a transfer
 6   pursuant to a judicial sale in which the successful bidder is
 7   the bona fide holder of a mortgage, unless the holder assigns
 8   the bid to another person.
 9      (17)    Any transfer between religious organizations or other
10   bodies or persons holding title for a religious organization if
11   such real estate is not being or has not been used by such
12   transferor for commercial purposes.
13      (18)    Any of the following:
14      (i)    A transfer to a conservancy.
15      (ii)    A transfer from a conservancy to the United States, the
16   Commonwealth or to any of their instrumentalities, agencies or
17   political subdivisions.
18      (iii)    A transfer from a conservancy where the real estate is
19   encumbered by a perpetual agricultural conservation easement as
20   defined by the act of June 30, 1981 (P.L.128, No.43), known as
21   the "Agricultural Area Security Law," and such conservancy has
22   owned the real estate for at least two years immediately prior
23   to the transfer.
24      (iv)    A transfer of an agricultural conservation easement to
25   or from the Commonwealth, a county, a local government unit or a
26   conservancy under authority of the "Agricultural Area Security
27   Law."
28      (v)    A transfer of a conservation easement or preservation
29   easement under the act of June 22, 2001 (P.L.390, No.29), known
30   as the "Conservation and Preservation Easements Act."

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 1      (vi)    A transfer of a perpetual historic preservation
 2   easement, a perpetual public trail easement or other perpetual
 3   public recreational use easement, a perpetual scenic
 4   preservation easement or a perpetual open-space preservation
 5   easement to or from the United States, the Commonwealth, a
 6   county, a local government unit or a conservancy.
 7      (vii)    A transfer of real estate that is subject to an
 8   agricultural conservation easement established under authority
 9   of the act of June 30, 1981 (P.L.128, No.43), known as the
10   "Agricultural Area Security Law," to a qualified beginner
11   farmer.
12      (19)     A transfer of real estate devoted to the business of
13   agriculture to a family farm business by:
14      (i)     a member of the same family which directly owns at least
15   seventy-five per cent of each class of the stock thereof or the
16   interests in that family farm business; or
17      (ii)     a family farm business, which family directly owns at
18   least seventy-five per cent of each class of stock thereof or
19   the interests in that family farm business.
20      (20)    A transfer between members of the same family of an
21   ownership interest in a real estate company or family farm
22   business that owns real estate.
23      (21)    A transaction wherein the tax due is one dollar ($1) or
24   less.
25      (22)    Leases for the production or extraction of coal, oil,
26   natural gas or minerals and assignments thereof.
27   In order to exercise any exclusion provided in this section, the
28   true, full and complete value of the transfer shall be shown on
29   the statement of value. For leases of coal, oil, natural gas or
30   minerals, the statement of value may be limited to an

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 1   explanation of the reason such document is not subject to tax
 2   under this article.
 3      (23)   A transfer of real estate to or by a volunteer EMS
 4   company, volunteer fire company or volunteer rescue company as
 5   those terms are defined in 35 Pa.C.S. § 7802 (relating to
 6   definitions).
 7      (24)   A transfer of real estate to or by a land bank. For the
 8   purposes of this clause, the term "land bank" shall have the
 9   same meaning as given to it in 68 Pa.C.S. § 2103 (relating to
10   definitions).
11      (25)   Beginning on or after December 31, 2015, a transfer of
12   real estate by a housing authority created under the act of May
13   28, 1937 (P.L.955, No.265), referred to as the Housing
14   Authorities Law, to a nonprofit organization which is utilizing
15   the real estate for the purpose of Rental Assistance
16   Demonstration administered by the United States Department of
17   Housing and Urban Development under the Consolidated and Further
18   Continuing Appropriations Act, 2012 (Public Law 112-55, 125
19   Stat. 552).
20      Section 1102-C.4.   Documents Relating to Associations or
21   Corporations and Members, Partners, Stockholders or Shareholders
22   Thereof.--Except as otherwise provided in sections 1102-C.3 and
23   1102-C.5, documents which make, confirm or evidence any transfer
24   or demise of title to real estate between associations or
25   corporations and the members, partners, shareholders or
26   stockholders thereof are fully taxable. For the purposes of this
27   article, corporations and associations are entities separate
28   from their members, partners, stockholders or shareholders.
29      Section 1102-C.5.   Acquired Company.--(a)   A real estate
30   company is an acquired company upon a change in the ownership

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 1   interest in the company, however effected, if the change:
 2      (1)   does not affect the continuity of the company; and
 3      (2)   of itself or together with prior changes has the effect
 4   of transferring, directly or indirectly, ninety per cent or more
 5   of the total ownership interest in the company within a period
 6   of three years.
 7      (3)   For the purposes of paragraph (2), a transfer occurs
 8   within a period of three years of another transfer or transfers
 9   if, during the period, the transferring party provides the
10   transferee a legally binding commitment or option, enforceable
11   at a future date, to execute the transfer.
12      (b.2)   A family farm business is an acquired company when,
13   because of voluntary or involuntary dissolution, it ceases to be
14   a family farm business or when, because of the issuance or
15   transfer of stock in the corporation or transfer of interests in
16   the association or because of acquisition or transfer of assets
17   that are devoted to the business of agriculture, it fails to
18   meet the minimum requirements of a family farm business under
19   this article.
20      (b.3)   The conveyance of assets held by one family farm
21   business to another family farm business shall not be considered
22   a transfer of assets under this article if the same individuals
23   hold at least fifty per cent of the ownership interest in each
24   family farm business.
25      (c)   Within thirty days after becoming an acquired company,
26   the company shall present a declaration of acquisition with the
27   recorder of each county in which it holds real estate for the
28   affixation of documentary stamps and recording. Such declaration
29   shall set forth the value of real estate holdings of the
30   acquired company in such county.

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 1      Section 1102-C.6.    Transfer of Tax.--(a)   Subject to
 2   subsection (b), beginning July 31, 2019, and each July 31
 3   thereafter, the State Treasurer shall transfer from the General
 4   Fund to the Housing Affordability and Rehabilitation Enhancement
 5   Fund under Article IV-D of the act of December 3, 1959
 6   (P.L.1688, No.621), known as the "Housing Finance Agency Law,"
 7   an amount under subsection (b).
 8      (b)   The amount transferred under subsection (a) may not
 9   exceed the following:
10      (1)   For each fiscal year beginning after June 30, 2019, and
11   ending prior to July 1, 2023, forty million dollars
12   ($40,000,000).
13      (2)   For the fiscal year beginning July 1, 2023, and each
14   fiscal year thereafter, sixty million dollars ($60,000,000).
15      (c)   Nothing in this section shall be construed to reduce or
16   prohibit increased funding for the Housing Affordability and
17   Rehabilitation Enhancement Fund or the Keystone Recreation, Park
18   and Conservation Fund as provided in the "Housing Finance Agency
19   Law" or other law.
20      Section 1103-C.   Credits Against Tax.--(a)    Where there is a
21   transfer of a residential property by a licensed real estate
22   broker which property was transferred to him within the
23   preceding year as consideration for the purchase of other
24   residential property, a credit for the amount of the tax paid at
25   the time of the transfer to him shall be given to him toward the
26   amount of the tax due upon the transfer.
27      (b)   Where there is a transfer by a builder of residential
28   property which was transferred to the builder within the
29   preceding year as consideration for the purchase of new,
30   previously unoccupied residential property, a credit for the

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 1   amount of the tax paid at the time of the transfer to the
 2   builder shall be given to the builder toward the amount of the
 3   tax due upon the transfer.
 4      (c)   Where there is a transfer of real estate which is
 5   demised by the grantor, a credit for the amount of tax paid at
 6   the time of the demise shall be given the grantor toward the tax
 7   due upon the transfer.
 8      (d)   Where there is a conveyance by deed of real estate which
 9   was previously sold under a land contract by the grantor, a
10   credit for the amount of tax paid at the time of the sale shall
11   be given the grantor toward the tax due upon the deed.
12      (e)   If the tax due upon the transfer is greater than the
13   credit given under this section, the difference shall be paid.
14   If the credit allowed is greater than the amount of tax due, no
15   refund or carryover credit shall be allowed.
16      Section 1103-C.1.     Extension of Lease.--In determining the
17   term of a lease, it shall be presumed that a right or option to
18   renew or extend a lease will be exercised if the rental charge
19   to the lessee is fixed or if a method for calculating the rental
20   charge is established.
21      Section 1104-C.   Proceeds of Judicial Sale.--The tax herein
22   imposed shall be fully paid, and have priority out of the
23   proceeds of any judicial sale of real estate before any other
24   obligation, claim, lien, judgment, estate or costs of the sale
25   and of the writ upon which the sale is made, and the sheriff, or
26   other officer, conducting said sale, shall pay the tax herein
27   imposed out of the first moneys paid to him in connection
28   therewith. If the proceeds of the sale are insufficient to pay
29   the entire tax herein imposed, the purchaser shall be liable for
30   the remaining tax.

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 1      Section 1105-C.   Documentary Stamps.--(a)   The payment of the
 2   tax imposed by this article shall be evidenced by the affixing
 3   of a documentary stamp or stamps to every document by the person
 4   making, executing, delivering or presenting for recording such
 5   document. Such stamps shall be affixed in such manner that their
 6   removal will require the continued application of steam or
 7   water, and the person using or affixing such stamps shall write
 8   or stamp or cause to be written or stamped thereon the initials
 9   of his name and the date upon which such stamps are affixed or
10   used so that such stamps may not again be used: Provided, That
11   the department may prescribe such other method of cancellation
12   as it may deem expedient.
13      (b)   The use of documentary license meter impressions or
14   similar indicia of payment in lieu of stamps as required by this
15   article may be permitted in the discretion of the department.
16      Section 1106-C.   Stamps, Commissions, Payments and
17   Transfers.--(a)   The department shall prescribe, prepare and
18   furnish stamps to each recorder of deeds, of such denominations
19   and quantities as may be necessary, for the payment of the tax
20   imposed and assessed by this article.
21      (b)   The department shall allow each county a commission
22   equal to one per cent of the face value of the stamps sold or
23   two hundred fifty dollars ($250) whichever is greater. The
24   recorder of deeds shall pay the commission herein allowed to the
25   general fund of the county. The department shall pay the premium
26   or premiums on any bond or bonds required by law to be procured
27   by recorder of deeds for the performance of their duties under
28   this article.
29      (c)   All moneys paid in accordance with this article shall be
30   credited to the General Fund.

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 1      (d)    At the end of each month, the State Treasurer shall
 2   transfer from the General Fund to the Keystone Recreation, Park
 3   and Conservation Fund an amount equal to the tax credited to the
 4   General Fund under subsection (c) for the previous month
 5   multiplied by the applicable transfer factor. The applicable
 6   transfer factor for each month shall be as follows:
 7                  Month                            Transfer Factor
 8            July 1994 through
 9               December 2001                            0.15
10            January 2002 through
11               June 2002                                0.10
12            July 2002 through
13               June 2003                                0.075
14            July 2003 through
15               June 2006                                0.15
16            July 2006 through
17               June 2007                                0.021
18            July 2007 and each
19               month thereafter                         0.15
20      Section 1107-C.      Enforcement; Rules and Regulations.--The
21   department is hereby charged with the enforcement of the
22   provisions of this article and is hereby authorized and
23   empowered to prescribe, adopt, promulgate and enforce rules and
24   regulations relating to:
25      (1)    The method and means to be used in affixing or
26   cancelling of stamps in substitution for or in addition to the
27   method and means provided in this article.
28      (2)    The denominations and sale of stamps.
29      (3)    Any other matter or thing pertaining to the
30   administration and enforcement of the provisions of this

20250SB0238PN0192                     - 20 -
 1   article.
 2      Section 1108-C.    Failure to Affix Stamps.--No document upon
 3   which tax is imposed by this article shall at any time be made
 4   the basis of any action or other legal proceeding, nor shall
 5   proof thereof be offered or received in evidence in any court of
 6   this Commonwealth, or recorded in the office of any recorder of
 7   deeds of any county of this Commonwealth, unless a documentary
 8   stamp or stamps as provided in this article have been affixed
 9   thereto.
10      Section 1109-C.    Statement of Value; Penalty.--(a)   Every
11   document lodged with or presented to any recorder of deeds in
12   this Commonwealth for recording, shall set forth therein and as
13   a part of such document the true, full and complete value
14   thereof, or shall be accompanied by a statement of value
15   executed by a responsible person connected with the transaction
16   showing such connection and setting forth the true, full and
17   complete value thereof or the reason, if any, why such document
18   is not subject to tax under this article. The provisions of this
19   subsection shall not apply to any excludable real estate
20   transfers which are exempt from taxation based on family
21   relationship. Other documents presented for the affixation of
22   stamps shall be accompanied by a certified copy of the document
23   and statement of value executed by a responsible person
24   connected with the transaction showing such connection and
25   setting forth the true, full and complete value thereof or the
26   reason, if any, why such document is not subject to tax under
27   this article.
28      (b)     Any recorder of deeds who shall record any document upon
29   which tax is imposed by this article without the proper
30   documentary stamp or stamps affixed thereto as required by this

20250SB0238PN0192                    - 21 -
 1   article as is indicated in such document or accompanying
 2   statement of value shall, upon summary conviction, be sentenced
 3   to pay a fine of fifty dollars ($50) and costs of prosecution,
 4   and in default of payment thereof, undergo imprisonment for not
 5   more than thirty days.
 6      Section 1109-C.1.     Civil Penalties.--(a)   If any part of any
 7   underpayment of tax imposed by this article is due to fraud,
 8   there shall be added to the tax an amount equal to fifty per
 9   cent of the underpayment.
10      (b)   In the case of failure to record a declaration required
11   under this article on the date prescribed therefor, unless it is
12   shown that such failure is due to reasonable cause, there shall
13   be added to the tax five per cent of the amount of such tax if
14   the failure is for not more than one month, with an additional
15   five per cent for each additional month or fraction thereof
16   during which such failure continues, not exceeding fifty per
17   cent in the aggregate.
18      Section 1110-C.   Unlawful Acts; Penalty.--(a)    It shall be
19   unlawful for any person to:
20      (1)   accept or present for recording or cause to be accepted
21   or presented for recording any document, without the full amount
22   of tax thereon being duly paid; or,
23      (2)   make use of any documentary stamp to denote payment of
24   any tax imposed by this article without cancelling such stamp as
25   required by this article or as prescribed by the department; or,
26      (3)   fail, neglect or refuse to comply with or violate the
27   rules and regulations prescribed, adopted and promulgated by the
28   department under the provisions of this article.
29      (b)   Any person violating any of the provisions of subsection
30   (a) shall be guilty of a summary offense.

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 1      (c)   It shall be unlawful for any person to:
 2      (1)   fraudulently cut, tear or remove from a document any
 3   documentary stamp; or,
 4      (2)   fraudulently affix to any document upon which tax is
 5   imposed by this article any documentary stamp which has been
 6   cut, torn or removed from any other document upon which tax is
 7   imposed by this article, or any documentary stamp of
 8   insufficient value, or any forged or counterfeited stamp, or any
 9   impression of any forged or counterfeited stamp, die, plate or
10   other article; or,
11      (3)   wilfully remove or alter the cancellation marks of any
12   documentary stamp, or restore any such documentary stamp, with
13   intent to use or cause the same to be used after it has already
14   been used, or knowingly buy, sell, offer for sale, or give away
15   any such altered or restored stamp to any person for use, or
16   knowingly use the same; or,
17      (4)   knowingly have in his possession any altered or restored
18   documentary stamp which has been removed from any document upon
19   which tax is imposed by this article: Provided, That the
20   possession of such stamps shall be prima facie evidence of an
21   intent to violate the provisions of this clause; or,
22      (5)   knowingly or wilfully prepare, keep, sell, offer for
23   sale, or have in his possession, any forged or counterfeited
24   documentary stamps.
25      (d)   Any person violating any of the provisions of subsection
26   (c) shall be guilty of a misdemeanor of the second degree.
27      (e)   A person who makes a false statement of value or
28   declaration of acquisition, when he does not believe the
29   statement or declaration to be true, is guilty of a misdemeanor
30   of the second degree.

20250SB0238PN0192                  - 23 -
 1      Section 1111-C.   Assessment and Notice of Tax; Review.--(a)
 2   If any person shall fail to pay any tax imposed by this article
 3   for which he is liable, the department is hereby authorized and
 4   empowered to make an assessment of additional tax and interest
 5   due by such person based upon any information within its
 6   possession or that shall come into its possession. All of such
 7   assessments shall be made within three years after the date of
 8   the recording of the document, subject to the following:
 9      (1)   If the taxpayer underpays the correct amount of the tax
10   by twenty-five per cent or more, the tax may be assessed at any
11   time within six years after the date of the recording of the
12   document.
13      (2)   If any part of an underpayment of tax is due to fraud or
14   an undisclosed, intentional disregard of rules and regulations,
15   the full amount of the tax may be assessed at any time.
16      (b)   Promptly after the date of such assessment, the
17   department shall send a copy thereof, including the basis of the
18   assessment, to the person against whom it was made. Any taxpayer
19   against whom an assessment is made may petition the department
20   for a reassessment pursuant to Article XXVII.
21      Section 1112-C.   Lien.--(a)   Any tax determined to be due by
22   the department and remaining unpaid after demand for the same,
23   and all penalties and interest thereon, shall be a lien in favor
24   of the Commonwealth upon the property, both real and personal,
25   of such person but only after said lien has been entered and
26   docketed of record by the prothonotary of the county where such
27   property is situated.
28      (a.1)    At any time after it makes an assessment of additional
29   tax, penalty or interest, the department may transmit to the
30   prothonotaries of the respective counties certified copies of

20250SB0238PN0192                   - 24 -
 1   all liens for such taxes, penalties and interest, and it shall
 2   be the duty of each prothonotary receiving the lien to enter and
 3   docket the same of record in his office, which lien shall be
 4   indexed as judgments are now indexed. After the department's
 5   assessment becomes final, a writ of execution may directly issue
 6   upon such lien without the issuance and prosecution to judgment
 7   of a writ of scire facias: Provided, That not less than ten days
 8   before issuance of any execution on the lien, notice shall be
 9   sent by certified mail to the taxpayer at his last known post
10   office address. No prothonotary shall require as a condition
11   precedent to the entry of such liens, the payment of any costs
12   incident thereto.
13      (b)   The lien imposed hereunder shall have priority from the
14   date of its recording as aforesaid, and shall be fully paid and
15   satisfied out of the proceeds of any judicial sale of property
16   subject thereto before any other obligation, judgment, claim,
17   lien or estate to which said property may subsequently become
18   subject, except costs of the sale and of the writ upon which the
19   sale was made, and real estate taxes and municipal claims
20   against such property, but shall be subordinate to mortgages and
21   other liens existing and duly recorded or entered of record
22   prior to the recording of the tax lien. In the case of a
23   judicial sale of property subject to a lien imposed hereunder
24   upon a lien or claim over which the lien imposed hereunder has
25   priority, as aforesaid, such sale shall discharge the lien
26   imposed hereunder to the extent only that the proceeds are
27   applied to its payment, and such lien shall continue in full
28   force and effect as to the balance remaining unpaid.
29      (c)   The lien imposed hereunder shall continue for five years
30   from the date of its entry of record, and may be renewed and

20250SB0238PN0192                  - 25 -
 1   continued in the manner now or hereafter provided for the
 2   renewal of judgments, or as may be provided in the act of April
 3   9, 1929 (P.L.343, No.176), known as "The Fiscal Code."
 4      Section 1113-C.   Refunds.--(a)     Whenever the amount due upon
 5   assessment or review is less than the amount paid to the
 6   department on account thereof, the department shall enter a
 7   credit in the amount of such difference to the account of the
 8   person who paid the tax.
 9      (b)   Where there has been no assessment of unpaid tax, the
10   department shall have the power, and its duty shall be, to hear
11   and decide any application for refund and, upon the allowance of
12   such application, to enter a credit in the amount of the
13   overpayment to the account of the person who paid the tax. Such
14   application must be filed under Article XXVII.
15      Section 1114-C.   Sharing Information.--Notwithstanding the
16   provisions of any other act, the department may divulge to the
17   proper officer of a political subdivision imposing a local real
18   estate transfer tax, or the authorized representative of that
19   officer, information gained pursuant to the department's
20   administration or collection respecting the collection of realty
21   transfer tax under this article.]
22      Section 2.   Sections 1101-D, 1102-D, 1103-D(a) and 1110-D(b)
23   (1) and (d) of the act are amended to read:
24      Section 1101-D.   Imposition.--The duly constituted
25   authorities of the following political subdivisions--cities of
26   the second class, cities of the second class A, cities of the
27   third class, boroughs, incorporated towns, townships of the
28   first class, townships of the second class, school districts of
29   the first class A, school districts of the second class, school
30   districts of the third class and school districts of the fourth

20250SB0238PN0192                  - 26 -
 1   class, in all cases including independent school districts--may,
 2   in their discretion, by ordinance or resolution, for general
 3   revenue purposes, levy, assess and collect or provide for the
 4   levying, assessment and collection of a tax upon a transfer of
 5   real property or an interest in real property within the limits
 6   of the political subdivision, regardless of where the
 7   instruments making the transfers are made, executed or delivered
 8   or where the actual settlements on the transfer take place[, to
 9   the extent that the transactions are subject to the tax imposed
10   by Article XI-C]. A tax imposed under this article shall be
11   subject to rate limitations provided by section 5, section 8 and
12   section 17 of the act of December 31, 1965 (P.L.1257, No.511),
13   known as "The Local Tax Enabling Act."
14      Section 1102-D.   Administration.--(a) The tax authorized
15   under this article shall be administered, collected and enforced
16   under the act of December 31, 1965 (P.L.1257, No.511), known as
17   "The Local Tax Enabling Act," provided, however, that, if the
18   correct amount of the tax is not paid by the last date
19   prescribed for timely payment [as provided for in section 1102-
20   C], the department may determine the tax, interest and penalty
21   as provided for in section 1109-D [and may collect and enforce
22   the tax, interest and penalty in the same manner as tax,
23   interest and penalty imposed by Article XI-C].
24      [(b)    Whenever a declaration is required to be filed under
25   Article XI-C, a declaration is also required to be filed under
26   this article.]
27      Section 1103-D.   Regulations.--[(a)   The regulations
28   promulgated under Article XI-C shall be applicable to the taxes
29   imposed under this article.]
30      * * *

20250SB0238PN0192                   - 27 -
 1      Section 1110-D.    Lien.--* * *
 2      (b)    (1)   At any time after it makes a determination of
 3   additional tax, penalty or interest under this article, the
 4   department may transmit to the prothonotaries of the respective
 5   counties certified copies of all liens for the taxes, penalties
 6   and interest under this article [or copies of all liens under
 7   Article XI-C and this article] on a single form.
 8      * * *
 9      [(d)    A lien imposed under this article shall be equal in
10   priority to the lien imposed under Article XI-C.]
11      Section 3.    The Department of Revenue may promulgate
12   regulations as necessary to implement this act.
13      Section 4.    This act shall apply to taxable years beginning
14   after December 31, 2025.
15      Section 5.    This act shall take effect immediately.




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