§ 8102-C.3. Excluded transactions
Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 72 P.S. Taxation and Fiscal AffairsEffective: July 23, 2020
Effective: July 23, 2020
72 P.S. § 8102-C.3
§ 8102-C.3. Excluded transactions
The tax imposed by section 1102-C1 shall not be imposed upon:
(1) A transfer to the Commonwealth or to any of its instrumentalities, agencies or political subdivisions by gift, dedication or deed in lieu of condemnation or deed of confirmation in connection with condemnation proceedings, or a reconveyance by the condemning body of the property condemned to the owner of record at the time of condemnation, which reconveyance may include property line adjustments provided said reconveyance is made within one year from the date of condemnation.
(6) A transfer between husband and wife, between persons who were previously husband and wife who have since been divorced, provided the property or interest therein subject to such transfer was acquired by the husband and wife or husband or wife prior to the granting of the final decree in divorce, between parent and child or the spouse of such child, between a stepparent and a stepchild or the spouse of the stepchild, between brother or sister or spouse of a brother or sister and brother or sister or the spouse of a brother or sister and between a grandparent and grandchild or the spouse of such grandchild, except that a subsequent transfer by the grantee within one year shall be subject to tax as if the grantor were making such transfer.
(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 that are entitled to receive the property or proceeds from the sale of the property under the trust, whether or not such beneficiaries are contingent or specifically named. A trust clause which identifies the contingent beneficiaries by reference to the heirs of the trust settlor as determined by the laws of the intestate succession shall not disqualify a transfer from the exclusion provided by this clause. 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 of an ordinary trust to a specifically named beneficiary that is entitled to receive the property under the recorded trust instrument or to a contingent beneficiary where the transfer of the same property would be exempt if the transfer was made by the grantor of the property into the trust to that beneficiary. However, any transfer of real estate from a living trust during the settlor's lifetime shall be considered for the purposes of this article as if such transfer were made directly from the settlor to the grantee.
Where the document by which title is acquired by a grantee or statement of value fails to set forth that the property was acquired by the grantee from, or for the benefit of, his principal, there is a rebuttable presumption that the property is the property of the grantee in his individual capacity if the grantee claims an exemption from taxation under this clause.
(12) A transfer made pursuant to the statutory merger or consolidation of a corporation or statutory division of a nonprofit corporation, except where the department reasonably determines that the primary intent for such merger, consolidation or division is avoidance of the tax imposed by this article.
(13) A transfer from a corporation or association of real estate held of record in the name of the corporation or association where the grantee owns stock of the corporation or an interest in the association in the same proportion as his interest in or ownership of the real estate being conveyed and where the stock of the corporation or the interest in the association has been held by the grantee for more than two years.
<Section 51(11)(i)(B) of Act 2016, July 13, P.L. 526, No. 84, imd. effective, as amended by 2016, Nov. 21, P.L. 1517, No. 175, § 1, retroactive effective July 13, 2016, provides that the amendment by that Act of 72 P.S. § 8102-C.3(18) shall apply to transfers made after December 31, 2012.>
(iii) A transfer from a conservancy where the real estate is encumbered by a perpetual agricultural conservation easement as defined by the act of June 30, 1981 (P.L. 128, No. 43),2 known as the “Agricultural Area Security Law,” and such conservancy has owned the real estate for at least two years immediately prior to the transfer.
(v) A transfer of a conservation easement or preservation easement under the act of June 22, 2001 (P.L. 390, No. 29),3 known as the “Conservation and Preservation Easements Act.”
(vi) A transfer of a perpetual historic preservation easement, a perpetual public trail easement or other perpetual public recreational use easement, a perpetual scenic preservation easement or a perpetual open-space preservation easement to or from the United States, the Commonwealth, a county, a local government unit or a conservancy.
(25) Beginning on or after December 31, 2015, a transfer of real estate by a housing authority created under the act of May 28, 1937 (P.L. 955, No. 265),4 referred to as the Housing Authorities Law, to a nonprofit organization which is utilizing the real estate for the purpose of Rental Assistance Demonstration administered by the United States Department of Housing and Urban Development under the Consolidated and Further Continuing Appropriations Act, 2012 (Public Law 112-55, 125 Stat. 552).
In order to exercise any exclusion provided in this section, the true, full and complete value of the transfer shall be shown on the statement of value. For leases of coal, oil, natural gas or minerals, the statement of value may be limited to an explanation of the reason such document is not subject to tax under this article.
Credits
1971, March 4, P.L. 6, No. 2, art. XI-C, § 1102-C.3, added 1986, July 2, P.L. 318, No. 77, § 11, imd. effective. Amended 1989, July 1, P.L. 95, No. 21, § 7, imd. effective; 1994, June 16, P.L. 279, No. 48, § 28, effective July 1, 1994; 1997, May 7, P.L. 85, No. 7, § 18, effective July 1, 1997; 2012, July 2, P.L. 751, No. 85, § 10, imd. effective; 2013, July 9, P.L. 270, No. 52, § 25.1, imd. effective; 2016, July 13, P.L. 526, No. 84, § 16.5, imd. effective; 2018, Oct. 24, P.L. 675, No. 100, § 1, effective in 60 days [Dec. 24, 2018]; 2019, June 28, P.L. 50, No. 13, § 10.6, effective July 1, 2019; 2020, July 23, P.L. 654, No. 66, § 1, imd. effective, retroactive to Jan. 1, 2019.
72 P.S. § 8102-C.3, PA ST 72 P.S. § 8102-C.3
Current through the end of the 2023 Regular Session. Some statute sections may be more current, see credits for details.
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