PRIOR PRINTER'S NO. 1550
PRINTER'S NO. 3136
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1387
Session of
2023
INTRODUCED BY KUTZ, CABELL, FLEMING, HOGAN, IRVIN, MERCURI,
MULLINS, ROWE, ZIMMERMAN AND T. JONES, JUNE 13, 2023
AS REPORTED FROM COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT,
HOUSE OF REPRESENTATIVES, AS AMENDED, MAY 21, 2024
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," in realty transfer tax, further providing for
excluded transactions.; AND, IN LOCAL REAL ESTATE TRANSFER
TAX, FURTHER PROVIDING FOR IMPOSITION.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1102-C.3 of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, is amended
by adding a clause to read:
Section 1102-C.3. Excluded Transactions.--The tax imposed by
section 1102-C shall not be imposed upon:
* * *
(26) A transfer of real estate to a first-time home buyer.
FOR A TRANSFER UNDER THIS CLAUSE IN WHICH MORE THAN ONE
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INDIVIDUAL IS RECORDED ON THE DEED OF REAL ESTATE AT THE TIME OF
TRANSFER, EACH INDIVIDUAL MUST BE A FIRST-TIME HOME BUYER TO
QUALIFY FOR THE EXCLUSION PROVIDED BY THIS CLAUSE. For the
purposes of this clause, the term "first-time home buyer" shall
mean an individual who will reside in this Commonwealth and be
domiciled in a single-family residence transferred under this
clause and has not owned or purchased, directly or through a
trust, limited liability company, partnership or other legal
entity, either individually or jointly, a single-family
residence prior to the transfer, including a manufactured home,
trailer, mobile home or unit in a condominium, cooperative or
planned community . , IN THIS COMMONWEALTH OR ANY OTHER STATE .
SECTION 2. SECTION 1101-D OF THE ACT IS AMENDED TO READ:
SECTION 1101-D. IMPOSITION.--(A) THE DULY CONSTITUTED
AUTHORITIES OF THE FOLLOWING POLITICAL SUBDIVISIONS--CITIES OF
THE SECOND CLASS, CITIES OF THE SECOND CLASS A, CITIES OF THE
THIRD CLASS, BOROUGHS, INCORPORATED TOWNS, TOWNSHIPS OF THE
FIRST CLASS, TOWNSHIPS OF THE SECOND CLASS, SCHOOL DISTRICTS OF
THE FIRST CLASS A, SCHOOL DISTRICTS OF THE SECOND CLASS, SCHOOL
DISTRICTS OF THE THIRD CLASS AND SCHOOL DISTRICTS OF THE FOURTH
CLASS, IN ALL CASES INCLUDING INDEPENDENT SCHOOL DISTRICTS--MAY,
IN THEIR DISCRETION, BY ORDINANCE OR RESOLUTION, FOR GENERAL
REVENUE PURPOSES, LEVY, ASSESS AND COLLECT OR PROVIDE FOR THE
LEVYING, ASSESSMENT AND COLLECTION OF A TAX UPON A TRANSFER OF
REAL PROPERTY OR AN INTEREST IN REAL PROPERTY WITHIN THE LIMITS
OF THE POLITICAL SUBDIVISION, REGARDLESS OF WHERE THE
INSTRUMENTS MAKING THE TRANSFERS ARE MADE, EXECUTED OR DELIVERED
OR WHERE THE ACTUAL SETTLEMENTS ON THE TRANSFER TAKE PLACE, TO
THE EXTENT THAT THE TRANSACTIONS ARE SUBJECT TO THE TAX IMPOSED
BY ARTICLE XI-C. A TAX IMPOSED UNDER THIS ARTICLE SHALL BE
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SUBJECT TO RATE LIMITATIONS PROVIDED BY SECTION 5, SECTION 8 AND
SECTION 17 OF THE ACT OF DECEMBER 31, 1965 (P.L.1257, NO.511),
KNOWN AS "THE LOCAL TAX ENABLING ACT."
(B) THE EXCLUSION PROVIDED UNDER SECTION 1102-C.3(26) SHALL
NOT APPLY TO A TAX IMPOSED UNDER THIS ARTICLE.
Section 2 3. This act shall take effect in 60 days.
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