PRIOR PRINTER'S NOS. 525, 1447 PRINTER'S NO. 1970
No. 514 Session of 1981
Report of the Committee of Conference
To the Members of the Senate and House of Representatives:
We, the undersigned, Committee of Conference on the part of
the Senate and House of Representatives for the purpose of
considering Senate Bill No. 514, entitled:
"An act amending the act of December 31, 1965 (P.L.1257,
No.511), entitled 'An act empowering cities of the second class,
cities of the second class A, cities of the third class,
boroughs, towns, townships of the first class, townships of the
second class, school districts of the second class, school
districts of the third class and school districts of the fourth
class including independent school districts, to levy, assess,
collect or to provide for the levying, assessment and collection
of certain taxes subject to maximum limitations for general
revenue purposes; * * *, providing an appeal from the ordinance
or resolution levying such taxes to the court of quarter
sessions and to the Supreme Court and Superior Court,' excluding
from the authority to levy realty transfer taxes transfers
between grandparents and grandchildren or the spouse of such
grandchild AND EXCLUDING TRANSFERS TO CONSERVANCIES AND
TRANSFERS FROM INDUSTRIAL DEVELOPMENT AUTHORITIES,"
respectfully submit the following bill as our report:
ROBERT J. KUSSE
ROY W. WILT
J. BARRY STOUT
(Committee on the part of the Senate.)
A. CARVILLE FOSTER, JR.
JAMES C. GREENWOOD
(Committee on the part of the House of Representatives.)
AN ACT
1 Amending the act of December 31, 1965 (P.L.1257, No.511),
2 entitled "An act empowering cities of the second class,
3 cities of the second class A, cities of the third class,
4 boroughs, towns, townships of the first class, townships of
5 the second class, school districts of the second class,
6 school districts of the third class and school districts of
7 the fourth class including independent school districts, to
8 levy, assess, collect or to provide for the levying,
9 assessment and collection of certain taxes subject to maximum
10 limitations for general revenue purposes; authorizing the
11 establishment of bureaus and the appointment and compensation
12 of officers, agencies and employes to assess and collect such
13 taxes; providing for joint collection of certain taxes,
14 prescribing certain definitions and other provisions for
15 taxes levied and assessed upon earned income, providing for
16 annual audits and for collection of delinquent taxes, and
17 permitting and requiring penalties to be imposed and
18 enforced, including penalties for disclosure of confidential
19 information, providing an appeal from the ordinance or
20 resolution levying such taxes to the court of quarter
21 sessions and to the Supreme Court and Superior Court,"
22 excluding from the authority to levy realty transfer taxes
23 transfers between grandparents and grandchildren or the
24 spouse of such grandchild and excluding transfers to
25 conservancies and transfers from industrial development
26 authorities.
27 The General Assembly of the Commonwealth of Pennsylvania
28 hereby enacts as follows:
29 Section 1. Clause (1) of section 2, act of December 31, 1965
30 (P.L.1257, No.511), known as "The Local Tax Enabling Act,"
31 amended October 25, 1979 (P.L.233, No.74), is amended to read:
32 Section 2. Delegation of Taxing Powers and Restrictions
33 Thereon.--The duly constituted authorities of the following
34 political subdivisions, cities of the second class, cities of
35 the second class A, cities of the third class, boroughs, towns,
36 townships of the first class, townships of the second class,
37 school districts of the second class, school districts of the
38 third class, and school districts of the fourth class, in all
39 cases including independent school districts, may, in their
40 discretion, by ordinance or resolution, for general revenue
41 purposes, levy, assess and collect or provide for the levying,
1 assessment and collection of such taxes as they shall determine
2 on persons, transactions, occupations, privileges, subjects and
3 personal property within the limits of such political
4 subdivisions, and upon the transfer of real property, or of any
5 interest in real property, situate within the political
6 subdivision levying and assessing the tax, regardless of where
7 the instruments making the transfers are made, executed or
8 delivered or where the actual settlements on such transfer take
9 place. The taxing authority may provide that the transferee
10 shall remain liable for any unpaid realty transfer taxes imposed
11 by virtue of this act. Each local taxing authority may, by
12 ordinance or resolution, exempt any person whose total income
13 from all sources is less than three thousand two hundred dollars
14 ($3,200) per annum from the per capita or similar head tax,
15 occupation tax and occupational privilege tax, or earned income
16 tax, or any portion thereof, and may adopt regulations for the
17 processing of claims for exemptions. Such local authorities
18 shall not have authority by virtue of this act:
19 (1) To levy, assess and collect or provide for the levying,
20 assessment and collection of any tax on the transfer of real
21 property when the transfer is by will or mortgage or the
22 intestate laws of this Commonwealth or on a transfer by the
23 owner of previously occupied residential premises to a builder
24 of new residential premises when such previously occupied
25 residential premises is taken in trade by such builder as part
26 of the consideration from the purchaser of a new previously
27 unoccupied single family residential premises or on a transfer
28 between corporations operating housing projects pursuant to the
29 housing and redevelopment assistance law and the shareholders
30 thereof, or on a transfer between nonprofit industrial
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1 development agencies and industrial corporations purchasing from
2 them, or on transfer to or from nonprofit industrial development
3 agencies, or on a transfer between husband and wife, or on a
4 transfer between persons who were previously husband and wife
5 but who have since been divorced; provided such transfer is made
6 within three months of the date of the granting of the final
7 decree in divorce and the property or interest therein, subject
8 to such transfer, was acquired by the husband and wife, or
9 husband or wife, prior to the granting of the final decree in
10 divorce, or on a transfer between parent and child or the spouse
11 of such a child, or between parent and trustee for the benefit
12 of a child or the spouse of such child, or on a transfer between
13 a grandparent and grandchild or the spouse of such grandchild,
14 or on a transfer to a conservancy which possesses a tax-exempt
15 status pursuant to section 501(c)(3) of the Internal Revenue
16 Code, and which has as its primary purpose the preservation of
17 land for historic, recreational, scenic, agricultural or open
18 space opportunities, by and between a principal and straw party
19 for the purpose of placing a mortgage or ground rent upon the
20 premises, or on a correctional deed without consideration, or on
21 a transfer to the United States, the Commonwealth of
22 Pennsylvania, or to any of their instrumentalities, agencies or
23 political subdivisions, by gift, dedication or deed in lieu of
24 condemnation, or deed of confirmation in connection with
25 condemnation proceedings, or reconveyance by the condemning body
26 of the property condemned to the owner of record at the time of
27 condemnation which reconveyance may include property line
28 adjustments provided said reconveyance is made within one year
29 from the date of condemnation, leases, or on a conveyance to a
30 trustee under a recorded trust agreement for the express purpose
19810S0514B1970 - 3 -
1 of holding title in trust as security for a debt contracted at
2 the time of the conveyance under which the trustee is not the
3 lender and requiring the trustee to make reconveyance to the
4 grantor-borrower upon the repayment of the debt, or in any
5 sheriff sale instituted by a mortgagee in which the purchaser of
6 said sheriff sale is the mortgagee who instituted said sale, or
7 on a privilege, transaction, subject, occupation or personal
8 property which is now or does hereafter become subject to a
9 State tax or license fee;
10 * * *
11 Section 2. This act shall take effect immediately and shall
12 be applicable to taxes levied for tax years commencing on or
13 after January 1, 1982.
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