PRINTER'S NO. 458
No. 440 Session of 2003
INTRODUCED BY CONTI, O'PAKE, ORIE, SCHWARTZ, ERICKSON, COSTA,
LEMMOND AND SCARNATI, MARCH 11, 2003
REFERRED TO FINANCE, MARCH 11, 2003
AN ACT
1 Excluding certain real estate transactions involving family
2 partnerships from the State and local realty transfer tax.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. Short title.
6 This act shall be known and may be cited as the Family
7 Partnership Realty Transfer Tax Exclusion Act.
8 Section 2. Definitions.
9 The following words and phrases when used in this act shall
10 have the meanings given to them in this section unless the
11 context clearly indicates otherwise:
12 "Document." A deed, instrument or writing which conveys,
13 transfers, devises, vests, confirms or evidences a transfer or
14 devise of title to real estate. The term does not include a
15 will, mortgage, deed of trust or other instrument of like
16 character given as security for a debt and deed of release
17 thereof to the debtor; a land contract whereby the legal title
1 does not pass to the grantee until the total consideration
2 specified in the contract has been paid or any cancellation
3 thereof, unless the consideration is payable over a period of
4 time exceeding 30 years; or an instrument which solely grants,
5 vests or confirms a public utility easement.
6 "Family partnership." A partnership in which 100% of the
7 interests in the partnership are continuously owned by members
8 of the same family.
9 "Members of the same family." An individual, such
10 individual's brothers and sisters, the brothers and sisters of
11 such individual's parents and grandparents, the ancestors and
12 lineal descendants of any of the foregoing, a spouse of any of
13 the foregoing and the estate of any of the foregoing.
14 Individuals related by the half blood or legal adoption shall be
15 treated as if they were related by the whole blood.
16 "Partnership." As defined in 15 Pa.C.S. § 8311 (relating to
17 partnership defined).
18 "Real estate."
19 (1) Any lands, tenements or hereditaments within this
20 Commonwealth, including, without limitation, buildings,
21 structures, fixtures, mines, minerals, oil, gas, quarries,
22 spaces with or without upper or lower boundaries, trees and
23 other improvements, immovables or interests which by custom,
24 usage or law pass with a conveyance of land, but excluding
25 permanently attached machinery and equipment in an industrial
26 plant.
27 (2) A condominium unit.
28 (3) A tenant-stockholder's interest in a cooperative
29 housing corporation, trust or association under a proprietary
30 lease or occupancy agreement.
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1 Section 3. Realty transfer tax exclusion.
2 (a) General rule.--Notwithstanding any other law to the
3 contrary, the provisions of Articles XI-C and XI-D of the act of
4 March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of
5 1971, shall not apply to any of the following:
6 (1) A transfer from a family partnership of real estate
7 held of record in the name of the family partnership where
8 the grantee owns an interest in the family partnership in the
9 same proportion as the grantee's interest in or ownership of
10 the real estate being conveyed and where the interest in the
11 partnership has been held by the grantee for more than two
12 years.
13 (2) A transfer of real estate to a family partnership by
14 a member of the same family, which family directly owns 100%
15 of the interests in the partnership.
16 (3) A transfer between members of the same family of an
17 ownership interest in a family partnership which owns real
18 estate.
19 (b) Other transfers.--Unless specifically excluded by the
20 provisions of Articles XI-C and XI-D of the Tax Reform Code of
21 1971, all other transfers between and among family partnerships
22 shall be taxable.
23 Section 4. Effective date.
24 This act shall take effect in 60 days.
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