Legislation Quick Search
03/28/2024 09:42 AM
Pennsylvania House of Representatives
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20150&cosponId=17727
Share:
Home / House Co-Sponsorship Memoranda

House Co-Sponsorship Memoranda

Subscribe to PaLegis Notifications
NEW!

Subscribe to receive notifications of new Co-Sponsorship Memos circulated

By Member | By Date | Keyword Search


House of Representatives
Session of 2015 - 2016 Regular Session

MEMORANDUM

Posted: March 11, 2015 02:26 PM
From: Representative Craig T. Staats
To: All House members
Subject: REVISED CO-SPONSORSHIP MEMO -- Exemption of Realty Transfer Tax on Easements
 

PLEASE NOTE: If you were a previous co-sponsor and wish to become a co-sponsor of the revised legislation, you will need to add your name by clicking on the link below. Thank you.

Recently the Pennsylvania Department of Revenue ruled that the grant of a conservation easement by a landowner to a township in Bucks County is subject to realty transfer tax. The conservation easement named the township as the grantee. The broad scope of this decision could have the effect of realty transfer taxes being imposed on many of the conservation easements that, up to now, have not been subject to realty transfer taxes. This decision has a chilling effect on future land preservation efforts.

Current tax law provides for exemptions from payment of realty transfer tax to a conservancy which possesses a tax-exempt status pursuant to Section 501(c)(3) of the Internal Revenue Code and has its primary purpose preservation of land for historic, recreational, scenic, agricultural or open space opportunities. The law also provides an exemption for transfers from such a conservancy to governmental entities. As political subdivisions are not 501 (c)(3) organizations, the Board of Appeals held that transfers of conservation easements to townships are not tax exempt transfers.

Therefore, I am introducing legislation to amend the Tax Reform Code to clearly state that transfers of perpetual agricultural conservation easements, historic preservation easements, and recreational use and scenic preservation easements to or between the United States, the Commonwealth or any of their instrumentalities, agencies or political subdivisions are exempt from payment of the realty transfer tax.

I hope you will join me in becoming a sponsor of this legislation.

Previous co-sponsors: Petri, Millard, Toepel, Harris, Diamond, Godshall, Barrar, Ross, Zimmerman, Murt, Watson, Harper, Everett, Davis, D. Parker, Saylor, Rader, and Farry.



Introduced as HB859