Pennsylvania SB 238: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, repealing provisions relating to realty transfer tax; and making editorial changes.

Bill Text

PRINTER'S NO. 192
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 238
Session of
2025
INTRODUCED BY COLEMAN AND ROTHMAN, FEBRUARY 13, 2025
REFERRED TO FINANCE, FEBRUARY 13, 2025
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," repealing provisions relating to realty transfer
tax; and making editorial changes.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Article XI-C of the act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971, is repealed:
[ARTICLE XI-C
REALTY TRANSFER TAX
Section 1101-C. Definitions.--The following words when used
in this article shall have the meanings ascribed to them in this
section:
"Agricultural production." As defined in section 3 of the
act of June 30, 1981 (P.L.128, No.43), known as the
"Agricultural Area Security Law."
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"Association." A general partnership, limited partnership,
limited liability partnership or any other form of
unincorporated enterprise, owned or conducted by two or more
persons other than a private trust or decedent's estate.
"Conservancy." A corporation or association that possesses a
tax-exempt status pursuant to section 501(c)(3) of the Internal
Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3))
and which has as its primary purpose preservation of land for
historic, recreational, scenic, agricultural or open-space
opportunities.
"Corporation." A corporation, joint-stock association,
business trust or banking institution which is organized under
the laws of this Commonwealth, the United States, or any other
state, territory, or foreign country, or dependency.
"Department." The Department of Revenue of this
Commonwealth.
"Document." Any deed, instrument or writing which conveys,
transfers, demises, vests, confirms or evidences any transfer or
demise of title to real estate in this Commonwealth, but does
not include wills, mortgages, deeds of trust or other
instruments of like character given as security for a debt and
deeds of release thereof to the debtor, land contracts whereby
the legal title does not pass to the grantee until the total
consideration specified in the contract has been paid or any
cancellation thereof unless the consideration is payable over a
period of time exceeding thirty years or instruments which
solely grant, vest or confirm a public utility easement.
"Document" shall also include a declaration of acquisition
required to be presented for recording under section 1102-C.5 of
this article.
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"Family farm business." A corporation or association of
which at least seventy-five per cent of its assets are devoted
to the business of agriculture and at least seventy-five per
cent of each class of stock of the corporation or the interests
in the association is continuously owned by members of the same
family. The business of agriculture shall include the leasing to
members of the same family or the leasing to a corporation or
association owned by members of the same family of property
which is directly and principally used for agricultural
purposes. The business of agriculture shall not be deemed to
include:
(1) recreational activities such as, but not limited to,
hunting, fishing, camping, skiing, show competition or racing;
(2) the raising, breeding or training of game animals or
game birds, fish, cats, dogs or pets or animals intended for use
in sporting or recreational activities;
(3) fur farming;
(4) stockyard and slaughterhouse operations; or
(5) manufacturing or processing operations of any kind.
"Living trust." Any trust, other than a business trust,
intended as a will substitute by the settlor which becomes
effective during the lifetime of the settlor, but from which
trust distributions cannot be made to any beneficiaries other
than the settlor prior to the death of the settlor.
"Members of the same family." Any individual, such
individual's brothers and sisters, the brothers and sisters of
such individual's parents and grandparents, the ancestors and
lineal descendents of any of the foregoing, a spouse of any of
the foregoing and the estate of any of the foregoing.
Individuals related by the half blood or legal adoption shall be
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treated as if they were related by the whole blood.
"Ordinary trust." Any trust, ot