HB 1387 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in realty transfer tax, further providing for excluded transactions; and, in local real estate transfer tax, further providing for imposition.

PRIOR PRINTER'S NO.

1550 THEPRINTER'S GENERALNO. ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

13873136 2023THE INTRODUCEDGENERAL BYASSEMBLY KUTZ,OF CABELL,PENNSYLVANIA FLEMING,HOUSE HOGAN,BILL IRVIN,Session MERCURI, MULLINS, ROWE AND ZIMMERMAN, JUNE 13, 2023 REFERRED TO COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT, JUNE 13, 2023 AN ACT Amending the act of MarchNo. 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;

providing1387 procedures2023 forINTRODUCED theBY payment,KUTZ, collection,CABELL, administrationFLEMING, andHOGAN, enforcementIRVIN, thereof;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 collection, administration and enforcement thereof;

conferring powers and imposing duties upon the Department of Revenue, certain employers, fiduciaries, individuals, persons, corporations penalties,"and inother realtyentities; transfer tax, further providing for excluded transactions.

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.

ForFOR theA purposesTRANSFER ofUNDER thisTHIS clause,CLAUSE theIN termWHICH "first-timeMORE homeTHAN buyer"ONE shall<-- meanINDIVIDUAL anIS individualRECORDED whoON willTHE resideDEED inOF thisREAL CommonwealthESTATE andAT beTHE domiciledTIME inOF aTRANSFER, single-familyEACH residenceINDIVIDUAL transferredMUST underBE thisA clauseFIRST-TIME andHOME hasBUYER notTO ownedQUALIFY orFOR purchased,THE directlyEXCLUSION orPROVIDED throughBY aTHIS trust,CLAUSE. 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.

SectionFor 2.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 20230HB1387PN3136 - 2 - 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.

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