REALTY TRANSFER TAX

Philadelphia Code tit. 19, ch. 19-1400

in effect

Philadelphia Code § 19-1401 Legislative Findings.

§ 19-1401. Legislative Findings. The Council of the City of Philadelphia finds that: (1) There are business, economic and tax reasons for entities holding real estate to do business as corporations or associations. (2) Under Federal, State and City laws, corporations and associations are entities separate from their members, partners, stockholders or shareholders. (3) Entities holding real estate can effectively transfer equitable ownership in real estate by means other than by deed. (4) Entities can effectively transfer equitable ownership in real estate by selling corporate stock, selling partnership interests, leasing real estate for a period of time, merging with another entity, or liquidating the entity. (5) It is the intent of City Council to tax the transfer of the ownership of real estate situate in Philadelphia whether such transfer occurs in fact or equitably being the transfer of stock or shares of an acquired real estate company.

Philadelphia Code § 19-1402 Definitions.

§ 19-1402. Definitions. (1) Association. A partnership, limited 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. (2) Certificate of transfer. An instrument representing the transfer of equitable ownership in real estate situate in Philadelphia. (3) City. The City of Philadelphia. (4) 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, foreign country or dependency. (5) Department. The Department of Revenue of the City of Philadelphia. (6) Document. 265 Any deed, instrument or writing which conveys, transfers, demises, vests, confirms or evidences any transfer or demise of title to real estate situate in Philadelphia presented for recording, 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 unless the land contract is deemed a capital lease pursuant to subsection 19-1402(12)(b)(.1), or instruments which solely grant, vest or confirm a public utility easement. "Document" shall also include a Certificate of Transfer required to be presented for recording under this Chapter. (7) Family farm corporation. A corporation of which at least seventy-five percent (75%) of its assets are devoted to the business of agriculture and at least seventy-five percent (75%) of each class of stock of the corporation is continuously owned by members of the same family. The business of agriculture shall not be deemed to include: (a) Recreational activities such as, but not limited to, hunting, fishing, camping, skiing, show competition or racing; (b) 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; (c) Fur farming; (d) Stockyard and slaughterhouse operations; or (e) Manufacturing or processing operations of any kind. (7.1) Financially interdependent persons. Persons who live together as a single household and who, for at least six months, have agreed to share the common necessities of life and to be responsible for each other's common welfare. 266 (8) 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 descendants of any of the foregoing, a spouse of any of the foregoing, and the estate of any of the foregoing. Individuals related by the halfblood or legal adoption shall be treated as if they were related by the wholeblood. (9) Person. Every natural person, association, or corporation. Whenever used in any clause prescribing and imposing a fine or imprisonment, or both, the term "person" as applied to associations, shall include the responsible members or general partners thereof, and as applied to corporations, the officers thereof. (10) Real estate. (a) All lands, tenements or hereditaments within this City, including without limitation, buildings, structures, fixtures, mines, minerals, oil, gas, quarries, spaces with or without upper or lower boundaries, trees, and other improvements, immovables or interests which by custom, usage or law pass with a conveyance or land, but excluding permanently attached machinery and equipment in an industrial plant. (b) A condominium unit. (c) A tenant-stockholder's interest in a cooperative housing corporation, trust or association under a proprietary lease or occupancy agreement, except interest excluded under Section 19-1405. (11) Real estate company. 267 (a) A corporation or association which is primarily engaged in the business of holding, selling or leasing real estate, ninety percent (90%) or more of the ownership interest in which is held by thirty-five or fewer persons and which: (.1) derives sixty percent (60%) or more of its annual gross receipts from the ownership or disposition of real estate or title to real estate; or 268 (.2) holds real estate or title to real estate, the value of which comprises fifty percent (50%) or more of the value of its entire tangible asset holdings exclusive of tangible assets which are freely transferable and actively traded on an established market; or 269 (b) A corporation or association which holds, directly or indirectly, as ninety percent (90%) or more of the value of its assets, an interest in a real estate company. (c) For purposes of this definition only, real estate shall not be limited to interests located within this City. (12) Title to real estate. 270 (a) Any interest in real estate which endures for a period of time, the termination of which is not fixed or ascertained by a specific number of years, including without limitation, an estate in fee simple, life estate, or perpetual leasehold; or (b) Any interest in real estate enduring for a fixed period of years but which, either by reason of the length of the term of the grant of a right to extend the term by renewal or otherwise, consists of a group of rights approximating those of an estate in fee simple, life estate or perpetual leasehold, including without limitation a leasehold interest or possessory interest under a lease or occupancy agreement for a term of thirty (30) years or more or a leasehold interest or possessory interest in real estate in which the lessee has equity. (.1) Extension of Lease – In determining the term of a lease, it shall be presumed that a right or option to renew or extend a lease will be exercised if the rental charge to the lessee is fixed or if a method for calculating the rental charge is established. (13) Transaction. The making, executing, delivering, accepting, or presenting for recording of a document. (14) Value. 271 (a) In the case of any bona fide sale of real estate at arm's length for actual monetary worth, the amount of the actual consideration therefor, paid or to be paid; Provided, that where such documents to be recorded shall set forth a nominal consideration, the "value" thereof shall be determined from the price set forth in or actual consideration for the contract of sale; 272 (b) In the case of a gift of real estate where the transfer is not arms length, sale by execution upon a judgment or upon the foreclosure of a mortgage by a judicial officer, or upon a deed in lieu of foreclosure, transactions without consideration or for consideration less than the actual monetary worth of the real estate, a lease subject to tax pursuant to subsection 19-1402(12)(b), an occupancy agreement, a leasehold or possessory interest, any exchange of properties, a transfer by merger, consolidation, or acquisition, a transfer effectuated pursuant to a plan of liquidation and dissolution, or the real estate of an acquired real estate company that is a family farm corporation, the actual monetary worth of the real estate as determined by adjusting the assessed value of the real estate, as determined by the Board of Revision of Taxes for City real estate tax purposes, for the common level ratio factor for the City as established by the State Tax Equalization Board: Provided, that the value of real estate shall never be less than the readily ascertainable market value of any property (including cash) for which the real estate is exchanged; and provided, further, that this subsection (b) shall not apply to any exchange of real estate exclusively for property (including cash) with a readily ascertainable fair market value; 273 (c) In the case of an easement or other interest in real estate the value of which is not determinable under subsection (a) or (b), the actual monetary worth of such interest; or (d) The actual consideration for or actual monetary worth of any executory agreement for the construction of buildings, structures or other permanent improvements to real estate between the grantor and other persons existing before the transfer and not removed thereby or between the grantor, the agent or principal of the grantor or a related corporation, association or partnership and the grantee existing before or effective with the transfer. (e) In the case of the real estate of an acquired real estate company other than a family farm corporation, the monetary value of the real estate directly or indirectly held by the company. Where the change in ownership is part of a bona fide arm's length sale, there shall be a rebuttable presumption that the monetary value is the actual consideration paid for the company, provided that the taxpayer may rebut that presumption by alternative proof of the actual value of the included real estate. 274 (f) As used in this subsection (14) ("Value"), the term "actual consideration" shall include any liens or other encumbrances on the real estate existing before the transfer and not removed thereby, whether or not the underlying indebtedness is assumed, and ground rents, or a commensurate part thereof where such liens or other encumbrances and ground rents also encumber or are charged against other real estate. 275 Notes 265 | Amended, 1988 Ordinances, p. 333. 266 | Added, Bill No. 070541 (approved November 15, 2007). 267 | Amended, 1988 Ordinances, p. 333; amended, Bill No. 960397 (approved July 5, 1996), 1996 Ordinances, p. 612; amended, Bill No. 980303 (approved December 9, 1999). Section 2 of Bill No. 980303 states: "This Ordinance shall be effective for all transactions taking place on or after July 1, 2000." 268 | Amended, Bill No. 160810 (approved December 20, 2016), effective July 1, 2017. 269 | Amended, Bill No. 160810 (approved December 20, 2016), effective July 1, 2017. 270 | Amended, 1988 Ordinances, p. 333; amended, 1993 Ordinances, p. 920. 271 | Amended, 1988 Ordinances, p. 333. 272 | Amended, Bill No. 190135 (approved May 15, 2019). 273 | Amended, Bill No. 040019 (approved June 10, 2004). Section 2 of Bill No. 040019 provides: "This Ordinance shall take effect commencing with transfers occurring on or after January 1, 2005." Amended, Bill No. 160810 (approved December 20, 2016), effective July 1, 2017. 274 | Added, Bill No. 160810 (approved December 20, 2016), effective July 1, 2017. 275 | Added, Bill No. 190135 (approved May 15, 2019).

Philadelphia Code § 19-1403 Imposition of Tax and Demolition Fund Fee.

§ 19-1403. Imposition of Tax and Demolition Fund Fee. (1) Every person who transfers ownership of real estate situate within the City or who makes, executes, delivers, accepts or presents for recording any document or in whose behalf any document is made, executed, delivered, accepted or presented for recording, or who accepts ownership of real estate situate within the City, shall be subject to pay for and in respect to the transaction or any part thereof, or for or in respect of the vellum parchment or paper upon which such document is written or printed, a tax based on the value of the real estate represented by such document, which tax shall be payable at the earlier of the time the document is presented for recording or within thirty (30) days of acceptance of such document or within thirty (30) days of becoming an acquired real estate company or family farm corporation. For documents made, executed, delivered or accepted or presented for recording during each of the following fiscal years, the amount of tax shall be computed by multiplying the value of the real estate represented by such document by the following rates of tax: 277 (a) four and seven hundredths percent (4.07%) for the fiscal year of the City commencing July 1, 1988 and ending June 30, 1989; Provided that, in the event that a court of competent jurisdiction enters a final order from which all appeals have been exhausted, determining that City Council lacked the authority to impose this rate effective July 1, 1988, the rate shall revert to two and one-half percent (2.5%) for the fiscal year commencing July 1, 1988 and ending June 30, 1989; (b) four and seven hundredths percent (4.07%) for the fiscal year of the City commencing July 1, 1989 and ending June 30, 1990; (c) three and ninety-two hundredths percent (3.92%) for the fiscal year of the City commencing July 1, 1990 and ending June 30, 1991; (d) three and sixty-nine hundredths percent (3.69%) for the fiscal year of the City commencing July 1, 1991 and ending June 30, 1992; (e) three and forty-six hundredths percent (3.46%) for the fiscal year of the City commencing July 1, 1992 and ending June 30, 1993; (f) three and twenty-three hundredths percent (3.23%) for the fiscal year of the City commencing July 1, 1993 and ending June 30, 1994; (g) three percent (3%) for the fiscal years of the City commencing July 1, 1994 and ending June 30, 2016, and for the period commencing July 1, 2016 and ending December 31, 2016; (h) three and one tenth percent (3.1%) for the period commencing January 1, 2017 and ending June 30, 2018; and (i) three and two hundred seventy-eight thousandths percent (3.278%) for the period commencing July 1, 2018, and ending June 30, 2025; and 277.1 (j) three and five hundred seventy-eight thousandths percent (3.578%) for the period commencing July 1, 2025 and thereafter. 277.2 (2) Philadelphia County Demolition Fund Fee. 278 (a) Definitions. As used in this section, the words and phrases shall mean the following unless the context clearly indicates otherwise: (.1) Blighted property. A property which meets at least three of the criteria listed under Section 5(d)(5) of the Act of November 26, 2008, P.L. 1672, No. 135, known as the Abandoned and Blighted Property Conservatorship Act, as determined by the Department of Licenses and Inspections. (.2) Philadelphia County Demolition Fund. A City fund used exclusively for the demolition of blighted properties for the purpose of increasing economic development situated in the City and County of Philadelphia, created in accordance with and maintained pursuant to Section 2.2 of the Act of April 8, 1982, P.L. 310, No. 87, as amended, known as the Recorder of Deeds Fee Law. (b) In addition to the tax collected under subsection (1) of this section, every person who transfers ownership of real estate situate within the City or who makes, executes, delivers, accepts or presents for recording any deed or mortgage or in whose behalf any deed or mortgage is made, executed, delivered, accepted or presented for recording, or who accepts ownership of real estate situate within the City, shall be subject to pay a Philadelphia County Demolition Fund fee of fifteen dollars ($15), which fee shall be payable at the earlier of the time the document is presented for recording or within thirty (30) days of acceptance of such document or within thirty (30) days of becoming an acquired real estate company or family farm corporation. (c) The fees collected under subsection (2)(b) shall be deposited into a separately maintained City fund known as the Philadelphia County Demolition Fund and shall be used exclusively for the demolition of blighted properties for the purpose of increasing economic development. (d) Within ninety (90) days of start of collection of fees pursuant to this subsection, the Mayor shall cause an initial report to be filed with the Pennsylvania Department of Community and Economic Development. The initial report shall include an explanation of the Mayor's plan for how the fees collected pursuant to this section will be spent, the number of properties likely to be demolished, and any other relevant information. (e) Within twelve (12) months of start of collection of fees pursuant to this subsection, and annually thereafter, the Mayor shall cause an annual report to be filed with the Pennsylvania Department of Community and Economic Development. The annual report shall include the number of properties demolished, the cost of demolition per property, and any other relevant information. (f) The fees imposed under subsection (2)(b) of this section are authorized pursuant to Section 2.2 of the Act of April 8, 1982, P.L. 310, No. 87, as amended, 42 P.S. § 21052.2, known as the Recorder of Deeds Fee Law, and shall only be collectable pursuant to the grant of authority under such portion of that Act, which by its current terms is scheduled to expire January 3, 2027, or pursuant to any successor acts. (g) No fees shall be collected under subsection (2)(b) unless and until the Finance Director has certified to the Recorder of Deeds and the Chief Clerk of Council that the Philadelphia County Demolition Fund has been established by the City and, in no event, no earlier than sixty (60) days from the date of adoption of the ordinance adding this subsection 19-1403(2) to the Code. (3) The payment of the tax and fee imposed herein shall be evidenced by the affixing of an official stamp or writing by the recorder whereon the date of the payment of the tax and fee, amount of the tax and fee and the signature of the collecting agent shall be set forth. 279 Notes 276 | Amended, 1988 Ordinances, p. 695 (Bill No. 164). Section 2 of Bill No. 164 states: "This Ordinance shall be effective July 1, 1988 and shall apply to any document made, executed, delivered or accepted or presented for recording on or after July 1, 1988." Amended, 1989 Ordinances, p. 773 (Bill No. 440). Section 2 of Bill No. 440 includes certain effective date provisions in the event of litigation. See City of Philadelphia v. Weiner, 121 Pa. Commw. 139, 550 A.2d 274 (1989), appeal denied; Haas v. Philadelphia Dept. of Revenue, No. 7152 October Term 1989 (Philadelphia Court of Common Pleas). Caption amended, Bill No. 220288 (approved June 27, 2022). 277 | Amended, Bill No. 160471 (approved June 20, 2016). Section 2 of Bill No. 160471 states: "This Ordinance shall be effective for all transactions taking place on or after July 1, 2016." Amended, Bill No. 180167 (approved June 20, 2018). 277.1 | Amended, Bill No. 250211 (approved June 13, 2025). Section 2 of Bill No. 250211 states: "This Ordinance shall be effective for all transactions taking place on or after July 1, 2025." 277.2 | Amended, Bill No. 250211 (approved June 13, 2025). Section 2 of Bill No. 250211 states: "This Ordinance shall be effective for all transactions taking place on or after July 1, 2025." 278 | Added, Bill No. 220288 (approved June 27, 2022). 279 | Renumbered and amended, Bill No. 220288 (approved June 27, 2022).

Philadelphia Code § 19-1404 Exempt Parties.

§ 19-1404. Exempt Parties. The United States, the Commonwealth, or any of their instrumentalities, agencies or political subdivisions and the Philadelphia Land Bank shall be exempt from payment of the tax imposed by this article. The exemption of such governmental bodies shall not, however, relieve any other party to a transaction from liability for the tax. Notes 280 | Amended, Bill No. 170205 (approved May 17, 2017).

Philadelphia Code § 19-1405 Excluded Transactions.

§ 19-1405. Excluded Transactions. The tax imposed by Section 19-1403 shall not be imposed upon: (1) A transfer to the Commonwealth, or to any of its instrumentalities, agencies or political subdivisions, or to the Philadelphia Land Bank, by gift, dedication or deed in lieu of condemnation or deed of confirmation in connection with condemnation proceedings, or a reconveyance by the condemning body of the property condemned to the owner of record at the time of condemnation which reconveyance may include property line adjustments provided said reconveyance is made within one year from the date of condemnation. 281 (2) A document which the City is prohibited from taxing under the Constitution or statutes of the United States. (3) A conveyance to a municipality, township, school district, land bank or county pursuant to acquisition by such entity of a tax delinquent property at sheriff sale or tax claim bureau sale. 282 (4) A transfer for no or nominal actual consideration which corrects or confirms a transfer previously recorded, but which does not extend or limit existing record legal title or interest. (5) A transfer of division in kind for no or nominal actual consideration of property passed by testate or intestate succession and held by cotenants; however, if any of the parties take shares greater in value than their undivided interest, tax is due on the excess. (6) A transfer between spouses, between persons who were previously spouses who have since been divorced, provided the property or interest therein subject to such transfer was acquired by the spouses or one spouse prior to the granting of the final decree in divorce, between parent and child or the spouse of such child, between stepparent and stepchild or the spouse of a stepchild, between brother or sister or spouse of a brother or sister, between a grandparent and grandchild or the spouse of such grandchild and between any life partners, except that a subsequent transfer by the grantee within one year shall be subject to tax as if the grantor were making such transfer. The parties to any such a transfer shall jointly sign the Philadelphia Real Estate Transfer Tax Certification Affidavit as issued by the Revenue Department. For purposes of this subsection (6), the term "life partner" shall mean a member of a Life Partnership that is verified pursuant to Section 9-1123. 283 (7) A transfer for no or nominal actual consideration of property passing by testate or intestate succession from a personal representative of a decedent to the decedent’s devisee or heir. For purposes of this subsection, where the property passing by testate or intestate succession was the primary residence of the decedent, a lien or other encumbrances on the property existing before the transfer and not removed thereby shall not be treated as actual consideration. 283.1 (8) A transfer for no or nominal actual consideration to a trustee of an ordinary trust where the transfer of the same property would be exempt if the transfer was made directly from the grantor to all of the possible beneficiaries, whether or not such beneficiaries are contingent or specifically named. No such exemption shall be granted unless the recorder of deeds is presented with a copy of the trust instrument that clearly identifies the grantor and all possible beneficiaries. (9) A transfer for no or nominal actual consideration from a trustee to a beneficiary of an ordinary trust. (10) A transfer for no or nominal actual consideration from trustee to successor trustee. (11) A transfer: (a) for no or nominal actual consideration between principal and agent or straw party; or (b) from or to an agent or straw party where, if the agent or straw party were his principal, no tax would be imposed under this article. Where the document by which title is acquired by a grantee or statement of value fails to set forth that the property was acquired by the grantee from, or for the benefit of, his principal, there is a rebuttable presumption that the property is the property of the grantee in his individual capacity if the grantee claims an exemption from taxation under this clause. (12) A transfer: (a) from a nonprofit industrial development agency or authority to a grantee of property conveyed by the grantee to that agency or authority as security for a debt of the grantee; or (b) to a nonprofit industrial development agency or authority; or (c) any transfer from a nonprofit industrial development agency or authority of a property conveyed to the agency or authority prior to July 1, 1987. (13) A transfer from a nonprofit industrial development agency or authority to a grantee purchasing directly from it, but only if: (a) the grantee shall directly use such real estate for the primary purpose of manufacturing, fabricating, compounding, processing, publishing, research and development, transportation, energy conversion, energy production, pollution control, warehousing or agriculture; and (b) the agency or authority has the full ownership interest in the real estate transferred. (14) A transfer between two natural persons by a mortgagor to the original grantor holding the purchase money mortgage whether such a transfer is pursuant to a deed in lieu of a foreclosure or a transfer pursuant to a judicial sale. 284 (15) Any transfer between religious organizations or other bodies or persons holding title for a religious organization if such real estate is not being or has not been used by such transferor for commercial purposes. (16) A transfer to a conservancy which possesses a tax exempt status pursuant to Section 501(c)(3) of the Internal Revenue Code of 1986, and which has as its primary purpose preservation of land for historic, recreational, scenic, agricultural or open space opportunities. (17) A transfer of real estate devoted to the business of agriculture to a family farm corporation by a member of the same family which directly owns at least seventy-five percent (75%) of each class of the stock thereof. (18) A transfer between members of the same family of an ownership interest in a real estate company or family farm corporation. (19) A transaction wherein the tax due is one dollar ($1.00) or less. (20) Leases for the production or extraction of coal, oil, natural gas or minerals and assignments thereof. (21) A transfer of a tenant-stockholder, cooperative unit owner or membership interest in stock, a proprietary lease or an occupancy agreement in: (a) a cooperative housing corporation, trust or association organized for the transfer of interest in property on a not for profit basis; or (b) a corporation organized for the transfer of interest in property on a not for profit basis in accordance with the guidelines set forth in Section 213 of Title II of the National Housing Act as amended from time to time. In order to exercise any exclusion provided in this Section, the true, full and complete value of the transfer shall be shown on the affidavit attached to the document to be filed of record or on the Certificate of Transfer where applicable. For leases of coal, oil, natural gas or minerals, the statement of value may be limited to an explanation of the reason such document is not subject to tax under this Chapter. (22) A transfer for no or nominal actual consideration of property conveyed pursuant to the provisions of Chapter 16-400 or Chapter 16-700 of The Philadelphia Code. 285 (23) A transfer pursuant to the Urban Redevelopment Law of 1945 for no or nominal actual consideration or for a consideration which is substantially less than value, as defined herein. 286 (24) A transfer to or from non-profit housing corporations incorporated by officials of the City for the purpose of promoting the development of low cost housing in the City of Philadelphia, however, if the transfer is from such a corporation to a for profit grantee or to a person who does not qualify as a low to moderate income person as defined by the Housing and Community Development Act of 1987, as amended, then the transfer is subject to tax. 287 (25) A transfer to or from an organization which possesses a tax exempt status pursuant to Section 501(c)(3) of the Internal Revenue Code of 1986, and which has as its primary purpose to act as a clearing house for surplus foods and food commodities and for the distribution of such surplus foods and food commodities to non-profit agencies or groups which use food either in feeding programs or in emergency food distribution for the poor and needy. 288 (26) A transfer to a non-profit housing organization, if the non-profit housing organization intends to renovate the real estate and to further transfer the renovated real estate within three (3) years of the transfer, to an eligible transferee; or a transfer from a non-profit housing organization to an eligible transferee if the non-profit housing organization has renovated the real estate. 289 (a) For purposes of this subsection, the following definitions shall apply: (.1) Non-profit Housing Organization. A not-for-profit organization which has as its primary purpose the promotion of development of low cost housing, and which possesses a tax exempt status pursuant to Section 501(c)(3) or (c)(4) of the Internal Revenue Code. (.2) Eligible Transferee. A person or persons of low income or moderate income, as defined by 42 U.S.C. § 5302(a)(20); or a tenant participating in the Philadelphia Housing Authority's Homeownership Program. (.3) Renovate. To make an uninhabitable or substantially uninhabitable property habitable. (b) In order to exercise any exclusion provided in this subsection, a sworn affidavit certifying the following information must be filed with the Department of Records: (.1) The organization's status as a non-profit housing organization. (.2) If the transfer is to a non-profit housing organization, the organization's intent to renovate the real estate and to further transfer the renovated real estate to an eligible transferee within three (3) years of transfer. (.3) If the transfer is from a non-profit housing organization, the fact that the transferee is an eligible transferee, and that the organization has renovated the real estate. (c) In the event an exclusion is claimed for a transfer to a non-profit housing organization and, three (3) years after the transfer, the property has not been renovated and further transferred to an eligible transferee, the exclusion shall be void, and transfer tax shall be due on the transfer, with interest at the rate set forth in subsection 19-509(2)(a) of this Title, dating from the date of transfer or the date of recordation, as applicable, to the date of payment. No penalty shall be owing unless the affidavit filed with the Department of Records was untrue at the time of filing. (d) Any eligible transferee shall fund an escrow account for purposes of payment of real estate taxes owing on the transferred property. The eligible transferee shall deposit to the account each month an amount equal to one-twelfth the annual real estate taxes owing on the property. An escrow account established by the eligible transferee's mortgage for purposes of payment of real estate taxes shall satisfy the requirement of this subsection. (27) A sub-sublease by the Fairmount Park Historic Preservation Trust, Inc. ("Trust") of a property that has been leased by the City to the Philadelphia Authority for Industrial Development ("PAID") under a Master Lease Agreement and subleased by PAID to the Trust under a Master Sublease Agreement, all as authorized by and subject to the provisions of Bill No. 505 (approved June 8, 1993). 290 (28) A transfer between financially interdependent persons, except that a subsequent transfer by the grantee within one year shall be subject to tax as if the grantor were making such transfer, and provided such persons first file a sworn affidavit with the Revenue Department certifying their status as financially interdependent persons. The Revenue Department shall by regulation specify any additional evidence such persons must submit to establish their eligibility for this exemption except where individuals are registered as Life Partners pursuant to Section 9-1123, in which case such registration shall be deemed adequate evidence of eligibility. 291 (29) A transfer between the Philadelphia Housing Authority (PHA) and a Pennsylvania Limited Partnership (PLP) whose General Partner PHA owns and controls (PLP), including both (a) a transfer from PHA to the PLP and (b) any subsequent transfer from the PLP to PHA; and a transfer from PHA or a PLP controlled by PHA to a wholly owned subsidiary of PHA. 292 Notes 281 | Amended, Bill No. 170205 (approved May 17, 2017). 282 | Amended, Bill No. 170205 (approved May 17, 2017). 283 | Amended, Bill No. 970749 (approved May 19, 1998). Cross-reference updated by Code editor. Amended, Bill No. 170016 (approved May 17, 2017); amended, Bill No. 180392 (approved June 20, 2018). 283.1 | Amended, Bill No. 260021 (approved March 30, 2026). 284 | Amended, 1988 Ordinances, p. 333 ; amended, Bill No. 980303 (approved December 9, 1999). Section 2 of Bill No. 980303 states: "This Ordinance shall be effective for all transactions taking place on or after July 1, 2000." 285 | Added, 1988 Ordinances, p. 333; amended, Bill No. 170205 (approved May 17, 2017). 286 | Added, 1988 Ordinances, p. 333. 287 | Added, 1988 Ordinances, p. 333. 288 | Added, 1991 Ordinances, p. 1447. Section 2 of the Ordinance states: "This Ordinance shall be effective November 1, 1991 and shall apply to any document made, executed, delivered, or accepted or presented for recording on or after November 1, 1991." 289 | Added, Bill No. 834 (approved January 6, 1995), 1995 Ordinances, p. 8; amended, Bill No. 1097 (approved July 24, 1995), 1995 Ordinances, p. 1187; amended, Bill No. 960595 (approved January 22, 1997). Section 2 of Bill No. 960595 provided: "This Ordinance shall be effective for all transactions taking place on or after July 1, 1996." 290 | Added, Bill No. 050016 (approved July 8, 2005). 291 | Added, Bill No. 070541 (approved November 15, 2007). Cross-reference updated by Code editor. 292 | Added, Bill No. 180096 (approved April 18, 2018).

Philadelphia Code § 19-1406 Documents Relating to Associations or Corporations and Members, Partners, Stockholders or Shareholders Thereof.

§ 19-1406. Documents Relating to Associations or Corporations and Members, Partners, Stockholders or Shareholders Thereof. Except as otherwise provided in Section 19-1405 documents which make, confirm or evidence any transfer or demise of title to real estate between associations or corporations and the members, partners, shareholders or stockholders thereof are fully taxable. For the purposes of this article, corporations and associations are entities separate from their members, partners, stockholders or shareholders.

Philadelphia Code § 19-1407 Acquired Real Estate Company.

§ 19-1407. Acquired Real Estate Company. (1) A real estate company is an acquired real estate company upon a change in the ownership interest in the company, however effected, if the change: (a) does not affect the continuity of the company; and (b) of itself or together with prior changes has the effect of transferring, directly or indirectly, seventy- five percent (75%) or more of the total ownership interest in the company within a period of six (6) years. A transfer shall be considered to have occurred within a period of six years of another transfer or transfers, if a legally binding commitment to execute that transfer was made within that period. 294 The tax is measured by the value of the cumulative percentage of change. (2) With respect to real estate acquired after February 16, 1986, a family farm corporation is an acquired real estate company when, because of voluntary or involuntary dissolution, it ceases to be a family farm corporation or when, because of issuance or transfer of stock or because of acquisition or transfer of assets that are devoted to the business of agriculture, it fails to meet the minimum requirements of a family farm corporation under this Chapter. (3) Within thirty (30) days after becoming an acquired real estate company or family farm corporation, the company shall present a Certificate of Transfer with the Department of Records for the affixation of documentary stamps and recording. Such Certificate shall set forth the value of real estate holdings of the acquired real estate company in Philadelphia and the tax is measured from such value. Notes 293 | Amended, Bill No. 980303 (approved December 9, 1999). Section 2 of Bill No. 980303 states: "This Ordinance shall be effective for all transactions taking place on or after July 1, 2000." 294 | Amended, Bill No. 160810 (approved December 20, 2016), effective July 1, 2017.

Philadelphia Code § 19-1408 Credits Against Tax.

§ 19-1408. Credits Against Tax. (1) Where there is a transfer of a residential property by a licensed real estate broker which property was transferred to him within the preceding year as consideration for the purchase of other residential property, a credit for the amount of the tax paid at the time of the transfer to him shall be given to him toward the amount of the tax due upon the transfer. (2) Where there is a transfer by a builder of residential property which was transferred to the builder within the preceding year as consideration for the purchase of new, previously unoccupied residential property, a credit for the amount of the tax paid at the time of the transfer to the builder shall be given to the builder toward the amount of the tax due upon the transfer. (3) Where there is a transfer of real estate which is demised by the grantor, a credit for the amount of tax paid at the time of the demise shall be given the grantor toward the tax due upon the transfer. (4) Where there is a conveyance by deed of real estate which was previously sold under a land contract by the grantor, a credit for the amount of tax paid at the time of the sale shall be given the grantor toward the tax due upon the deed. (5) If the tax due upon the transfer is greater than the credit given under this Section, the difference shall be paid. If the credit allowed is greater than the amount of tax due, no refund or carryover credit shall be allowed.

Philadelphia Code § 19-1409 Statement of Value.

§ 19-1409. Statement of Value. Every document lodged with or presented to the recorder of deeds for recording, shall set forth therein and as a part of such document the true, full and complete value thereof, or shall be accompanied by a statement of value executed by a responsible person connected with the transaction showing such connection and setting forth the true, full and complete value thereof or the reason, if any, why such document is not subject to tax under this Chapter. The provisions of this subsection shall not apply to any excludable real estate transfers which are exempt from taxation based on family relationship. Other documents presented for the affixation of stamps shall be accompanied by a certified copy of the document and statement of value executed by a responsible person connected with the transaction showing such connection and setting forth the true, full and complete value thereof or the reason, if any, why such document is not subject to tax under this Chapter.

Philadelphia Code § 19-1410 Civil Penalties.

§ 19-1410. Civil Penalties. (1) If any part of any underpayment of tax imposed by this Chapter is due to conduct prescribed by subsections 19-1416(1)(b), and (d) - (h), there shall be added to the tax an amount equal to fifty percent (50%) of the underpayment. (2) In the case of failure to record a Certificate of Transfer required under this Chapter on the date prescribed therefor, unless it is shown that such failure is due to reasonable cause, there shall be added to the tax five percent (5%) of the amount of such tax if the failure is for not more than one month, with an additional five percent (5%) for each additional month or fraction thereof during which such failure continues, not exceeding fifty percent (50%) in the aggregate. Notes 295 | The provisions of this Section "shall not take effect until such time as the City is authorized to impose such penalties by the laws of the Commonwealth of Pennsylvania."1987 Ordinances, p. 606.

Philadelphia Code § 19-1411 Enforcement.

§ 19-1411. Enforcement. In addition to the penalties or enforcement proceedings provided for in Chapter 19-500 of this Title, all taxes imposed by this ordinance together with penalties prescribed herein, shall be recoverable as other debts of like character are recovered.

Philadelphia Code § 19-1412 Regulations.

§ 19-1412. Regulations. The Department is charged with enforcement and collection of tax and is empowered to promulgate and enforce reasonable regulations for enforcement and collection of the tax.

Philadelphia Code § 19-1413 Payment of Tax.

§ 19-1413. Payment of Tax. (1) The payment of the tax imposed by this Chapter shall be evidenced by the affixing of a documentary stamp or stamps to every document by the person making, executing, issuing or delivering such document regardless of the situs of the actual making, executing, issuing or delivering of such document. (2) Such stamps shall be affixed in such manner that their removal will require the continued application of steam or water and the person using or affixing such stamps shall cause such stamps to be cancelled in such manner that they may not be used again, either: (a) by writing or stamping or by causing to be written or stamped thereon the initials of his name and the date upon which such stamps are affixed or used; or (b) by complying with such other method of cancellation as the Department may prescribe.

Philadelphia Code § 19-1414 Functions of Department of Revenue.

§ 19-1414. Functions of Department of Revenue. (1) The Department shall prepare and furnish adhesive stamps of such denominations and in such quantities as may be necessary for the payment of the tax imposed, and shall make provisions for the sale of such stamps in such places as it may deem necessary. (2) The Department may designate the Commissioner of Records, or any other persons within or without the City, as its agents for the sale of stamps to be used in paying the tax [herein imposed upon documents and may allow a commission to such] 296 agents of one-half of one percent (0.5%) of the face value of the stamps where such agents are not receiving other compensation from the City. (3) The Department is charged with the enforcement of this Chapter and is authorized and empowered to prescribe, adopt, promulgate, and enforce regulations relating to: (a) the method to be used in affixing or cancelling of stamps in substitution for, or in addition to, the method and means provided in this Chapter; (b) the denominations and sale of stamps; (c) any other matter or thing pertaining to the administration and enforcement of this Chapter. Notes 296 | Enrolled bill (1987 Ordinances, p. 606) omitted the bracketed material, which appeared in repealed subsection 19-1706(2) of prior realty transfer tax Chapter.

Philadelphia Code § 19-1415 Recordation.

§ 19-1415. Recordation. (1) No document shall be recorded in the office of the Commissioner of Records unless a documentary stamp or stamps shall have been affixed thereto as provided in this Chapter. (2) Every document upon which a tax is imposed by this Chapter, when lodged with or presented to the Commissioner of Records, shall set forth therein and as a part of such document the true, full and complete value thereof, or shall be accompanied by an affidavit executed by a responsible person connected with the transaction, showing such connection and setting forth the true, full and complete value thereof.

Philadelphia Code § 19-1416 Prohibited Conduct.

§ 19-1416. Prohibited Conduct. (1) No person shall: (a) make, execute, issue, deliver or accept, or cause to be made, executed, issued, delivered or accepted any document without the full amount of tax thereon being duly paid; or (b) make use of any documentary stamp to denote payment of any tax imposed by this Chapter without cancelling such stamp as provided in subsection 19-1413(2); or 297 (c) fail, neglect, or refuse to comply with, or otherwise violate, the regulations prescribed, adopted, and promulgated by the Department under the provisions of this Chapter; or (d) fraudulently cut, tear, or remove from a document any documentary stamp; or (e) fraudulently affix to any document upon which a tax is imposed by this Chapter any documentary stamp which has been cut, torn, or removed from any other document upon which a tax is imposed by this Chapter or any documentary stamp of insufficient value, or any forged or counterfeited stamp, or any impression of any forged or counterfeited stamp, die, plate or other article; or (f) willfully remove or alter the cancellation marks of any documentary stamp, or restore any such documentary stamp with intent to use or to cause the same to be used after it has already been used, or knowingly buy, sell, offer for sale, or give away any such altered or restored stamp to any person for use, or knowingly use the same; or (g) knowingly have in his possession any altered or restored documentary stamp which has been removed from any document upon which tax is imposed by this Chapter, and the possession of such stamp shall be prima facie evidence of an intent to violate this clause; or (h) knowingly or willfully prepare, keep, sell, offer for sale or have in his possession any forged or counterfeited documentary stamps. Notes 297 | Enrolled bill did not contain "or".

Philadelphia Code § 19-1417 Severability.

§ 19-1417. Severability. Should any section, subsection, sentence, clause or phrase of this ordinance be declared invalid by a court of competent jurisdiction, such decision shall not affect the validity of the ordinance in its entirety or of any part thereof other than that declared to be invalid.

Source: City of Philadelphia, The Philadelphia Code and Home Rule Charter (American Legal Publishing, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/philadelphia/latest/philadelphia_pa/0-0-0-298149Fetched: 10/27/2026