HB 176: Realty Transfer Tax

H.B. 176, P.N. 1586 (SCAVELLO) This would amend the Tax Reform Code, Act 2 of 1971, P.L. 6.
A person who underpays a realty transfer tax by 25% or more may be assessed for that tax at any time over a six year period. Any underpayments of this tax due to fraud or intentional disregard of rules and regulations may be assessed the full amount at any time.
The Revenue Department would able to divulge information regarding information regarding the collection of a realty transfer tax to the proper officer of the political subdivision impose this tax.
The ability of a political subdivision to impose a Local Tax Enabling Act local real estate transfer tax upon additional classes or transaction types would be repealed. Rate limitations on the local real estate transfer tax would be eliminated for Pittsburgh. The Philadelphia School District would be able to collect a local realty transfer tax.
A documentary stamp indicating payment of the realty transfer tax would be affixed to realty transfer documents. No document requiring this stamp that does not have this stamp could be used in any legal proceeding.
The Recorder of Deeds would collect local realty transfer taxes. The nonpayment of this tax could result in a lien against the property.
An unpaid realty transfer tax would receive priority over other liens, claims, obligations, or judgments when funds are raised through selling a property owing such tax at a judicial sale.