Title
Amending Chapter 19-1400 of The Philadelphia Code, entitled "Realty Transfer Tax," by closing certain loopholes, including by amending the definition of "value" as it relates to acquired real estate companies, the definitions of "real estate company" and "acquired real estate company," all under certain terms and conditions.
Body
THE COUNCIL OF THE CITY OF PHILADELPHIA HEREBY ORDAINS:
SECTION 1. Chapter 19-1400 of The Philadelphia Code is amended to read as follows:
CHAPTER 19-1400. REALTY TRANSFER TAX.
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§ 19-1402. Definitions.
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(11) Real estate company.
(a) A corporation or association which is primarily engaged in the business of holding, selling or leasing real estate, ninety percent or more of the ownership interest in which is held by thirty-five or fewer persons and which:
(i) derives sixty percent or more of its annual gross receipts from the ownership or disposition of real estate or title to real estate; or
(ii) holds real estate or title to real estate, the value of which comprises fifty percent 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
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(14) Value.
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(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 § 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 pl...
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