Taxes

What is the Real Estate Transfer Tax?
There is a State Tax and a Municipal Tax each amounting to 1% of the value of the property or interest being conveyed. (This is not necessarily the sales price.)

Who pays the Transfer Tax?
The state and the local governments do not care who pays it as long as it is paid. The Recorder of Deeds office will not accept a deed unless the tax is paid at the time of the recording. On most sales agreements, the seller and the buyer split the tax. However, the new owner is responsible if there is any question over the amount of the tax paid.

Are any transactions exempt?
Some are, for example, conveyances between husband and wife, parent and child, grandparent and grandchild, and brother and sisters and between a stepparent and a stepchild or the spouse of the stepchild. There are some other exemptions allowed in certain situations. It is best to consult your attorney or contact the Pennsylvania Department of Revenue at 717-783-8104 or www.revenue.state.pa.us.

What is a Statement of Value?
This is a specified State form that is used either to set the value of the property being conveyed or to give the reason for exemption. They must be presented in duplicate and are forwarded to the Department of Revenue. You will need the COMMON LEVEL RATIO for Beaver County to properly complete this form.

When is a Statement of Value necessary?
Anytime the transfer tax is not paid or anytime the true value of the land is not shown on the deed (such as in a $1.00 consideration). State investigators then check the property and see if the value is as stated or if the reason given for exemption is valid.

Why is additional Transfer Tax sometimes due?
This happens when the Pennsylvania Department of Revenue investigator determines the property being sold is worth more than stated or if the reason for exemption is not valid per Pennsylvania Law.

How is additional tax paid?
A "Determination" is sent directly to you by the State Department of Revenue. The additional State Tax and Local Taxes, plus interest, is paid to them. They issue a receipt to our office and we disburse the Local Taxes.