HB 214 — 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.

PRINTER'S NO.    171

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 214
                                               Session of
                                                 2025

     INTRODUCED BY KUTZ, M. BROWN, CIRESI, ROWE AND FLEMING,
        JANUARY 22, 2025

     REFERRED TO COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT,
        JANUARY 22, 2025


                                    AN ACT
 1   Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
 2      act relating to tax reform and State taxation by codifying
 3      and enumerating certain subjects of taxation and imposing
 4      taxes thereon; providing procedures for the payment,
 5      collection, administration and enforcement thereof; providing
 6      for tax credits in certain cases; conferring powers and
 7      imposing duties upon the Department of Revenue, certain
 8      employers, fiduciaries, individuals, persons, corporations
 9      and other entities; prescribing crimes, offenses and
10      penalties," in realty transfer tax, further providing for
11      excluded transactions; and, in local real estate transfer
12      tax, further providing for imposition.
13      The General Assembly of the Commonwealth of Pennsylvania
14   hereby enacts as follows:
15      Section 1.    Section 1102-C.3 of the act of March 4, 1971
16   (P.L.6, No.2), known as the Tax Reform Code of 1971, is amended
17   by adding a clause to read:
18      Section 1102-C.3.    Excluded Transactions.--The tax imposed by
19   section 1102-C shall not be imposed upon:
20      * * *
21      (26)    A transfer of real estate to a first-time home buyer.
22   For a transfer under this clause in which more than one
 1   individual is recorded on the deed of real estate at the time of
 2   transfer, each individual must be a first-time home buyer to
 3   qualify for the exclusion provided by this clause. For the
 4   purposes of this clause, the term "first-time home buyer" shall
 5   mean an individual who:
 6      (i)    resides, or will reside upon transfer under this clause,
 7   in this Commonwealth;
 8      (ii)    is or will be domiciled in a single-family residence
 9   transferred under this clause; and
10      (iii)   has not owned or purchased, directly or through a
11   trust, limited liability company, partnership or other legal
12   entity, either individually or jointly, a single-family
13   residence prior to the transfer, including a manufactured home,
14   trailer, mobile home or unit in a condominium, cooperative or
15   planned community, in this Commonwealth or any other state.
16      Section 2.   Section 1101-D of the act is amended to read:
17      Section 1101-D.   Imposition.--(a)   The duly constituted
18   authorities of the following political subdivisions--cities of
19   the second class, cities of the second class A, cities of the
20   third class, boroughs, incorporated towns, townships of the
21   first class, townships of the second class, school districts of
22   the first class A, school districts of the second class, school
23   districts of the third class and school districts of the fourth
24   class, in all cases including independent school districts--may,
25   in their discretion, by ordinance or resolution, for general
26   revenue purposes, levy, assess and collect or provide for the
27   levying, assessment and collection of a tax upon a transfer of
28   real property or an interest in real property within the limits
29   of the political subdivision, regardless of where the
30   instruments making the transfers are made, executed or delivered

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 1   or where the actual settlements on the transfer take place, to
 2   the extent that the transactions are subject to the tax imposed
 3   by Article XI-C. A tax imposed under this article shall be
 4   subject to rate limitations provided by section 5, section 8 and
 5   section 17 of the act of December 31, 1965 (P.L.1257, No.511),
 6   known as "The Local Tax Enabling Act."
 7      (b)   The exclusion provided under section 1102-C.3(26) shall
 8   not apply to a tax imposed under this article.
 9      Section 3.   The addition of section 1102-C.3(26) of the act
10   shall apply to real estate transfers made on or after the
11   effective date of this section.
12      Section 4.   This act shall take effect in 60 days.




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