Pennsylvania Statutes Title 72 P.S. Taxation and Fiscal Affairs § 4750.1301. Tax authorization for cities of the first class

(1) From and after the effective date of this chapter, the council of any city of the first class shall have the authority, by ordinance, for general revenue purposes, to levy, assess and collect or provide for the levying, assessment and collection of a tax upon a transfer of real property or an interest in real property within the geographical limits of a city of the first class, regardless of where the instruments making the transfer are made, executed or delivered or where the actual settlements on the transfer take place, to the extent that the transactions are subject to the tax imposed by Article XI-C of the act of March 4, 1971 (P.L. 6, No. 2),  1 known as the Tax Reform Code of 1971.

(2) In addition, such city of the first class may impose a local real estate transfer tax upon additional classes or types of transactions and may establish standards to be used by the city of the first class to determine the monetary value to be applied to a transaction for the purpose of taxation, if the tax was or is imposed by the city of the first class pursuant to the act of August 5, 1932 (Sp.Sess., P.L. 45, No. 45),  2 referred to as the Sterling Act, or pursuant to this act.

(3) If the collector of taxes for any such city of the first class determines that any part of any underpayment of tax imposed pursuant to this authority is due to conduct proscribed by the ordinance imposing a tax on the transfer of real estate or an interest in real property, the city shall have the authority to add to the tax an amount equal to 50% of the underpayment;  and, in the case of failure to record any document in a timely manner as prescribed therefor by ordinance, unless it is shown that such failure is due to reasonable cause, the city shall have the authority by ordinance to require to be added to the tax 5% of the amount of such tax if the failure is for not more than one month, with an additional 5% for each additional month or fraction thereof during which such failure continues, not exceeding 50% in the aggregate.

(4) This subsection shall apply to all taxable transactions occurring on and after November 30, 1988.