Pennsylvania BFR Orders Refund for Realty Transfer Tax Overpayment to Taxpayers

The Pennsylvania Board of Finance and Revenue (BFR) ordered the Department of Revenue to strike its assessment and issue a refund to the taxpayers for overpayment of realty transfer tax. The dispute arose from a property transfer in Allegheny County, where the DOR assessed additional tax based on the computed value of the property rather than the agreed consideration paid by the buyers. The BFR found that the transaction was a bona fide sale between unrelated parties, and under Pennsylvania law, the proper valuation for realty transfer tax purposes is the total agreed consideration paid, which was supported by the ...