The following is a quintessential 5thEstate.com story. It's about a public official who aspires to higher office while thinking that the public won't catch up with past actions. It's a story that can be done with nothing more than an internet connection and a little work using everything available to the public!
Recording ACTION's Deeds
Lancaster County Action President and Vice-President Rip-off Taxpayers!
January 10, 2005
On Saturday, Kirk Radanovic announced that he was running for Lancaster County Recorder of Deeds.
Lancaster County Action President Bob Kettering said of Radanovic "He's a man of high character and integrity." The day before announcing, Radanovic explained to the New Era his reason for running, “At this point, I think it’s time for me to give back to the community and this is something that I can do”.
The first item of business for Radanovic, the Vice-President of Lancaster County Action, might be to pay 15-year-back-taxes to the E-Town Boro, E-Town School and the Commonwealth of Pennsylvania. In an exclusive 5thEstate.com story, we uncover that Radanovic, along with the President of Action - Bob Kettering - almost got away without paying the estimated combined $3,300 in taxes - but they didn't count on 5thEstate.com! The taxes are from a 1989 land-deal scheme to avoid paying Realty transfer taxes. With great irony, the office that Radanovic now aspires to, not only records deeds and mortgages, but also is responsible for collecting the Realty transfer taxes he and Kettering FAILED to pay! The 2% transfer tax breaks down as follows: ˝ to the local municipality, ˝ to the local school district and 1% to the Pennsylvania Department of Revenue.
What Happened?
Kettering built a townhouse on the E-Town Boro property for Radanovic and his wife. But before building, Kettering and his wife transfered the lot for $16,500. At the same time, the Radanovic's got a construction mortgage with a stipulation that the townhouse had to be finished in six months. This clearly indicates that not only did the developer (Kettering) sell the property to build on, but that Radanovic and Kettering were ready to move on constuction plans.
The problem? Kettering and Radanovic paid the Realty transfer tax only on the amount for the land - $16,500 - rather than the estimated taxes for the $70,000 finished house as required by law.
The Pennsylvania Department of Revenue has a brochure that the Recorder of Deeds wanna-be might want to read to catch on what the law says about collection of the Realty tax. This is probably important since the Recorder of Deeds office is responsible for collecting it!
Question: I’ve heard that under certain circumstances, the value of a construction contract may be subject to the 1 percent PA Realty Transfer Tax. What are those circumstances?
Answer:. The value of a construction contract is subject to the 1 percent PA Realty Transfer Tax when both of the following conditions apply: (1) an executory construction contract for building a home is effective prior to or contemporaneously with the transfer of the title to a building lot; and (2) the seller/developer and the builder are affiliated in some way.
With interest, the 1989 estimated $521 amount that is due the E-Town Boro, the E-Town school district and the Pennsylvania Department of Revenue for BOTH Radanovic and Kettering is NOW $1,600! Did Kettering and Radanovic know they were evading taxes? The real estate deal went down in a lawyer's office!
Apparently Kettering did not give everyone the same deal. According to public documents obtained from the courthouse website, Kettering sold the property on either side of the Radanovic house as follows and paid the FULL transfer tax:
248 Conoy Ave. $68,800 - 10/17/89
240 Conoy Ave. $72,500 - 9/1/89
Radanovic told the New Era about his experience: “I’ve been fairly familiar with the Recorder of Deeds office from the perspective of buying and renting properties”
Radanovic is also a Pennsylvania Republican State Committeeman and a Manheim Central School District Board member.