AIDS Law Project of Pennsylvania
files Philadelphia’s first financially interdependent persons deed

June 29, 2009—Time was when only husbands and wives could transfer real property to their spouse without incurring taxes.  Domestic partners had no such legal standing.  In 1998, Philadelphia City Council passed a law extending that benefit to same-sex domestic partners, but in 2004, the Pennsylvania Supreme Court struck it down as unconstitutional. 

In another attempt to correct such inequalities, in November 2007 Philadelphia City Council amended the Realty Transfer Tax section of the Philadelphia Code to allow tax-exempt property transfers between financially interdependent persons (FIP).  FIPs are defined as “persons who live together as a single household and who, for at least six months, have agreed to share the common necessities of life and be responsible for each other’s common welfare”.

Passing the FIP ordinance was a step, but no one actually claimed the tax exemption because the Department of Revenue had not finished the regulations necessary to implement it.  Then in November of last year, an AIDS Law Project of Pennsylvania client requested help transferring his property to his partner.

After almost six months of effort—and 19 months since the ordinance was passed—the AIDS Law Project filed Philadelphia’s first FIP tax-exempt deed.  The recorded copy arrived in the AIDS Law Project office last week.

The AIDS Law Project is grateful to the efforts of Rue Landau and the Philadelphia Human Relations Commission in drafting the interim regulations.

While tax-exempt property transfers may not be a high priority given the City’s current financial crisis, the fundamental fairness of offering the same benefit to all committed households should always be in style.

AIDS Law Project of Pennsylvania
1211 Chestnut Street, Suite 600  Philadelphia, PA  19107
  Phone:  (215)587-9377  Fax:  (215) 587-9902
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