[Adopted 6-9-1990 by Ord. No. 13-90]
This article is authorized by § C-4B
of the Town Charter.
A.
DEED
LEASE
(1)
(2)
(3)
TRANSACTION
VALUE
As used in this article, the following terms shall
have the meanings indicated:
Includes any instrument or writing pursuant to which title or possession of any real estate situate within the corporate limits of the Town which shall be quitclaimed, granted, bargained, sold, conveyed or transferred by a seller, vendor, grantor, assignor or transferor to any purchaser, buyer, vendee, assignee or transferee, except as provided in § 118-5 of this article.
Includes any document or instrument in writing transferring
or purporting to transfer a title or possessory interest by a seller,
vendor, lessor, assignor or transferor to any purchaser, buyer, vendee,
lessee, assignee or transferee in or to any of the following:
A condominium unit or any property or properties
subject to the Unit Property Act (25 Del. C. § 2201 et seq.)
for a determinable term of five years or more.
An interest in land owned by another and/or
improvements owned by another located on land owned by another for
a determinable term of five years or more.
The exercise of any right or option to renew
or extend the title possessory interest in an existing document or
instrument in writing when such renewal or extension is for a period
of five years or more.
Includes the making, executing, delivering, accepting or
presenting for recording of a deed or lease, as defined herein.
Includes, in the case of a deed, the amount of the actual
consideration thereof, including liens or other encumbrances thereon,
and ground rents or a commensurate part of the liens or other encumbrances
thereon, where such liens and encumbrances and ground rents also encumber
or are charged against other lands, tenements or hereditaments, provided
that where such documents shall set forth a small or nominal consideration,
"values" shall be determined from the price set forth in or actual
consideration for the contract of sale or lease; or, in the case of
a gift or any other document without consideration, from the actual
consideration for, the contract of sale or lease or from the actual
monetary worth of the property granted, bargained, sold or otherwise
conveyed, which, in either event, shall not be less than the amount
of the assessment of such lands, tenements or hereditaments as shown
on the books of Sussex County.
B.
"Deed" and "lease" shall not include any of the following:
(1)
Any conveyance by will.
(2)
Any mortgage.
(3)
Any lease other than those described or defined herein.
(4)
Any conveyance between persons who were previously
husband and wife but who have since been divorced, provided that such
conveyance is made after the granting of the final decree in divorce.
(5)
Any conveyance between husband and wife.
(6)
Any conveyance between parent and child or a spouse
of such child.
(7)
Any conveyance to a trustee, nominee or straw party
for the grantor as beneficial owner.
(8)
Any conveyance for the beneficial ownership of a person
other than a grantor where, if such person were the grantee, no tax
would be imposed upon the conveyance pursuant to this article.
(9)
Any conveyance from a trustee, nominee or straw party
to the beneficial owner.
(10)
Any conveyance between a parent corporation and a
wholly owned subsidiary corporation, provided that such conveyance
is without actual consideration.
(11)
Correctional deed without actual consideration.
(12)
Any conveyance to or from the United States, the State
of Delaware or any instrumentality, agency or political subdivision
of the state.
(13)
Any conveyance to or from a corporation or a partnership
where the grantor or grantee owns stock of the corporation or an interest
in the partnership in the same proportion as his interest in or ownership
of the real estate or interest therein being conveyed.
(14)
Any conveyance by the owner of a previously occupied
residential premises to a builder of new residential premises when
such previously occupied residential premises were taken in trade
by such builder as a part of the consideration from the purchaser
of new, previously unoccupied premises.
(15)
Any conveyance to the lender holding a bona fide mortgage
which is genuinely in default, either by a Sheriff conducting a foreclosure
sale or by the mortgagor in lieu of foreclosure.
(16)
Any conveyance to a religious organization or other
body or person holding title to real estate for a religious organization,
if such real estate will not be used following such transfer by the
grantee or by any privy of the grantee for any commercial purpose.
(17)
Any conveyance made by or to an individual, a corporation
or partnership when there is no change in beneficial interest.
(18)
Any conveyance made by or to any organization exempt
from ad valorem real estate taxes.
A.
Every person who makes, executes, delivers, accepts or presents for recording any deed or lease, except as excluded by § 118-4 hereof, or in whose behalf any deed or lease is made, executed, delivered, accepted or presented for recording shall be subject to pay for and in respect of the transaction or any part thereof a realty transfer tax at the rate of 11/2% of the value of the property represented by such deed or lease. Such tax shall be payable at the time of making, execution, delivery, acceptance or presenting of such document for recording.
[Amended 8-8-1998 by Ord. No. 80-98]
B.
The transfer tax shall be apportioned equally between
the parties to the transaction in the absence of an agreement to the
contrary.
C.
No tax shall be imposed on any conveyance when the
actual value of the property being transferred is less than $100.
The tax imposed by this article shall be paid
from the proceeds of any judicial sale of real estate as part of the
costs of such judgment or estate and of the writ upon which the sale
is made.
The payment of the tax imposed by this article
shall be evidenced by a notation of payment on the document. The collection
agent shall note on the document the payment of the tax, the amount
of payment, the date of payment and the initials of the person receiving
payment and his or her office. Such notation shall be conclusive evidence
of payment as to any subsequent purchaser relying thereon.
A.
The Council may appoint such persons as may be required,
within or without Sussex County, as collection agents for the collection
of the tax imposed by this article. Each such agent shall be provided
with an official stamp to be used on the document on which the tax
is paid.
B.
A commission shall be allowed by the Council to such
collection agents of 3% of the face value of the tax.
No person shall make, execute, deliver, accept
or present for recording or cause to be made, executed, delivered,
accepted or presented for recording any document without the full
amount of tax thereon being duly paid.
In the event the State of Delaware determines
that additional taxes are due under Title 30, Chapter 54, of the Delaware
Code, then additional taxes shall be due to the Town in accordance
with the valuation of the transfer as determined by the state, together
with interest thereon at the local rate. Refunds shall likewise be
determined and paid.