Town of South Bethany, DE Transfer Tax

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.

LEASE

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:

(1)

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.

(2)

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.

(3)

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.

TRANSACTION

Includes the making, executing, delivering, accepting or presenting for recording of a deed or lease, as defined herein.

VALUE

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.

"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.

§ 118-5 Amount of transfer tax.

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]

The transfer tax shall be apportioned equally between the parties to the transaction in the absence of an agreement to the contrary.

No tax shall be imposed on any conveyance when the actual value of the property being transferred is less than $100.

§ 118-6 Judicial sales.

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.

§ 118-7 Affixing of notation of payment.

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.

§ 118-8 Appointment of collection agent; commission.

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.

A commission shall be allowed by the Council to such collection agents of 3% of the face value of the tax.

§ 118-9 Prohibited acts.

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.

§ 118-10 Additional tax and refunds.

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.