[Adopted 7-6-1998 by Ord.
No. 107]
There is hereby imposed upon the transfer of all real property located
within the town limits, as they now or hereafter exist, a tax
of 1 1/2% of the value of the property conveyed in conformance with the
definitions and exceptions governing the state realty transfer tax as contained
within 30 Del. C. § 5401 et seq., and all amendments theretofore
or thereafter adopted.
Any tax imposed by this article shall be appropriated equally between
the grantor and the grantee; provided, however, that the parties to any transaction
which is subject to the realty transfer tax imposed by this article may, as
between themselves, agree to allocate the tax otherwise; but in all events,
it shall be the ultimate responsibility of the grantee to see that the appropriate
amount of tax is paid no later than the presentation of the document involved
in such a transaction for recording at the appropriate Recorder of Deeds office.
Upon receipt of the appropriate amount, the town office or its duly authorized
agent shall, upon the document relating to such transaction, confirm that
the tax imposed by this article has been paid. The town may appoint the County
Recorder of Deeds or any attorney-at-law as its duly authorized agent to collect
a realty transfer tax imposed by this article and to confirm such payment
on the face of the document presented for recording.
[Amended 10-5-1998 by Ord.
No. 107-A1]
Where any real property within the town is transferred without payment
of the appropriate real estate transfer tax in violation of this article:
A. The amount due shall bear interest at the legal rate
established by Delaware law, commencing with the date that such document is
duly recorded in the Sussex County Recorder of Deeds Office, and the transferee
in such transaction shall be personally liable for the full amount of such
tax, plus all accrued interest to date of payment.
B. The amount of such tax, together with the accrued interest
thereon, shall constitute a charge or assessment against the property so transferred
and shall be a lien against the property so transferred in accordance with
the procedures set forth in the Charter of the town and/or in accordance with
the procedures set forth in the general statutes of the state regarding municipal
liens. If suit should be brought by the town to collect such delinquent tax,
then the town shall be entitled, in addition to the principal amount owed
plus accrued interest, to be reimbursed for its reasonable attorneys' fees
and court costs.
C. Where any document involved in a transaction subject
to the tax imposed by this article is recorded without payment thereof, such
recording shall constitute a violation and the grantee shall, upon conviction
before any court of competent jurisdiction, pay a fine of $1,000, plus any
applicable court costs and assessments.
This article shall be applied, construed and interpreted according to
the provision of the state realty tax transfer tax as set forth in 30 Del.
C. § 5401 et seq. as it may have heretofore been or is hereafter
amended, it being the intent of this article that it apply whenever the state's
realty transfer tax applies; provided, however, that:
A. In applying the provisions of the state's realty transfer
tax statute through this article, "The Mayor and Council of the Town of Selbyville"
shall be substituted (where appropriate) for the "State of Delaware," "Department
of Finance," "Division of Revenue" or the like.
B. The provisions of 30 Del. C. § 5405 (Documentary
Stamps; Affixing; Cancellation; Other Methods), 5406 (Furnishing Stamps; Sales;
Agents; Compensation; Bond Premiums), 5407 (Enforcement: Rules and Regulations),
5408 (Failure to Affix Stamps), 5412 (Grantor to Pay Tax) or 5414 (Grantor
to Pay Tax Receipts) or any future corresponding provisions of law shall not
be held applicable to the operation and application of this article.
C. The unlawful acts set out at 30 Del. C. § 5410
now and as it may hereafter be amended shall, to the extent applicable to
the town ordinances and not otherwise superseded hereby, likewise be unlawful
acts under this article, conviction for which shall result in a fine of $1,000.
D. Where any provision of 30 Del. C. § 5401 et
seq. is inconsistent with this article, the provisions of this article shall
control; and wherever any provision of 30 Del. C. § 5401 et seq.
is not applicable or appropriate, it shall be disregarded or construed so
as to best achieve the purpose of this article, which is that whenever a realty
transfer tax becomes due to the state under 30 Del. C. § 5401 et
seq., a realty transfer tax of 1 1/2% shall likewise become due to the
town.
Notwithstanding the effective date of the article, the transfer of any
real property within the town pursuant to a valid written contract entered
into prior to the effective date of this article (July 7, 1998) shall be exempt
from the provisions of this article.
This article shall take effect at 12:01 a.m. on July 7, 1998.