[Adopted 9-14-1988 by Ord. No. 804]
As used in this article, the following terms shall have the meanings indicated:
DEED
Includes any instrument or writing pursuant to which title or possession of any real estate situate within the corporation limits of the Town of Georgetown which shall be quitclaimed, granted, bargained, sold, conveyed or transferred by a seller, vendor, grantor, assignor or transferor to any purchaser, buyer, vendee, grantee, assignee or transferee, except as provided in § 199-2, and shall include the following:
A. 
Except as provided in Subsections B and C of this definition, where beneficial ownership in real estate is transferred through a conveyance or series of conveyances of intangible interest in a corporation, partnership or trust, such conveyance shall be taxable under this article as if such property were conveyed through a duly recorded "document" as defined herein, and subject to the exemptions contained herein, except those exemptions contained in Subsections J, K, L and P of § 199-2 of this article.
B. 
No bona fide pledge of stock or partnership interests as loan collateral nor any transfer of publicly traded stock or publicly traded partnership interest shall be deemed subject to taxation under this definition.
C. 
Where the beneficial owners of real property prior to the conveyance or series of conveyances referred to in this subsection own 80% or more of the beneficial interest in the real estate following said conveyance or conveyances, such transfer shall not be subject to tax under this definition. Where the beneficial owners of real property prior to the conveyance or series of conveyances referred to in this subsection own less than 80% of the beneficial interest in the real estate following said conveyance or conveyances, such transfers shall not be subject to tax under this definition unless under regulations promulgated by the Secretary of Finance of the State of Delaware, such transfer or transfers are properly characterized as a sale of real property. Such characterization shall take into account the timing of the transaction, beneficial ownership prior to and subsequent to the conveyance or conveyances; the business purpose of the corporation, partnership or trust; and such other factors as may be relevant.
DOCUMENT
Any deed, lease, instrument or writing whereby any real estate within the corporate limits of the Town of Georgetown, or any interest therein, shall be quitclaimed, granted, bargained, sold or otherwise conveyed to the grantee.
FIRST-TIME HOME BUYER
A natural person who, individually or as a co-tenant, has at no time held any interest in residential real estate, wherever located and which has been occupied as his or her principal residence, and who intends to occupy the property being conveyed as his or her principal residence within 90 days following recordation.
[Added 8-25-2004 by Ord. No. 2004-2]
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:
A. 
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.
B. 
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.
C. 
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 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 book of the county.
As used in this article "deed" and "lease" shall not include any of the following:
A. 
Any conveyance by will.
B. 
Any mortgage.
C. 
Any lease other than those described or defined in § 199-1.
D. 
Any conveyance between corporations operating housing projects pursuant to the laws of the state.
E. 
Any conveyance between nonprofit industrial development agencies and industrial corporations purchasing from them.
F. 
Any conveyance to nonprofit industrial development agencies.
G. 
Any conveyance between husband and wife.
H. 
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, and the real estate or interest therein subject to such conveyance was acquired by the husband and wife or husband or wife, prior to the granting of the final decree in divorce.
I. 
Any conveyance between parent and child or a spouse of such child.
J. 
Any conveyance to a trustee, nominee or straw party for the grantor as beneficial owner.
K. 
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.
L. 
Any conveyance from a trustee, nominee or straw party to the beneficial owner.
M. 
Any conveyance between a parent corporation and a wholly owned subsidiary corporation, provided that such conveyance is without actual consideration.
N. 
Correction deed without actual considerations.
O. 
Any conveyance to or from the United States, the State of Delaware, any instrumentality, agency or political subdivision of the state.
P. 
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 or her interest in, or ownership of, the real estate being conveyed; provided, however, that this subsection shall not apply to any distribution in liquidation or other conveyance resulting from the partial or complete liquidation of a corporation, unless the stock of the corporation being liquidated has been held by the grantor or grantee for more than three years; provided, further, that this subsection shall not apply to any conveyance from a partnership to its partners unless the partners' interest in the partnership has been held for more than three years.
Q. 
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.
R. 
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.
S. 
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; provided, however, that only that portion of the tax which is attributable to and payable by the religious organization or other body or person holding title to real estate for a religious organization under § 199-3 shall be exempt.
T. 
Any conveyance made pursuant to a contract executed prior to October 1, 1988.
U. 
Any conveyance made by or to an individual, a corporation or a partnership when there is no change in beneficial interest.
V. 
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 document, deed or lease, except as excluded by § 199-2 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 to the transaction or any part thereof a realty transfer tax at the rate of 1 1/2% 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 7-23-1998]
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.
D. 
Every person who makes, executes, delivers, accepts or presents for recording any document, deed or lease defined or described in this article or in whose behalf any such document, deed or lease is made, executed, delivered, accepted or presented for recording shall be subject to pay for and in respect to the transaction, a realty transfer tax at the rate of 1 1/2% of the value of the property represented by such document, deed or lease which tax shall be payable as follows:
[Amended 7-23-1998]
(1) 
The tax on the consideration attributable to the first year of the term shall be payable at the time of making, executing, delivery, acceptance or presenting of such document, deed or lease for recording.
(2) 
The tax on the consideration attributable to each successive year of the term thereafter shall be paid annually to the Town Manager.
E. 
There shall be no tax imposed on any document, deed or lease presented for recording pursuant to contract executed prior to October 1, 1988.
F. 
There shall be no tax imposed on those transfers where all grantees qualify as first-time home buyers. For purposes of this article, "first-time home buyer" shall have that meaning given in § 199-1.
[Added 8-25-2004 by Ord. No. 2004-2]
Where there is a transfer of residential property by a licensed real estate broker which property was transferred to him or her within 12 months next proceeding the transfer by him or her as part of the consideration for the purchase of other residential property, a credit for the amount of the tax paid at the time of the transfer to the licensed real estate broker shall be given toward the amount of tax upon the transfer. If the tax due upon the transfer from the licensed real estate broker is greater than the credit given for the prior transfer the difference shall be paid. If the credit allowed is greater than the amount of the tax due, no refund shall be allowed.
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 sale before any such proceeds are applied toward any obligation, claim, lien, 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 collector 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 Town Manager may appoint the Recorder of Deeds, in and for Sussex County, and such other persons within or without the county as agents for the collection of the tax imposed by this article. Each such agent shall be provided with an official stamp to be used to indicate on the document the tax paid.
B. 
A commission shall be allowed by the Town Manager to such agents of up to 2% of the face value of the tax. The commission allowed to the Recorder of Deeds, in and for Sussex County, shall be paid to the County Treasurer for the use of the county.
No document upon which a tax is imposed by this article shall be recorded in the office of the Recorder of Deeds in and for Sussex County unless proof of the payment of the transfer tax appears on the document.
Every document, when lodged with or presented to the Recorder of Deeds, in and for Sussex County, for recording shall set forth therein as part of such document the true, full and complete value thereof or shall be accompanied by an affidavit executed by a responsible person connected with a transaction showing such connection and setting forth the true, full and complete value thereof or the reason, if any, why such document is not subject to tax under this article.
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.
A. 
If any person shall fail to pay any transfer tax imposed by this article for which he or she is liable, the Town Manager may make a determination of additional tax and interest due by such person, based upon information within his or her knowledge or learned by him. All such determination shall be made so that notice thereof shall reach the party or parties against whom it is made within three years after the recording of the document.
B. 
Promptly after the date of such determination, the Town Manager shall send by certified or registered mail, with return receipt requested with postage prepaid, a copy thereof to the person against whom it is made.
C. 
Within 90 days after the date upon which the copy of determination of additional tax was mailed, such person may file with the Town Manager a petition for redetermination of such tax. A repetition for redetermination shall state specifically the reason or reasons which the petitioner believes entitles him or her to such redetermination and shall be supported by affirmation that it is not for the purpose for delay, and that the facts set forth therein are true and correct.
D. 
It shall be the duty of the Town Manager within six months after the date of any determination to dispose of any petition for redetermination. Notice of the action taken upon the petition for redetermination shall be given to the petitioner promptly after the date of redetermination by the Town Manager.
E. 
Any person shall have the right to review by a court of common jurisdiction any determination made by the Town Manager pursuant to this section.
F. 
Interest shall be added to any determination of additional tax and shall be computed at the statutory rate from the date any transfer tax shall have been paid to the date paid.
Upon determination that any tax collection pursuant to this article has been collected improperly, the Town Manager shall refund to the taxpayer the sum so paid with interest from the date of payment at the statutory rate.
Any person who violates any of the provisions of this article shall be deemed to be guilty of a misdemeanor and, upon conviction in a court of competent jurisdiction, shall be fined not less than $50 nor more than $200 or be imprisoned for a term not to exceed 20 days, or both, and shall pay the cost of prosecution.
This article shall become effective on October 1, 1988.