[HISTORY: Adopted by the Town Council of
the Town of Dagsboro as indicated in article histories. Amendments
noted where applicable.]
[Adopted 11-11-1991 by Ord. No. 60]
A.
Every person who makes, executes, delivers, accepts or presents for recording any document, except as excluded by § 243-7B, or in whose behalf any 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 or any part thereof, a realty transfer tax at the rate of 1 1/2%, 1% of which shall be pursuant to the Charter of the Town of Dagsboro and 1/2% pursuant to 22 Del. Code Ch. 16, of the value of the property represented by such document, deed or lease. Such tax shall be payable at the time of making, execution, delivery, acceptance or presenting of such deed for recording.
[Amended 9-27-2004]
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 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.
[Amended 9-27-2004]
A.
The Town Council 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 on the document to show the tax paid.
B.
A commission shall be allowed by the Town Council
to such agents of 1% 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 person shall make, execute, deliver, accept
or present for recording or cause to be made, executed, delivered,
accepted or present 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 legal rate. Refunds shall likewise be
determined and paid.
[Amended 9-27-2004]
A.
DOCUMENT
(1)
(2)
(3)
TRANSACTION
VALUE
As used in this article, the following terms shall
have the meanings indicated:
Includes any deed, 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, grantee, assignee or transferee, except as provided in § 243-1 and 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:
[Amended 5-23-2005 by Ord. No. 2005-1]
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;
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 document as defined herein.
Includes in the case of a document the amount of the actual
consideration thereof, including 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 books of Sussex County.
B.
"Document" shall not include any of the following:
(1)
Any conveyance by will;
(2)
Any mortgage;
(3)
Any lease other than those described or defined in
the definition of “document”;
(4)
Any conveyance between persons who were previously
husband and wife but who have since been divorced, provided 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 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 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 pursuant to a contract executed
prior to effective date of this article.
(18)
Any conveyance made by or to an individual, a corporation
or partnership when there is no change in beneficial interest;
(19)
Any conveyance made by or to any organization exempt
from ad valorem real estate taxes.
[Added 9-27-2004; amended 2-24-2014]
[Adopted 4-24-2006]
A.
There is hereby imposed and assessed a gross receipts
tax at the rate of 3% of the gross rental receipts as follows:
(1)
Occupancy of any private and public lodging facilities
and housing accommodations including rooms, rooming homes, boardinghouse,
bed-and-breakfast inn, rooming house, tourist home, cottage, cabin,
house and apartment (whether in condominium or not).
B.
The payment of the tax shall be the responsibility
of the person who is the owner of the property being rented; provided,
however, that such person may designate an agent to collect and pay
the tax to the Town. Where said designated agent is a real estate
broker or agent, the latter shall collect and pay the tax to the owner
for the owner's payment to the Town.
As used in this article, the following terms
shall have the meanings indicated:
The consideration received for occupancy, valued in money,
whether received in money or otherwise, including all receipts, cash
and property or services of any kind or nature and also any amount
for which the occupant is liable for occupancy without any deduction
therefrom whatsoever.
The use or possession of the right to use or possession of
any property referred to in this article.
An individual, copartnership, corporation, company, association,
firm or any group of individuals acting as a unit and includes any
trustee, receiver, assignee or personal representative thereof.
The consideration received for occupancy, valued in money,
whether received in money or otherwise, including all receipts, cash
credits and property or services of any kind or nature.
Every person receiving any rent on which the
tax is imposed shall be obligated to file, or have filed by a designated
agent, a rental tax report form with the Town Clerk and to pay the
Town Clerk, for use of the Town, the amount of tax due the Town as
follows: The tax on rent received in any year for occupancy which
occurs during the period from January 1 through December 31 of that
year shall be due and payable on or before the following February
1. For the initial year of implementation, the tax shall be July 1,
2006, through December 31, 2006.
The rental tax report form shall be furnished
by the Town Clerk to the owner of the rental property, or designated
agent thereof, at the time of issuance of the license required by
the Town. It is the responsibility of the owner of the rental property
to obtain a rental tax report form from the Town Clerk.
The contents of the rental tax report form shall
be kept confidential by the Town as permitted by applicable state
and federal law.
Any person obligated to pay the tax imposed
and assessed by this article who fails or refuses to file the required
rental tax report form and to remit the tax required to be paid within
the time and the amount specified, unless it is shown that such failure
is due to reasonable cause, shall be charged, in addition to the amount
of tax owed the Town, interest thereon at the rate of 1 1/2%
per month until such debt is fully paid. If such debt remains unpaid
by the time of expiration of the license to rent the property concerning
which the rental tax has not been paid, a renewal rental license shall
not be issued with regard to such property. For any violation of this
article or for the failure to pay the tax due pursuant to this article,
the person receiving rent and/or the owner of the premises shall be
subject to a penalty of not less than $50 and not more than $500 per
day and shall pay the cost of prosecution, including the Town's reasonable
attorney's fees. Each day that such violation continues shall be deemed
a separate offense punishable by like fine or penalty. The Town may
proceed to collect delinquent and unpaid taxes by suit or other legal
means.
For purposes of initial implementation of the
rental tax program of this article, the Town Clerk is authorized and
directed to send to each property owner notification of the adoption
of the Gross Receipts Rental Tax Ordinance on or before August 1,
2006. The Town Clerk is further authorized and directed to take any
steps deemed necessary to ensure the full compliance with the provision
of this article and to ensure that such provisions will be carried
out in a fair and consistent manner. These steps shall include appropriate
efforts to gain the fullest possible cooperation on the part of all
rental agencies licensed to do business in the Town.
The provisions of this article shall become
effective July 1, 2006; provided, however, notice provisions shall
become effective immediately.
