[Adopted 9-7-1984 as §§ 1101 through 1108
of the 1984 Code]
[Amended 7-29-1998 by Ord. No. 395]
A.
Every person who makes, executes, delivers, accepts
or presents for recording any document, except as defined or described
in § 167-1B of this article, or in whose behalf any document
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 1.5% of the
value of the property represented by such document, which tax shall
be payable at the time of making, execution, delivery, acceptance
or presenting of such document for recording. Said tax is to be apportioned
equally between grantor and grantee unless agreement between the parties
states otherwise.
B.
No tax shall be imposed on conveyances when the actual
value of the property being transferred is less than $100.
C.
Where a valid written contract was entered prior to
July 29, 1998, the tax for such a transfer shall be at the rate imposed
herein.
D.
Every person who makes, executes, delivers, accepts
or presents for recording any document defined or described in § 167-1B
of this article, or in whose behalf any such document is made, executed,
delivered, accepted or presented for recording shall be subject to
pay for and in respect to the transaction, or in any part thereof,
a realty transfer tax at the rate of 1.5% of the value of the property
represented by such document, which tax shall be payable as follows:
(1)
The tax consideration attributed to the first year
of the term shall be payable at the time of making, execution, delivery,
acceptance or presenting of such document for recording;
E.
Notwithstanding Subsection A of this section, the rate of tax on documents described in § 167-1F of this article shall be 1% on amounts exceeding $10,000, which shall be borne by the owner of the building whose construction is made subject to tax under § 167-1F.
F.
Any funds realized by the Town pursuant to this section
shall be segregated from the municipality's general fund and the funds,
and all interest thereon, shall be expended solely for the capital
and operating costs of public safety services, economic development
programs, public works services, capital projects and improvements,
infrastructure projects and improvements, and debt reduction.
[Amended 12-14-1985 by Ord. No. 76; 7-29-1998 by Ord. No.
395]
Where there is a transfer of a residential property
by a licensed real estate broker, which property was transferred to
the broker within the preceding year 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 broker shall be
given to the broker toward the amount of the tax due 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 and if the credit allowed is greater than the amount
of the tax due, no refund shall be allowed.
[Amended 7-29-1998 by Ord. No. 395]
The tax imposed by this article shall be fully
paid and have priority out of the proceeds of any judicial sale of
real estate before any other obligation, claim, lien, judgment, estate
or cost of the sale and of the writ upon which the sale is made, and
the sheriff, or other officer conducting said sale, shall pay the
tax imposed out of the first moneys paid to the sheriff or other officer
in connection therewith; provided that if prior to delivery of the
deed pursuant to the said sale, the purchaser shall deliver to the
sheriff an affidavit that the transfer is exempt from tax under of
§ 167-1A(16) of this article, the sheriff shall not pay
the tax, but shall deliver the affidavit to the collection representative
of the Town.
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 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.
[Amended 12-14-1985 by Ord. No. 76]
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 Del. Code Chapter 54,
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.
