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 1-29-1999]
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 rate established
by Delaware law, commencing with the date that such document is duty
recorded in the Sussex County Recorder of Deeds office, and the transferee
in such transactions 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 original amount
owed plus accrued interest, to be reimbursed for its reasonable attorney's
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 provisions of the state realty 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 "Town of Fenwick Island" 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; sale; agents; compensation; bond premiums), § 5407
(Enforcement; rules and regulations), § 5408 (Failure to
affix stamps), § 5412 (Grantor to pay tax), § 5414
(Tax Lien) and § 5415 (Distribution of 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 11/2%
shall likewise become due to the town.
The effective date for imposition of the realty
transfer tax will be September 1, 1998.
All revenues from the realty transfer tax shall
be maintained in a separate interest-bearing account segregated from
the town's general fund. Individual disbursements from this account
shall be made only after approval by Town Council. Accounting of realty
transfer tax revenues and disbursements shall be reported monthly
and in the annual Town audit.