[HISTORY: Adopted by the Town Council of the Town of Ocean View as
indicated in article histories. Amendments noted where applicable.]
[Adopted 11-1-1988 by Ord.
No. 49]
A.
Every person who makes, executes, delivers, accepts or presents for recording any deed or lease, except as excluded by § 195-7B, 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 of 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 8-4-1998 by Ord.
No. 100]
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.
A.
The Mayor 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 on which the
tax is paid.
B.
A commission shall be allowed by the Mayor to such agents
of 1% of the face value of the tax.
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, Chapter 54, 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.
A.
As used in this article, the following terms shall have
the meanings indicated:
- (1) For purposes of this article, the definition of the term "deed" shall include any contract or other agreement or undertaking for the construction of all or a part of any building, all or a portion of which contract, agreement or undertaking (or any amendment to the foregoing) is entered into, or labor or materials are supplied, either prior to the date of the transfer of the land on which the building is to be constructed or within one year from the date of the transfer to the grantee.
- (2) The Administrative Official shall not issue a building permit for any such building unless and until the person or persons (including corporations or other associations) requesting such permit shall demonstrate in whatever form may be specified by the Administrative Official, including, at his discretion, a form of affidavit, that:
- (a) No transfer as described in this section has occurred within the preceding year;
- (b) No portion of the contract for construction for which the permit is being requested was entered into and no materials or labor with respect to the building have been provided within one year of the date on which the property was transferred; or
- (c) There has been paid a realty transfer tax on the document as defined in this section.
- (a)
- (3) In addition, the Administrative Official shall not issue a certificate of occupancy relative to any building on which a tax is provided by this section unless and until the owner recertifies the actual cost of the building and pays any additional tax due as a result of such recertification.
- (4) A "building" for purposes of this section shall mean any structure having a roof supported by columns or walls, which structure is intended for supporting or sheltering any use or occupancy but shall not include any alteration of or addition to an existing building where the cost of said alteration or addition is less than 50% of the value of the property transferred.
- (5) A "transfer" for purposes of this section shall include any transfer made by a "deed" or "lease" described and defined in this section and shall not include any transaction excluded by Subsection B of this section.
- DEED
- Includes any 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 § 195-1.
- 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:
- (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;
- (2) 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;
- (3) 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 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.
"Deed" and "lease" shall not include any of the following:
(1)
Any conveyance by will;
(2)
Any mortgage;
(4)
Any conveyance between persons who were previously husband
and wife but who have since 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 the partnership in the same proportion as his 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 July 1, 1985;
(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.
