SENATE BILL NO. 386
AS AMENDED BY SENATE AMENDMENTS NOS. 1 AND 2
AN ACT TO AMEND CHAPTER 212, VOLUME 25, LAWS OF DELAWARE, AS AMENDED, ENTITLED "AN ACT TO INCORPORATE THE TOWN OF BETHANY BEACH AND GIVING IT AUTHORITY TO ISSUE BONDS", TO AUTHORIZE THE TOWN OF BETHANY BEACH TO TAX REAL ESTATE TRANSFERS WITHIN THE SAID TOWN.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Two-thirds of all members elected to each House thereof concurring therein):
Section 1. Chapter 212, Volume 25, Laws of Delaware, as amended, be and the same is hereby amended by adding a new section following Section 16 to be designated as Section 16A to read as follows:
Section 16A. (a) The Town of Bethany Beach, in addition to the powers now conferred, shall have the power and authority by ordinance to levy, assess and collect or provide for the levying, assessment and collection of such taxes as shall be determined by The Town of Bethany Beach to be paid by the transferor or transferee upon the transfer of real property or any interest in real property situate within the corporate limits of The Town of Bethany Beach, regardless of where the instruments making the transfers are made, executed or delivered or where the actual settlements on such transfers occur; provided, however, that no tax levied under this section shall exceed one percent (1%) of the sales price (including the value of any assumed mortgage or mortgages) or fair market value of the real property so transferred; and provided further that no tax shall be levied upon an organization exempted from ad valorem real estate taxes.
(b) No ordinance providing for a tax on the transfer of real property or any interest in real property authorized under this section shall become effective unless it receives an affirmative vote of two-thirds of all the elected Commissioners of The Town of Bethany Beach.
(c) If the taxing authority granted under this section shall be exercised by way of a stamp affixed to a document presented for recording, the Recorder of Deeds in and for Sussex County shall not receive for record any documents subject to said tax unless such stamps are affixed thereto.
(d) The Town of Bethany Beach may adopt an ordinance or ordinances to provide for the effective administration and regulation of any tax adopted pursuant to the provisions of this section.
Section 2. This Act shall not become effective until it shall be approved at a special election to be held the first Saturday after Labor Day pursuant to a resolution adopted by the Commissioners of The Town of Bethany Beach. The Commissioners shall give notice of the special election by printing a copy of the resolution calling the special election in at least two issues of a newspaper having a general circulation within the corporate limits of the Town of Bethany Beach within thirty (30) days immediately preceding the date of such special election. The special election shall be held under the supervision of an Election Board, as provided in Section 9 of the Charter of The Town of Bethany Beach. If a majority of the votes cast at the special election by voters present
and qualified as provided in Section 10 of the Charter of the Town of Bethany Beach, Volume 25, Delaware Laws, Chapter 212, shall be in favor of the transfer tax authorized by this Act, the tax may be levied and collected as provided for in this Act. if a majority of the votes cast by the voters present and qualified at any special election shall be against the levying of the tax authorized by this Act, the proposition shall not again be submitted to the qualified voters for a period of ninety (90) days from the date of such special election. The Election Board shall meet after the close of the election to ascertain the results and shall certify the results to the Commissioners of The Town of Bethany Beach.
Approved June 27, 1980.