CHAPTER 94

FORMERLY

SENATE BILL NO. 298

AN ACT TO ESTABLISH A MECHANISM AND FORMULA FOR THE SHARING OF STATE REVENUE WITH COUNTIES AND MUNICIPALITIES, AMENDING TITLE 30 OF THE DELAWARE CODE RELATING TO THE REALTY TRANSFER TAX.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (three-fourths of all members elected to each House thereof concurring therein):

WHEREAS, county and municipal governments in Delaware face an abrupt and substantial loss in revenue due to the impending termination of the federal revenue-sharing program; and

WHEREAS, the counties and municipalities need time to make an orderly transition from their reliance on federal revenue-sharing to new or expanded sources of local revenue, and to identify and develop such alternative revenue sources; and

WHEREAS, it is appropriate for the State to share a portion of its General Fund revenues with the counties and municipalities to provide them with the opportunity for such an orderly transition;

Section 1. Amend Chapter 54, Title 30 of the Delaware Code by adding thereto a new Section to read as follows:

§5415. Realty Transfer Tax: Distribution of Tax Receipts.

(a) The tax received under this Chapter shall be disbursed by the appropriate County Recorder of Deeds, or by the agent appointed pursuant to §5406 of this Chapter, as follows:

(1) Seventy-five percent to the Division of Revenue;

(2) Twenty-five percent to the State Treasurer to be deposited in a special fund for distribution to municipalities and counties in accordance with this Section.

(b) There is created in the Office of the State Treasurer a special fund for the credit and redistribution of the tax receipts disbursed to the State Treasurer pursuant to subparagraph (2) of subsection (a) of this Section; provided, however, that If in State Fiscal Year 1988 twenty-five percent of the realty transfer tax receipts exceeds $8,000,000, then the excess over that amount shall be disbursed by the State Treasurer to the Division of Revenue.

(c) The tax receipts disbursed to the State Treasurer pursuant to paragraph (2) of subsection (a) of this Section, less any excess amount disbursed by the State Treasurer to the Division of Revenue pursuant to subsection (b) of this Section, shall be distributed among the counties and municipalities in accordance with the following pro rata allocations:

Arden Village 0.0200%

Village of Ardencroft 0.0125%

Town of Ardentown 0.0125%

Town of Bellefonte 0.0400%

Town of Bethany Beach 0.1000%

Town of Bethel 0.0125%

Town of Blades 0.1500%

Town of Bowers Beach 0.0400%

Town of Bridgeville 0.2900%

Town of Camden 0.1900%

Town of Cheswold 0.0125%

Town of Clayton 0.2400%

Town of Dagsboro 0.0700%

City of Delaware City 0.4600%

Town of Delmar 0.2100%

Town of Dewey Beach 0.0400%

City of Dover 5.3700%

Town of Ellendale 0.0300%

Town of Elsmere 0.8500%

Town of Farmington 0.0125%

Town of Felton 0.0900%

Town of Fenwick Island 0.0300%

Town of Frankford 0.1600%

Town of Frederica 0.0700%

Town of Georgetown 0.4400%

Town of Greenwood 0.1300%

City of Harrington 0.0800%

Town of Hartly 0.0125%

Town of Henlopen Acres 0.0400%

Town of Houston 0.0400%

Kent County 7.1200%

Town of Kenton 0.0125%

Town of Laurel 0.8000%

Town of Leipsic 0.0400%

City of Lewes 0.5900%

Town of Little Creek 0.0125%

Town of Magnolia 0.0200%

Town of Middletown 0.2300%

City of Milford 1.3500%

Town of Millsboro 0.3500%

Town of Mi11ville 0.0125%

Town of Milton 0.3400%

New Castle County 44.4800%

City of New Castle 0.6800%

City of Newark 2.4800%

Town of Newport 0.2100%

Town of Ocean View 0.1200%

Town of Odessa 0.0125%

City of Rehoboth Beach 0.4300%

City of Seaford 1.2650%

Town of Selbyville 0.3000%

Town of Slaughter Beach 0.0300%

Town of Smyrna 1.1100%

Town of South Bethany 0.0300%

Sussex County 11.9400%

Town of Townsend 0.0200%

Town of Viola 0.0125%

City of Wilmington 16.5550%

Town of Woodside 0.0125%

Town of Wyoming 0.1800%

Provided, however, regardless of the percentage allocations stated above, that each county and municipality shall receive a minimum payment of $1,000: further provided that the aggregate difference between the amounts determined by the percentage allocations for those recipients receiving such minimum payments and the total amount of all $1,000 minimum payments shall be deduced pro rata from the payments made to those counties and municipalities receiving more than $1,000, according to their percentage allocations and that such deduction shall be made in the disbursement to occur on or before the final distribution under this Section.

(d) Except as provided in subsection (b) of this Section, pro-rata distribution to the counties and municipalities pursuant to this Section shall be made on or before the fifteenth day of the month following the month in which the tax receipts are credited to the special fund established by subsection (b) of this Section.

(e) Funds distributed to the counties and municipalities pursuant to this Section may be used by the recipients for any object, program, function or purpose for which such recipient, or any officer, department, agency, board or commission thereof, is by law authorized or required to raise, appropriate or expend money; provided, however, that receipt of these funds shall not cause the recipients to be considered agencies, as defined in Chapters 63 and 65 of Title 29 of the Delaware Code."

Section 2. This Act shall become effective July 1, 1987, and shall continue in effect

until July 1, 1988, unless extended by further enactment of the General Assembly; provided, however, that the final distribution pursuant to Section 1 of this Act for realty transfer tax receipts generated in State Fiscal Year 1988 may be made on or before July 31. 1988.

Approved July 2, 1987