SENATE BILL NO. 275
AN ACT TO AMEND AN ACT BEING CHAPTER 401, VOLUME 62, LAWS OF DELAWARE, ENTITLED AN ACT TO REINCORPORATE THE TOWN OF FRANKFORD" TO CONFER UPON THE TOWN COUNCIL OF THE TOWN OF FRANKFORD CERTAIN POWERS RELATING TO THE TAXATION OF REAL ESTATE TRANSFERS WITHIN THE TOWN OF FRANKFORD.
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 401, Volume 62, Laws of Delaware, is hereby amended by striking the word and quotation mark "thereof." as they appear at the end of Section 14 (K) and all words following, including the words: "LEVY OF ANNUAL TAXES Section 15.(A). Prior" and substitute in lieu thereof the following:
"Section 15. TAXATION.
(A) Levy of Annual Taxes. (1) Prior"
Section 2. Amend Section 15, Chapter 401, Volume 62, Laws of Delaware, by redesignating present Subsections 15 (8) through (G) as new Paragraphs (2) through (7) of Subsection (A).
Section 3. Further Amend Section 15, Chapter 401, Volume 62, Laws of Delaware, by adding a new "Subsection (B)" thereto, to read as follows:
"(B) Taxation of Real Estate Transfers.
(1) The Town Council of the Town of Frankford, in addition to all other powers conferred upon it by this Act, shall have the power and authority by ordinance or ordinances to levy, assess and collect or provide for the levying, assessment and collection of such taxes as shall be determined by the Town Council 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 Frankford, 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 shall be levied upon an organization exempted from ad valorem real estate taxes.
(2) No ordinance or ordinances providing for a tax on the transfer of real property or any interest in real property authorized under this Subsection shall become effective unless it receives an affirmative vote of two-thirds (2/3) of all the elected members of the Town Council of the Town of Frankford. If the taxing power authority granted under this Subsection 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 document subject to such tax unless stamps are affixed thereto.
(3) The Town Council of the Town of Frankford may adopt an ordinance or ordinances to provide for the effective administration, regulation and collection of an tax adopted pursuant to the provisions of this Subsection.
(4) No tax levied under this Subsection shall exceed one percent (1%) of the sale price (including the value of any assumed mortgage or mortgages) or of the fair market value of the real property so transferred; provided, however, that no tax shall be imposed upon an organization which is exempted from ad valorem taxes. The provisions of Section 5401 and Section 5403, Chapter 54, Title 30, Delaware Code, shall be applicable to any realty transfer tax imposed pursuant to this Act.
(5) The Town Council may provide by Ordinance for the collection of such tax by the Recorder of Deeds, in and for Sussex County, or such other agent as may be appointed by the Commissioners and shall prescribe in such Ordinance the charge that will be paid for such collection of such realty transfer tax authorized by this Subsection.
Section 4. This Act shall not become effective until it shall have been approved by a majority of the qualified voters who vote at a Special Election to be held pursuant to a Resolution adopted by the Town Council of the Town of Frankford. The Town Council shall give notice of the Special Election by printing a copy of the Resolution calling the Special Election in at least two (2) issues of a newspaper having a general circulation within the corporate limits of the Town of Frankford within thirty <30) days immediately preceding the date of such Special Election. At the said Special Election, every person who is a bona fide resident of the Town of Frankford and who would be entitled at the time of the holding of the said Special Election pursuant to the provisions of this Act to register and vote in the Annual Municipal Election if such Annual Municipal Election were held on the day of the Special Election to be held pursuant to the provisions of this Act may vote at the said Special Election regardless of whether such person is registered to vote in the Annual Municipal Election. The Special Election shall be held by a Board of Election to be appointed by the President of the Town Council at least two (2) weeks before such Special Election. The Board of Election shall consist of an Inspector of the Special Election and such Judges as shall be appointed by the President of the Town Council of the Town of Frankford. If a majority of the votes cast at the Special Election 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. The Board of Election holding the Special Election shall meet immediately after the close of such Special Election to ascertain the result and shall certify the result to the Town Council. The Resolution adopted by the Town Council of the Town of Frankford giving notice of the Special Election shall name the date and time of the Special Election and the location of the polling place. Such persons who are in the polling place at the time named in said Resolution for the Special Election to end, shall he entitled to vote even though such votes may be cast after the designated hour. If the majority of the votes cast at any Special Election held under this Act shall be against the levying of the tax authorized by this Act, the proposition shall not again be submitted to the qualified voters until the expiration of ninety (90) days from the date of the said Special Election.
Approved July 11, 1989.