SENATE BILL NO. 276
AN ACT TO AMEND AN ACT BEING CHAPTER 504, VOLUME 57, LAWS OF DELAWARE, AS AMENDED, ENTITLED AN ACT TO INCORPORATE THE TOWN OF HENLOPEN ACRES" TO CONFER UPON THE COMMISSIONERS OF THE TOWN OF HENLOPEN ACRES CERTAIN POWERS RELATING TO THE TAXATION OF REAL ESTATE TRANSFERS WITHIN THE TOWN OF HENLOPEN ACRES, AND TO INCREASE THE AMOUNT FOR WHICH CONTRACTS CAN BE AWARDED WITHOUT COMPETITIVE BIDDING.
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 504, Volume 57, Laws of Delaware, as amended, be and the same is hereby further amended by adding a new Section following Section 37 to be designated as Section 37A to read as follows:
"Section 37A. Taxation of Real Estate Transfers.
(a) The Commissioners of The Town of Henlopen Acres, in addition to all other powers conferred upon them 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 Commissioners 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 Henlopen Acres, regardless of 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.
(b) No ordinance or ordinances 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 (2/3) of all the elected members of the Commissioners of The Town of Henlopen Acres. If the taxing power 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 document subject to such tax unless stamps are affixed thereto.
(c) The Commissioners of The Town of Henlopen Acres may adopt an ordinance or ordinances to provide for the effective administration, regulation and collection of any tax adopted pursuant to the provisions of this Section.
(d) No tax levied under this Section 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 §5401 and §5403. Chapter 54, Title 30, Del. C., shall be applicable to any realty transfer tax Imposed pursuant to this Act.
(e) The Commissioners 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 Section."
Section 2. This Act shall not become effective until it shall be approved by a majority of the qualified voters who vote at a Special Election to be held pursuant to a Resolution adopted by the Commissioners of the Town of Henlopen Acres. The Commissioners 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 Henlopen Acres within thirty (30) days immediately preceding the date of such Special Election. Every person who is a bona fide resident of The Town of Henlopen Acres 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 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 and such votes may be cast either in person or by proxy. The Special Election shall be held by a Board of election to be appointed by the President of the Commissioners of The Town of Henlopen Acres 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 Commissioners of The Town of Henlopen Acres. 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 Commissioners. The hours of the Special Election shall be from nine o'clock in the morning, prevailing time, until twelve o'clock noon on the same day, prevailing time, and such persons who are in the polling place at twelve o'clock noon, prevailing time, shall be entitled to vote even though such votes may be cast after twelve o'clock noon, prevailing time. 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.
Section 3. Paragraph 1, Subsection (a), Section 34, Chapter 504, Volume 57, Laws of Delaware, as amended, being Chapter 259, Volume 66, Laws of Delaware, be and the same is hereby further amended by striking out the words and figures "Twenty Thousand Dollars (&20,000.00)" and substituting in lieu thereof the words and figures "Thirty Thousand Dollars ($30,000)".
Approved May 15, 1990.