CHAPTER 51

FORMERLY

HOUSE BILL NO. 54

AS AMENDED BY

HOUSE AMENDMENT NOS. 1 AND 2 AND

SENATE AMENDMENT NO. 1

AN ACT TO AMEND TITLE 3 AND TITLE 30 OF THE DELAWARE CODE TO PROVIDE ADDITIONAL BENEFITS TO OWNERS OF REAL PROPERTY WHO PLACE QUALIFYING REAL PROPERTY INTO AGRICULTURAL PRESERVATION DISTRICTS, AND A RECORDING COST EXEMPTION.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend § 911 of Title 3 of the Delaware Code by adding a new subsection (c) to read as follows:

"(c) Real property, and the improvements situate thereon, located in Agricultural Preservation Districts shall not be subject to inheritance tax under Chapter 13 of Title 30, if all the beneficiaries of the real property and improvements execute a document in a form provided by the Foundation extending the term for inclusion of all the real property under a District Agreement for an additional ten-year (10) period. The Foundation shall provide verification to appropriate taxing authorities when the condition for entitlement to the tax exemption provided hereunder has been satisfied." If the real property and improvements subject to tax exemption hereunder are part of an asset subject to taxation, such as shares of stock, partnership interests, or other forms of interests, then the value of the real property and improvements which comprise a portion of the value of such an asset shall be deducted from the total asset value so as to render such real property and improvements exempt from inheritance tax under Chapter 13 of Title 30."

Section 2. Amend § 918 of Title 3 of the Delaware Code by adding a new sentence at the end of such Section to read as follows:

"In the event the ownership interest in real property and improvements subject to tax exemption hereunder are part of an asset subject to taxation, such as shares of stock, partnership interests, or other forms of interests, then the value of the real property and improvements which comprise a portion of the value of such an asset shall be deducted from the total asset value so as to render such real property and improvements exempt from inheritance tax under Chapter 13 of Title 30 and gift tax under Chapter 14 of Title 30."

Section 3. Amend § 925 of Title 3 of the Delaware Code by adding a new sentence at the end of such Section to read as follows:

"No recording cost, fee or charge of any nature shall be imposed for the recording of any documents or other materials submitted by the Foundation for purposes of implementing the provisions of this chapter."

Section 4. Amend §1314 of Title 30 of the Delaware Code by adding thereto a new paragraph to read as follows:

(f) The provisions of this section shall apply, if election is made, to estates including farmland enrolled in Agricultural Preservation District pursuant to Title 3, Chapter 9, of the Delaware Code."

Approved June 12, 1995