HOUSE BILL NO. 129
AS AMENDED BY HOUSE AMENDMENT NO. 3
AN ACT TO AMEND CHAPTER 54, TITLE 30, DELAWARE CODE, RELATING TO THE REALTY TRANSFER TAX.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Three-fifths of all members elected to each House thereof concurring therein):
Section 1. Amend paragraph (n), of Section 5401(1), Chapter 54, Title 30, Delaware Code, by striking the word "provided" and all that follows to the end thereof, and substituting in lieu thereof the following:
"provided, however, that this paragraph shall not apply to any distribution in liquidation or other conveyance resulting from the partial or complete liquidation of a corporation, unless the stock of the corporation being liquidated has been held by the grantor or grantee for more than three years. Provided further, this paragraph shall not apply to any conveyance from a partnership to its partners unless the partners' interest in the partnership has been held for more than three years."
Section 2. Amend Section 5401 (4), Chapter 54, Title 30 of the Delaware Code, relating to the definition of the term "document", by adding thereto a new subparagraph (c) to read as follows:
"Any writing purporting to assign or transfer a lease hold interest or possessory interest in residential property under a lease for a term of more than 5 years. For this purpose, the term 'residential property' means any structure or part of structure which is Intended for residential use, and excluding any commercial unit subject to tax under Section 2301 (a) (86), relating to commercial lessors".
Section 3. Amend Section 5409, Title 30, Delaware Code, by striking the words "or the reason, "and substituting in lieu thereof the words " and the reason."
Section 4. This Act shall become effective on July 1, 1983.
Approved July 19,1983.