Delaware General Assembly


CHAPTER 326

FORMERLY

SENATE BILL NO. 470

AN ACT TO AMEND CHAPTER 64, VOLUME 63, LAWS OF DELAWARE, ENTITLED AN ACT TO REINCORPORATE THE TOWN OF OCEAN VIEW IN SUSSEX COUNTY, DELAWARE"; AND PROVIDING FOR THE LEVY OF A REAL ESTATE TRANSFER TAX NOT TO EXCEED ONE PERCENT OF THE PURCHASE PRICE.

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. Amend Section 2.102, Article 2, Chapter 64, Volume 63, Laws of Delaware, by adding thereto a new Subsection, designated as Subsection (k), which new Subsection shall read as follows:

"(k)(1) The Town Council shall have the power and authority by ordinance to levy, assess and collect or provide for the levying, assessment and collection of such taxes as shall be determined by the 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 Ocean View, regardless of where the instruments making the transfers are made, executed or delivered or where the actual settlements upon such transfers occur; provided, however, that no tax levied under this Section shall exceed one percent (I%) of the sales price (including the value of any assumed mortgage or mortgages) or fair market value of the real property so transferred; and provided further that no tax shall be levied upon an organization exempted from ad valorem real estate taxes.

(2) No ordinance 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 of all the elected members of the Town Council.

(3) If the taxing power or 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 documents subject to said tax unless such stamps are affixed thereto.

(4) The Council may adopt an ordinance to provide for the effective administration and regulation of any tax adopted pursuant to the provisions of this Section."

Approved July 7, 1988.