HOUSE BILL NO. 439
AN ACT TO AMEND AN ACT BEING CHAPTER 457, VOLUME 60, LAWS OF DELAWARE, AS AMENDED, ENTITLED„ AN ACT TO REINCORPORATE THE TOWN OF MILLSBORO" TO CONFER UPON THE COMMISSIONERS OF THE TOWN OF MILLSBORO CERTAIN POWERS RELATING TO THE TAXATION OF REAL ESTATE TRANSFERS WITHIN THE TOWN OF MILLSBORO, 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 457, Volume 60, Laws of Delaware, as amended, be and the same is hereby further amended by adding a new Section following Section 26A to be designated as Section 26B to read as follows:
"TAXATION OF REAL ESTATE TRANSFERS
The Town Council of the Town of Millsboro, 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 Millsboro, 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.
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 Town Council of the Town of Millsboro. 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 such stamps are affixed thereto.
The Town Council of the Town of Millsboro may adopt an ordinance or ordinances to provide for the effective administration and regulation of any tax adopted pursuant to the provisions of this Section.
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; and 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, Del. C., shall be applicable to any realty transfer tax imposed pursuant to this Act.
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 Town Council and shall prescribe in such Ordinance the charge that will be paid for such collection of such realty transfer tax authorized by this Section.
This Act shall not become effective until it shall be approved by a majority of the qualified voters at a Special Election to be held pursuant to a Special Election to be held pursuant to a Resolution adopted by the Town Council of the Town of Millsboro. 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 Millsboro 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 Millsboro 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 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 of the Town of Millsboro 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 Millsboro. 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 hours of the Special Election shall be from one o'clock in the afternoon, prevailing time, until six o'clock on the same day, prevailing time, and such persons who are in the polling place at six o'clock noon, prevailing time, shall be entitled to vote even though such votes may be cast after six o'clock in the afternoon, 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 2. Paragraph 1, Subsection (b), Section 15, Chapter 457, Volume 60, Laws of Delaware, as amended, be and the same is hereby further amended by striking out the words and figures Three Thousand Five Hundred Dollars ($3,500.00) and substituting in lieu thereof the words and figures Twenty Thousand Dollars ($20,000.00).
Approved May 13, 1992.