(a) Notwithstanding any statute or municipal charter to the contrary, any municipality of this State shall have the power by ordinance to impose and collect a tax, to be paid by the transferor or transferee as determined by the municipality, upon the transfer of real property within the municipality; provided however, that any realty transfer tax which is imposed by any municipal government shall not be greater than 11/2 percent of the value of the real property as represented by the document transferring the property.

(b) Sections 5401 and 5403 of Title 30 shall apply with respect to any realty transfer tax imposed by a municipal government pursuant to authority granted in this section.

(c) Any funds realized by a municipality pursuant to this section shall be segregated from the municipality’s general fund and the funds, and all interest thereon, shall be expended solely for the capital and operating costs of public safety services, economic development programs, public works services, capital projects and improvements, infrastructure projects and improvements and debt reduction.