AN ORDINANCE: TO IMPOSE A REAL ESTATE TRANSFER TAX OF 1% OF THE VALUE OF THE PROPERTY CONVEYED IN CONFORMANCE WITH THE DEFINITIONS AND EXCEPTIONS GOVERNING THE DELAWARE STATE REALITY TRANSFER TAX AS CONTAINED WITHIN CHAPTER 54 OF TITLE 30 OF THE DELAWARE CODE.
Be it hereby enacted by the Town Council of the Town of Kenton, a majority thereof concurring in Council duly met, that the following Ordinance be adopted.
Section 1. Imposition of Tax
There is hereby imposed upon the transfer of all real property located within the Town limits of the Town of Kenton (as they now or hereafter exist) a tax of 1% of the value of the property conveyed in conformance with the definitions and exceptions governing the Delaware State Reality Transfer Tax as contained within Chapter 54 of Title 30 of the Delaware Code.
Section 2 Effective date; Exceptions.
This Ordinance shall be effective immediately upon adoption. Notwithstanding the effective date of this Ordinance, the transfer of any real property within the Town of Kenton pursuant to a valid writted contract entered into prior to the effective date of this Ordinance shall be exempt from the provisions hereof.
Section 3 Duty to pay Tax
It shall be the ultimate responsibility of the grantee in any transaction subject to this Ordinance to see that the appropriate amount of tax is collected and paid no later than the presentation of the document involved in such transaction for recording at the appropriate Recorder of Deeds office. Upon receipt of the appropriate amount, the Town Office or its duly authorized agent shall, upon the document relating to such transaction, confirm that the Kenton Reality Transfer Tax imposed by this Ordinance has been paid.
The Town may appoint the Kent County Recorder of Deeds or any attorny-at-law as the duly authorized agent to collect the Reality Transfer Tax imposed by this Ordinance and to confirm such payment on the face of the document presented for recording.
Section 4 Failure to pay Reality Transfer Tax; Interest; Penalties, Liens
Where any real property within the Town of Kenton is transferred without payment of the appropriate Real Estate Transfer Tax in violation of this Ordinance:
(a)the amount due shall bear interest at the rate of 1% per month commencing with the date that such document is duly recorded in the Recorder of Deeds office of the appropriate county and the grantor and grantee in such transaction shall be personally liable for the full amount of such tax plus all accrued interest to date of payment jointly and severally.
(b)the amount of such tax, together with the accrued interest thereon shall constitute a charge or assessment against the property so transferred and shall be a lien against the property so transferred in accordance with the procedures set forth in the Town Charter of the Town of Kenton and/or in accordance with the procedures set forth in the general statutes of the State of Delaware regarding municipal liens.
(c)where any document involved in a transaction subject to the tax imposed by this Ordinance is recorded without payment thereof, the grantee shall, upon conviction by any court of competent jurisdiction, pay a civil penalty not less than $100.00 nor more than $300.00 plus court costs.
Section 5 Construction, Operation and Interpretation
This Ordinance shall be applied, construed and interpreted according to the provisions of the Delaware State Realty Transfer Tax as set forth in 30 Del. C Chapter 54 as it may have heretofore been or is hereafter amended, it being the intent of this Ordinance that it “piggyback” on the Delaware Realty Transfer Tax; provided however that:
(a) in applying the provision of the Delaware Realty Transfer Tax statute through this Ordinance, the “Town of Kenton” shall be substituted (where appropriate) for the “State of Delaware”, “Department of Finance”, “Divison of Revenue” or the like.
(b) Sections 5405, 5408, 5412, 5414, and 5415 of Title 30 of the Delaware Code, and any future corresponding provision of law, shall not apply. Additionally, Subchapter II of Chapter 54 of Title 30 of the Delaware Code, and future corresponding provisions of law, shall not apply.
(c) The “unlawful acts” set out at Section 5410 of Title 30 of the Delaware Code shall, to the extent applicable to the Town Ordinance and not otherwise superceded hereby, likewise be unlawful acts under this Ordinance, conviction for which shall result in a fine of not less than $50.00 nor more than $100.00.
(d) Where any provision of Chapter 54 of Title 30 of the Delaware Code is inconsistent with this Ordinance, the provisions of this ordinance shall control; and wherever any provision of Chapter 54 of Title 30 of the Delaware Code is not applicable or appropriate, it shall be disregarded or construed so as to best achieve the purpose of this Ordinance which is that whenever a Realty Transfer Tax becomes due to the State of Delaware under Chapter 54 of Title 30 of the Delaware Code, a Realty Transfer Tax of one percent (1%) shall likewise become due to the Town of Kenton.