Delaware General Assembly

Lieu/Substituted 5/17/23

Adopted in Lieu of original; takes status of original

SS 1 for SB 87

4/19/23

Huxtable

Sen. Lockman
Reps. Baumbach, Bush, K. Johnson, Parker Selby

Sen. Hoffner, Pinkney, Townsend
Reps. S. Moore, Ramone

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO THE REALTY TRANSFER TAX.

This Act makes the following changes to the realty transfer tax: (1) Clarifies that the exemption from the realty transfer tax for conveyances to or from an organization exempt from tax under § 501(c)(3) of the federal Internal Revenue Code when the purpose of the conveyance is to provide owner-occupied housing to low and moderate income households applies to rehabilitating residential properties and reselling the properties without profit and to constructing residences on properties and reselling the properties without profit. (2) Exempts any portion of a conveyance in which it is the grantee’s intent to construct affordable housing units and the conveyances are financed using funding provided by the federal government, this State, or a county or municipality of this State for the purpose of constructing affordable housing units, defined as a residential dwelling for a household whose income does not exceed 80% of the median income for the area as defined by the United States Department of Housing and Urban Development. (3) Exempts any portion of a conveyance financed through the federal Low Income Housing Tax Credit program. (4) Clarifies that individuals are first-time homebuyers if they intend to occupy the property being conveyed as their principal residence after the construction of a residence on the property to include circumstances where the residence cannot be built within 90 days after the property is purchased. This Act corrects the first-time homebuyer definition related to individuals purchasing as joint tenants or cotenants to replace “none” with “neither” to conform the number of joint tenants or cotenants indicated by the indefinite pronoun to the number indicated by the use of “both” later in the sentence. This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.

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Takes effect upon being signed into law

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