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SPONSOR: Rep. Hensley & Sen. Hansen
Reps. Michael Smith, Yearick, Harris; Sens. Hocker,
Huxtable, Sokola, Wilson
HOUSE OF REPRESENTATIVES
153rd GENERAL ASSEMBLY
HOUSE BILL NO. 283
AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO THE REALTY TRANSFER TAX.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
1 Section 1. Amend § 5401, Title 30 of the Delaware Code by making deletions as shown by strike through and
2 insertions as shown by underline as follows and renumbering accordingly:
3 § 5401. Definitions [For application of this section, see 81 Del. c. 384, § 3] [Effective until Dec. 4, 2025].
4 As used in this subchapter, except where the context clearly indicates a different meaning:
5 (1) “Document” means any deed, instrument or writing whereby any real estate within this State, or any
6 interest therein, shall be quitclaimed, granted, bargained, sold, or otherwise conveyed to the grantee, but shall not
7 include the following:
8 a. Any will;
9 b. Any lease other than those described or defined in paragraph (5) of this section below;
10 c. Any mortgage;
11 d. Any conveyance between corporations operating housing projects pursuant to Chapter 45 of Title 31
12 and the shareholders thereof;
13 e. Any conveyance between nonprofit industrial development agencies and industrial corporations
14 purchasing from them;
15 f. Any conveyance to nonprofit industrial development agencies;
16 g. Any conveyance between husband and wife; spouses;
17 h. Any conveyance between persons who were previously husband and wife, spouses, but who have since
18 been divorced; provided such conveyance is made after the granting of the final decree in divorce and the real
19 estate or interest therein subject to such conveyance was acquired by the husband and wife, spouses, or husband or
20 wife, spouses, prior to the granting of the final decree in divorce;
21 i. Any conveyance between parent and child or the spouse of such a child;
22 j. Any conveyance between grandparent and grandchild or the spouse of such a grandchild;
23 j. Any conveyance:
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24 1. To a trustee, nominee or straw party for the grantor as beneficial owner,
25 2. For the beneficial ownership of a person other than the grantor where, if such person were the
26 grantee, no tax would be imposed upon the conveyance pursuant to this chapter, or
27 3. From a trustee, nominee or straw party to the beneficial owner;
28 k. Any conveyance between a parent entity and a wholly-owned subsidiary entity; provided such
29 conveyance is without actual consideration;
30 l. Correctional deeds without actual consideration;
31 m. Any conveyance to or from the United States or this State, or to or from any of their instrumentalities,
32 agencies or political subdivisions and the University of Delaware and Delaware State University;
33 n. Any conveyance to or from an entity, where the grantor or grantee owns an equity interest in the entity
34 in the same proportion as the grantor’s or grantee’s interest in, or ownership of, the real estate being conveyed;
35 provided, however, that this paragraph (1)n. shall not apply to any distribution in liquidation or other conveyance
36 resulting from the partial or complete liquidation of an entity, unless the equity interest of the entity being
37 liquidated has been held by the grantor or grantee for more than 3 years;
38 o. Any conveyance by the owner of previously occupied residential premises to a builder of new
39 residential premises when such previously occupied residential premises are taken in trade by such builder as a
40 part of the consideration from the purchaser of new, previously unoccupied premises;
41 p. Any conveyance to the lender holding a bona fide mortgage, which is genuinely in default, either by a
42 sheriff conducting a foreclosure sale or by the mortgagor in lieu of foreclosure;
43 q. Any conveyance to a religious organization or other body or person holding title to real estate for a
44 religious organization, if such real estate will not be used following such transfer by the grantee, or by any privy of
45 the grantee, for any commercial purpose; provided, however, that only that portion of the tax which is attributable
46 to and payable by the religious organization or other body or person holding title to real estate for a religious
47 organization under § 5402 of this title shall be exempt;
48 r. Any conveyance to or from a volunteer fire company, organized under the laws of this State; provided,
49 however, that only that portion of the tax which is attributable to and payable by the volunteer fire company under
50 § 5402 of this title shall be exempt;
51 s. Any conveyance of a “manufactured home” as defined in § 7003 of Title 25, provided tax on said
52 conveyance has been paid under § 3002 of this title;
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53 t. Any conveyance without consideration to an organization exempt from tax under § 501(c)(3) of the
54 federal Internal Revenue Code [26 U.S.C. § 501(c)(3)];
55 u. Any conveyance to a nonprofit conservation organization when the property is purchased for open
56 space preservation purposes;
57 v. Any conveyance to or from an organization exempt from tax under § 501(c)(3) of the federal Internal
58 Revenue Code [26 U.S.C. § 501(c)(3)] when the purpose of said conveyance is to provide owner-occupied housing
59 to low and moderate income households by doing any of the following:
60 1. Rehabilitating residential properties and reselling said properties without profit;
61 2. Constructing residences on properties and reselling the properties without profit;
62 w. Any conveyance between siblings, half siblings, or step siblings;
63 x. Any conveyance to or from a land bank formed under Chapter 47 of Title 31;
64 y. 1. Any portion of a conveyance that meets all of the following:
65 A. The grantee’s intent and obligation is to construct affordable housing units;
66 B. The conveyance is financed using funding provided by the federal government, this State, or a
67 county or municipality of this State for the purpose of constructing affordable housing units;
68 2. For purposes of this paragraph (1)y., “affordable housing units” means residential dwellings for
69 households whose income does not exceed 80% of the median income for the area as defined by the United
70 States Department of Housing and Urban Development.
SYNOPSIS
This Act provides updates to Title 30 relating to the Realty Transfer Tax. First it clarifies that the exception for
spouses is not solely limited between a husband and wife and instead applies to spouses in general. It also adds an
exception for conveyances between grandparents and their grandchildren or the spouse of such a grandchild.
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