Statewide Realty Transfer Tax Increase
July 5, 2017
Publication| Real Estate Services
As a part of the Delaware state budget process for the new fiscal year, the General Assembly approved House Bill 279, which increases the realty transfer tax payable to the State of Delaware by an additional 1%. The effect is to increase the aggregate transfer tax due on the sale of real property in Delaware to 4% of the value of the property being transferred. It is expected that the Governor will sign this bill soon as it is part of the revenue side of the new state budget. Assuming the bill is signed into law, the new transfer tax will be effective August 1, 2017; however, it does not apply to the transfer of real estate pursuant to contracts entered into before that date. Accordingly, parties who are in the midst of negotiating a contract for the purchase and sale of real estate in Delaware should be mindful of the looming deadline of August 1 when the transactional costs for that sale will increase by 1% of the purchase price.