Sec. 44-31. - Adoption of county annual and quarterly assessments of municipal property.

The city hereby adopts as its assessment roll for municipal taxation of real property the assessments and supplementary assessments for property in the city as established annually and quarterly by the county board of assessment pursuant to 22 Del. C. ch. 11 (§ 1101 et seq.). The use of the county assessments shall continue in effect from year to year until revoked by ordinance adopted by the council of the city. The functions of the city board of assessment and board of assessment review, the levying of city taxation of real property, and the issuance of tax warrants by the clerk of the council shall continue as heretofore provided by law.

(Code 1968, § 30-2.4; Ord. No. 92-053(sub 1), § 16(e), 7-2-92)

Sec. 44-32. - When due and payable.

All city property taxes shall be due and payable during the months of July and August of each year and without abatement for payment in such months.

(Code 1968, § 30-2.6(a))

Sec. 44-33. - Penalties and interest to June 30, 1990.

A penalty of 1½ percent per month on the unpaid balance shall become due and payable on all taxes not paid on or before August 31 of the year in which the assessment shall have been laid. In addition, interest at the rate of 1½ percent per month shall become due and payable on any such unpaid taxes, including penalties that have been imposed prior to July 1, 1990, not paid on or before August 31 of the year in which the assessment shall have been laid. Such penalty and interest shall be added to the taxes and shall be applicable until all taxes shall have been paid, provided, however, that if real estate is placed on the assessment rolls at any time other than July 1 of any year, such penalty shall become due and payable on all taxes not paid on or before 60 days from the date such real estate has been placed on the assessment rolls.

(Code 1968, § 30-2.6(b))

Sec. 44-34. - Penalties and interest beginning July 1, 1990.

(a)

From and after July 1, 1990, a penalty charge equal in amount to the greater of $10.00 or nine percent of the entire unpaid balance shall become due and payable as of September 15 on all taxes not paid on or before August 31 of the year in which the assessment shall have been laid. In addition, interest shall become due and payable as of the first day of each month on the full amount of any such unpaid taxes, but not including any penalties imposed, at the annual rate of 24 percent on taxes unpaid for up to one year and at the annual rate of 36 percent on taxes unpaid for more than one year, in accordance with the graduated monthly schedule as follows:

Any unpaid penalty for unpaid taxes shall be due and payable as imposed pursuant to the provisions of this subsection, but no interest charges shall be imposed on the amount of such unpaid penalty nor on the amount of any interest charges already accrued. If real estate is placed on the assessment rolls at any time other than July 1 of any year, such penalty and interest charges shall become due and payable and accrue on all taxes not paid on or before 60 days from the date such real estate has been placed on the assessment rolls.

(b)

Waiver of interest and penalties. From and after December 1, 1995, the director of finance or her authorized agent shall be authorized to waive, in whole or in part, interest or penalties, or both which are owed in connection with unpaid property taxes and the property tax, in part or in whole, where the full amount of such tax is determined to be uncollectible and a release of all or part of the tax liability is deemed to be in the best interest of the city, in accordance with and under the following circumstances only:

(1)

When litigation of the amount of taxes due is pending or threatened and waiver of penalty, or interest, or both is proposed as part of the overall settlement of the litigation.

(2)

Where the assessment of interest, or penalty, or both, is based on property taxes assessed in error by the department of finance.

(3)

When the waiver of interest, or penalty, or both, is proposed as part of an agreement by which the entire principal amount of real property taxes shall be paid to the city whether litigation is pending or not.

(4)

When the tax liability, in whole or in part, is proposed to be released where the full amount of such tax is determined to be uncollectible and the release of all or part of the tax liability is deemed to be in the best interest of the city.

The director of finance may promulgate rules and regulations deemed necessary to administer the provisions of this subsection, subject to approval by the administrative board.

(Code 1968, § 30-2.6; Ord. No. 96-002, § 1, 1-19-96)

Sec. 44-35. - Early payment and installment payments of property taxes; alternative methods.

(a)

Authorization. Notwithstanding any provision of this Code to the contrary, any eligible property owner may make alternative early payment arrangements for real property taxes for the next fiscal year in full accord with the otherwise applicable provisions related to payment of taxation. Three alternative methods of early payment are authorized:

(1)

A lump sum payment, or three equal payments; or

(2)

Six equal monthly installments.

The city will credit the property owner with interest earned each month on taxes that have been paid in advance at a rate that is not more than 1½ percent below that which the city at that time earns on its funds.

(b)

Alternative methods. Pursuant to the provisions of this section, a property owner, who or which is eligible by virtue of not being delinquent in payment of any tax or any other billing due and owing to the city, may make arrangements with the department of finance in writing for payment of property taxes in advance of and for the next ensuing fiscal year by any of the following methods:

(1)

One lump sum payment of taxes by January 31 for the fiscal year that begins the following July 1.

(2)

Three payments each equal to one-third of the total amount of tax, so long as the payments are made by January 5, February 5, and March 5 for the fiscal year that begins on the following July 1.

(3)

Six payments, each equal to the amount of one-sixth of the total amount of tax, each of which payments shall be due on the fifth day of each of the six months from January to June for the taxes for the fiscal year that begins on the following July 1.

(c)

Billing statement. The department of finance shall develop a form or forms for use by taxpayers or their authorized agents or representatives for early payment of taxes pursuant to this section. Such forms shall be available at the revenue division offices and shall be provided on request to taxpayers or their agents or representatives. Each property tax bill prepared in connection with the provisions of this section shall state clearly the alternative methods of payment in this section authorized in substantially the following language:

Disclosure: If you wish to pay this entire tax bill at one time, payment of $____________ must be made by January 31. If you choose to spread payments over three months, payments of $____________ each must be made by January 5, February 5, and March 5. If you wish to spread payments over six months, monthly payments of $____________ must be made by the fifth day of each month, beginning in January and ending the following June 5.

(d)

Rules and regulations. The department of finance is hereby authorized to promulgate any rules and regulations it deems necessary in connection with the administration and enforcement of the provisions of this section, subject to approval by the administrative board.

(Code 1968, § 30-2.7; Ord. No. 92-053(sub 1), § 1(d), 7-2-92)

Section 44-36. - Limitation of

actions.

Any personal action to recover any city property tax imposed by the city shall be begun within six years after such tax is due, or within six years after a return or report has been filed, whichever date is later.

(Ord. No. 96-002, § 1, 1-19-96; Ord. No. 02-073, § 1, 8-29-02)

Section 44-37. - Contributions for municipal street improvements.

(a)

Authorization. From and after July 1, 1996, the city shall establish and maintain a street improvements fund to accept and receive donations from corporations, owners of real property located within the city and other members of the public. Amounts contributed to the street improvements fund shall be used and applied in the fiscal year received or, in the discretion of the city, in future years in the city's six-year capital program, solely for the purpose of making street and related improvements within the city, including without limitation the paving or repaving of city streets, curbs and sidewalks, improvements to street lighting, traffic signals and signage, landscaping on publicly owned property contiguous to city streets, and provision of amenities such as benches and trash receptacles. All projects financed through the street improvements fund shall be located on city owned property, shall be on or contiguous to streets open to the general public and shall be for exclusively public purposes, and not for the benefit of any private individual, corporation or other entity. Unless specifically earmarked by the contributor with the consent of the city, acting through its department of public works, funds contributed to the street improvements fund may be used for such street improvement projects as determined by the city in accordance with this section. It is intended that the street improvements fund be operated and maintained in such manner that contributors donating funds may treat such donations as charitable contributions deductible for federal income tax purposes to the extent permitted under Section 170 of the Internal Revenue Code of 1986, as amended.

(b)

Rules and regulations. The department of public works, the finance department and the city treasurer's office are hereby authorized to promulgate such rules and regulations as may be deemed necessary to administer the terms and conditions of the municipal street improvements program hereby authorized, subject to the approval of the administrative board.

(Ord. No. 96-017(sub 1), § 1, 5-7-96)

Sec. 44-38. - Credits for and interest on tax overpayments.

(a)

If an assessment appeal results in a reduction in the assessed value of any real property, which reduction results in an overpayment of taxes for any tax year for which the reduction is applicable, the property owner shall not be entitled to a refund of such tax overpayment. Any such overpayment shall be a credit to the property owner's tax account and will offset any subsequent tax obligation with respect to that property.

(b)

Simple interest shall accrue on any tax credit arising under this section as of the date of a payment of taxes under protest and continuing until the date on which the principal amount attributable to the overpayment is credited to the property owner's tax account. A payment under protest shall mean any payment of taxes remitted to the city for any fiscal year for which a reduction in tax assessment shall be applicable. Interest shall be paid at the rate of six percent per annum. Such interest shall also be a tax credit, provided, however that no further interest shall be paid on any such portion of a tax credit. In the event that a property owner does not pay the taxes when due, then penalty and interest shall accrue on such delinquent taxes based on the property assessment at that time and not on the basis of a subsequent reduction in assessment resulting from the appeal.

(c)

Tax credits shall be applied first to any outstanding tax balance on the property upon which they accrued. Any credit remaining of record and any accrued interest thereon shall be applied to any tax levied thereafter, and shall be credited as of the date upon which the obligation first constitutes a lien against the real property against which it is billed. The principal amount of any credit shall be applied to subsequent obligations and, after all principal has been credited, the accrued interest shall be applied in the same manner.

(d)

Subject to written application made to and approval by the director of finance, the city may pay to the property owner, the amount of interest that is due on an authorized refund, instead of applying that interest as a tax credit.

(e)

The provisions of this section shall be applicable to appeals which have resulted in reductions of assessed value of real property for the tax years commencing July 1, 1994, July 1, 1995 and July 1, 1996, and July 1 of each tax year thereafter, provided that a written request for interest has been delivered to the director of finance, which request shall include a copy of the final order which resulted in the reduction of assessed value of the subject property.

(Ord. No. 96-084(sub 1), § 1, 12-19-96)

Sec. 44-39. - Charter school registration—Real property tax.

All charter schools established in accordance with 14 Del.C. Ch. 5 § 501 et seq. and operating within the city, shall register with the city finance department on an annual basis, so that all applicable real property taxes can be assessed in accordance with this chapter. Such registration information shall be provided in accordance with such to rules as may be set forth by the department of finance. The annual registration for each charter school shall be a pre-requisite to obtaining the requisite annual business license or business license renewal. The finance department shall file quarterly reports with the city council concerning the charter school registrations during each quarter of the calendar year.

(Ord. No. 99-138, § 1, 1-6-00)

Sec. 44-40. - Fees and costs incurred for collection of delinquent taxes and water and sewer service charges.

The department of finance shall assess and collect the following fees and costs in all actions to collect delinquent taxes and water and sewer service charges:

(1)

Description of metes and bounds of property subject to the lien .....$25.00

(2)

Title search .....150.00

(3)

"Bring down" title search for title subsequent to the title search referred to in (2) .....75.00 each

(4)

Pleadings relating to collection actions .....50.00

(5)

Mailing of notice to property
owners and lienholders
per notice mail .....10.00

(6)

Any legal documents not referenced in (4) .....50.00

(7)

Stay of sheriff's sale .....25.00

(8)

Posting any property with legal notice .....50.00

(9)

Satisfaction of judgment .....50.00

(Ord. No. 04-058, § 1, 8-19-04)

Secs. 44-41—44-50. - Reserved.