Delaware Realty Transfer Tax - Declaration For Building Permit

Realty Transfer Tax - Declaration For Building Permit
Form 5401(8)BP
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STATE OF DELAWARE
REALTY TRANSFER TAX

FORM 5401(8)BP
PAGE 1

DECLARATION FOR BUILDING PERMIT
DECLARATION YEAR

1. Name and address of owner of land	
ing
or building for which Building Permit is

12

31

YY

Print Form

FOR AGENCY USE ONLY
Building Permit #:
Building Permit Value:

3. Tax Parcel/Property I.D. number and
address of realty for which Building

4. Name and address of person applyfor Building Permit if different from

2. SSN of person identified in Item #1.						

5. SSN of person identified in Item #4.

or Federal EIN.								

or Federal EIN, if different from Item #2.

IF YOU CLAIM AN EXEMPTION FROM THIS TAX, PLEASE COMPLETE PAGE 1.
IF YOU DO NOT CLAIM EXEMPTION, PLEASE COMPLETE PAGE 2.
6. If you answer “YES” to 6A, 6B, or 6C, you may stop and sign at Item 9. If you answer “NO”, please continue filling out the form.
	
	
	

A.

Is the cost of all contracts for all phases of this construction alteration or addition less than $10,000? (The total cost must
include all contracts entered into after September 1, 1990, and all materials supplied after that date, to the extent such
materials are not required to be supplied in a contract entered into before September 1, 1990.)	
YES	
NO

B.

Is this an application by a builder or developer for a building permit in order to construct, alter,
or add to a building for resale on land owned by the builder developer?	
			

YES 	

NO

	

IF YES, enter your State of Delaware’s Contractor’s License Number here:
Is this construction totally governed by contracts or agreements entered into before September 1, 1990?	
YES
NO
	
For purposes of this form, “contract” includes the purchase of goods by the owner of the property. Thus, you must answer
	
NO if you intend to purchase supplies or materials after September 1, 1990: apart from supplies or materials required to be
	
supplied under any agreement or undertaking entered on or before September 1, 1990.
D. Is the Building Permit requested for construction or alteration of, or addition to, a “ building” - a structure having a roof
supported by columns or walls?	
YES
NO IF NO, YOU MAY STOP HERE AND SIGN AT ITEM 9 ON PAGE 1.
	
							
IF YES, GO TO ITEM 7 BELOW.
7. A.	
Please check box if the property has been owned for more than one year prior to entering into a construction contract.
	
YOU MAY STOP HERE AND SIGN AT ITEM #9 ON PAGE 1.
Date on which ownership in realty on which construction, alteration or addition is intended was transferred (settlement date) to
	
	
owner identified in Item #1.
B. Date on which contract for this construction was entered into or labor or materials were first supplied, whichever date occurred
	earlier:
C.

IF DATE IN ITEM 7 “B” IS LATER THAN ONE YEAR AFTER DATE INDICATED IN ITEM 7 “A”, YOU MAY STOP HERE AND
SIGN AT ITEM #9 ON PAGE 1.
8. Do you claim exemption from this tax on grounds other than those described above? If so, please indicate basis for exemption.
below. (Subsequent construction is exempt if transfer of realty on which construction is to occur was exempt, but specific
exemption must be stated.)
PLEASE SIGN AT ITEM 9 BELOW. IF YOU CANNOT CLAIM EXEMPTION ABOVE, YOU MUST COMPLETE PAGE TWO AND
		
SECURE VALIDATION OF TAX PAYMENT FROM THE DELAWARE DIVISION OF REVENUE
9. Subject to the penalties of perjury, I swear or affirm the foregoing is true and correct to the best of my knowledge and belief.

Owner’s Signature			

(Revised 08/2017)

	

Print Name				

Date

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STATE OF DELAWARE

FORM 5401(8)BP
PAGE 2

Name of Owner: 							

SSN or Federal EIN:

1. (a) Is the Building Permit applied for solely for alteration of or addition to an existing building?
YES	
NO
If NO, go to ITEM #2.
	
(b) If YES, enter the value at the time of conveyance for realty tax purposes of land and structure on which construction is
intended, and go to ITEM #2................................................................................................... $
2. Enter amount of money paid or to be paid under any and all contracts which (a) pertain to
all phases of the construction or alteration of, or addition to, the building for which this
Building Permit is sought; and (b) were entered into after September 1, 1990. Include all
Purchases of supplies to the extent not required under contracts entered into on or before
September 1, 1990. ......................................................................................................................

$

3. (a) Subtract 10,000 from the amount entered in item #2 and enter result here: ............................ $
(b) If item 1(a) is answered “YES,” is the amount entered in Item #2 less than 50% of the
amount entered in item #1 (b)?	
YES
NO
			
IF YES, YOU MAY STOP HERE AND SIGN BELOW.
(c) IF EITHER Item #1(a) OR Item #3(b) is answered NO, multiply the amount entered in
Item #3(a) by 2% (.02) and enter result here: ............................................................................. $
(d) Have you previously paid a realty transfer tax on FORM 5401(8)BP relative to this or
other phases of the same construction?	
YES
NO
If YES, please attach copy of earlier FORM 5401(8)BP. Amount paid with earlier FORM
5401(8)BP: .................................................................................................................................. $
(e) Subtract amount entered on line #3(d) from amount entered on line #3(c) and enter
	
the difference here: .................................................................................................................... $
YOU MUST PAY THE AMOUNT ON LINE 3(e) TO THE STATE OF DELAWARE DIVISION
OF REVENUE PRIOR TO BEING ISSUED THE BUILDING PERMIT.
NOTE: YOU MAY OWE AN ADDITIONAL AMOUNT TO THE MUNICIPALITY ISSUING
THE BUILDING PERMIT.
4. Subject to the penalties of perjury, I swear or affirm the foregoing is true and correct to the best of my knowledge and belief.

Owner’s Signature

Print
DELAWARE DIVISION OF REVENUE FORM 5401(8)BP
Form 5401(8)BP implements an Act of the Delaware General Assembly, which provides a realty transfer tax (at a rate of
1% against amounts exceeding $10,000) on the value at a cost of construction or alteration of, or addition to, buildings
on property that was transferred to the grantee within one year prior to the issuance of the building permit for such
construction, etc. In the case of alterations of, or additions to existing buildings, the tax applies only if the cost of the
alteration or addition exceeds 50% of the value for realty transfer tax purposes, of the realty on which the construction
etc., is to occur. No tax is imposed on construction when the conveyance of the realty was itself not subject to the realty
transfer ACT.
The Act is effective for all contracts entered into after September 1, 1990, for which building permits or certificates of
occupancy are sought after that date. The Act does not pertain to the application for a building permit by a builder or
developer who acquires the realty with the intention of erecting improvements for resale.
If you have any questions regarding the completion of this form, please contact one of our offices:
Delaware Division of Revenue
Thomas Collins Building
Route 13, Dover, DE 19901
(302) 744 - 1085
(Revised 11/2017)

Delaware Division of Revenue
820 N. French Street
Wilmington, DE 19801
(302) 577 - 8455

Delaware Division of Revenue
20653 DuPont Blvd., Suite 2
Georgetown, DE 19947
(302) 856 - 5358

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