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<br />19 <br />(3) securing indebtedness; or <br />(4) recording a transfer in which no consideration is due <br />the transferor by the transferee. <br />In addition, this tax does not apply to conveyances of an <br />interest in real property by operation of law, by will, by <br />intestacy, by gift, by merger or consolidation. <br />(c) Collection. A tax levied under this section is payable <br />by the transferor of the interest to the Orange County Director <br />of Revenue. The transferor in the case of a Sheriff's deed is <br />herein defined to be the "debtor" whose property is sold pursuant <br />to judicial process. The Sheriff is hereby authorized to pay the <br />tax on behalf of the debtor/transferor and to charge the tax <br />levied under this section to the account of the debtor as a cost <br />of sale. This tax shall be paid at the office of the Director of <br />Revenue before the instrument conveying the interest is recorded. <br />The Director of Revenue shall have the authority to require any <br />documentation, including an affidavit of value, the Director of <br />Revenue deems necessary to establish the accuracy of the tax to <br />be paid. The Director of Revenue shall stamp or otherwise mark <br />each instrument subject to the tax to indicate that the tax has <br />been paid. The Orange County Register of Deeds may not accept <br />for recordation an instrument subject to a tax levied under this <br />section unless the instrument bears the mark of the Director of <br />Revenue indicating that the tax has been paid. <br />(d) Use and Distribution of Tax Revenue. Orange County may <br />retain in its general fund three percent (3~) of the gross <br />proceeds of the tax as costs of collection. The remaining <br />proceeds of the tax shall be retained by the County and placed in <br />a Capital Reserve Fund to be expended only for capital projects, <br />including debt service for capital projects. All interest earned <br />from investment of the funds in the Capital Reserve Fund shall be <br />held and expended only in accordance with the provision of this <br />subsection. <br />(e) Penalties. A person who knowingly fails or refuses to <br />pay a tax levied under this section, who knowingly aids another <br />to fail to pay a tax levied under this section, or who, to avoid <br />paying part or all of the tax due under this section, knowingly <br />misstates the total consideration for an interest conveyed is <br />guilty of a Class 3 misdemeanor and is punishable by imprisonment <br />as provided by law and a fine of not less than one hundred <br />dollars ($100.00) nor more than the amount of tax that is due and <br />payable. <br />(f) Taxes Recoverable by Action. If a transferor fails to <br />pay a tax imposed by this section within 30 days of the Revenue <br />Director's demand that the transferor pay the tax, the tax may be <br />recovered by Orange County in an action brought in the General <br />Court of Justice, Superior or District Court, of the county. In <br />an action to recover a tax imposed under this section, costs of <br />