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6 <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 />