AN ACT TO AMEND TITLE 30, DELAWARE CODE RELATING TO LICENSE FEES AND GROSS RECEIPTS TAX.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend §2502(c)(1), Title 30, Delaware Code, by striking the figure "65/100 of I percent" as it appears therein and inserting in lieu thereof the figure "0.624%".
Section 2. Amend §2907(c)(1), Title 30, Delaware Code, by striking the figure "NO of I percent" as it appears therein and inserting in lieu thereof the figure "0.096%".
Section 3. Amend *2903(0(1), Title 30, Delaware Code, by striking the figure "2/10 of I percent"-as it appears therein and inserting in lieu thereof the figure "0.192%".
Section 4. Amend §2301"181), Title 30, Delaware Code, by striking the figure "4/10 of 1 percent" as it appears therein and inserting in lieu thereof the figure "0.384%".
Section 5. Amend §2702(b)( I), Title 30, Delaware Code, by striking the figure "1/4 of I percent" as it appears therein and inserting in lieu thereof the figure "0.240%".
Section 6. Amend *2902(0(1), Title 30, Delaware Code, by striking the figure "4/10 of I percent" as it appears therein and inserting in lieu thereof the figure "O.384%".
Section 7. Amend §2904(c)(1), Title 30, Delaware Code, by striking the figure "1/10 of I percent" as it appears therein and inserting in lieu thereof the figure "0.096%".
Section 8. Amend §2905(b)(1), Title 30, Delaware Code, by striking the figure "75/100 of I percent" as it appears therein and inserting in lieu thereof the figure "0.720%".
Section 9. Amend §2906(c)(1). Title 30, Delaware Code, by striking the figure "65/100 of 1 percent" as it appears therein and inserting in lieu thereof the figure "0.624%".
Section 10. Amend §4305(b), Title 30, Delaware Code, by striking the figure "1/10 of 1%" as it appears therein and inserting in lieu thereof the figure "0.288%".
Section 11. Amend §4302(a), Title 30, Delaware Code, by striking the figure "2%" as it appears therein and inserting in lieu thereof the figure "I.920%".
Section 12. Amend §2902(c)(3), Title 30, Delaware Code, by striking the figure "25 percent" as it appears therein and inserting in lieu thereof the figure "0.240%".
Section 13. Amend §2905(g), Title 30, Delaware Code, by striking the figure "75/100 of I percent" as it appears therein and inserting in lieu thereof the figure "0.720%".
Section 14. Amend Chapter 29, Title 30 of the Delaware Code, by designating § 2908 as new § 2909 of said chapter.
Section 15. Amend Chapter 29, Title 30 of the Delaware Code, by adding to said chapter a new § 2908 to read as follows:
"§ 2908 Grocery supermarket retailers, (a) Every person engaged in the business of operating a retail grocery supermarket shall be exempt from the provisions of §2905 of this title and shall be subject to the provisions of this section with regard to the retail sales of such store. For purposes of this section, a grocery supermarket shall mean a retail store with an area of more than 6,000 square feet and whose primary business is selling food for human consumption having on stock available for retail sale and purchase at least 12,000 different food stock units ('SKU's') at least 90% of whose sales of food suitable for human consumption consists of food that is not immediately consumable.
For purposes of this section, not immediately consumable' shall be defined as any product purchased at the grocery store that is intended for consumption at home in which some preparation or cooking is necessary. Notwithstanding and in addition to this definition, the following products shall be considered not immediately consumable: frozen ice cream, frozen or refrigerated yogurt, all fresh fruits and vegetables, deli products sold by the pound or packaged on the shelf, cooked shrimp or other seafood sold by the pound, bottled or canned sodas including bottled waters, all snack foods such as but not limited to potato chips, cookies, and packaged candies, refrigerated dairy products, bakery goods, dry foods sold in bulk by the pound, and any other food item that is generally consumed at home.
(b) All persons defined in subsection (a) of this section desiring to engage in business in this State shall obtain a license upon making application to the Division of Revenue and paying a fee of $75 plus $25 for each separate branch or location. If monthly payments thereafter are made in accordance with subsection (c) of this section, such license shall be valid through December 31 at which time it may be renewed for a full year and every year thereafter; provided that the grocery store retailer makes application therefor and payment of $75 plus $25 for each separate branch or location.
(c) In addition to the license fee required by subsection (b) of this section every grocery store retailer shall pay a license fee at the rate of 0.384% of the first $2 million per month and 0.720% thereafter of the aggregate gross receipts attributed to all goods sold within the State, which fee shall be payable monthly on or before the 20th day of each month with respect to the aggregate gross receipts of the immediately preceding month. In computing the fee due on the aggregate gross receipts for any month, there shall be allowed a deduction of $35,000. Solely for purposes of determining the rate of taxation and the monthly exclusion under this subsection but not for determining the applicability of the definition of 'grocery supermarket,' all branches or entities comprising an enterprise with common ownership or common direction and control shall be considered as one. The monthly returns shall be accompanied by a certified statement on such forms as the Division of Revenue shall require in computing the fee due."
Section 16. This Act shall be effective for license years beginning and gross receipts received after December 31, 1996.
Section 17. Except as provided in Section 18, if any provision of this Act or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the Act which can be given effect without the invalid provision or application, and to this end the provisions of this Act are declared to be severable.
Section 18. Should Section 1-5 of this Act or its application to any person business or circumstance be found invalid or in conflict with the Delaware or United States Constitutions, such invalidity shall render Section 15 in its entirety ineffective with regard to any person or business licensed under the provisions of this Act. Further, such ineffectiveness shall be deemed to occur as of the effective date of any such finding of invalidity with regard to any person or business, and any business licensed and paying tax under this Act shall forthwith make remittance to the Division of Revenue of the amount of the difference between the rate determined under this Act and the amount of tax that would have been paid in the absence of this Act for the entire time of licensure under this Act together with interest determined in accordance with the statutory rate applied to underpayments of tax, notwithstanding any otherwise applicable period of limitations.
Approved July 11, 1996