CHAPTER 136
AN ACT TO AMEND TITLES 30, 28, 21 AND 4 OF THE DELAWARE CODE ACCOMPLISHING A GENERAL REVISION OF STATE BUSINESS TAXES BY INCREASING THE RATES OF CERTAIN TAXES, INCLUDING ADDITIONAL SUBJECT MATTER FOR TAXATION, INCLUDING CERTAIN ADDITIONAL PERSONS OR OPERATIONS SUBJECT TO LICENSING REQUIREMENTS AND TAXATION, AND PROVIDING FOR THE ADMINISTRATION AND ENFORCEMENT THEREOF, BY AUGMENTING AND AMENDING IN TITLE 30 CERTAIN PROVISIONS OF CHAPTER 19 RELATING TO CORPORATION INCOME TAXES, CHAPTER 21 RELATING TO GENERAL PROVISIONS, CHAPTER 23 RELATING TO OCCUPATIONAL LICENSES, CHAPTER 25 RELATING TO CONTRACTORS' LICENSE TAX, CHAPTER 27 RELATING TO MANUFACTURERS' LICENSE TAX, CHAPTER 29 RELATING TO WHOLESALERS AND RETAILERS' LICENSE TAX, CHAPTER 30 RELATING TO MOTOR VEHICLE DOCUMENT, HANDLING AND LICENSE FEES, CHAPTER 43 RELATING TO PERSONAL PROPERTY LEASING TAX, AND IN TITLE 28 CERTAIN PROVISIONS RELATING TO HARNESS RACING, IN TITLE 21 PROVISIONS RELATING TO MOTOR VEHICLE REGISTRATION, IN TITLE 4 PROVISIONS RELATING TO ALCOHOLIC BEVERAGES, AND BY BOARDENING CERTAIN CRIMINAL VIOLATIONS RELATING TO ENFORCEMENT OF SUCH TAXES.
Be it enacted by the General Assembly of the State of Delaware:
Section 1. Section 1902 (a), Chapter 19, Title 30, Delaware Code, is amended by striking therefrom the phrase "five percent" and substituting in lieu thereof the phrase "six per cent".
(a) The "entire net income" of a corporation for any income year means the amount of its federal taxable income for such year as computed for purposes of the federal income tax increased by any interest income (including discount) on obligations issued by states of the United States or political subdivisions thereof other than the State of Delaware and its subdivisions, and adjusted by eliminating-
1. any deduction for the tax imposed by this chapter or for any net operating loss sustained prior to January 1, 1958;
2. dividends received on shares of stock, or voting trust certificates, of foreign corporations for which foreign tax credit is provided under the applicable provisions of the United States Internal Revenue Code;
3. interest income (including discount) from securities issued by the United States or agencies or instrumentalities thereof, and interest income arising from obligations representing advances or loans between corporations which are members of an affiliated group of corporations, as defined in section 1906 of this title, if the debtor corporation eliminates such interest in determining its entire net income;
0. gains and losses from the sale or other disposition of securities issued by the United States agencies or instrumentalities thereof of the State of Delaware or political subdivisions thereof.
Section 3. Section 1903 (b), Chapter 19, Title 30, Delaware Code, is amended by striking and repealing paragraph 5 thereof and by renumbering paragraphs "6" and "7" as paragraphs "5" and "6" respectively.
Section 4. Section 2102, Chapter 21, Title 30, Delaware Code, is amended to read as follows:
All State licenses with the exception of liquor, automobiles, motorcycles, operators, stallion or jackass, circus, carrying deadly weapons, oysters or clams, and marriage licenses shall expire annually upon the last day of June next succeeding the date of issue, unless otherwise provided by law.
Section 5. Section 2103, Chapter 21, Title 30, Delaware Code, is amended to read as follows:
§ 2103. Duties of the Tax Department; adoption of rules and regulations; penalty
(a) The Tax Department shall keep a record of all licenses. All provisions of law relative to the duties and powers of the Auditor of Accounts in auditing and adjusting accounts shall apply with equal force and effect to the Tax Department relative to the licenses mentioned in this title.
b) The State Tax Commissioner shall have the power and authority to make, issue, promulgate, and enforce such rules and regulations which shall not be inconsistent with the law as he shall deem necessary for the enforcement, administration, and implementation of this Part. Without limiting the generality of the foregoing grant of power to the State Tax Commissioner, he shall have the following specific powers.
1. the power to examine the books and records of all persons subject to this Part or believed to be subject to this Part;
2. the power to subpoena and examine witnesses;
3. the power to require reports and the furnishing of information by the taxable or any other person;
4. the power to issue forms and to require compliance with such forms as to the furnishing of information;
5. the power to interpret the application of the provisions of this Part in specific situations for the purpose of requiring maximum yield of taxation consistent with fairness and equity.
(c) A failure to deposit to the credit of the General Fund of the State all money received for fees or taxes as required by law, shall render the State Tax Commissioner liable for money due the State, and, in addition, he shall be fined not more than $1,000 or imprisoned not more than one year, or both.
(d) Except as otherwise specifically provided in this Part, as soon as practical after any return, license application or statement in connection with any license fee is filed, the Tax Department shall examine the same and verify the correctness of the computation of the fee payable thereon and ascertain whether or not the amount submitted is the proper fee.
(e) If the Tax Department discovers from the examination of the return, license application, statement or otherwise that the license fee or tax or any portion thereof has not been paid, it may, at any time within three years from the August 1 following the June 30 expiration date of the license to which the return, license application or statement relates, assess the amount due on the same and give notice to the person to which the license relates of such assessment; and at the termination of 30 days from the date of such notice, the additional amount due determined by the Tax Department shall be due and payable unless the person so notified, or his agent or attorney, shall have, within the aforesaid 30 days, filed a complaint or appeal in writing over his signature from the assessment of the Tax Commissioner and request a hearing before the Tax Board. The limitation of three years to the assessment of such additional amount due shall not apply to the assessment of additional amounts due upon returns, license applications or statements which are fraudulent; or where no such returns, license applications or statements have been filed; or where the amounts shown on said returns, license applications or statements are grossly understated.
(f) For purposes of subsection (e), the word "person" shall have the same meaning as the definition contained in section 2701 of Chapter 27 of this Part.
Section 6. Section 2105, Chapter 21, Title 30, Delaware Code, is amended to read as follows:
§ 2105. Civil penalties and interest for nonpayment or delayed payment of license taxes
In addition to the criminal penalties provided under Section 2119, failure to pay the fees or the tax required under any of the provisions of this Part at the time when the same shall be due shall subject the taxable to a liability for interest at the rate of one per cent per month on the principal amount due and a civil penalty of five per cent per month upon the principal amount due up to a maximum total penalty of one hundred per cent of the principal amount due and payable.
Section 7. Section 2108, Chapter 21, Title 30, Delaware Code, is amended to read as follows:
§ 2108. Claims for refund
(a) Except as otherwise specifically provided in this Part, any person may submit to the Tax Commissioner, Tax Board and the Superior Court, in the order named, as provided, a Claim for Refund of any tax or license fee imposed by this Part alleged to have been erroneously or illegally assisted or paid; or of any interest or penalty alleged to have been collected without authority; or of any sum alleged to have been excessive; or in any manner wrongfully collected from such person at any time within three years from the August 1 following the June 30 expiration date of the license to which such payment relates; or 30 days from the date of payment of any such amount, whichever is later.
() If the Tax Commissioner fails to act upon or reject any claim referred to in subsection (a) hereof within 60 days from the filing of such claim, the person filing such claim shall, from the last day of such 60-day period, have 30 days in which to file a complaint or appeal in writing over his signature, or the signature of his agent or attorney, incorporating the Claim for Refund with the Tax Board.
(a) For purposes of this section, the term "person" shall have the same meaning as the definition contained in Section 2701, Chapter 27, of this Part.
Section 8. Section 2114, Chapter 21, Title 30, Delaware Code, is amended to read as follows:
§ 2114. Additional licenses for more than one occupation or business
(a) In each case where more than one occupation or business for which a license is required is carried on by the same person at the same time, a license must be taken out for each such occupation or business. Where any provision of this Part is based upon a percentage of the volume of the business of a taxpayer as defined in any chapter of this Part, nothing contained in this Part shall be construed to require the imposition of more than one tax or license fee upon such volume where the same goods, product or services are involved in the activity of the same taxpayer; provided, however, subject to the provisions of Section 2908, where the taxpayer is engaged in separate occupations or businesses covered by this Part, the volume of each such separate occupation or business of the taxpayer covered by any provisions of this Part shall be taxed or subject to a license fee at least once and at the highest rate applicable to such occupation or business. For purposes of Chapter 29 of this Part, unless shown to the contrary by the taxpayer, (a) it shall be deemed that Section 2905 is applicable to each business rather than Section 2902; and (b) it shall be deemed that all goods sold by a wholesaler to which Section 2902 applies were sold within the State of Delaware. The State Tax Commissioner shall issue rules and regulations specifically governing the implementation of this section in accordance with the power granted in Section 2103 of this chapter.
(b) For purposes of determining the amount of license fees due as provided in this Part for the privilege of carrying on any separate business or occupation, all entities comprising an enterprise with common direction, control and purpose shall be considered as one.
Section 9. Section 2119, Chapter 21, Title 30, Delaware Code, is amended by adding the words "or business" immediately following the word "occupation".
Section 10. Chapter 21, Title 30, Delaware Code, is amended by inserting therein a new Section 2120 to read as follows:
§ 2120. Computation of gross receipts
Wherever the provisions of this Part use the term "gross receipts," no deduction shall be made therefrom on account of the cost of property sold, the cost of materials used, labor costs, interest, discount paid, delivery costs, Federal or State taxes, or any other expense whatsoever paid or accrued or losses.
Section 11. Section 2301 (a), Chapter 23, Title 30, Delaware Code, is amended by striking said subsection in its entirety and substituting in lieu thereof a new subsection as follows:
(a) Persons engaged in the occupations listed and defined in this section shall pay annual license taxes at the rates specified below.
Advertising Agency, $150. "Advertising Agency" includes every person engaged in the business of displaying advertising matter by bill boards, posters or circulars, signs or window display, or of undertaking the writing or composition of advertisements for other persons on a commission, rental or flat fee basis.
Air Line Company, $200. "Air Line Company" includes every person engaged in the business of providing public air transportation by aircraft or the services or equipment with which the system operates.
Amusement Conductor, $150. "Amusement Conductor" includes every person engaged in the business of conducting or maintaining, or furnishing on a commission, or other basis, mechanical devices for the product sale to or entertainment of the general public, for which a charge is made for the use thereof; provided further than an owner of certain of such mechanical devices operated automatically by insertion of a coin or token shall pay an additional license fee for the business as defined and at the rates prescribed as follows:
(1) "Vending Machine Owner" embracing every person engaged in the business of owning and operating on his own account or by his agent, or by lease to another from such person or his agent, certain of the mechanical devices hereinbefore referred to for selling, vending, or otherwise distributing goods, wares or merchandise to the public, a fee for license at the rate of $10 for each vending machine owned and operated, provided the coin or token necessary to operate such machine is worth 5 cents or more.
(2) "Amusement Machine Owner" embracing every person engaged in the business of owning and operating either on his own account or by his agent, or by lease to another from such person or his agent, certain of the mechanical devices herein-before referred to for furnishing to the public music by the playing of records or transcriptions, or which constitute a game or other device designed for public amusement, a fee for a license at the rate of $50 for each machine so owned and operated, provided the coin or token necessary to operate such machine is worth 5 cents or more.
Amusement Park Operator, $250. "Amusement Park Operator" includes every person engaged in the business of exhibiting in an open area, park, or other open space any two or more public amusements, such as rides, demonstrations, or sideshows, or any theatrical performance or musical presentation, but not including the conducting or exhibiting of a circus or carnival.
Architect, $150. "Architect" includes every person engaged in the business of designing, planning and technically supervising the construction of any building, edifice or other structural unit.
Art School, $100. "Art School" includes every person engaged in the business of teaching fine arts, or the art whose aim is beauty rather than utility, though not necessarily to the exclusion of utility where the two can be obtained.
Attorney-at-Law, $200. "Attorney-at-law" includes every individual duly admitted to the Bar of any court of this State and engaged in the active practice of such profession, whether self-employed or a member or employee of a law firm or private corporation.
Auctioneer, $50. "Auctioneer" includes every person engaged in the business of crying sales of real or personal property on behalf of other persons for profit, except as otherwise provided by the provisions of this chapter. Any auctioneer not a citizen of this State shall be required to pay $150 for each county in which he acts as auctioneer. No auctioneer shall be authorized by virtue of the license granted to employ any other person to act as auctioneer in his behalf, except in his own store or warehouse, or in his presence, nor shall the term "auctioneer" apply or extend to judicial or executive officer making sales in pursuance of any execution, judgment, or decree of any court, nor to public sales made by executors or administrators.
Automobile Driving School, $100. "Automobile Driving School" includes every person in the business of teaching for a consideration the techniques of operating a motor vehicle.
Automobile Race Operator, $250. "Automobile Race Operator" includes every person in the business of conducting motor vehicle races for profit, including competition involving all recognized of race, competition or time trial; for purposes of this license, motorcycle races shall be included.
Barber, $30 for first two chairs and $5 for each additional chair used. "Barber" includes every person engaged in the business of shaving the beard and cutting, trimming, washing, waving or otherwise dressing the hair of human beings.
Barber School, $100. "Barber School" includes every person engaged in the business of teaching, for a consideration, the art of shaving the beard and cutting, trimming, washing, waving or otherwise dressing the hair of human beings.
Beautician, $30 for the first two chairs and $5 for each additional chair used. "Beautician" includes any person engaged in the business of doing work which is generally and usually performed by so-called hairdressers, cosmetologists, cosmeticians, beauticians or beauty culturists, and however denominated in so-called hairdressing and beauty shops, which work is for the embellishment, cleanliness and beautification of women.
Beauty School or School of Cosmetology, $100. "Beauty School or School of Cosmetology" includes every person engaged in operating a place or part thereof wherein or whereupon cosmetology or any of its practices are taught, whether such place or establishment is known or designated as a cosmetician, cosmetological or beauty culture school or establishment, or by any other name or designation, indicating that cosmetology is taught therein to students.
Bowling Alley Operator, $100. "Bowling Alley Operator" includes every person in the business of operating public facilities
for the sport of bowling; where more than one alley is operated, an additional license fee of $25 per alley shall be paid for the second alley and for each additional alley.
Broadcasting Station, $300. "Broadcasting Station" includes every person engaged in the business of transmitting radio or television communications over assigned frequency and wave lengths and subject to the jurisdiction of the Federal Communications Commission.
Broker, $200. "Broker includes every person engaged in the business of buying and selling for the account of other persons for a commission, or for profit, stocks, bonds, currency, negotiable paper, securities, and any other intangible personal property.
Car Wash, $100. "Car Wash" includes every person operating a continuing business of cleaning, washing or waxing motor vehicles for profit and not for charitable or educational purposes.
Certified Public Accountant, $200. "Certified Public Accountant" includes every person qualified and registered under the laws of the State to practice as a certified public accountant and engaged in the active practice of such profession.
Cesspool Cleaner, $30. "Cesspool Cleaner" includes every person engaged in the business of cleaning cesspools for profit or reward.
Chiropodist, $150. "Chiropodist" includes every person engaged in the practice of caring for the feet of human beings.
Chiropractor, $150. "Chiropractor" includes every person engaged in the practice of treating human ailments by means of muscular or bone manipulation.
Circus Exhibitor, $500. "Circus Exhibitor" includes every person engaged in the business of exhibiting in a tent, arena, or other open space feats of horsemanship, acrobatic stunts, freaks, trained or wild animals, and other forms of entertainment commonly known as circus. This paragraph shall not be construed to include any circus or carnival for private profit sponsored by or in which any fire company of the State, or any fraternal, veteran's or religious organization, shall share in the profits. The license fee for such circus or carnival shall be $200.
Coat and Towel Supplier, $100. "Coat and Towel Supplier" includes every person actively engaged in or holding himself out to do the business of supplying, furnishing or making available coats, caps, aprons, uniforms, or towels, dresses, diapers, industrial wipers, smocks, linens, or other like articles and laundering and of otherwise renewing such supplies for profit.
Dancing School, $100. "Dancing School" includes every person engaged in the business of using any room, place, or space for the purpose of holding classes in dancing and where instruction in dancing is given for hire.
Dentist, $200. "Dentist" includes every person qualified under the laws of the State to practice dentistry and engaged in active practice of such profession.
Distributor, $50. "Distributor" includes every person engaged in the business of distributing samples, handbills or posters for compensation or on commission.
Drayman or Mover, $75. "Drayman or Mover" includes every person engaged in the business of transporting for profit tangible personal property of other persons.
Employment Agent, $150. "Employment Agent" includes every person engaged, for profit, in the business of hiring laborers or securing positions for other persons to be employed within the limits of the State.
Entertainment Agent, $250. "Entertainment Agent" includes every person engaged in or holding himself out to do the business of collecting fees or commissions or other payments for himself or another or others for the exercise by another of the privileges of furnishing musical entertainment for the general public.
Finance or Small Loan Agency, $200. "Finance or Small Loan Agency" includes every person engaged in the business of lending money, with or without security, to other persons, with repayments of the loans to be made by installments or otherwise, but shall not include, either in reference to future or past transactions, banks or trust companies authorized to do banking business in Delaware under the provision of Title 5.
Floor Show Operator, $150. "Floor Show Operator" includes every person engaged in the business of conducting or maintaining or exhibiting in his place of business entertainment of the type commonly known as a floor show by one or more entertainers, paid or otherwise, including members of an orchestra furnishing entertainment by song or other means, excepting the playing of instruments as members of such orchestra, provided further that conduct of the business of floor show operator as defined herein shall not be such as to render the person liable for a license as a showman under this section.
Florist, $50. "Florist" includes every person engaged in the business of cultivating or dealing in ornamental flowers or plants. It includes each person conducting the business of florist from a regular place of business (and each person selling cut flowers, shrubs, or potted plants on the streets or at other places outside a regular store).
General Repairman, $30. "General Repairman" includes every person engaged in the business of repairing, reconditioning or otherwise restoring to useful service personal property of very kind and description not otherwise provided for under this section.
Health Spa or Health Club, $150. "Health Spa or Health Club" includes every person engaged in the business of operating private health, weight control or physical culture facilities designed to establish and maintain the optimum weight or physical conditioning of other persons.
Hotel, $10 for each room and $15 for each suite. "Hotel" includes every person engaged in the business of operating a place where the public may, for a consideration, obtain sleeping accommodations and meals and which, in an incorporated town, has at least ten, and in any other place at least six, permanent bedrooms for the use of guests.
Income Tax Consultant, $150. "Income Tax Consultant" includes every person, not licensed as an attorney or accountant under this section, engaged in the business of providing federal or state income tax assistance to other persons for a fee.
Incorporator, $200. "Incorporator" includes every person engaged in the business of procuring corporate charters, or acting as resident, registration or transfer agent of domestic corporations, except attorneys-at-law having a license to practice such profession in this State.
Junk Dealer, $30. "Junk Dealer" includes every person engaged in the business of buying and selling old iron, brass, lead, copper, or other metals, or combinations thereof, paper, old automobile tires, second-hand personal property of any kind or description whatever, commonly known as junk, and who is not a salvage yard operator as defined in this section.
Laundry Operator, $100. "Laundry Operator" includes every person engaged in the business of operating a laundry, and/or of securing goods or fabrics to be so laundered whether the actual work of laundering such goods or fabrics is done within or without the State.
Manicurist, $30. "Manicurist" includes every person engaged in the business of caring for the appearance of hands.
Manufacturer's Agent or Representative, $75. "Manufacturer's Agent or Representative" includes every independent contractor in the business of representing one or more manufacturers for purposes of promoting the sale of the goods, product, or line of goods or products of such manufacturer or manufacturers within the State.
Mercantile Agency or Collection Agency, $150. "Mercantile Agency or Collection Agency" includes every person engaged in the business of investigation of financial ratings and credit and/or the collection of commercial accounts for other persons, except attorneys-at-law having a license to practice such profession in this State.
Modeling or Charm School, $100. "Modeling or Charm School" includes every person engaged in the business of teaching, or who holds himself out as capable of teaching, modeling, charm, poise or personal appearance to other persons of either sex. It includes courses in public speaking conducted for profit.
Motel, $10 for each room. "Motel" includes every person engaged in the business of furnishing for a consideration, transient guests with sleeping accommodations, private bath and toilet facilities, linen service and a place to park an automobile, and who is not in the business of operating a hotel or tourist home as defined in this section.
Motion Picture Operator, $250. "Motion Picture Operator" includes every person engaged in the business of displaying motion pictures for public entertainment regardless of the physical location of the projection facilities, and shall include drive-in theaters.
Motor Vehicle Serviceman, $30. "Motor Vehicle Serviceman" includes every person engaged in the business of repairing, rebuilding, repainting, or otherwise re-conditioning of motor vehicles or their parts.
Music School, $100. "Music School" includes every person engaged in the business of teaching music to 20 or more pupils for a consideration. It includes the teaching of musical composition as well as the instruction in the use of musical instruments.
Nursing, Rest or Convalescent Home (Private), $50. "Nursing, Rest or Convalescent Home (Private)" includes every person engaged in the business of operating any institution, building, or agency in which accommodation is maintained furnished or offered for any fee, gift, compensation, or reward for the care of aged, infirm, chronically ill, or convalescent persons.
Optomestrist, $150. "Optometrist" includes every person qualified under the laws of the State to practice optometry and engaged in active practice of such profession.
Osteopath, $150. "Osteopath" includes every person qualified under the laws of the State to practice osteopathy and engaged in active practice of such profession.
Parking Lot or Garage Operator, $100 for the first lot or garage facility and $25 for each additional facility. "Parking Lot or Garage Operator" includes every person engaged in the business of operating any motor vehicle parking facility whether open or enclosed, with space for ten or more vehicles.
Pawnbroker, $75. "Pawnbroker" includes every person engaged in the business of lending money on pledge of tangible personal property, or purchasing the same on condition of returning it to the seller at a stipulated price, and of selling the property in default of the pawner.
Pharmacist, $75. "Pharmacist" includes every person qualified under the laws of the State to practice pharmacy and engaged in active practice of such profession.
Photographer, -$75. "Photographer" includes every person engaged in the business of taking, making and/or developing photographs, or pictures by action of light for profit or reward. Transient photographers without a regular and established place of business within the State shall pay an additional license tax of $25 for each day of operation within the State.
Physical Therapist, $100. "Physical Therapist" includes every person engaged in the business of practicing physical therapy as defined in Chapter 26 of Title 24.
Physician and/or Surgeon, $200. "Physician and/or "Surgeon" includes every person qualified under the laws of the State to practice medicine and surgery and engaged in active practice of such profession.
Plant Nursery, $50. "Plant Nursery" includes every person engaged in the business of operating a place where trees, shrubs, plants, and the like, are propagated from seed or otherwise for transplanting for use as stock for grafting and for sale,
Pool Table Operator, $100. "Pool Table Operator" includes every person engaged in the business of managing or operating a pool or billiard table for public use. Where more than one table is operated, an additional license fee of $10 per table shall be paid for the second table and for each additional table.
Private Detective Agency, $100. "Private Detective Agency" includes every person engaged in the business of practicing as a private detective as defined in Chapter 13 of Title 24; provided nothing in this section shall be construed to include any person exclusively employed as a guard, watchman or private patrolman.
Professional Engineer, $150. "Professional Engineer" includes every person qualified under the laws of the State to practice professional engineering and engaged in active practice of such profession.
Psychologist, $150. "Psychologist" includes every person qualified under the laws of the State to practice psychology and engaged in active practice of such profession.
Public Accountant, $75. "Public Accountant" includes every person actively engaged in the business of general public accounting who is not qualified and registered under the laws of the State to practice as a certified public accountant.
Public Bath Keeper, $75. "Public Bath Keeper" includes every person engaged in the business of maintaining or operating for the use of the general public for profit, an establishment for baths of any kind or description.
Public Stenographer, $35. "Public Stenographer" includes every person engaged in the business, whether full time or part time, of providing stenographic services to the general public.
Purchase Order System Operator, $150. "Purchase Order System Operator" includes every person engaged in or holding himself out to do the business of selling orders for or furnishing or guaranteeing the credit on the account of any person for the Purchase of goods, wares, or merchandise at any store or other establishment for the profit of such operator, and shall include factors engaged in such activities, but shall not include persons engaged in a business otherwise herein defined as a finance or small loan agency, nor any bank, savings bank or other like financial institutions.
Real Estate Broker, $175. "Real Estate Broker" includes every person certified as such by the Delaware Real Estate Commission and engaged in the real estate business. It includes those among such persons who deal exclusively or partly with rental property.
Real Estate Salesmen, $50. "Real Estate Salesmen" includes every person certified as such by the Delaware Real Estate Commission and engaged in the real estate business. It includes those among such persons who deal exclusively or partly with rental property.
Sales Representative, $30. "Sales Representative" includes every person whose occupation is to sell goods or merchandise door to door. It includes soliciting orders and home demonstrations.
Salvage Yard Operator, $100. "Salvage Yard Operator" includes every person in the business of operating a junk yard, salvage yard, automobile graveyard or similar business dealing primarily with scrap metal, salvage materials, junked motor-vehicles and other such used or abandoned personal property.
Scientific Laboratory, $150. "Scientific Laboratory" includes every person who operates as a private business for a profit a scientific or medical laboratory offering testing, research, analytical and other such technical services to the public.
Self Service Laundry or Dry Cleaner, $75. "Self Service Laundry or Dry Cleaner" includes every person engaged in the business of operating a laundry or dry cleaning establishment where the objects to be cleaned may be and frequently are placed in and removed from the laundering and/or drying machines or other machines by the customers whether or not such machines are operated by deposit of coins and whether or not an attendant is available to assist the customers in the operation of the machines. A person operating a self service laundry shall not be regarded as a laundry operator within the meaning of this section unless such person also operates laundry services which do not fall within the above definition of a self-service laundry or dry cleaner.
Showman, $250. "Showman" includes every person engaged in the business of conducting or operating for profit a public theatre, house, or other enclosed place for the exhibition of stage shows or musical presentations, animal shows, carnivals for private profit, and all other amusements of like character.
Taxicab or Bus Operator, $30, for the first motor vehicle; $20, for each additional motor vehicle. "Taxicab or Bus Operator" includes every person engaged in the business of the operation of motor vehicles in transporting persons for hire in the accommodation of the general public.
Taxidermist, $30. "Taxidermist" includes every person who prepares, stuffs or mounts the skins of birds, quadrupeds, fish or other animals for hire.
Television Repairman, $30. "Television Repairman" includes every person engaged in the business of installing, adjusting, repairing, or reconditioning television receivers.
Telephone Answering Service, $150. "Telephone Answering Service" includes every person engaged in the business of providing private operators or automatic equipment for answering private or business telephones in order to take messages from and/or provide information to callers on the lines thereby served.
Textile Renovator, $75. "Textile Renovator" includes every person engaged in the business, other than in a private capacity, of pressing, cleaning, washing, scouring, bleaching, dyeing, or otherwise reconditioning and/or accepting for reconditioning any article of clothing, or of any woven or knitted fabric of every form and nature, whether the actual reconditioning is done within or without the State.
Tourist Home, $5 for each room. "Tourist Home" includes every person who operates a place where tourists or transient guests, for a consideration, may obtain sleeping accommodations and which has at least 5 permanent bedrooms for the use of tourists or transient guests, and who is not in the hotel or motel business as defined in this section.
Trailer Park, $4 for each trailer space. "Trailer Park" includes every person engaged in the business of operating any place or space where trailers may park and hook up to sanitary and/or electrical facilities.
Transportation Agent, $50. "Transportation Agent" includes every person engaged in the business of selling tickets, on behalf of other persons, for transportation by common carriers on a commission basis or for profit.
Travel Agency, $150. "Travel Agency" includes every person in the business of operating a full service travel bureau or department which assists in the planning and acquisition of tickets for contemplated trips of its customers by land, sea or air and for related accommodations.
Tree Surgeon, $40. "Tree Surgeon" includes every person skilled in the science of tree care who presents himself to the public for compensation as a practicing tree expert, whether he terms himself tree expert, arborist, tree specialist, tree surgeon, et cetera.
Undertaker, $200. "Undertaker" includes every person engaged in the business, and qualified under the law of the State to be so engaged, of undertakers and in active conduct thereof.
Veterianarian, $150. "Veterinarian" includes every person qualified under the laws of the State to practice veterinary medicine and engaged in active practice of such profession.
Warehouseman, $75. "Warehouseman" includes every person engaged in the business of public storage of tangible personal property, including all services in connection therewith.
Section 12. Section 2301, Chapter 23, Title 30, Delaware Code, is amended by striking subsection (b) thereof and substituting a new subsection (b), and by adding subsections (c) and (d) as follows:
(b) Upon every person engaging or continuing to engage in any service industry, business, calling or profession not otherwise specifically licensed and taxed under subsection (a) of this section, there is hereby levied and there shall be collected an annual general service license fee of $30.
(c) Any person licensed under subsections (a) or (b) of this section whose business activity or operation is not limited solely to the rendition of services for other persons and who sells or exchanges goods or personal property of any kind shall be subject to the merchantile license fees set forth in Chapter 29 of this Part.
(d) Any person 65 years of age or older whose gross income is less than $2,400 per year shall pay one-fourth (1/4) of the annual occupational license tax specified in subsection (a) of this section.
Section 13. Section 2302, Chapter 23, Title 30, Delaware Code, is amended by striking subsections (a) and (c) of said section and substituting in lieu thereof new subsections (a) and (c) as follows:
(a) Owners of coin operated vending machines and amusement machines, as referred to in Section 2301, of this Chapter, shall affix to each such machine a decalcomania stamp to be provided by the Tax Department to evidence the payment of the respective license fee.
(c) Whoever being the owner of a coin operated vending machine or amusement machine fails to affix to each such machine the decalcomania stamp required by this section shall be fined not less than $25 nor more than $50 for each machine not having such stamp affixed.
Section 14. Chapter 25, Title 30, Delaware Code, is amended by striking out said Chapter as it presently exists and inserting in lieu thereof a new Chapter 25, as follows:
CHAPTER 25. CONTRACTORS' LICENSE
REQUIREMENTS AND TAXES
§ 2501. Definitions
For purposes of this Chapter the following definitions shall apply:
"Contractor" includes every person engaged in the business of furnishing labor or both labor and materials in connection with all or any part of the construction, alteration, repairing, dismantling, demolition of buildings, roads, bridges, viaducts, sewers, water and gas mains and every other type of structure as an improvement, alteration or development of real property; a person is a contractor regardless of whether he is a general contractor or a subcontractor, or whether he is a resident or a nonresident.
"Gross receipts" includes all sums received by a contractor for any work done or materials supplied in connection with any real property located in the State of Delaware.
"Person" includes an individual, partnership, firm, cooperative, corporation or any association of persons acting individually or as a unit.
§ 2502. License requirements; license fee payable; rates; statements required
(a) Any resident person desiring to engage in business in this State as a contractor shall obtain a license upon making application to the State Tax Department and paying a fee of thirty dollars ($30.00). If quarterly payments thereafter are made in accordance with subsection (c) of this section, such license shall be valid until the first day of July at which time it may be renewed for a full year and every year thereafter provided that the contractor makes application therefor and payment to the State Tax Department of thirty dollars ($30.00) plus the license fee required in subsection (c) of this section.
(b) Any nonresident person desiring to engage in the business in this State as a contractor shall be subject to the same requirements as a resident contractor shall be subject to the same requirements as a resident contractor except that a nonresident shall be required to obtain a license for each single project and to pay the tax required by this Chapter for each single project and shall, as a condition to obtaining a license for each such project, post a bond equal to double the amount of the gross payment under the contract for such project multiplied by the rate set forth in subparagraph (c) of this section. The bond required by this section shall be entered upon such terms and conditions as shall be set forth in the regulations promulgated by the State Tax Commissioner.
(c) In addition to the license fee required by subsection (a) and (b) of this section, every contractor shall pay an annual license fee in quarterly installments payable on or before the first day of each of the months of November, February, May and August of each year at the rate of one-half of one per cent (1/2%) of the aggregate gross receipts paid to such contractor during the next preceding respective three-month period ending on the last day of the months of September, December, March, and June of each year. The license fee imposed for each three-month period referred to in the previous sentence shall be an amount equal to the excess of—(1) a fee imposed at the rate set forth in the previous sentence on the aggregate sum of all gross receipts paid to such contractor for the three-month period for which the quarterly installment is due and each of the preceding three-month periods to which the license is applicable, over (2) a fee imposed at the rate set forth in the previous sentence on the aggregate gross receipts paid to such contractor during each of the three-month periods to which the license is applicable preceding the three-month period for which the installment is payable. The quarterly installments shall be accompanied by a certified statement on such forms as the State Tax Department shall require of all quarterly gross receipts included in computing the fee due.
(d) Notwithstanding the provisions of subsection (c) of this section, the license fee attributable to gross receipts paid to such contractor under contracts entered into prior to July 1,
1969, shall be payable on a quarterly basis and computed in the same manner as provided in subsection (c) except that the rate shall be one-tenth of one per cent (1/10%) of the first $100,000 of annual gross receipts and one-twentieth of one per cent (1/20%) of all annual gross receipts in excess of $100,000.
§ 2503. Duties of architects, mechanical engineers and general contractors as to non-resident contractors' licenses
Every architect, and/or mechanical engineer and/or general contractor engaging in the practice of such profession shall furnish to the State Tax Department within 10 days after any contract in the preparation or plans for which they were engaged are entered into with a contractor or subcontractor not a resident of this State, a statement of the total value of such contract or contracts together with the names and addresses of the contracting parties. Failure to furnish each such statement shall subject each architect and/or mechanical engineer and/or general contractor to a penalty of $25.00 which shall be collected and paid in the same manner as provided for the collection of delinquent licenses as provided in this title.
Every architect and/or mechanical engineer and/or general contractor engaging in the practice of such profession, before the payment of any award or amount payable to any contractor or subcontractor not a resident of this State, shall ascertain from said non-resident contractor or subcontractor and/or the State Tax Department, whether he has obtained a license and satisfied his liability to the State under this chapter, and if said license has not been obtained and the license liability paid by the non-resident contractor or subcontractor, the architect and/or mechanical engineer and/or general contractor shall deduct from the award or amount payable to said non-resident contractor or subcontractor the amount of said license liability and shall pay same to the State Tax Department within ten days after final payment and settlement with the non-resident contractor or subcontractor. Failure to ascertain the payment of license liability of any contractor or subcontractor not a resident of this State, by any architect and/or mechanical engineer and/or general contractor, in accordance with this section, shall render the architect and/or mechanical engineer and/or general contractor personally liable for the license liability of the non-resident contractor or subcontractor.
Section 15. Chapter 27, Title 30, Delaware Code, is amended by striking out said chapter as it presently exists and inserting a new Chapter 27, as follows:
CHAPTER 27. MANUFACTURERS' LICENSE
REQUIREMENTS AND TAXES
§ 2701. Definitions
For the purposes of this Chapter the following definitions shall apply.
"Gross receipts" includes all proceeds received by any person engaged in manufacturing within this State for products manufactured in whole or in part within this State where such products are sold to another person or the fair market value of any such products consumed by the manufacturer or any person affiliated with it where the fair market value of such products is not received; provided, however, if a product is partially manufactured within this State and partially manufactured elsewhere by the same manufacturer, the gross receipts realized on the ultimate sale, transfer or consumption of said product to be included for purposes of this chapter shall be apportioned to the State of Delaware in the proportion that the cost of manufacturing thereof in Delaware bears to the full cost of manufacturing the product expended by the same manufacturer, such apportionment to be computed in accordance with regulations of the State Tax Commissioner.
"Manufacturing", except as provided in the definition of "wholesaler" in section 2901 of this Part, includes any processing, working, development, change, conditioning or reconditioning of raw materials or products into products of a different character, finished or unfinished, or effecting any combination or composition of materials the inherent nature of which is changed.
"Person" includes an individual, partnership, firm, cooperative, corporation or any association of persons acting individually or as a unit.
"Product" includes any goods, materials, wares, merchandise, machinery, vehicles, solids, liquids or gases or any other item, object or thing which is produced as part of a manufacturing process.
§ 2702. License requirements; license fee payable; rates; statements required
(a) Any person desiring to engage in business in this State as a manufacturer shall obtain a license upon making application to the State Tax Department and paying a fee of thirty dollars ($30.00) for each place of business. If quarterly payments thereafter are made in accordance with subsection (b) of this section, such license shall be valid until the first day of July at which time it may be renewed for a full year and every year thereafter provided that the manufacturer makes application therefor and payment to the State Tax Department of thirty dollars ($30.00) for each place of business plus the license fee required by subsection (b) of this section.
(b) In addition to the license fee required by subsection (a) of this section, every manufacturer shall pay an annual license fee in quarterly installments on or before the first day of each of the months of November, February, May and August of each year at the rate of one-tenth of one per cent (1/10%) of the aggregate gross receipts of such manufacturer during the next preceding respective three-month period ending on the last day of the months of September, December, March and June of each year. The license fee imposed for each three-month period referred to in the previous sentence shall be an amount equal to the excess of—(1) a fee imposed at the rate set forth in the previous sentence on the aggregate sum of all gross receipts of such manufacturer for the three-month period for which the quarterly installment is due and each of the preceding three-month periods to which the license is applicable, over (2) a fee imposed at the rate set forth in the previous sentence on the aggregate gross receipts of such manufacturer during each of the three-month periods to which the license is applicable preceding the three-month period for which the installment is payable. The quarterly installments shall be accompanied by a certified statement on such forms as the State Tax Department shall require of all quarterly gross receipts included in computing the fee due.
§ 2703. Exemptions
This chapter shall not apply to the production or manufacture of steam, gas, or electricity for heat, light or power, or to the production of the usual farm products for home consumption or market purposes.
Section 16. Chapter 29, Title 30, Delaware Code, is amended by striking said chapter as it presently exists and inserting in lieu thereof a new Chapter 29 to read as follows:
CHAPTER 29. RETAIL AND WHOLESALE MERCHANTS'
LICENSE REQUIREMENTS AND TAXES
§ 2901. Definitions
(a) "Goods" includes produce, merchandise, goods, wares, items, products, crops, livestock, animals, metals, gems, or any tangible personal property of whatever description, whether new or used, and includes alcoholic beverages of every nature.
(b) "Gross receipts" includes total consideration received by a wholesaler or retailer for all goods sold within the State of Delaware.
(c) "Person" includes an individual, partnership, firm, cooperative, corporation or any association of persons acting individually or as a unit.
(d) "Purchase price" includes the value of any cash or other consideration paid or agreed to be paid by a retailer for the goods purchased by him for sale in the course of business; where a retailer has manufactured a product in whole or in part, his purchase price of a product includes the price of the component parts and the cost of manufacturing such product; purchase price does not include gasoline taxes paid or payable to the State under the provisions of Part IV of this Title.
(e) "Retailer," for purposes of this Part, except as provided in the definition of "Wholesaler," includes every person engaged as owner or agent in the business of selling or exchanging goods for cash or barter or any consideration on the assumption that the purchaser of such goods has acquired the same for ultimate consumption or use and not resale; and where engaged in the foregoing business, includes trading stamp redemption stores, and catalog stores; and includes branch stores, warehouses and houses and distributing depots of persons whose principal place of business is located inside or outside the State to the extent that goods are sold or exchanged for ultimate consumption or use and not resale.
() "Wholesaler," for purposes of this Part, includes:
(1) Every person engaged, as owner or agent, in the business of selling to or exchanging with another person goods for cash or barter or any consideration for the purpose of resale by the person acquiring the goods sold or exchanged, and includes without limitation goods sold or exchanged through outlets, warehouses and distribution depots of persons whose principal place of business is located inside or outside this State;
(2) Every person engaged in the processing of food or foodstuffs, which food or foodstuffs are to be resold by the person acquiring the food or foodstuffs from the person engaged in the processing. For purposes of this Part, every person engaged in the bakery, poultry processing or cannery business shall be considered engaged in the processing of food or foodstuffs and a wholesaler.
(3) Persons engaged in the business of buying, selling or shipping of grains and commercial feeds; and
(4) Persons engaged in the business of selling any form of combustible fuel for heating or cooking, regardless of whether purchased for resale or ultimate consumption.
§ 2902. Wholesaler license requirements; license fee payable; rates; statements required
(a) For the purposes of this section, "wholesaler" shall not include those wholesalers included in paragraphs (2) and (3) of section 2901 (f) of this chapter.
(b) Any person desiring to engage in business in this State as a wholesaler shall obtain a license upon making application to the State Tax Department and paying a fee of thirty dollars ($30.00) for each place of business. If quarterly payments thereafter are made in accordance with subsection (c) of this section, such license shall be valid until the first day of July at which time it may be renewed for a full year and every year thereafter provided that the wholesaler makes application therefor and payment to the State Tax Department of thirty dollars ($30.00) for each place of business plus the fee required by subsection (c) of this section.
() In addition to the license fee required by subsection (b) of this section, every wholesaler shall pay an annual license fee payable in quarterly installments on or before the first day of each of the months of November, February, May and August of each year at the rate of one-fifth of one per cent of the aggregate gross receipts attributable to all goods sold by the wholesaler within this State during the last preceding respective three-month period ending on the last day of the months of September, December, March and June. The license fee imposed for each three-month period referred to in the previous sentence shall be an amount equal to the excess of —(1) a fee imposed at the rate set forth in the previous sentence on the aggregate sum of all gross receipts attributable to goods sold by the wholesaler within this State for the three-month period for which the quarterly installment is due and each of the preceding three-month periods to which the license is applicable, over (2) a fee imposed at the rate set forth in the previous sentence on the aggregate gross receipts attributable to goods sold by the wholesaler within this State during each of the three-month periods to which the license is applicable preceding the three-month period for which the installment is payable. The quarterly installments shall be accompanied by a certified statement on such forms as the State Tax Department shall require of all quarterly gross receipts attributable to all goods sold included in computing the fee due.
§ 2903. Food processor license requirements; license fee payable; rates; statements required
(a) Every person described in paragraph (2), Section 2901 (f) of this chapter engaged in the business of food processor shall be exempt from the provisions of Section 2902 of this chapter and shall be subject to the provisions of this section.
(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 State Tax Department and paying a fee of thirty dollars ($30.00) for each place of business. If quarterly payments thereafter are made in accordance with subsection (c) of this section, such license shall be valid until the first day of July at which time it may be renewed for a full year and every year thereafter provided that the food processor makes application therefor and payment to the State Tax Department of thirty dollars ($30.00) for each place of business plus the fee required by subsection (c) of this section.
() In addition to the license fee required by subsection (b) of this section, every food processor shall pay an annual license fee payable in quarterly installments on or before the first day of each of the months of November, February, May and August of each year at the rate of one-tenth of one percent of the aggregate gross receipts attributable to all goods sold by the food processor within this State during the last preceding respective three-month period ending on the last day of the months of September, December, March and June. The license fee imposed for each three-month period referred to in the previous sentence shall be an amount equal to the excess of—(1) a fee imposed at the rate set forth in the previous sentence on the aggregate sum of all gross receipts attributable to goods sold by the food processor within this State for the three-month period for which the quarterly installment is due and each of the preceding three-month periods to which the license is applicable, over (2) a fee imposed at the rate set forth in the previous sentence on the aggregate gross receipts attributable to goods sold by the food processor within this State during each of the three-month periods to which the license is applicable preceding the three-month period for which the installment is payable. The quarterly installments shall be accompanied by a certified statement on such forms as the State Tax Department shall require of all quarterly gross receipts attributable to all goods sold included in computing the fee due.
§ 2904. Grain and feed dealer license requirements; license fee payable; rates; statements required
(a) Every person described in paragraph (3), section 2901 (f) of this chapter engaged in the business of buying, selling and shipping grain and commercial feeds shall be exempt from the provisions of section 2902 of this chapter and shall be subject to the provisions of this section.
(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 State Tax Department and paying a fee of thirty dollars ($30.00) for each place of business. If quarterly payments thereafter are made in accordance with subsection (c) of this section, such license shall be valid until the first day of July at which time it may be renewed for a full year and every year thereafter provided that the grain and feed dealer makes application therefor and payment to the State Tax Department of thirty dollars ($30.00) for each place of business plus the fee required by subsection (c) of this section.
(c) In addition to the license fee required by subsection (b) of this section, every grain and feed dealer shall pay an annual license fee payable in quarterly installments on or before the first day of each of the months of November, February, May and August of each year at the rate of one-twentieth of one per cent of the aggregate gross receipts attributable to all goods sold by the grain and feed dealer within this State during the last preceding respective three-month period ending on the last day of the months of September, December, March and June. The license fee imposed for each three-month period referred to in the previous sentence shall be an amount equal to the excess of (1) a fee imposed at the rate set forth in the previous sentence on the aggregate sum of all gross receipts attributable to goods sold by the grain and feed dealer within this State for the three-month period for which the quarterly installment is due and each of the preceding three-month periods to which the license is applicable, over (2) a fee imposed at the rate set forth in the previous sentence on the aggregate gross receipts attributable to goods sold by the grain and feed dealer within this State during each of the three-month periods to which the license is applicable preceding the three-month period for which the installment is payable. The quarterly installments shall be accompanied by a certified statement on such forms as the State Tax Department shall require of all quarterly gross receipts attributable to all goods sold included in computing the fee due.
§ 2905. Retailer license requirements; license fee payable; rates; statements required
(a) Any person desiring to engage in business in this State as a retailer shall obtain a license upon making application to the State Tax Department and paying a fee of thirty dollars ($30.00) for each place of business. If quarterly payments thereafter are made in accordance with subsection (c) of this section, such license shall be valid until the first day of July at which time it may be renewed for a full year and every year thereafter provided that the retailer makes application therefor and payment to the State Tax Department of thirty dollars ($30.00) for each place of business plus the fee required by subsection (b) of this section.
(b) In addition to the license fee required by subsection (a) of this section every retailer shall pay an annual license fee at the rate of one-half of one percent (1/2%) of the aggregate purchase price attributable to all goods purchased amounting to one hundred thousand dollars ($100,000.00) or less for sale within this State; plus one per cent (1%) of the aggregate purchase price attributable to all goods purchased by the retailer in excess of one hundred thousand dollars ($100,000.00) and up to and including one million dollars ($1,000,000.00) for sale within this State; plus one and one-half per cent (11/2%) of the aggregate purchase price attributable to all goods purchased by the retailer in excess of one million dollars ($1,000000.00) for sale within this State. The aggregate purchase price attributable to all goods purchased upon which the license fee is computed shall be reduced by eight thousand dollars ($8,000.00) annually.
(c) Every retailer shall pay the annual license fee in quarterly installments on or before the first day of each of the months of November, February, May and August of each year based upon all goods purchased by the retailer for sale within this State during the last preceding respective three-month period ending on the last day of the months of September, December, March and June.
(d) The license fee imposed for each three-month period referred to in this section shall be an amount equal to the excess of (1) a fee imposed at the rates set forth in subsection (b) on the aggregate sum of the purchase price of all goods purchased by the retailer for the three-month period for which the quarterly installment is due and each of the preceding three-month periods to which the license is applicable, over (2) a fee imposed at the rates set forth in the subsection (b) on the aggregate purchase price of all goods purchased by the retailer during each of the three-month periods to which the license is applicable preceding the three-month period for which the installment is payable. The quarterly installments shall be accompanied by a certified statement on such forms as the State Tax Department shall require of the quarterly purchase price of all goods purchased for each quarter included in computing the fee due.
§ 2906. Restaurant retailer license requirements; license fee payable; rates; statements required
(a) Every person engaged in the business of operating a restaurant, snack bar, soda fountain, take-out food service, catering service, food or drink vending machine service, private eating or drinking club, or other eating establishment or service shall be exempt from the provisions of section 2905 of this chapter and shall be subject to the provisions of this section.
(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 State Tax Department and paying a fee of thirty dollars ($30.00) for each place of business. If quarterly payments thereafter are made in accordance with subsection (d) of this section, such license shall be valid until the first day of July at which time it may be renewed for a full year and every year thereafter provided that the restaurant retailer makes application therefor and payment to the State Tax Department of thirty dollars ($30.00) for each place of business plus the fee required by subsection (c) of this section.
(c) In addition to the license fee required by subsection (b) of this section every restaurant retailer shall pay an annual license fee at the rate of one tenth of one per cent (1/10%) of the aggregate gross receipts attributable to all goods sold in excess of one hundred thousand dollars ($100,000.00) up to and including one million dollars ($1,000,000.00) within this State; plus one fifth of one per cent (1/5%) of the aggregate gross receipts attributable to all goods sold in excess of one million dollars ($1,000,000.00) within this State.
() Every restaurant retailer shall pay an annual license fee in quarterly installments on or before the first day of each of the months of November, February, May and August of each year based upon all goods sold by the restaurant retailer within this State during the last preceding respective three-month period ending on the last day of the months of September, December, March and June.
() The license fee imposed for each three-month period referred to in this section shall be an amount equal to the excess of—(1) a fee imposed at the rates set forth in subsection (c) on the aggregate sum of the gross receipts of all goods sold by the restaurant retailer for the three-month period for which the quarterly installment is due and each of the preceding three-month periods to which the license is applicable, over (2) a fee imposed at the rates set forth in subsection (c) on the aggregate gross receipts of all goods sold by the restaurant retailer during each of the three-month periods to which the license is applicable preceding the three-month period for which the installment is payable. The quarterly installments shall be accompanied by a certified statement on such forms as the State Tax Department shall require of all quarterly gross receipts attributable to all goods sold included in computing the fee due.
§ 2907. Farm machinery retailer license requirements; license fee payable; rates; statements required
(a) To the extent that any person is engaged in the business of selling farm machinery, supplies or materials which are to be directly consumed or used by the purchaser in the conduct of any business, such person shall be exempt from the provisions of section 2905 of this chapter and shall be subject to the provisions of this section. All other sales by farm machinery retailers shall be governed by the provision of section 2905.
(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 State Tax Department and paying a fee of thirty dollars ($30.00) for each place of business. If quarterly payments thereafter are made in accordance with subsection (c) of this section, such license shall be valid until the first day of July at which time it may be renewed for a full year and every year thereafter provided that the farm machinery retailer makes application therefor and payment to the State Tax Department of thirty dollars ($30.00) for each place of business plus the fee required by subsection (c) of this section.
() In addition to the license fee required by subsection (b) of this section, every farm machinery retailer shall pay an annual license fee payable in quarterly installments on or before the first day of each of the months of November, February, May and August of each year at the rate of one-twentieth of one percent of the aggregate gross receipts attributable to all goods sold by the farm machinery retailer for sale within this State during the last preceding respective three-month period ending on the last day of the months of September, December, March and June. The license fee imposed for each three-month period referred to in the previous sentence shall be an amount equal to the excess of—(1) a fee imposed at the rate set forth in the previous sentence on the aggregate sum of the gross receipts of all goods sold by the farm machinery retailer for the three-month period for which the quarterly installment is due and each of the preceding three-month periods to which the license is applicable, over (2) a fee imposed at the rate set forth in the previous sentence on the aggregate gross receipts of all goods sold by the farm machinery retailer during each of the three-month periods to which the license is applicable preceding the three-month period for which the installment is payable. The quarterly installments shall be accompanied by a certified statement on such forms as the State Tax Department shall require of all quarterly gross receipts attributable to all goods sold included in computing the fee due.
§ 2908. Exemptions
(a) No person who is licensed as a manufacturer under Chapter 27 of this Part shall be required to be licensed under this chapter as a wholesaler or retailer in connection with the sale of goods he has manufactured in this State which are to be consumed or used by the purchaser in the conduct of any business; provided, however, the wholesaler and retailer licensing requirements and tax shall apply to all other goods sold by such person.
(b) This chapter shall not apply to the sale of unprocessed agricultural products by the owner or operator of a farm nor shall this chapter apply to the incidental sale by the owner or operator of a farm of processed agricultural products on the assumption that the purchaser of such products has acquired the same for consumption or use and not for resale.
(c) This chapter shall not apply to any transaction subject to the automobile dealer handling fee as set forth in section 3004 of this title.
(d) The provisions of chapter 29 shall not apply to any alcoholic liquor retailer licensed pursuant to the provisions of section 516 of title 4.
Section 17. A new Chapter 30, Title 30, Delaware Code, is added to read as follows:
CHAPTER 30. MOTOR VEHICLE DOCUMENT FEE AND
AUTOMOBILE DEALER HANDLING FEE AND
LICENSE FEE
§ 3001. Definitions
"Automobile dealer" includes every person in the business of buying, selling, or trading new or used motor vehicles, trailers, truck trailers or motorcycles.
"Motor vehicle"—the definition of motor vehicle shall be the same as that found in section 101, Title 21, Delaware Code.
"Motorcycle"—the definition of motorcycle shall be the same as that found in section 101, Title 21, Delaware Code.
"Owner"--the definition of owner shall be the same as that found in section 101, Title 21, Delaware Code.
"Purchase price"—means the value or any other consideration given by the owner to the seller for a motor vehicle; where trade-ins or allowances are given in conjunction with the purchase of any motor vehicle the purchase price shall be the gross purchase price less any trade-in or allowance given by the seller of the motor vehicle to the owner of said motor vehicle.
"Trailers"—the definition of trailers shall be the same as that found in section 101, Title 21, Delaware Code.
"Truck trailer"—the definition of truck trailer shall be the same as that found in section 101, Title 21, Delaware Code.
"Used vehicle"—the definition of used vehicle shall be the same as that found in section 101, Title 21, Delaware Code.
§ 3002. Motor Vehicle Document Fee
(a) There is imposed upon the sale, transfer or registration of any new or used motor vehicle, trailer or motorcycle in the State of Delaware, a motor vehicle document fee in the amount of three-quarters of one per cent (.75%) of the purchase price of said vehicle, which fee is to be paid by the owner and shall be collected by the Department of Motor Vehicles for deposit in the General Fund. This motor vehicle document fee shall not be imposed on the sale, transfer or registration of motor vehicles, trailers or motorcycles in the following circumstances:
(1) renewal registration in the name of the same owner;
(2) motor vehicles, trailers or motorcycles which are transferred or sold for the purpose of resale; or
(3) motor vehicles with three or more axles;
(4) motor vehicles, trailers or motorcycles which are bought by the owner and registered outside the State and then are subsequently registered in the State pursuant to section 2102, Title 21, Delaware Code.
(b) The amount of the purchase price shall be evidenced by a notorized bill of sale.
§ 3003. Enforcement; rules and regulations
The Commissioner of the Department of Motor Vehicles shall have the power and authority to make, issue, promulgate and enforce such rules and regulations which shall not be inconsistent with the law as he shall deem necessary for administration and implementation provisions of section 3Q02, Title 30, Delaware Code.
§ 3004. Automobile Dealer Handling Fee and Payment
(a) Every automobile dealer shall pay a handling fee of two dollars ($2.00) on the sale of every new or used motor vehicle, trailer, truck trailer or motorcycle sold to the owner thereof. The handling fee shall be paid in quarterly installments payable to the State Tax Department on or before the first day of each of the months of November, February, May and August of each year for the next preceding three-month period ending on the last day of the months of September, December, March and June of each year.
(b) The State Tax Department shall prescribe the form of the returns necessary for the payment of the handling fee in such manner as it may deem necessary for the proper administration of this chapter.
§ 3005. Automobile Dealer License Fee
Every automobile dealer shall pay an annual license fee of $100 to the State Tax Department.
Section 18. Title 30, Delaware Code, is amended by inserting therein a new Chapter 43, said new Chapter to read as follows:
CHAPTER 43. USE TAX ON LEASES OF TANGIBLE
PERSONAL PROPERTY
§ 4301. Definitions
As used in this Chapter—
"Lease" means an agreement (either written or oral) under which a lessor grants to a lessee the right to use property for a specified period or at the will of either the lessor or lessee. An agreement which purports to be a sale but which is in substance a lease shall be considered a lease.
"Lessor" means any person who grants a lease.
"Lessee" means any person to whom a lease is made.
"Person" means and includes an individual, partnership, firm, cooperative, corporation or any association of persons acting individually or as a unit.
"Person required to collect the tax" shall include every lessor of property the use of which is subject to tax under §4302 of this title, and shall also include any officer or employee of a corporate lessor of such property and any member of a partnership lessor of such property.
§ 4302. Imposition of tax on lessees
There is hereby imposed on every lessee a use tax for the use within this State on and after July 1, 1969 under a lease of tangible personal property (other than household furniture, household fixtures or household furnishings), equal to two per cent (2%) of the rent under such lease.
§ 4303. Collection of tax
(a) Every person required to collect the tax under this chapter shall collect the tax from the lessee when collecting the rent under the lease to which the tax applies. The tax shall be paid to the person required to collect it as trustee for and on account of the State.
() For the purpose of the proper administration of this chapter and to prevent evasion of the tax hereby imposed, it shall be presumed that all rental payments under leases are subject to the tax until the contrary is established and the burden of proving that any rental payment is not taxable hereunder shall be upon the person required to collect the tax or the lessee.
§ 4304. Liability for the tax
(a) Every person required to collect the tax imposed by this chapter shall be personally liable for the tax imposed, collected, or required to be collected under this chapter. Any such person shall have the same right in respect to collecting the tax from his lessee or in respect to non-payment of the tax by the lessee as if the tax were part of the rent and payable at the same time.
(b) Where a lessee has failed to pay the tax imposed by this chapter to the person required to collect the same, then in addition to all other rights, obligations and remedies provided, such tax shall be payable by the lessee directly to the State Tax Department and it shall be the duty of the lessee to file a return with the State Tax Department and to pay the tax to it within 20 days of the date the tax was required to be paid.
(c) The State Tax Department may, whenever it deems it necessary for the proper enforcement of this chapter, provide that a lessee shall file returns and pay directly to the State Tax Department any tax imposed under this chapter at such time as returns are required to be filed and payment made by the persons required to collect the tax.
§ 4305. Licensing of lessors; license fee payable
On or before August 1, 1969, or in the case of persons commencing business as lessors after such date within twenty days after such commencement, every person desiring to engage in business in this State as a lessor shall obtain a license by making application to the State Tax Department and paying a fee of thirty dollars ($30.00) for each place of business within this State. Such license shall be valid until the first day of July, at which time it may be renewed for a full year and every year thereafter, provided that the lessor makes application therefor and payment to the State Tax Department of thirty dollars ($30.00) for each place of business within this State, plus compliance with the provisions of this chapter.
§ 4306. Records to be kept
Every person required to collect the tax under this chapter shall keep records of every lease the rent under which is subject to tax under this chapter in such form as the State Tax Department may require. Such records shall be available for inspection and examination at any time upon demand by the State Tax Department and shall be preserved for a period of six years, except that the State Tax Department may consent to their destruction within that period or may require that they be kept longer.
§ 4307. Filing returns and payment of tax
(a) Every person required to register with the State Tax Department under §4305 of this title shall file a return quarterly with the State Tax Department showing the amount of rental payments received during the period covered by the return which are subject to tax under this chapter, and the amount of taxes required to be collected with respect to such use.
(b) The returns required by this section shall be filed on or before the first day of each of the months of November, February, May and August of each year for the next preceding three month period ending on the last day of the months of September, December, March and June of each year.
(c) The form of returns shall be prescribed by the State Tax Department and shall contain such information as it may deem necessary for the proper administration of this chapter.
(d) Every person required to file a return under this section shall, at the time of filing such return, pay to the State Tax Department the tax imposed by this chapter. All the taxes for the period for which the return is filed shall be due and payable to the State Tax Department on the date prescribed for filing the return for such period without regard to whether a return is filed or whether the return which is filed correctly shows the taxes due.
Section 19. Chapter 53, Title 29, Delaware Code, is amended by striking the title of said chapter and substituting in lieu thereof a new title as follows:
TOBACCO PRODUCT TAX
Section 20. Section 5301, Chapter 53, Title 30, Delaware Code, is amended by striking said section and substituting in lieu thereof a new section as follows:
§ 5301. Definitions
As used in this chapter—
(a) "Affixing agent" means any tobacco products dealer or any other person within or without this State appointed by the Tax Department as an agent to affix the stamps to be used in paying the excise tax imposed by this chapter. The first vendor who has possession of unstamped tobacco products in this State for sale in this State shall be deemed an affixing agent.
(b) "Cigarette" means any roll for smoking made wholly or in part of tobacco, irrespective of size or shape, and irrespective of the tobacco being flavored, adulterated or mixed with any other ingredient, the wrapper or cover of which is made of paper or any other substance or material except tobacco.
(c) "Tobacco product tax stamps" means any adhesive stamps, tax meter impression or other stamps, labels or prints authorized by the Tax Department to evidence the payment of the tax imposed by this chapter.
(d) "Tobacco product vending machine" means any mechanical device from which tobacco products are dispensed for a consideration.
(e) "Consumer" means any person who has possession of tobacco products for any purpose other than transportation or sale thereof.
(f) "Package" or "pack" means, as to cigars, the smallest individual container which contains more than one cigar in or from which retail sales are normally made or intended to be made, and means, as to other tobacco products, the smallest individual container in or from which retail sales of such products are normally made or intended to be made.
(g) "Place of business" means any place where tobacco products are sold, or where tobacco products are bought or kept for the purpose of sale or consumption, including so far as applicable, any vessel, airplane, train or vending machine dispensing tobacco products.
(h) "Retail dealer" means any person who purchases or receives stamped tobacco products from any source whatsoever for the purpose of sale to the ultimate consumer.
() "Sale" means in addition to its usual meaning, any sale, transfer, exchange, theft, barter, gift, or offer for sale and distribution, in any manner or by any means whatsoever.
(a) "Tax Department" or" Department" means the State Tax Department.
(b) "Tax Commissioner" or "Commissioner" means the State Tax Commissioner.
(1) "Unstamped tobacco products" means any pack or package of tobacco products to which the proper amount of genuine Delaware tobacco product tax stamps has not been affixed.
(m) "Use" means the exercise of any right or power over tobacco products including the retention for any length of time for any purpose other than sale or transportation as allowed under the provisions of this chapter.
() "Wholesale dealer" means any person who regularly sells tobacco products within this State to others who buy for the purpose of resale.
(a) "Vending machine operator" means any person who places one or more vending machines, owned, leased or operated by him, at locations where tobacco products are sold therefrom. The owner or lessee of the premises upon which a vending machine is placed, shall not be considered the operator of the machine, if he does not own or lease the machine and if his sole remuneration therefrom is a fiat rental fee or a commission, based upon the number or value of tobacco products sold from the machine, or a combination of both.
(p) "Tobacco products" means all products, including but not limited to cigarettes, cigars and pipe tobacco, made primarily from tobacco for individual consumption.
Section 21. Section 5305, Chapter 53, Title 30, Delaware Code, is amended by striking said section and substituting in lieu thereof a new section as follows:
§ 5305. Levy of tax, limitation; exemption
(a) An excise tax is imposed and assessed upon the sale or use of cigarettes within this State at the rate of five and one-half cents per ten cigarettes, or fraction thereof. This tax shall apply only once to the same pack of cigarettes.
(b) An excise tax is imposed and assessed upon the sale or use of all tobacco products other than cigarettes within this State at the rate of 30% of the wholesale price on such product. This tax shall apply only once to the same pack or package of a tobacco product.
(c) No tax imposed by this chapter shall be levied upon the possession or sale of tobacco products which this State is prohibited from taxing under the Constitution or statutes of the United States.
(d) If the seller and purchaser have registered with the Department and obtained exemption certificates, the following sales are exempt:
(1) Sales to veterans' organizations approved by the Department, if the tobacco products are being purchased by the organization for gratuitous issue to veteran patients in federal, state, or state-aided hospitals.
(2) Sales to patients in Veterans Administration Hospitals by retail dealers located in such hospitals.
Section 22. Section 5308, Chapter 53, Title 30, Delaware Code, is amended by striking the figure 11" from subsection (b) and substituting the figure "$5", and by striking the figure "$1" from subsection (c) and substituting the figure "$10".
Section 23. Sections 5306, 5307, 5308, 5309, 5315, 5316, 5317, 5318, 5321, 5322, 5324, 5325, 5326, 5327, 5330, 5341, 5344, 5345, 5351, 5352, 5353, 5354, Chapter 53, Title 30, Delaware Code, are amended by striking the word "cigarette" wherever it appears and substituting in lieu thereof the words "tobacco product" and by striking the word "cigarettes" wherever it appears and substituting in lieu thereof the words "tobacco products".
Section 24. Subchapter II, Chapter 53, Title 30, Delaware Code, is amended by adding a new section as follows:
§ 5319. Alternate method of collection; other tobacco products
If in the judgment of the Department the collection of the excise tax imposed in Section 5305 of this chapter upon tobacco products other than cigarettes will be more efficiently and economically collected by a system which does not employ tax stamps as authorized by this chapter, such alternative system may be utilized by the Department in its discretion. Such alternative system may include self-assessment by any wholesale or retail tobacco products dealer on forms supplied by the Department. If instituted such alternative collection system shall be set forth in the rules and regulations of the Department, which shall be distributed to all affected dealers at least ninety days in advance of the effective date of such rules and regulations.
Section 25. Section 5324, Chapter 53, Title 30, Delaware Code, is amended by striking said section and substituting a new section as follows:
§ 5324. Sample packs
The Department shall promulgate regulations governing the receipt, distribution of, and the payment of tax on sample packs of tobacco products used for free distribution. Such regulations may provide that any licensed dealer may receive and make free distribution of sample packs of tobacco products without affixing Delaware tobacco product tax stamps thereto so long as the proper tax thereon has been paid.
Section 26. Section 5328, Chapter 53, Title 30, Delaware Code, is amended by striking said section and substituting a new section as follows:
§ 5328. Invoices or delivery tickets and purchase orders required in certain cases
Every person who shall possess or transport 10 or more packs or packages (or an equivalent amount unpackaged) of unstamped tobacco products upon the public highways, roads or streets of this State for the purpose of delivery, sale or disposition shall be required to have in his possession invoices or delivery tickets and purchase orders for such tobacco products which shall show the true name and complete and exact address of the consignor or seller, the true name and complete and exact address of the person transporting the tobacco products, the quantity and brand of the tobacco products transported, and the true name and complete and exact address of the person who has been licensed to assume the payment of the Delaware tax or the tax, if any, of the state or foreign country at the point of ultimate destination; provided, that any common carrier which has issued a bill of lading for shipment of tobacco products and is without notice to itself or to any of its agents or employees that said tobacco products are not stamped as required by this chapter, shall be deemed to have complied with this chapter. The absence of such proper invoices or delivery tickets and purchase orders shall be prima facie evidence that such person is in violation of this chapter and subject to the penalties of this chapter.
Section 27. Section 5342, Chapter 53, Title 30, Delaware Code, is amended by striking said section and substituting a new section as follows:
§ 5342. Possession of untaxed tobacco products
(a) No person, not being an affixing agent or not holding an unexpired exemption certificate, shall have in his possession within this State 10 or more packs or packages (or an equivalent amount unpackaged) of tobacco products upon which the Delaware tobacco product tax has not been paid, or to which Delaware Tobacco product tax stamps are not affixed in the amount required.
(b) Whenever any tobacco products are found at the place of business of a dealer, whether a stamp affixing agent or not, and such tobacco products do not have the proper amount of stamps affixed and cancelled, or it is determined that the Delaware tobacco product tax has not been paid on such tobacco products, and the boxes, cartons or other containers have not been marked as having been received within 72 hours, such dealer shall be deemed guilty of a misdemeanor and shall be fined not less than $100 nor more than $1000, or imprisoned not more than 90 clays, or both.
Section 28. Section 555, subchapter IV, Chapter 4, Title 28, Delaware Code, is amended by striking subsection (a) in its entirety and substituting in lieu thereof a new subsection (a) as follows:
(a) Every person engaged in the business of conducting a harness racing meet under this chapter shall pay as a tax to this State 5% of the total contributions to all pari-mutuel and totalizator pools conducted or made on any and every race track licensed under this chapter and on every race at such track, plus one-half of the odd cents of all redistributions to be made on pari-mutuel or totalizator pool contributions exceeding the sum equal to the lowest multiple of 10, such odd cents to be calculated upon the basis of each dollar wagered. The tax shall be paid by certified check on a weekly basis and each check shall be transmitted by the licensee to the Commission no later than Wednesday following the week for which the tax is due. If the Commission finds the payment to be correct, it shall forthwith transmit the check to the State Treasurer.
Section 29. Section 2301, Chapter 23, Title 21, Delaware Code, is amended by adding subsection (c) as follows:
(c) The Department shall not register any motor vehicle, trailer or motorcycle after July 1, 1969, until the motor vehicle document fee imposed by title 30, section 3002, has been paid to the Department, unless such motor vehicle is exempted from such fee by title 30, Section 3002.
Section 30. Section 581 (a), subchapter VIII, Chapter 4, Title 4, Delaware Code, is amended by striking from subpart (4) thereof the figure "81.15" and substituting in lieu thereof the figure "81.65".
Section 31. If any chapter, section, subsection, sentence, phrase, or word of this Act is declared unconstitutional under the Constitution of the State of Delaware or of the United States, by any State or federal court of competent jurisdiction, or is otherwise held to be invalid, the remainder of this Act shall be unimpaired and shall continue in full force and effect and criminal prosecutions thereunder shall not be affected.
Section 32. This Act shall be inapplicable to criminal offenses any element of which occurred prior to the effective date hereof. Prosecutions for violations relating to unstamped or untaxed cigarettes committed before the effective date hereof shall be governed by the prior law contained in Chapter 53, Title 30, Delaware Code, which is continued in effect for such purposes. Pending forfeiture proceedings shall likewise be resolved pursuant to the law in effect prior to the effective date of this Act.
Section 33. This Act shall be effective July 1, 1969; provided, however, that the one per cent increase of corporation income tax (resulting in a six per cent rate) embodied in Section 1 hereof shall only apply to taxable income attributable to the period after June 30, 1969. Where a corporate taxpayer's income year begins before July 1, 1969 but ends on or after such date, the taxpayer's total taxable income for such income year shall be apportioned to the period prior to that date and to the period beginning with that date on the ratio that the number of calendar days in each period is to 365 days. The taxable income apportioned to the period prior to July 1, 1969 shall be taxed at the rate under the prior law of five per cent and the taxable income apportioned to the period beginning July 1, 1969 shall be taxed at six per cent as provided in Section 1 of this Act.
Approved June 12, 1969.