Delaware General Assembly


CHAPTER 288

FORMERLY HOUSE BILL NO. 504

AN ACT TO AMEND TITLE 30, DELAWARE CODE, BY CREATING A NEW PART V THEREOF RELATING TO A TAX ON HOTEL, MOTEL AND TOURIST HOME ACCOMMODATIONS.

Be it enacted by the General Assembly of the State of Delaware:

Section 1. Title 30, Delaware Code, is amended by adding a new Part V to read as follows:

PART V. PUBLIC ACCOMMODATION TAXES

CHAPTER 61. LODGING TAX

Section 6101. Definitions

As used in this chapter:

(a) "Hotel" means any person engaged in the business of operating a place where the public may, for a consideration, obtain sleeping accommodations and meals and which has at least six, permanent bedrooms for the use of guests; excluding, however, any charitable, educational or religious institution, summer camp for children, hospital or nursing home.

(b) "Motel" means any person engaged in the business of furnishing, for a consideration, transient guests with sleeping accommodations, bath and toilet facilities, linen service, and a place to park an automobile.

(c) "Tourist home" means any person who operates a place where tourists or transient guests, for a consideration, may obtain sleeping accommodations and which has at least five permanent bedrooms for the use of tourists or transient guests.

(d) "Occupant" means any person other than a permanent resident who for a consideration, uses, possesses, or has a right to use or possess any room or rooms in a hotel, motel or tourist

home under any lease, concession, permit, right of access, license or agreement.

(e) "Occupancy" means the use or possession or the right to the use or possession by any person other than a permanent resident of any room or rooms in a hotel, motel or tourist home for any purpose or the right to the use or possession of the furnishings or to the services and accommodations accompanying the use and possession of the room or rooms.

() "Operator" means any person operating a hotel, motel or tourist home.

(a) "Permanent resident" means any occupant who has occupied or has the right to occupancy of any room or rooms in a hotel, motel or tourist home for at least five consecutive months.

(b) "Rent" means the consideration received for occupancy valued in money, whether received in money or otherwise, including all receipts, cash credits and property or services of any kind or nature, and also any amount for which the occupant is liable for the occupancy without any deduction therefrom whatsoever.

Section 6102. Levy of tax

There is imposed and assessed an excise tax at the rate of 6% of the rent upon every occupancy of a room or rooms in a hotel, motel or tourist home within this State.

Section 6103. Collection of tax

The tax shall be collected by the operator from the occupant at the time of the payment of the rent for the occupancy.

Section 6104. Payment of tax

The amount of the tax collected for each month shall be reported and paid over to the Department of Finance not later than the fifteenth (15th) day of the month following the month of collection on forms to be prescribed by the Department of Finance. Interest at the rate of one percent (1%) per month or fraction thereof shall be charged on payments made after the prescribed due date.

Section 6105. Transition rule

The provisions of Section 6102 notwithstanding where a valid written contract is entered into prior to August 1, 1971, the tax required by this chapter will not be collectable on the rental under such contract.

Section 2. This Act shall take effect on August 15, 1971.

Approved July 30, 1971.