CHAPTER 188
AN ACT AMENDING TITLES 30 AND 21, DELAWARE CODE, PROVIDING FOR OMNIBUS AMENDMENTS AND CORRECTIONS TO THE REVISED BUSINESS TAX PROVISIONS OF HB 296 OF THE 125TH GENERAL ASSEMBLY.
Be it enacted by the General Assembly of the State of Delaware
Section 1. Section 2103, Title 30, Delaware Code, is amended by adding a new subsection (g) to read as follows:
(g) If any corporation located outside of this State refuses to produce its books or records for examination by the State Tax Department, then such out-of-state corporation shall be required to pay the costs of conducting an audit at a place outside of this State.
Section 2. Section 2301 (a), Title 30, Delaware Code, is amended by striking the paragraph relating to airline companies in its entirety.
Section 3. Section 2301 (a), Title 30, Delaware Code, is amended by striking the words "the product sale to or" as they appear in the paragraph entitled "Amusement Conductor", and by striking subparagraph (1) of said paragraph in its entirety, and by renumbering subparagraph (2) as subparagraph (1).
Section 4. Section 2301 (a), Title 30, Delaware Code, is amended by striking the paragraph entitled "Automobile Driving School" in its entirety.
Section 6. Section 2301 (a), Title 30, Delaware Code, is amended by striking the paragraph entitled "Coat and Towel Supplier" in its entirety.
Section 7. Section 2301 (a), Title 30, Delaware Code, is amended by adding thereto a new paragraph immediately following the paragraph entitled "Laundry Operator", which paragraph shall read as follows:
Linen Supplier, $100. "Linen 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, towels, dresses, diapers, industrial wipers, smocks, linen, or other like articles and laundering and otherwise renewing such supplies for profit."
Section 8. Section 2301 (a), Title 30, Delaware Code, is amended by striking the paragraph entitled "Florist" in its entirety.
Section 9. Section 2301 (a), Title 30, Delaware Code, is amended by striking the paragraph entitled "Plant Nursery" in its entirety, and inserting in lieu thereof a new paragraph to read as follows:
Plant Nursery and Florist, $50. "Plant Nursery and Florist" includes every person in the business of operating a place where trees, shrubs, plants, flowers, and the like, are cultivated, grown, or propagated from seed or otherwise for transplanting, for use as stock, for grafting, and for sale. Persons purchasing trees, shrubs, plants, flowers, and the like for resale are subject to the appropriate license fee in this Part."
Section 10. Section 2301 (a), Title 30, Delaware Code, is amended by striking the fee of "$150" for an Osteopath, and inserting in lieu thereof the fee "$200".
Section 11. Section 2301 (a), Title 30, Delaware Code, is amended by striking the paragraph entitled "Sales Representative" in its entirety, and inserting in lieu thereof a new paragraph to read as follows:
Sales Representative, $30. "Sales Representative" includes every person who works in excess of 80 hours in any calendar month in the year selling goods or merchandise door to door. It includes soliciting orders and home demonstrations.
Section 12. Section 2301 (a), Title 30, Delaware Code, is amended by adding a new paragraph immediately after the paragraph entitled "Transportation Agent", which paragraph shall read as follows:
Airline Ticket Sales Office, $200. "Airline Ticket Sales Office" includes every person who operates an office engaged in the business of selling tickets for the transportation of passengers on his own airliner.
Section 13. Section 8305, Title 21, Delaware Code, is amended by striking the figure "$25", and inserting in lieu thereof the figure "$100".
Section 14. Section 2501, Title 30, Delaware Code, is amended by striking the paragraph entitled "Gross receipts", and inserting in lieu thereof a new paragraph to read as follows:
"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, but does not include sums paid to subcontractors by the contractor, provided said subcontractor is subject to the provisions of this chapter with respect to these sums, and provided that a written agreement exists between the contractor and subcontractor stating the exact sums payable to said subcontractor.
Section 15. Section 2901 (e), Title 30, Delaware Code, is amended by adding the words "includes automatic merchandising machine operators regardless of the product dispensed or vended, hucksters, peddlers, and also" immediately after the words "foregoing business," as they appear therein.
Section 16. Paragraph (1), Section 2901 (f), Title 30, Delaware Code, is amended by adding the following words immediately at the end of said paragraph:
"and also includes sale of machinery, supplies or materials which are to be directly consumed or used by the purchaser in the conduct of any business or activity, which business or activity is subject to the tax imposed by this Part;"
Section 17. Section 2908, Title 30, Delaware Code, is amended by adding a new subsection "(e)" to read as follows:
(e) The provisions of Section 2905 of this chapter shall not apply to goods which are delivered by the retailer outside this State, and for which the retailer can provide proof satisfactory to the State Tax Department that an out-of-state retail sales tax has been paid to such state with respect to said goods.
Section 18. Chapter 31, Title 30, Delaware Code, is amended by striking said chapter in its entirety.
Section 19. Paragraph 4, Section 1903 (a), Title 30, Delaware Code, is amended by inserting the word "or" immediately after the words "United States" as they appear therein.
Section 20. Section 2301 (a), Chapter 23, Title 30, Delaware Code, is amended by striking the "." as it appears immediately after the word "below" in the first paragraph therein, and substituting in lieu thereof, the words "for each place of business."
Section 21. Section 2301 (a), Chapter 23, Title 30, Delaware Code, is amended by adding the following words immediately at the end of the paragraph entitled "Motion Picture Operator": "Motion picture operators who operate an indoor theatre in an incorporated municipality of less than 6,000 people shall pay 100.".
Section 22. Section 2301 (a), Chapter 23, Title 30, Delaware Code, is amended by striking the fee of 175" for "Public Accountants" and inserting in lieu thereof the fee of 1150".
Section 23. Section 33 of House Bill 296 of the 125th General Assembly,
approved June 12, 1969, is hereby amended by designating that present Section as subsection (a) and by adding thereto a new subsection (b) to read as follows:
The provisions of Chapter 30, Title 30, Delaware Code, shall not apply with respect to the sale or transfer of any motor vehicle, truck tractor, trailer or motorcycle prior to July 1, 1969.
Section 24. Section 101, Chapter 1, Title 21, Delaware Code, relating to the definition of "trailers" is repealed and the following language substituted therefor:
§ 101. "Trailer" includes a mobile home, travel trailer, house trailer, office trailer, camping trailer or any vehicle without motive power designed to carry property or passengers wholly on its own structure and to be drawn by a motor vehicle.
Section 25. Section 2302, Chapter 23, Title 21, Delaware Code, is amended by adding thereto the following new subsection:
(d) Any person who purchases for consideration, receives by gift or otherwise receives or acquires in any transaction any new or used trailer after July 1, 1969 shall apply to the Department for an original certificate of title for such trailer. Such application shall be made upon the appropriate form furnished or approved by the Department and shall contain a full description of the trailer including the name of the maker, the trailer serial number or any number as may be assigned by the Department, and any distinguishing marks thereon and whether said trailer is new or used, together with a full and complete statement of each and all liens or encumbrances, if any, upon the trailer. The application shall also contain a statement of the name and address of the person to whom the certificate of title shall be delivered, and such other information as the Department may require. The Department shall not issue the original certificate of title until the document fee imposed by Title 30, section 3002 has been paid to the Department.
Section 26. Section 3002 (a), Chapter 30, Title 30, Delaware Code, is amended by striking subsection (3) and by substituting a new subsection therefor and by adding a new subsection (5).
(3) Trailer where the vendor thereof delivers the trailer outside the State to a non-resident of this State and where there is imposed upon the retail sales price of said trailer a sales tax; provided, however, that the vendor provides satisfactory evidence to the Department of Motor Vehicles that the trailer was so delivered and that the sales tax was in fact paid.
(5) Truck tractors with truck trailers where the owner thereof has obtained a title in another state in the same name as applied for in this State, and where application for fleet registration and inspection is obtained pursuant to section 2143, Title 31, Delaware Code, and where registration fees are paid pursuant to the fee provisions of section 2151 A, Title 21, Delaware Code.
Section 27. Section 3002, Chapter 30, Title 30, Delaware Code, is amended by adding a new subsection (c) thereto to read as follows:
(c) The document fee imposed herein shall be computed as follows:
(1) Where the purchase price is less than $400, there shall be a uniform minimum rate of $3.
(2) Where the purchase price is $400 or more up to and including $500, the document fee shall be $3.75.
(3) The document fee payable thereafter shall increase in increments of 75 cents per each additional $100 of purchase price or any fraction thereof."
Section 28. Section 3001, Chapter 30, Title 30, Delaware Code, relating to definition of "Automobile Dealer" is amended by striking the word "Automobile" and substituting therefor the words "Motor Vehicle".
Section 29. Section 3001, Chapter 30, Title 30, Delaware Code, relating to the definition of "truck trailer" is amended by striking all the words following the first word "truck" and substituting therefor the following language:
"tractor"—the definition of truck tractor shall be the same as that found in section 101 of Title 21, Delaware Code.
Section 30. Section 3004, Chapter 30, Title 30, Delaware Code, is amended by striking the word "Automobile" as it appears in the caption thereof and substituting the words "Motor Vehicle" and said section is further amended by striking the word "automobile" which appears after the word "every" and substituting therefor the words "motor vehicle".
Section 31. Section 3005,Chapter 30, Title 30, Delaware Code, is amended by striking the word "Automobile as it appears in the caption thereof and substituting the words "Motor Vehicle" and said section is further amended by striking the word "automobile which appears after the word "every" and substituting therefor the words "motor vehicle".
Section 32. Section 2908 (c), Chapter 29, Title 30, Delaware Code, is amended by striking the word "automobile" as it appears in subsection (c) thereof and by substituting therefor the words "motor vehicle."
Section 33. Section 2905, Chapter 29, Title 30, Delaware Code, is amended by repealing all of subsection (b) thereof and by substituting in lieu thereof a new subsection (b) to read as follows:
(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 four-fifths of one per cent (4/5%) of the aggregate purchase price attributable to all goods purchased 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 twenty-five thousand dollars ($25,000) annually.
Section 33A. Section 2906, Chapter 29, Title 30, Delaware Code, is amended by repealing all of subsection (c) thereof and by substituting in lieu thereof a new subsection (c) to read as follows:
(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 within this State. The aggregate gross receipts upon which this tax is computed shall be reduced by fifty thousand dollars ($50,000) annually.
Section 34. Section 2103 (b), Title 30, Delaware Code, is amended by adding a new paragraph 6 to read as follows:
The power to suspend all fines and penalties imposed by this Part, and the power to suspend the imposition of any tax but only if such suspension is in the best interest of the State of Delaware. If the Commissioner suspends any fine, penalty or tax in excess of $5,000 such suspension shall be subject to the review of the State Tax Commission.
Section 35. Section 2502 (d), Title 30, Delaware Code, is amended by adding a new sentence thereto to read as follows:
"The provisions of this subsection shall apply only to those contracts which meet all of the following requirements:
1. The contract shall be written.
2. The contract shall not be subject to renegotiation.
3. The contract shall be for a sum certain.
4. The contract shall be executed prior to July 1, 1969, and such date of execution is verified to the satisfaction of the State Tax Commissioner.
Section 36. Section 3002 (a), Chapter 30, Title 30, Delaware Code, is amended by striking the words "in the amount of three quarters of one per cent (.75%) of the purchase price of said vehicle.
Section 37. Section 3002 (a), Chapter 30, Title 30, Delaware Code, is amended by adding the words "truck tractor" following the commas following the words "motor vehicle" wherever those words appear within subsection (a).
Section 38. Section 3004 (a), Chapter 30, Title 30, Delaware Code, is amended by striking the words "truck trailer" and substituting therefor the words "truck tractor".
Section 39, Section 2301, Chapter 23, Title 21, Delaware Code, is amended by adding the words "truck tractor" following the comma following the words "motor vehicle".
Section 40. Section 2301 (a), Chapter 23, Title 30, Delaware Code, is amended by adding a new sentence to the paragraph entitled "Broadcasting Station", which sentence shall read as follows:
Broadcasting stations which broadcast with a power of 1,000 watts or less shall pay $150.
Section 41. Section 1903 (a), Title 19, Delaware Code, is amended by adding the following words immediately after the words "foreign corporation" as they appear in paragraph 2 therein:
"or interest income, or royalty income,".
Section 42 Section 2906, Title 30, Delaware Code, is amended by striking the words "food or drink vending machine service" where they appear in paragraph (a) therein.
Section 43. Section 5308 (c), Chapter 53, Title 30, Delaware Code, is amended by striking the first sentence of said subsection in its entirety, and inserting in lieu thereof a new sentence to read as follows:
Vending machine license—Every vending machine from which cigarettes are offered for sale shall have affixed thereto an identification stamp issued by the State Tax Department, for which a fee of $1 shall be charged.
Section 44. Section 2302, Chapter 23, Title 30, Delaware Code, is amended by striking the words "vending machines and" as they appear in subsection (a) thereof, and by striking the words "vending machine or" as they appear in subsection (c) thereof.
Section 45. Chapter 23, Title 30, Delaware Code, is amended by adding a new section, 2304, to read as follows:
§ 2304. Identification labels for vending machines
(a) Every owner of a coin operated vending machine in this State, including amusement machines, music machines, cigarette vending machines, and all merchandising machines regardless of the product dispensed, shall affix thereto a label identifying the owner of the machine and his address, which identifying label shall not be less than two square inches in area.
(b) Whoever being the owner of a vending machine requiring an identifying label pursuant to this section fails to affix to each such machine the identifying label required by this section shall be fined not less than $25 nor more than $50 for each machine not having such identifying label affixed thereto.
Section 46. Section 2702, Chapter 27, Title 30, Delaware Code, is amended by adding a new subsection (c) to read as follows:
(c) The provisions of subsection (b) of this section notwithstanding, the license fee attributable to gross receipts paid to any manufacturer pursuant to any contract entered into prior to July 1, 1969, shall be computed at the rate and in the manner applicable prior to July 1, 1969, paid in the manner as required prior to July 1, 1969, and computed on the same license fee base that was applicable prior to July 1, 1969.
The provisions of this subsection shall apply only to those contracts which meet all of the following requirements:
(1) the contract shall be written;
(2) the contract shall not be subject to renegotiation;
(3) the contract shall be for a sum certain; and
(4) the contract shall be executed prior to July 1, 1969 and such date of execution is verified to the satisfaction of the State Tax Commissioner.
Section 47. Section 2908, Chapter 29, Title 30, Delaware Code, is amended by adding a new subsection (f) to read as follows:
(f) Any provision of this chapter to the contrary notwithstanding, no person shall pay a license fee pursuant to this chapter to the extent that such license fee is based on the gross receipts realized from a contract for the sale of goods entered into prior to July 1, 1969, nor shall any person pay a license fee pursuant to this chapter to the extent that such license fee is based on the purchase price paid under a contract for the purchase of goods entered into prior to July 1, 1969; but only if such contract meets all of the following requirements:
(1) the contract shall be written;
(2) the contract shall not be subject to re-negotiation;
(3) the contract shall be for a sum certain; and
(4) the contract shall be executed prior to July 1, 1969 and such date of execution is verified to the satisfaction of the State Tax Commissioner.
If such contract meets all of the requirements of this section, the said person shall pay a license fee computed at the rate and in the manner applicable prior to July 1, 1969, paid in the manner as required prior to July 1, 1969, and computed on the same license fee base that was applicable prior to July 1, 1969.
Section 48. Section 2301 (a), Chapter 23, Title 30, Delaware Code, is amended by adding at the end of said Section 2301 (a) the following:
Wholesale News Agency, $500.00. "Wholesale news agency" includes every person engaged in the business of conducting a wholesale news agency, except any such person who is licensed as a merchant under Chapter 20 of this title.
Approved June 30, 1969.