CHAPTER 507

FORMERLY

HOUSE BILL NO. 1035

AS AMENDED BY HOUSE AMENDMENT NO. 2

AN ACT TO AMEND CHAPTER 23, TITLE 30, DELAWARE CODE, RELATING TO OCCUPATIONAL LICENSE REQUIREMENTS AND FEES, TO REQUIRE LESSORS OF COMMERCIAL PROPERTY TO BE LICENSED THEREUNDER, AND TO REPEAL THE PROVISION IN CHAPTER 54, TITLE 30, DELAWARE CODE, RELATING TO THE REALTY TRANSFER TAX ON LEASES.

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

Section 1. Amend §2301(a), Chapter 23, Title 30,

Delaware Code, by adding to the end thereof a new paragraph to read as follows:

"(88) Commercial Lessor, $50. Commercial Lessor includes every person who, as lessor or sub-lessor, receives rental income pursuant to any agreement transferring a title interest or possessory interest in real property under a lease of a commercial unit for any term. For this purpose, 'commercial unit' means a structure or that part of a structure which is used for purposes other than a dwelling unit or farm unit."

Section 2. Amend §2301(e), Chapter 23, Title 30,

Delaware Code, by adding to the end thereof a new sentence to read as follows:

lessee therein to pay or to reimburse the lessor for the license fees herein imposed as part of the lessee's specific or general obligation to pay or reimburse lessor for gross receipts tax, real estate taxes or other governmental assessments, charges or fees; (2) every commercial lessor, who is also a sublessor, shall exclude from gross receipts the amount said lessor pays to another lessor as rem for the same commercial unit; and (3) any rental income received by a commercial lessor who has paid the transfer tax pursuant to Section 5402 (d), Chapter 54, Title 30 of the Delaware Code shall not be included as gross receipts received by the commercial lessor."

Section 3. Amend §5401(4), Chapter 54, Title 30, Delaware Code, by striking paragraphs (b) and (d) in their entirety and be redesignating paragraph (c) as paragraph (b).

Approved June 30, 1976