HOUSE BILL NO. 423
AS AMENDED BY HOUSE AMENDMENT NOS. 1, 2 AND 4
AN ACT TO AMEND CHAPTER 61, TITLE 30 OF THE DELAWARE CODE RELATING TO THE AUTHORITY OF THE STATE OF DELAWARE TO LEVY AND COLLECT A PUBLIC LODGING TAX AND DEDICATING THE PROCEEDS OF THE TAX TO THE STATE BEACH PRESERVATION PROGRAM AND COUNTY CONVENTION AND VISITORS BUREAUS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (three-fifths of all members elected to each House thereof concurring therein):
Section 1. Amend Section 6102, Chapter 61, Title 30 of the Delaware Code by deleting the existing provisions and substituting therein the following:
16102. Levy of tax.
(a) There is imposed and assessed an excise tax at the rate of 8% of the rent upon every occupancy of a room or rooms in a hotel, motel, or tourist home within this State.
(b) The proceeds of this tax shall be distributed as follows:
6% to the State General Fund, 1% to the Beach Preservation Program of the Department of Natural Resources and Environmental Control of the State of Delaware, and 1% annually shall be designated, in the proportion in which collected, to the duly established convention and visitors bureau in each county."
Section 2. Amend Chapter 61, Part V, Title 30, Delaware Code by designating the current Chapter 61 as "Subchapter I. Lodging Tax Collection" and .by creating a Subchapter II as follows:
"Subchapter II. County Convention and Visitors Bureaus §6121. Eligible Organizations
Each county-based convention and visitors bureaus, to be eligible to receive such monies as enumerated in §6102 of this Title must be a registered Delaware non-profit corporation, qualified under terms of the Internal Revenue Code of 1954 as amended, Section 501(c)(6). For the Counties of Kent, New Castle and Sussex, the following organizations are designated to receive the 1% funding:
(a) Kent County: A Convention & Visitors Bureau ,shall be established in a manner to be determined by the Governor of the State of Delaware and the Administrator of the Kent County Levy Court.
(b) Sussex County: A Convention & Visitors Bureau shall be established in a manner to be determined by the Governor of the State of Delaware and the Administrator of the Sussex County Council, and representatives from the Lewes Chamber of Commerce, Rehoboth Beach - Dewey Beach Chamber of Commerce and the Bethany - Fenwick Area Chamber of Commerce.
(c) In New Castle County: A qualifying county-based Convention & Visitors Bureau (The Greater Wilmington Convention & Visitors Bureau), has been chartered by the Governor of the State of Delaware, the County Executive of New Castle County, and the Mayor of the City of Wilmington.
§6122. Reporting and Operating Conditions
Such recipient organization shall be subject to all reporting and operating conditions normally imposed upon Delaware non-profit corporations and public bodies.
§6123. Period to Establish
During the period required for Kent and Sussex Counties to establish their County-based Convention & Visitors Bureaus, funds due them shall be paid to the Delaware Development Office. The Delaware Development Office will administer the funds, making them available to non-profit organizations in each county in such amounts and for such tourism related purposes as the Delaware Tourism Office deems appropriate.
Section 3. This Act shall take effect July 1, 1989.
Section 4. Notwithstanding any other provision of this Act to the contrary, all funds received by the State from this Act which are or would be designated for the 8each Preservation Program shall first be paid over, equally, to the Town of Fenwick Island; to the Town of Bethany Beach; to the Town of South Bethany and to Sussex County until each of them is reimbursed for funds which each has expended for beach replenishment during the years 1988 and 1989. After the county and towns have each been fully reimbursed, the said funds shall be paid over to the Beach Preservation Program. It is specifically authorized that the funds received by this Act which are or would be designated for the 8each Preservation Program shall be counted as non-state matching funds as required by Section 43, Chapter 360, Volume 66, Laws of Delaware.
Approved July 19. 1989.