CHAPTER 401

FORMERLY

HOUSE BILL NO. 453

AS AMENDED BY HOUSE AMENDMENT NO. 1

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO CONTRACTORS AND DEVELOPERS.

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 § 2501, Title 30, Delaware Code by adding to said section a new subsection, to read as follows:

"(8) 'Real Estate Developer', for purposes of this chapter, means a person in the business of: (a) acquiring land (raw or improved); and (b) improving raw land or building structures (residential or commercial) on land so acquired (or both); and (c) selling land where applicable with the structure, to customers. 'Real estate development' means the activities of a real estate developer as described in this subsection. A person shall be treated as a real estate developer or as a contractor who is not a real estate developer depending, in each case, upon the business in which the person is engaged with respect to a specific parcel of real estate."

Section 2. Amend § 2501(5), Title 30, Delaware Code by striking said subsection in its entirety and inserting in lieu thereof a new subsection, to read as follows:

"(5) 'Gross Receipts' includes:

(a) In the case of a contractor other than a real estate developer, all sums received for any work done or materials supplied in connection with any real property located in the State, but does not include sums paid to subcontractors by the contractor; provided said subcontractor is licensed and 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; and

(b) In the case of a real estate developer, all sums received from (i) The cost of the land and improvement thereto other than structures, In determining the cost of the and and improvements thereto other than structures, only the following costs may be included and allocated on a per loi basis:the sale of real properly with structures (commercial and/or residential) built thereon reduced by:

(A) Cost of raw land; the Act shall also be held invalid. If any provision of Section 4 of this Act or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the Act which can be given effect without the invalid provision(s) or application.

Approved June 27, 1996