§ 2502 — License requirement; resident and nonresident; additional fee on gross receipts paid; statements required

(a) Any person desiring to engage in business in this State as a contractor shall obtain a license upon making application to the Division of Revenue and paying a fee of $75. This license must be obtained and proof of license compliance must be made prior to, or in conjunction with, the execution of a contract to such person. In the case of contracts in excess of $50,000 which are competitively bid, such person shall have initiated the license application procedure required by this subsection with the Division of Revenue prior to, or in conjunction with, the submission of a bid on a contract, or, in the case of a subcontractor, prior to the submission of a bid by the general contractor. Such license shall be valid until January 1 at which time it may be renewed for a full year and every year thereafter; provided, that the contractor makes application therefor and payment of $75 plus the license fee required in subsection (c) of this section.

(b) The Division of Revenue shall not issue any license to any person until and unless such person:

(1) Is in compliance with all the provisions of § 375 of this title applicable to such person;

(2) Has filed a certificate of notice issued by the Delaware Department of Labor certifying that such person has notified the Department of Labor that such person has entered into or will be entering into contracts to perform labor on or to perform labor on and furnish material for a construction project located in Delaware; and

(3) Has filed a certificate of insurance showing that such person has insured liability in the amount and manner, and when due, and as required, under the workers’ compensation laws of this State, or a certificate on a form prescribed by the Department of Labor of this State that such person has been declared to be a qualified self-insurer by the Department of Labor of this State pursuant to the workers’ compensation laws of this State.

(c) (1) In addition to the license fee required by subsection (a) of this section, every contractor shall pay a license fee of 0.6472% of the aggregate gross receipts paid to such contractor which fee shall be payable monthly on or before the twentieth day of each month with respect to the aggregate gross receipts for the immediately preceding month. In computing the fee due on such aggregate gross receipts for each month, there shall be allowed a deduction of $100,000. For purposes of this subsection all branches or entities comprising an enterprise with common ownership or common direction and control shall be allowed only 1 monthly deduction from the aggregate gross receipts of the entire enterprise. The monthly returns shall be accompanied by a certified statement on such forms as the Department of Finance shall require in computing the fee due.

(2) Notwithstanding paragraph (c)(1) of this section, if the taxable gross receipts prescribed therein during the lookback period as defined in § 2122 of this title do not exceed the applicable threshold of $1,500,000, the return and payment of the additional license fee imposed for such month shall be due on or before the last day of the first month following the close of the quarter. In the case of such return, in computing the fee due on such aggregate gross receipts for each quarter, there shall be allowed a deduction of $300,000. (The applicable threshold in this paragraph (c)(2) is subject to annual adjustment as more fully set forth in § 515 of this title.) For purposes of this paragraph (c)(2), all branches or entities comprising an enterprise with common ownership or common direction and control shall be allowed only 1 quarterly deduction from the aggregate gross receipts of the entire enterprise. The quarterly return shall be accompanied by a certified statement on such forms as the Department of Finance shall require in computing this fee due.

(3) [Repealed.]

Legislative History

18 Del. Laws, c. 555, § 2 ; Code 1915, § 184; 40 Del. Laws, c. 27, § 1 ; Code 1935, § 196; 41 Del. Laws, c. 14, § 6 ; 42 Del. Laws, c. 68, § 1 ; 30 Del. C. 1953, § 2502; 57 Del. Laws, c. 136, § 14 ; 57 Del. Laws, c. 188, § 35 ; 57 Del. Laws, c. 741, §§ 12A, 12B ; 60 Del. Laws, c. 21, §§ 1-3 ; 60 Del. Laws, c. 24, §§ 5, 6 ; 61 Del. Laws, c. 117, § 2 ; 63 Del. Laws, c. 314, § 2 ; 65 Del. Laws, c. 392, § 3 ; 65 Del. Laws, c. 402, § 4 ; 65 Del. Laws, c. 476, §§ 8-10 ; 66 Del. Laws, c. 381, § 1 ; 67 Del. Laws, c. 261, § 9 ; 68 Del. Laws, c. 80, §§ 4, 14 ; 68 Del. Laws, c. 151, § 1 ; 69 Del. Laws, c. 289, §§ 1, 4 ; 70 Del. Laws, c. 186, § 1 ; 70 Del. Laws, c. 484, § 1 ; 70 Del. Laws, c. 489, §§ 5, 6 ; 71 Del. Laws, c. 84, § 30 ; 71 Del. Laws, c. 351, §§ 2, 19 ; 75 Del. Laws, c. 199, §§ 1, 15, 24 ; 76 Del. Laws, c. 282, §§ 2, 16 ; 77 Del. Laws, c. 83, §§ 5, 25 ; 78 Del. Laws, c. 73, §§ 10, 11, 32 ; 79 Del. Laws, c. 13, § 2 ; 80 Del. Laws, c. 195, § 12