§ 2902 — Wholesaler license requirements; license fee; additional fee on aggregate gross receipts; statements required

(a) For the purposes of this section, “wholesaler” shall not include those wholesalers included in § 2901(21)a.2. and 3. of this title.

(b) Any person desiring to engage in business in this State as a wholesaler shall first obtain a license from the Department of Finance and pay therefor a fee of $75 for each place of business. 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 wholesaler pays the fees required by subsection (c) of this section, makes application therefor and payment of $75 for each place of business.

(c) (1) In addition to the license fee required by subsection (b) of this section, every wholesaler shall also pay a license fee at the rate of 0.3983% of the aggregate gross receipts attributable to sales of tangible personal property physically delivered within this State, 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. (The applicable threshold in this paragraph (c)(2) is subject to annual adjustment as more fully set forth in § 515 of this title.) 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. 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) There shall be added to the tax provided in paragraph (c)(1) of this section an additional tax of 0.2489% on all taxable gross receipts determined under this section which are derived from the sale of petroleum products defined in § 2901(12) of this title.

(4) There shall be added to the taxes provided in paragraphs (c)(1) and (3) of this section an additional tax as provided in § 9114 of Title 7.

(5) [Repealed.]

(6) The Director of Revenue is authorized to issue regulations providing for exemption certificates to be given by purchasers to wholesalers to document wholesale sales which, pursuant to § 2901(8)b.6. of this title, do not result in taxable gross receipts. A wholesaler is entitled to rely upon an exemption certificate valid on its face and in compliance with the regulations for purposes of computing the tax due under this section and shall not be liable for any tax attributable to sales covered by exemption certificates that are invalid. Any person providing an exemption certificate that is invalid shall, in addition to any prosecution under subchapter V of Chapter 5 of this title, be liable for the tax due (calculated without reference to the monthly exclusion in paragraph (c)(1) of this section), plus interest and a penalty under § 535(a) of this title equal to 75% of the underpayment of tax attributable to sales covered by the invalid exemption certificates.

Legislative History

14 Del. Laws, c. 76, §§ 1, 2 ; 27 Del. Laws, c. 27 ; Code 1915, §§ 198, 226A; 40 Del. Laws, c. 26, § 1 ; 40 Del. Laws, c. 30, § 1 ; Code 1935, § 173; 41 Del. Laws, c. 13, § 1 ; 30 Del. C. 1953, § 2902; 49 Del. Laws, c. 343, § 2 ; 57 Del. Laws, c. 136, § 16 ; 57 Del. Laws, c. 741, § 14 ; 60 Del. Laws, c. 21, §§ 6, 7 ; 60 Del. Laws, c. 25, §§ 1, 2 ; 61 Del. Laws, c. 117, § 4 ; 63 Del. Laws, c. 314, § 4 ; 64 Del. Laws, c. 374, § 2 ; 65 Del. Laws, c. 184, § 3 ; 65 Del. Laws, c. 402, §§ 7, 8 ; 66 Del. Laws, c. 381, § 8 ; 67 Del. Laws, c. 261, § 11 ; 67 Del. Laws, c. 290, § 3 ; 67 Del. Laws, c. 326, § 3 ; 68 Del. Laws, c. 80, § 6 ; 69 Del. Laws, c. 289, § 6 ; 70 Del. Laws, c. 484, §§ 6, 12 ; 70 Del. Laws, c. 489, §§ 9, 10 ; 71 Del. Laws, c. 39, § 3 ; 71 Del. Laws, c. 351, §§ 4, 14, 21 ; 75 Del. Laws, c. 199, §§ 6, 11, 16, 25 ; 76 Del. Laws, c. 282, §§ 4, 5, 16 ; 77 Del. Laws, c. 83, §§ 8, 9, 25 ; 77 Del. Laws, c. 412, § 2 ; 78 Del. Laws, c. 1, § 6 ; 78 Del. Laws, c. 73, §§ 16, 17, 36, 37 ; 78 Del. Laws, c. 94, §§ 1, 2 ; 78 Del. Laws, c. 100, §§ 12-14 ; 79 Del. Laws, c. 13, §§ 6, 7 ; 80 Del. Laws, c. 195, § 15