Delaware § 4302 Imposition of tax on lessees

Delaware Statutes

§ 4302 — Imposition of tax on lessees

Delaware·Title 30·Part Occupational and Business Licenses and Taxes·Ch. 43 USE TAX ON LEASES OF TANGIBLE PERSONAL PROPERTY

(a)There is imposed by this section on every lessee a use tax, for the use within this State, under a lease of tangible personal property (other than motor vehicles, household furniture, household fixtures or household furnishings, hospital equipment and any and all medical and remedial equipment, aids and devices leased by or to elderly, ill, injured or handicapped persons for their own use, including television sets leased to patients in a health care facility, motion picture films leased by a film society organization that is exempt from federal income tax under the provisions of § 501(c) of the Internal Revenue Code [26 U.S.C. § 506(c)], and manufacturing equipment under leveraged leases in which rental payments are guaranteed, in whole or in part, by the Economic Development Administ

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(a) There is imposed by this section on every lessee a use tax, for the use within this State, under a lease of tangible personal property (other than motor vehicles, household furniture, household fixtures or household furnishings, hospital equipment and any and all medical and remedial equipment, aids and devices leased by or to elderly, ill, injured or handicapped persons for their own use, including television sets leased to patients in a health care facility, motion picture films leased by a film society organization that is exempt from federal income tax under the provisions of § 501(c) of the Internal Revenue Code [26 U.S.C. § 506(c)], and manufacturing equipment under leveraged leases in which rental payments are guaranteed, in whole or in part, by the Economic Development Administration of the United States Department of Commerce pursuant to Public Law 89-136 (42 U.S.C. § 3121 et seq.), as amended) equal to 1.9914% of the rent under such lease.

(b) There is imposed by this section on every motor vehicle lessee a use tax, for use within this State under a lease of a motor vehicle, equal to 1.9914% of the rent under such lease.

(c) This section shall not apply to rents on leases of equipment, machinery, fixtures, buildings and/or nonregistered vehicles used in the business of raising crops or animals in agricultural production reusable pallets and containers for use by food processors. For purposes of this subsection, the term “reusable pallet and container” means any pallet or crate which is under an arrangement for the repeated return of such property to its initial purchaser for long-term reuse.

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Legislative History

30 Del. C. 1953, § 4302; 57 Del. Laws, c. 136, § 18 ; 57 Del. Laws, c. 451 ; 62 Del. Laws, c. 104, § 1 ; 68 Del. Laws, c. 80, § 12 ; 70 Del. Laws, c. 484, § 11 ; 71 Del. Laws, c. 150, § 63 ; 71 Del. Laws, c. 439, § 1 ; 73 Del. Laws, c. 77, § 1 ; 73 Del. Laws, c. 390, § 1 ; 75 Del. Laws, c. 199, § 10 ; 76 Del. Laws, c. 282, §§ 13, 16 ; 77 Del. Laws, c. 83, §§ 17, 18, 25 ; 78 Del. Laws, c. 73, §§ 46, 47 ; 78 Del. Laws, c. 298, § 1 ; 79 Del. Laws, c. 13, §§ 15, 16