HB417 • 2025

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO RESTAURANT RETAILER LICENSE REQUIREMENTS AND LICENSE FEES.

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: K. Williams
Last action: 2026-06-16
Official status: Out of Committee 6/16/26
Effective date: Not listed

Plain English Breakdown

Checked against official source text during the last sync.

HB417: Changes to Restaurant License Fee Deductions

This bill increases the amount of money restaurants can subtract from their sales before calculating a special license fee.

What This Bill Does

Raises the monthly deduction for restaurant gross receipts from $100,000 to $250,000.
Increases the quarterly deduction for qualifying small businesses with prior year gross receipts of no more than $1.5 million from $300,000 to $750,000.
Requires all branches under common ownership or control to share a single monthly or quarterly deduction limit.
Sets an effective date of January 1, 2027.

Who It Names or Affects

Restaurant retailers operating in Delaware
Business enterprises with multiple branches under common ownership or direction and control

Terms To Know

Gross receipts: The total amount of money a business collects from selling goods.
Deduction: An amount that can be removed from the total sales figure to lower the fee owed.

Limits and Unknowns

The $1.5 million threshold for quarterly filing is subject to annual adjustment as set forth in another section of law.
The bill does not state how much money restaurants will save in actual dollars.

Bill History

2026-06-16 Delaware General Assembly
Reported Out of Committee (Appropriations) in House with 6 On Its Merits
2026-06-11 Delaware General Assembly
Assigned to Appropriations Committee in House
2026-06-10 Delaware General Assembly
Reported Out of Committee (Revenue & Finance) in House with 4 Favorable, 6 On Its Merits
2026-05-12 Delaware General Assembly
Introduced and Assigned to Revenue & Finance Committee in House

Official Summary Text

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO RESTAURANT RETAILER LICENSE REQUIREMENTS AND LICENSE FEES.
This Act raises the monthly deduction on taxable gross receipts allowed by restaurants from $100,000 to $250,000. Accordingly, the quarterly deduction allowed for restaurants with gross receipts of no more than 1.5 million in the previous year is increased from $300,000 to $750,000.

Current Bill Text

Read the full stored bill text

Legislation Document

SPONSOR:

Rep. K. Williams & Sen. Walsh

Rep. D. Short

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE BILL NO. 417

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO RESTAURANT RETAILER LICENSE REQUIREMENTS AND LICENSE FEES.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend § 2906, Title 30 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 2906. Restaurant retailer license requirements; license fee; additional fee on aggregate gross receipts; statements required.

(c) (1) In addition to the license fee required by subsection (b) of this section every restaurant retailer shall pay a license fee at the rate of 0.6472% of the aggregate gross receipts attributable to all goods sold within the State, which fee shall be payable monthly on or before the twentieth day of each month with respect to the aggregate gross receipts of the immediately preceding month period. In computing the fee due on the aggregate gross receipts for any month, there shall be allowed a deduction of

$100,000.

$250,000.

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.

$750,000.

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.

Section 2. This Act takes effect on January 1, 2027.

SYNOPSIS

This Act raises the monthly deduction on taxable gross receipts allowed by restaurants from $100,000 to $250,000. Accordingly, the quarterly deduction allowed for restaurants with gross receipts of no more than 1.5 million in the previous year is increased from $300,000 to $750,000.