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HB417 • 2025

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

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
2026-05-12
Official status
House Revenue & Finance 5/12/26
Effective date
Not listed

Plain English Breakdown

The official source material does not provide information on whether the requirement for a single deduction applies to multiple branches or entities under common ownership.

Restaurant License Deduction Increase Act

This act increases the monthly and quarterly deductions for restaurant license fees in Delaware.

What This Bill Does

  • Increases the monthly deduction on taxable gross receipts from $100,000 to $250,000.
  • Raises the quarterly deduction allowed for restaurants with less than $1.5 million in previous year's gross receipts from $300,000 to $750,000.

Who It Names or Affects

  • Restaurants and other food service businesses in Delaware.

Terms To Know

Gross Receipts
The total income a business earns before any deductions are made.
License Fee
A fee paid to the government for permission to operate a business.

Limits and Unknowns

  • It is not clear how many restaurants will be affected by this change.
  • The bill does not specify if there are any exceptions or additional requirements for small businesses.

Bill History

  1. 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

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.