HB 474

                SPONSOR:
                Rep. K. Williams & Sen. Walsh
        HOUSE OF REPRESENTATIVES
        153rd GENERAL ASSEMBLY
        HOUSE BILL NO. 474
        AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO SHORT-TERM RENTAL LODGING TAX.
        BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
        Section 1. Amend § 6203, Title 30 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
        § 6203. Collection of tax [For application of this section, see 84 Del. Laws, c. 474, § 7].
        Accommodations intermediaries are responsible for collecting and remitting the short-term rental tax under § 6202
        and § 6204(b)
         of this
        title
        title, including municipal or county short-term rental tax,
         unless the accommodations intermediary has a contractual arrangement with a hotel, motel, tourist home, or other accommodations intermediary, licensed under § 2301 of this title, to collect and remit tax in accordance with this chapter. The short-term rental tax must be collected no later than the earlier of the final payment of all rent due or occupancy of the short-term rental. If a short-term rental stay is cancelled in whole, or in part, the cancelled portion of the stay must not be subject to the short-term rental tax and any amount of tax collected for such cancelled portion must be refunded.
        Section 2. Amend § 6204, Title 30 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
        § 6204. Remittance of tax [For application of this section, see 84 Del. Laws, c. 474, § 7].
        (a)
         The amount of the tax collected for each month
        under § 6202 of this title
         shall be reported and paid over to the Department of Finance not later than the fifteenth day of the month following the month of collection on forms to be prescribed by the Department of Finance. Interest at the rate of 1% per month, or fraction thereof, shall be charged on payments made after the prescribed due date.
        (b) The amount of tax collected for municipal short-term rental tax as authorized in their respective Charter or county as authorized in Title 9 shall be reported and paid over to the municipality or county not later than the 15th day of the month following the month of collection on forms to be prescribed by the county or municipality.
        Section 3. Amend § 6205, Title 30 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
        § 6205. Obligations of an accommodations intermediary [For application of this section, see 84 Del. Laws, c. 474, § 7].
        An accommodations intermediary must do all of the following:
        (4)  Remit data required by the county or municipality in a format and manner prescribed by the county or municipality, which may include all of the following:
        a. Address of rental unit.
        b. The number of nights rented for each property.
        c. Aggregate rents collected for each property.
        Section 4. Amend § 6206, Title 30 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
        § 6206. Distribution of the tax [For application of this section, see 84 Del. Laws, c. 474, § 7].
        The tax
        collected under § 6202 of this title
         shall be distributed as follows: 62.5% to the State General Fund; 12.5% to the Beach Preservation Fund of the Department of Natural Resources and Environmental Control; 12.5% annually shall be designated in the proportion in which collected, to the duly established convention and visitors bureau in each county; and 12.5% to the Delaware Tourism Office.
        Section 5. This Act takes effect on January 1, 2027.
        SYNOPSIS
        This Act requires that accommodations intermediaries collect short-term rental tax for a municipality.