DelawareDelaware restaurants would subtract up to $250,000 monthly before calculating fees
Starting January 1, 2027, Delaware restaurants would subtract up to $250,000 in monthly sales, or $750,000 quarterly if eligible, when calculating a state license fee.
What it does
Starting January 1, 2027, restaurants filing monthly would subtract up to $250,000 from Delaware sales when calculating their license fee. Restaurants under common ownership or control share one deduction.
Starting January 1, 2027, restaurants whose taxable sales meet the adjustable $1.5 million limit during the state's review period would subtract up to $750,000 each quarter. Common owners share one deduction.
Argument forRestaurants could owe less in license fees on their sales and keep more money for day-to-day costs.
Argument againstDelaware could collect less from restaurant license fees because the deductions leave some sales out of the fee calculation.
More detail
Restaurants would subtract up to $250,000 from a month's Delaware sales before calculating the sales-based license fee. This applies to restaurants paying the fee monthly on goods sold in Delaware. Restaurants under common ownership or control share one monthly deduction. The fee rate is 0.6472% of sales counted after the deduction. This monthly deduction would take effect on January 1, 2027.
Eligible restaurants would subtract up to $750,000 in quarterly Delaware sales before calculating the sales-based license fee. Quarterly filing is allowed when taxable sales during the state's review period are at or below the applicable limit. The listed $1.5 million limit can change each year. Restaurants under common ownership or control share one quarterly deduction. This quarterly deduction would take effect on January 1, 2027.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Jun 16Reported Out of Committee (Appropriations) in House with 6 On Its MeritsLatest
- Jun 11Assigned to Appropriations Committee in HouseMinor
- Jun 10Reported Out of Committee (Revenue & Finance) in House with 4 Favorable, 6 On Its MeritsMinor
- May 12Introduced and Assigned to Revenue & Finance Committee in HouseIntroduced
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