Town of South Bethany, DE Article III Tax on Gross Rental Receipts

[Adopted 10-8-1994 by Ord. No. 49-94]

§ 118-11 Authority.

This article is authorized by § C-4B of the Town Charter.

§ 118-12 Definitions.

For the purposes of this article, the following terms should have the following definitions:

COMMERCIAL PROPERTY

A building or structure other than a residential properties.

CURRENT RATE

The rate, expressed as a percentage, by which the gross rental receipts are multiplied to determine the tax due.

RESIDENTIAL PROPERTY

A dwelling designed to serve as a single-family dwelling and constructed to provide complete housekeeping facilities for one or more individuals.

§ 118-13 (Reserved) [1]

[1] Editor's Note: Former § 118-13, Annual license; fee, as amended, was repealed 6-8-2001 by Ord. No. 99-01. See now Ch. 84, Permits and Licenses, Art. II, Renters Licenses.

§ 118-14 Rental tax.

[Amended 3-14-2003 by Ord. No. 117-02]

A. There is hereby imposed a rental tax not to exceed 8% of the gross rental receipts of each residential and commercial property. The Council shall establish the current rate each year concurrent with the adoption of the annual operating budget and shall become effective the following October 1.

B. The rental tax shall be due and payable to the Town no later than October 31 of each year and shall cover the prior period of October 1 to September 30.

[Amended 8-5-2011 by Ord. No. 157-11]

C. The payment of the rental tax shall be the responsibility of the property owner; provided, however, that any such owner may designate an agent to collect and pay the tax to the Town.

[Amended 8-5-2011 by Ord. No. 157-11[1]]

[1] Editor's Note: This ordinance also repealed former Subsection C, regarding the collection of rental tax for 2003, and redesignated former Subsection D as Subsection C.

§ 118-15 Rental tax form.

[Amended 6-8-2001 by Ord. No. 99-01]

Every year the Town will send a copy of the rental tax form to all currently licensed landlords or their designated agents. This form is to be filled out for each rental property owned and shall be returned to the Town office, along with a check for the current tax due. The tax due shall be calculated by multiplying the current rate by the gross receipts.

§ 118-16 Penalties for offenses.

[Amended 8-5-2011 by Ord. No. 157-11]

A. Any property owner violating the provisions of this article shall be subject to the same penalties as listed in § 84-14A.

B. Any property owner charged with violating this article may cure the violation within 15 days as provided in § 84-14C, D and E.

C. A property owner who falls to pay the rental tax due and owed to the Town of South Bethany by October 31 of each year shall, in addition to the current rental tax due, pay interest thereon at the rate of 1 1/2% percent per month on the unpaid balance until fully paid.

D. Any property owner who fails to comply with this article shall be subject to loss of rental license: one year for the first offense and two years for each subsequent offense; provided, however, that no rental license shall be revoked without providing a property owner with notice and an opportunity for a hearing in accordance with § 84-10.1.