TITLE 30

State Taxes

Occupational and Business Licenses and Taxes

CHAPTER 41. TELEGRAPH AND TELEPHONE COMPANIES [REPEALED BY 78 DEL. LAWS, C. 294, § 2, EFFECTIVE JAN. 1, 2015, PURSUANT TO § 4 OF THE ACT]


(a) Every individual, firm or corporation owning, maintaining or operating any line or lines of telegraph within this State shall be subject to taxation for the use of the State, in the manner prescribed in this section.

(b) Each such individual, firm or corporation shall annually, on June 15, pay to the Secretary of Finance for the use of the State a tax of 60 cents per mile for the longest wire within the State, a tax of 30 cents per mile for the next longest wire, and a tax of 20 cents per mile for each and every other wire owned, maintained and operated within the State by each such individual, firm or corporation. Every such individual, firm or corporation shall annually, on June 1, make and deliver to the Secretary of Finance a statement in writing, verified by the oath of such individual or 1 of the members of such firm, or by the president, general manager or treasurer of such corporation, showing the whole number of miles of wire owned, maintained or operated within this State by any such individual, firm or corporation, and also designating the length and location of the longest and next longest wires of each.

18 Del. Laws, c. 460, § 1; 25 Del. Laws, c. 6, § 5; Code 1915, § 52; Code 1935, § 49; 30 Del. C. 1953, § 4101; 57 Del. Laws, c. 741, § 23; 60 Del. Laws, c. 16, § 1.;

(a) Every individual, association of persons, firm or corporation engaged in the telephonic business and owning, leasing, controlling or operating any line or lines of wire in this State, which such individual, association, firm or corporation, or any other person or party uses or is entitled to use, either for the transmission of telephonic messages from any place in another state across any portion of this State to a place in another State, or for the transmission of telephonic messages between any 2 places wheresoever, shall be subject to taxation for the use of the State, in the manner prescribed in this section.

(b) Each such individual, association, firm or corporation shall annually, on June 15, pay to the Secretary of Finance, for the use of the State, a tax of 60 cents per mile of wire for the longest wire within this State, a tax of 30 cents per mile of wire for the next longest wire within this State, and a tax of 20 cents per mile of wire for each and every other wire within this State, owned, leased, controlled or operated by such individual, association, firm or corporation on June 1 then last past, and which such individual, association, firm or corporation, or any other person or party then used or was entitled to use, either for the transmission of telephonic messages from any place in another state across any portion of this State to a place in another state, or for the transmission of telephonic messages between any 2 places wheresoever; and shall also pay a further tax to the Secretary of Finance, for the use of the State, of 25 cents upon each and every telephonic transmitter in this State furnished or rented to any person or party whomsoever by such individual, association, firm or corporation.

(c) Every individual, association of persons, firm or corporation engaged in the telephonic business and owning, leasing, controlling or operating any line or lines of wire as set forth in this chapter shall annually, on or before June 1, make and deliver to the Secretary of Finance a statement in writing verified by the oath or affirmation of such individual, or of 1 of the members of such firm, or the president, general manager or treasurer of such association or corporation, showing the total number of telephonic transmitters used in this State on May 1 then last past, and which telephonic transmitters were furnished or rented by said individual, association, firm or corporation to any person or party for telephonic purposes, and also showing the number of miles of wire owned, leased, controlled or operated by said individual, association, firm or corporation within this State on May 1 then last past, which such individual, association, firm or corporation, or any other person or party then used or was entitled to use either for the transmission of telephonic messages, from any place in another state across any portion of this State to a place in another state, or for the transmission of telephonic messages between any 2 places wheresoever, and designating the length and location of the longest and of each and every other wire.

(d)(1) Effective January 1, 2013, each individual, association, firm or corporation that is subject to tax under this section shall be entitled to a credit against such tax that is equal to 8% of its Delaware communications infrastructure investment cost. For purposes of this subsection, no taxpayer shall be entitled to claim a credit under this subsection in excess of the taxpayer's total tax liability for the year in which the tax is paid and the preceding year.

(2) Effective January 1, 2014, each individual, association, firm or corporation that is subject to tax under this section shall be entitled to a credit against such tax that is equal to 4% of its Delaware communications infrastructure investment cost. For purposes of this subsection, no taxpayer shall be entitled to claim a credit under this subsection in excess of such taxpayer's tax liability for the year in which the tax is paid.

(3) For purposes of this subsection, "Delaware communications infrastructure investment cost" means the average annual aggregate cost of capital investment in wired or wireless communications equipment and other communications infrastructure that was placed in service in Delaware during the current calendar year and the preceding calendar year by the taxpayer and its affiliates. For purposes of this subsection, 1 person is an affiliate of another person if such persons have a relationship that is specified in § 267(b) of Internal Revenue Code [26 U.S.C. § 267(b)]. Only 1 taxpayer shall be entitled to claim a credit under this subsection with respect to each item of Delaware communications infrastructure investment cost.

25 Del. Laws, c. 6, §§ 1, 2; Code 1915, §§ 53, 54; Code 1935, §§ 50, 51; 30 Del. C. 1953, § 4102; 57 Del. Laws, c. 741, § 23; 60 Del. Laws, c. 16, § 2; 78 Del. Laws, c. 294, § 1.;

In case of the refusal or omission of any individual, firm, association or corporation to make and deliver the statement in accordance with this chapter and within prescribed time, the Secretary of Finance shall make an assessment of the tax upon the best information that the Secretary is able to obtain, and shall add to the sum of the tax so assessed a penalty of 25 percent, and shall demand payment of the whole from the individual, association, firm or corporation so in default. The estimate so made by the Secretary of Finance in such case shall be final and conclusive on the party so in default.

18 Del. Laws, c. 460, § 1; 25 Del. Laws, c. 6, §§ 3, 5; Code 1915, §§ 52, 55; Code 1935, §§ 49, 52; 30 Del. C. 1953, § 4103; 57 Del. Laws, c. 741, § 23; 70 Del. Laws, c. 186, § 1.;

In case of the omission or refusal of any individual, association, firm or corporation, subject to the provisions of this chapter, to pay the tax imposed under this chapter within 30 days after it is due, the Secretary of Finance shall distrain upon any property in this State of the party so in default, and, having given notice in writing of such seizure and distress, shall sell the said property so seized and distrained, on 10 days' notice, by advertisement posted in 5 public places of the county wherein such property has been seized.

18 Del. Laws, c. 460, § 1; 25 Del. Laws, c. 6, §§ 4, 5; Code 1915, §§ 52, 56; Code 1935, §§ 49, 53; 30 Del. C. 1953, § 4104; 57 Del. Laws, c. 741, § 23.;