DE SB125

Allows the Director of Revenue to exempt nonresident pass-through entities that sell or exchange an average of 5 or more residential homes or lots per quarter in Delaware from paying estimated income taxes before each deed is recorded

Exempt entities would file quarterly rather than paying taxes at the time of each individual real estate transaction, reducing administrative burden on both high-volume sellers and the Division of Revenue

Creates an application process for qualifying entities to request the exemption from the pre-recording tax payment requirement

Authorizes the Director to revoke the exemption if the entity or its members fail to comply with tax filing and payment obligations, with written notice and appeal rights provided

Clarifies that the exemption only changes the timing of estimated tax payments, not the obligation to pay taxes owed on real estate transactions