AN ACT TO AMEND CHAPTER 7, TITLE 18 OF THE DELAWARE CODE TO CHANGE THE DATES ON WHICH QUARTERLY TAX PAYMENTS ARE DUE AND HOW UNDERPAYMENTS ARE DETERMINED.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend § 702(d), Chapter 7, Title 18 of the Delaware Code by deleting said subsection in its entirety and substituting the following in lieu thereof:
"(d) The taxes imposed under this Section and § 703, § 704, § 707, § 1917 and § 6914 of this title shall be payable as follows:
'Twenty-live percent of the estimated tax liability for the current year shall be paid on each April 15, June 15, September 15, and December 15 of the current taxable year and the remaining balance to be paid on March I of the following year.' "
Section 2. Amend § 702(f), Chapter 7, Title 18 of the Delaware Code by deleting said subsection in its entirety and substituting the following in lieu thereof:
"(f) In case of any underpayment of estimated tax required by this Section, there shall be added to the tax for the taxable year an amount determined at the rate of 1-1/2% per month, or fraction thereof, upon the amount of the underpayment for the period of the underpayment. The period of the underpayment shall run from the date the estimated tax or installment was required to be paid to the date on which actually paid. No penalty for underpayment shall be imposed if the quarterly estimated tax payments equal one hundred percent (100%) of the total tax due and paid for the previous tax year."
Section 3. This Act shall become effective June 30, 1996.
Approved July 18, 1996