Delaware General Assembly

CHAPTER 171

FORMERLY

HOUSE BILL NO. 171

AS AMENDED BY HOUSE AMENDMENT NO. 1

AN ACT TO AMEND CHAPTER 83, TITLE 29, CHAPTERS 1, 11, 13, 19, 20, 23, 29, 51, 52, 54 AND 55, TITLE 30, CHAPTER 11 OF TITLE 5, CHAPTER 5 OF TITLE 8 AND CHAPTERS 7, 53, 55, 61, 63 AND 64 OF TITLE 18 OF THE DELAWARE CODE RELATING TO TAX PREFERENCES.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend Paragraph (6), §8305, Chapter 83, Title 29 of the Delaware Code by striking the words "On or before November 15, biennially", as they appear therein, and substitute in lieu thereof the words "Once every five years, on or before November 15,"

Section 2. Amend §8305, Chapter 83, Title 29 of the Delaware Code by adding thereto a new paragraph (7) to read as follows:

"(7) Notwithstanding the provisions of paragraph (6) of this Section, whenever there shall be enacted:

a. in the case of the personal income tax, a modification, as
that term is used in §1105 of Title 30, to be used in determining taxable income, or adjustments to federal itemized deductions to be used in the computation contained in §1109(a), Title 30; or

a. in the case of corporation income tax, adjustments to federal taxable income under §1903(a), Title 30, or allocation provisions under §1903(b), Title 30; then, on or before November 15 following such enactment, the Division of Revenue, under the supervision of the Secretary of Finance, shall make a report to the Governor and the General Assembly concerning such provision. The report shall include the components described in paragraph (6)(b) of this Section."

Section 3. Amend §8305, Chapter 83, Title 29 of the Delaware Code by striking the first sentence of subparagraph b., paragraph (6) in its entirety, and substituting in lieu thereof, the following:

"The taxes to be reviewed in the report shall be tax preferences created under provisions of the Delaware Code, rather than tax preferences created by operation of the Internal Revenue Code of the United States, and shall include, but need not be limited to, the personal income tax, corporate income tax, motor fuel taxes and public utility taxes."

Section 4. Amend Chapter 1, Title 30 of the Delaware Code by adding thereto a new §105 to read as follows:

"§105. Sunset repeal of tax preferences.

The following Delaware tax preference sections, subsections, and/or paragraphs of the Delaware Code or successor provisions shall be repealed, or, where so indicated, amended for tax periods beginning after December 31, 1995 and each fifth January 1 commencing January 1, 2001, unless continued, extended, or reenacted by act of the General Assembly without any amendment that would increase or decrease the amount or application of the preference:

(1) Low Income Elderly Exclusion 30 DLL §1106(b)(2);

(2) Exclusion Of Pension Income 30 NI, C, §1106(b)(3);

(3) Exclusion Of Taxable Social Security Benefits 30 NI, L, §1106(b)(4);

<4) Additional Standard Deduction For The Blind Or Persons Age 65 Or Over 30 pelt C„ §1108<b);

(5) Charitable Mileage Deduction 30 Del. C„ §1109<a)(2)a;

(6) Deduction Of Foreign Tax Paid - Personal

30 Del. C, §1109(a) (Amend by striking the phrase '(including the deduction for foreign taxes paid.)' as it appears in said subsection.);

<7) Deduction Of Health Insurance Costs Paid By Self-Employed Persons

30 Dgi, C, §1109<a)(2)b;

<1) Additional Personal Exemption For Persons Age 60 And Over

30 Del. C, §1110 (Amend by striking the sentence 'Resident persons age 60 or over shall be allowed one additional personal exemption of $1,250.');

<7) Volunteer Firefighters' Credit 30 Del. §1113;

<8) Child Care Expense Credit 30 OIL §1114;

<9) Military Action Exemption 30 Del, C, §1204;

<10) Deductions For Foreign Dividends, Interest And Royalties -Corporate

30 Del, Q. §1903<a)(2);

<11) Handicapped Accessibility Deduction

30 Del. L, §1903<a)(7);

<12) Deduction Of Interest From Affiliated Companies

30 Del. C, §1903(a)(3) (Amend by striking the phrase ' and

interest income (including discount) arising from obligations representing advances, loans or contractual transactions between corporations which are eligible to file a consolidated return for federal income tax purposes and which are subject to taxation under this chapter, if the paying corporation eliminates such interest (including discount) in determining its entire net income');

(15) Neighborhood Assistance Deduction - Corporate

30 Del, L, §§2001-2006;

(1) New Business Facilities Credit 30 DAL. D,. §§2010 through 2022;

(1) Travelink Program

30 Dgl, Q. §§1903 through 2035;

(1) Allocation Of Corporate Income

30 Die, L, §1903(b)(1) through (5);

(19) Exemption Of Investment Holding Companies

30 pgi.. §1902(b)(8);

(20) Exemption Of Foreign Sales Service Corporations

30 al., L, §1902(b)(12);

(21) Motor Fuel Tax Exemptions 30 Del. L, §5111(a)(5);

(22) Motor Fuel Tax Refunds

30 al, L, §5120;

(23) Special Fuel Tax Exemptions

30 al, L, §5133(a)(3);

(24) Exemption Of Fuel Used In Certain Vehicles 30 Del. L, §5224(b) through (d);

(25) Public Utility Tax Rebates

30 De, L, §5507;

(26) Exemptions From Public Utility Tax

30 Dal,. §5506(a) and (c) and (e) through (g);

(27) Gross Receipts, Exemption Of Automobile Dealers

30 W.. p,. §2908(b);

(28) Gross Receipts, Exemption Of Agricultural Items

30 Dti•. §2908(a);

(1) Gross Receipts, Exemption Of Retailers Of Alcoholic Beverages

30 Del. §2908(c);

(2) Gross Receipts, Exemption Of Artists, Elderly Handicapped Peddlers, And Persons 65 And Over

30 Del. p,. §2908(e) through (g);

(1) Gross Receipts, Exemption Of Foreign Sales Corporations And Export Trading Companies

30 DAL. §2301(q)—(r);

(1) Gross Receipts, Exemption Of Charitable, Banking, Religious, Civil, Educational, NonProfit, Etc. Organizations

30 Del. ps §2301(h) through (p);

(1) Gross Receipts, Credits For Investment And Employment In Targeted Industries And Areas

30 Del. L.,. §2011 — 2022;

(1) Exemption From Tobacco Tax Of Sales To Veteran's Organizations and Patients in V.A. Hospitals

30 Del.. C.. Chapter 53, §5305(d)(1)—(2);

30 Del. C, §2301(s);

(36) Inheritance Tax Charitable, Etc., Deductions

30 De, C, §1313;

(37) Inheritance Tax - Special Valuation

30 Del. C, Code §1314;

(38) Inheritance Tax Unlimited Deduction For Surviving Spouse 30 Del. C, §1323(b);

(39) Bank Franchise Tax Deduction of Non-United States Branch Income

5 De„ C, §1101(a)(1)c;

(1) Bank Franchise Tax Deduction Of International Banking Transactions

5 De, C,. §1101(a)(1)d;

(1) Bank Franchise Tax Deduction Of International Banking
Facilities

5 De, C. §1101(a)(1)e;

(2) Bank Franchise Tax Deduction Of Interest Income Received From Volunteer Fire Company Obligations

5 Dgl, C,. §1101(a)(1)f;

(1) Realty Transfer Tax Exemption Of Corporations Under The Slum Clearance And Redevelopment Authority Law

30 Dgl, C„ §5401(1)d;

(1) Realty Transfer Tax Exemption Of Conveyances From NonProfit Industrial Development Agencies To Industrial Corporations

30 al.. C.:. §5401(1)e;

(1) Realty Transfer Tax Exemption Of Conveyances To Industrial Development Agencies

30 Dgl, L, §5401(1)f;

(1) Realty Transfer Tax Exemption Of Conveyances Between Parent And Child

30 De, C, §5401(1)i;

(1) Realty Transfer Tax Exemption Of Residential Premises Taken As Consideration By Builders

30 De, .C„ §5401(1)0;

(1) Realty Transfer Tax Exemption Of Conveyances To Religious Organizations

30 Del, C, §5401(1)q;

(1) Realty Transfer Tax Exemption Of Conveyances To Or From A Volunteer Fire Company

30 De, C, §5401(1)r;

(1) Realty Transfer Tax Exemption Of Conveyances With Value Of Less Than $100

30 Del. C, §5402(b);

(51) Realty Transfer Tax Conveyance Of Mobile Homes

30 De, D, §5401(1)s;

(52) Realty Transfer Tax Conveyances To Charitable Organizations

30 De, D, §5401(1)t;

(53) Corporate Franchise Tax Ceiling

8 De, D, §503(c) (Amend by striking the phrase more than $130,000, nor');

(54) Franchise Tax Exempt Corporations

8 Del. D.,. §501 (Amend by striking the phrase or any

corporation for drainage and reclamation of lowlands, or religious corporation, or purely charitable or educational association, or any company, association or society, which, by its certificate of incorporation, shall have for its object the assistance of the sick, needy or disabled members, or the defraying of funeral expenses of deceased members, or to provide for the wants of the widows and families after death of its members.');

(1) Franchise Tax Relief For Corporations With Assets In
Unfriendly Nations

8 Del, D, §518;

(2) Franchise Tax Regulated Investment Companies Using Average Gross Assets Methods

8 D21, C, §503(h);

(3) Exemption From Public Accommodations Tax Of Tourist Homes With Cooking Facilities

30 Del, C, §6101(3) (Amend by striking the phrase 'but which does not have cooking facilities for the use of tourists or transient guests);

(1) Insurance Tax Exemption Of Mutual Assessment Property
Insurers

18 Dfl, D, §5306 (Amend by adding at the end of subsection (b) a new paragraph (13): '(13) Chapter 7 (Taxation)';

(1) Insurance Tax Exemption Of Mutual Benefit Associations 18 Del. C. §5520;

(1) Insurance Tax Exemption Of Fraternal Benefit Societies 18 Del. C. HT;

(1) Insurance Tax) Exemption Of Health Maintenance Organizations

18 Del. C, §6406 (Amend by adding at the end of said section a new subsection (18): '(18) Chapter 7 (Taxation)';

(1) Insurance Tax Exemption Of Health Service Organizations

18 De, D, §6309 (Amend by adding a new subsection (8): '(8) Chapter 7 (Taxation)';

(1) Insurance Tax Exclusion Of Considerations Received For
Annuity Contracts

 18 De]. c, §702(a)

(Amend by striking the last sentence of said subsection.)."

Section 5. This Act shall be effective upon enactment into law. The first report under Section 1 of this act shall be due on or before November 15, 1994. The first report under Section 2 of this act shall be due on or before November 15, 1991, with regard to enactments after January 1, 1990.

Approved July 15, 1991.