CHAPTER 450
FORMERLY
HOUSE BILL NO. 970
AS AMENDED BY HOUSE AMENDMENT NO. 1
AN ACT TO AMEND SECTION 503, TITLE 8 OF THE DELAWARE CODE BY ADDING A DEFINITION OF TOTAL ASSETS AND TOTAL GROSS ASSETS.
Be it enacted by the General Assembly of the State of Delaware (two-thirds of all members of each branch thereof concurring therein):
Section 1. Section 503, Title 8, Delaware Code, is hereby amended by adding a new subsection (i) to read as follows:
"(i) As used in subsections (a) and (b) of this section, the term 'total assets' and the term 'total gross assets' are identical terms and mean all assets of the corporation, net only of allowances for bad debts, accumulated depreciation, accumulated depletion, accumulated amortization of land and accumulated amortization of intangible assets.
Such total assets and total gross assets shall be those 'Total Assets' reported to the United States on U.S. Form 1120 Schedule L, relative to the company's fiscal year ending in the calendar year prior to filing with the Secretary of State pursuant to this section. If such Schedule is no longer in use, the Secretary of State shall designate a replacement. The Secretary of State may at any time require a true and correct copy of such Schedule to be filed with his office.
No corporation shall consolidate with its assets the assets of another entity for purposes of this section. If such Schedule or its replacement reports on a consolidated basis, the reporting corporation shall submit to the Secretary of State a reconciliation of its reported total assets or total gross assets to the consolidated Total Assets reported on the Schedule.
Interests in entities which are consolidated with the reporting company shall be included within 'total assets' and 'total gross assets' at a value determined in accordance with generally accepted accounting principles."
Section 2. This Act shall take effect on January 1, 1975 and shall apply to franchise taxes for 1974 and all years thereafter.
Approved July 16, 1974.