CHAPTER 295
FORMERLY HOUSE BILL NO. 514
AS AMENDED BY
HOUSE AMENDMENT NO.1
AN ACT TO AMEND TITLE 30, DELAWARE CODE BY CREATING A NEW CHAPTER 14 RELATING TO GIFT TAXES.
Be it enacted by the General Assembly of the State of Delaware:
Section 1. Amend Title 30, Delaware Code, by creating a new Chapter 14 as follows:
CHAPTER 14. GIFT TAX
§ 1401. Imposition of gift tax
For the last calendar quarter of calendar year 1971 and each calendar quarter thereafter a tax as computed in Section 1402 is hereby imposed on the transfer of property by gift during such calendar year by an individual resident of this State.
§ 1402. Basis computation of tax
The tax imposed by Section 1401 for each calendar quarter shall be an amount equal to the excess of (1) a tax, computed in accordance with the rate schedule set forth in Section 1403, on the aggregate sum of taxable gifts for such calendar quarter and for each of the preceding calendar years and calendar quarters after September 30, 1971 over (2) a tax, computed in accordance with such rate schedule, on the aggregate sum of the taxable gifts for each of the preceding calendar years and calendar quarters after September 30, 1971.
§ 1403. Rates
The tax imposed by this chapter shall be computed at the following rates:
On the amount of taxable gift exceeding $0.0 and not exceeding $25,000, one percent.
On the amount of taxable gift exceeding $25,000, but not exceeding $50,000, two percent.
On the amount of taxable gift exceeding $50,000 but not exceeding $75,000, three percent.
On the amount of taxable gift exceeding $75,000, but not exceeding $100,000, four percent.
On the amount of taxable gift exceeding $100,000, but not exceeding $200,000, five percent.
On the amount of taxable gift exceeding $200,000, six percent.
§ 1404. Definitions
As used in this chapter —
`Taxable gifts' for a calendar quarter shall mean the amount of taxable gifts for federal gift tax purposes increased by the amount of the federal specific exemption (as defined in Section 2521 Internal Revenue Code of 1954 or such similar subsequent tax legislation) claimed in computing taxable gifts for federal gift tax purposes for such calendar quarter.
`Resident' shall have the same meaning as defined in Section 1103 of this Title.
§ 1405. Payment of Tax
The tax must be paid by the donor on or before the 15th day of the second month following the close of the calendar quarter in which gifts were made. If an extension of time for payment thereof has been granted by the Federal Government for federal gift tax purposes, notice of such extension to the Secretary of Finance shall serve as an automatic extension for purposes of payment of the tax imposed by this chapter. The Secretary of Finance shall prescribe such rules, regulations and forms for the administration of said tax as he deems necessary and as are consistent with the laws of this State.
§ 1406. Failure to pay tax, interest
Any person who fails to pay the tax imposed by this chapter shall be liable to pay the tax due, plus interest in the amount of one percent per month or fraction thereof from the date due until date of payment.
Section 2. This Act shall take effect August 1, 1971.
Approved July 30, 1971.