Delaware General Assembly


CHAPTER 353

FORMERLY

HOUSE BILL NO. 834

AS AMENDED BY HOUSE AMENDMENT NO. 1

AN ACT TO AMEND TITLE 8, DELAWARE CODE, RELATING TO THE CORPORATION FRANCHISE TAX.

Be it enacted by the General Assembly of the State of Delaware:

Section 1. Amend Subsection (c), §502, Chapter 5,

Title 8, Delaware Code, by striking the words "fix the amount of the annual franchise tax as determined" appearing in the first sentence thereof and substituting in lieu thereof the words "fix the amount of the franchise tax as determined".

Section 2. Amend Subsection (d), §502, Chapter 5,

Title 8, Delaware Code, by striking the words "report, together with the franchise tax due," as they appear in the first sentence thereof and substituting in lieu thereof the words "report and the franchise tax due".

Section 3. Amend Subsection (e), §502, Chapter 5, Title 8, Delaware Code, by striking said subsection in its entirety and substituting in lieu thereof the following:

"(e) Upon the failure, neglect or refusal of a corporation to file the annual franchise tax report and the franchise tax due as required by the chapter, the Secretary of State may, in his discretion, investigate the reasons therefor and, if he believes such action is warranted, refer the matter to the Attorney General for proceedings under §283 of this title".

Section 4. Amend Subsection (c), §504, Chapter 5, Title 8, Delaware Code, by striking it in its entirety and substituting in lieu thereof the following:

"(c) If the tax of any corporation remains unpaid after the due dates established by this section, the tax shall bear interest at the rate of 1 percent for each month or portion thereof until fully paid."

Section 5. Amend Subsection (a), §504, Chapter 5, Title 8, Delaware Code, by striking it in its entirety and substituting in lieu thereof the following:

"(a) The Franchise Tax shall be due and payable on the first day of March following the close of the calendar year, except that with respect to a corporation whose Franchise Tax liability for the current Calendar Year is estimated to exceed $5,000, a tentative return and tax shall be due and payable as follows:

(1) 25% of the estimated tax on the first day of June of the current year;

(0) 25% of the estimated tax on the first day of September of the current year;

(1) 25% of the estimated tax on the first day of December.of the current year; and the remainder of the tax as finally determined together with the annual Franchise Tax Report on the first day of March following the close of the calendar year."

Section 6. Amend §504, Chapter 5, Title 8, Delaware Code, by adding thereto subsections (e) and (f) to read as follows:

"(e) The tentative return and tax paid thereon under subsection (a) of this section shall be based on the annual franchise tax of the preceding year.

chise tax as set forth in subsection (a) of this section shall be the same as those applied for any nonpayment of franchise tax in this title."

Section 7. The effective date of this Act shall be May 1, 1976.

Approved April 8, 1976