Delaware General Assembly


CHAPTER 120

FORMERLY

SENATE BILL NO. 202

AS AMENDED BY SENATE AMENDMENT NO. 1

AN ACT TO AMEND CHAPTERS 3, 11, 15, 19, 21, 53, 54 AND 61 OF TITLE 30 OF THE DELAWARE CODE RELATING TO ADMINISTRATIVE PROCEDURES IN REGARD TO TAX AND REFUND DETERMINATIONS AND THEIR APPEAL.

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

Section._ 1.

Section in its entirety and substitute in lieu thereof a new §329 to read as follows:

The Tax Appeal Board shall hear all appeals from determinations of the Director of Revenue of all administrative protests including, but not necessarily limited to, determinations under 51185, §)203, §1351, §1407, §1510, §1907, §1911, §2103(e), §2108, §5323, §5411(c), §5413(c), 55507, §5508, §5509, 56106. §6109, and 56306 of this Title and such other statute granting jurisdiction to the Board as may be hereafter enacted and may affirm, modify or reverse such determinations.'

Section Z. Amend §1201, Chapter 11, Title 30 of the Delaware Code, by striking said

Section in its entirety and substitute in lieu a new 51201 to read as follows:

If the Director of Revenue disallows a claim for refund, he shall notify the taxpayer accordingly. The action of the Director of Revenue denying a claim for refund is final upon the expiration of 90 days from the date when he mails notice of his action to the taxpayer, unless within this period the taxpayer files a written protest with the Director of Revenue against the disallowance of the claim for refund in which he shall set forth the grounds on which the protest is based. If a protest is flied, the Director of Revenue shall reconsider the disallowance and, if the taxpayer has so requested, shall grant the taxpayer or his authorized representative an oral hearing."

Section a. Amend Chapter )5, Title 30 of the Delaware Code, by adding thereto a new §1510 to read as follows:

"§1510. Procedure a 11 Administration

§1181 through §1187 and §1200 through §1203, inclusive, shall apply to the returns and determinations of tax due under this Chapter, and the words 'income tax' whenever they appear in those Sections, shall be deemed to refer to the estate tax, and references to the 'taxpayer.' whenever they appear in these Sections shall be deemed to refer to the executor or administrator.'

50cLiCTLA. Amend 51200, Chapter II, Title 30 of the Delaware rode, by striking in its entirety the second sentence of said Section.

StClion 5. Amend 51911, Chapter 19, Title 30 of the Delaware Code, by striking in its entirety existing subsection lc) of said Section and substitute in lieu thereof a new subsection (c) to read as follows;

"(c) If the Secretary of Finance or the Director of Revenue acting as his designee disallows the claim in whole or in part, the disallowance shall become final 30 days from the date when he mails notice of his action to the taxpayer unless within this period the taxpayer files a written protest with the Director of Revenue in which he shall set forth the grounds on which the protest is based, A taxpayer may elect to treat failure to act upon a claim for refund within 6 months of its filing as a disallowance of his claim; provided, however, that the disallowance may not become final until the expiration of the 30 day period described in this paragraph, during which period the taxpayer may file a protest against such disallowance. If a protest is filed with regard to any disallowance of a claim for refund under this Chapter, the Director of Revenue shall reconsider the disallowance. Notice of the Director's determination shall be mailed to the taxpayer by registered or certified mail, and such notice shall set forth briefly the Director's basis of decision in each case decided, in whole or in part, adversely to the taxpayer. The action of the Director on the taxpayer's protest is final upon the expiration of 30 days from the date when he mails notice of his action to the taxpayer unless within this period the taxpayer seeks review of the Director's determination."

Section 6. Amend subsection (e) of §2103, Chapter 21, Title 30 of the Delaware Code, by striking the words "filed a complaint or appeal in writing over his signature from the assessment of the Secretary of Finance or filed a petition with the Tax Appeal Board" as written protest with the Director of Revenue against the assessment in which he shall set forth the grounds on which the protest is based. If a protest is filed, the Director of Revenue shall reconsider the assessment, and give notice of his determination to the taxpayer by registered or certified mail. The action of the Director of Revenue on a taxpayer’s protext under subsection € of this section is final unless within 30 days from the date when he mails notice of his action to the taxpayer, the taxpayer seeks review of the Director’s determination."

Section 7. Amend Section 5323, Chapter 53, Title 30 of the Delaware Code, by striking said Section in its entirety and substitute in lieu thereof a new §5323 to read as follows:

" §5323. Any determination or action under this Chapter by the Department of Finance shall become final unless, within 30 days of the mailing of notice of such action to the taxpayer, such taxpayer files a written protest with the Director of Revenue in which he shall set forth the grounds on which the protest is based. If a protest is filed, the Director shall reconsider the determination or action and give notice of his decision to the taxpayer by registered or certified mail. The decision by the Director of Revenue on a taxpayer’s protest is final unless the taxpayer seeks review of the Director’s decision within 30 days from the date when he mails notice of his action"

Section 8. Amend §5413, Chapter 54, Title 30 of the Delaware Code, by adding to said Section a new subsection (c) to read as follows:

"When the Department disallows a claim for refund in whole or in part, the disallowance shall become final 90 days from the date when notice of disallowance is mailed to the taxpayer, unless within the period the taxpayer files a written protest with the Director of Revenue in which he shall set for the trounds on which the protest is based. If a protest is filed, the Director shall reconsider the disallowance. Notice of the Director’s determination shall be mailed to the taxpayer by registered or certified mail. The action of the Director on the taxpayer’s protest is final upon the expiration of 30 days from the dte when he mails notice of his action to the taxpayer unless within this period he seeks review of the Director’s determination."

Section 9. Amend Chapter 61, Title 30 of the Delaware Code, by adding thereto a new Section 6109 to read as follows:

"§6109. Refunds

(a) Upon determining that any tax, penalty, or interest collected with respect to this Chapter has been collected improperly, the Department of Finance shall, if a claim is made within 3 years of the date of overpayment, refund to the taxpayer the sums so paid.

(b) When tne Department disallows a claim for refund in whole or in part, the disallowance shall become final 30 days from the date when notice of disallowance is mailed to the taxpayer, unless within the period the taxpayer files a written protest with the Director of Revenue in which he shall set forth the grounds on which the protest is based. If a protest is filed, the Director shall reconsider
the disallowance. Notice of the Director's determination shall be mailed to the taxpayer by registered or certified mail. The action of the Director on the
taxpayer's protest is final upon the expiration of 30 days from the date when he mails notice of his action to the taxpayer unless within this period he seeks review of the Director's determination."