SPONSOR:

Rep. Kowalko & Sen. Henry

HOUSE OF REPRESENTATIVES

149th GENERAL ASSEMBLY

HOUSE BILL NO. 108

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO PERSONAL INCOME TAX.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Three-fifths of all members elected to each house thereof concurring therein):

Section 1. Amend §1102, Title 30 of the Delaware Code by making deletions as shown by strikethrough and insertions as shown by underline as follows:

§ 1102 Imposition and rate of tax; separate tax on lump-sum distributions.

(a) (14) For taxable years beginning after December 31, 2013, and before January 1, 2017, the amount of tax shall be determined as follows:

2.2% of taxable income in excess of $2,000 but not in excess of $5,000;

3.9% of taxable income in excess of $5,000 but not in excess of $10,000;

4.8% of taxable income in excess of $10,000 but not in excess of $20,000;

5.2% of taxable income in excess of $20,000 but not in excess of $25,000;

5.55% of taxable income in excess of $25,000 but not in excess of $60,000; and

6.6% of taxable income in excess of $60,000.

(15) For taxable years beginning after December 31, 2016, the amount of tax shall be determined as follows:

2.15% of taxable income in excess of $2,000 but not in excess of $5,000;

3.85% of taxable income in excess of $5,000 but not in excess of $10,000;

4.75% of taxable income in excess of $10,000 but not in excess of $20,000;

5.15% of taxable income in excess of $20,000 but not in excess of $25,000;

5.50% of taxable income in excess of $25,000 but not in excess of $60,000;

6.55% of taxable income in excess of $60,000 but not in excess of $125,000;

7.05% of taxable income in excess of $125,000.but not in excess of $250,000; and

7.80% of taxable income in excess of $250,000.

SYNOPSIS

This bill lowers the tax rate by .05%. Also, it creates a new tax bracket at $125,000 with a rate of 7.05%, and an additional bracket at $250,000 with a rate of 7.80%.