CHAPTER 6 -FRANCHISE TAXES

AN ACT TO AMEND CHAPTER 6 OF THE REVISED CODE OF THE STATE OF DELAWARE OF 1935, RELATING TO FRANCHISE TAXES.

Be it enacted by the Senate and House of Representatives in General Assembly met:

Section 1. That Section 64 of said Chapter 6 of the Revised Code of the State of Delaware of 1935, being Code Section 98 of said Code, as amended by the Act approved April 9, 1937, be and the same is hereby further amended by adding at the end of said Section 64 the following new paragraph:

Provided, however, that all corporations as herein defined which are mutual investment companies as defined by Section 48 (e) of the Act of Congress commonly called "The Revenue Act of 1936," as now existing or as hereafter amended, shall pay to the State Tax Department as an annual franchise tax, a tax computed either under paragraph (1) hereof, or a tax computed under paragraph (2) hereof, or a tax at the rate of One Hundred Fifty Dollars per annum for each One Million Dollars, or fraction thereof in excess of One Million Dollars, of the average gross assets thereof during the taxable year, whichever be the least. Said average assets for the purposes of this section shall be taken to be the mean of the gross assets on January 1 and December 31 of the taxable year. Any corporation electing to pay a tax under this proviso shall submit to the Secretary of State at the time of filing its annual report as required by the next preceding section of this Chapter, a statement under oath made by its President, a Vice-President, its Treasurer or Secretary, certifying that such corporation is a mutual investment company as above defined, and, stating the amount of its assets on January 1 and December 31 of the taxable year, and the mean thereof. The Secretary of State may investigate the facts set forth in said statement under oath and if it should be found that said corporation so electing to pay under said proviso shall not be a mutual investment company, as above defined, shall assess upon such corporation a tax under paragraphs (1) or (2) hereof, whichever be the lesser.

Section 2. If this Act or any part thereof should be held unconstitutional such holding shall not affect the provisions of said Section 64, as amended by the said Act approved April 9, 1937.

Approved May 18, 1937.