CHAPTER 11 - INCOME TAX

AN ACT TO AMEND CHAPTER 6 OF THE REVISED CODE OF THE STATE OF DELAWARE OF 1935 RELATING TO INCOME TAX.

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

Section 1. That Section 116 of said Chapter 6 of the Revised Code of Delaware of 1935 being Code Section 150 of said Code be and the same is hereby amended by striking out paragraph (b) (2) of Section 116, and substituting in lieu thereof, the following:

Section 116 (b) (2). In the case of personal property acquired by bequest or inheritance; The basis shall be the value of such property as of the date of death of the decedent from whom the property was acquired.

Section 2. That Section 116 of said Chapter 6 of the Revised Code of Delaware of 1935 being Code Section 150 of said Code, be and the same is hereby amended by inserting after Section 116 (b) (3) and before Section 116 (b) (4) thereof, the following additional paragraph:

Section 116 (b) (3A). In the case of personal or real property sold or otherwise disposed of during the period of administration of an estate, the gain derived or loss sustained from the sale, exchange or other disposition of the real or personal property, shall be the difference between the amount realized therefrom and the value of such property as of the date of death of the decedent from whom such property was acquired.

Section 3. That Section 116 of said Chapter 6 of the Revised Code of Delaware of 1935 being Code Section 150 of said Code be and the same is hereby amended by inserting after Section 116 (c) and before Section 116 (d) thereof, the following additional paragraph:

Section 116 (c) (I). The basis for ascertaining the gain derived or loss sustained from the sale, exchange or other disposition of capital assets, including property, real or personal, acquired by a person prior to becoming a resident of the State of Delaware, shall be (1) the cost of such property or (2) the fair market value of such property as of January 1, 1920, or (3)! the fair market value of such property as of the date such person first became a resident of the State of Delaware, whichever is the highest; provided, that in ascertaining the deductible loss under this paragraph, the loss to be deducted shall in no case exceed the actual loss sustained upon the difference between amount received and the cost of such property.

Section 4. That Section 120, of said Chapter 6 of the Revised Code of Delaware of 1935, being Code Section 154 of said Code be and the same is hereby amended by inserting after Section 120 (g) the following additional paragraph (h).

Section 120 (h). The State Tax Board shall for the purpose of its hearings have power to issue subpoenas, compel the attendance of witnesses, administer oaths, take testimony and compel the production of pertinent books, payrolls, accounts, papers, records and documents, and in case any person summoned to testify or to produce any such written or printed evidence shall refuse, without reasonable cause, to be examined or to answer a legal and pertinent question or to produce any such written or printed evidence the State Tax Board may certify the fact of any such refusal to the Court of General Sessions of the County in which such hearing is held and such Court shall be authorized, in its discretion, to proceed against the person so refusing as for a contempt and to punish such person, if found guilty, in such manner as persons are punished for contempt of Court.

Section 5. That Section 124 of said Chapter 6 of the Revised Code of Delaware of 1935 being Code Section 158 of said Code be and the same is hereby amended, by striking out paragraph (h) of Section 124 and substituting in lieu thereof, the following:

Section 124 (h). If, after the assessment of the tax, increase, interest, and/or penalty shall have become final, the same or any part thereof shall remain unpaid for ten days, the Tax Department may file with Iny Justice of the Peace having jurisdiction of the amount thereof and of the person of the taxable, or with the Prothonotary of the Superior Court of the County in which the taxable resides, a certificate of such assessment, stating the amount thereof, the date assessed, and the dates of notice or notices, if any, given to the taxable in connection therewith, together with a brief summary of the proceedings had thereon. It shall thereupon be the duty of such Justice of the Peace or Prothonotary to enter the total amount of such assessment as a judgment in favor of the State of Delaware and the said amount so entered shall thereupon be and constitute a judgment of record in said court with like force and effect as any other judgment in said court. Upon the entry of such judgment, it shall be the duty of the Tax Department forthwith to utilize the most expeditious means provided by law for the collection of the amount thereof; and it is hereby expressly provided that no property, legal or equitable, wages, salaries, deposits or moneys in banks, saving institutions or loan associations, or other property or income of any taxable shall be exempt from execution or attachment process issued upon or for the collection of any judgment.

Section 6. All acts, or parts of acts inconsistent with the provisions of this act are hereby repealed to the extent of such inconsistency only.

Approved May 19, 1937.