CHAPTER 61

INCOME TAX

AN ACT TO AMEND CHAPTER 6 OF THE REVISED CODE OF THE STATE OF DELAWARE, 1935, IN RELATION TO STATE REVENUE.

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

Section 1. That Section 110, of said Chapter 6, of the Revised Code of the State of Delaware, 1935, being Code Section 144 of said Code, be and the same is hereby amended by striking out paragraph (1) under (b) of said Section 110, and substituting in lieu thereof the following:

(1) A natural person twenty-one years of age or over who is a resident of the State of Delaware or who has been a resident of the State of Delaware at any time during the income year.

Section 2. That Section 110, of said Chapter 6, of the Revised Code of the State of Delaware, 1935, being Code Section 144 of said Code, be and the same is hereby amended by striking out paragraphs (4) and (5) under (b) of said Section 110 and substituting in lieu thereof the following:

(4) A guardian of a resident of Delaware.

(5) An executor or administrator of a deceased resident of Delaware.

(6) A trustee, if but only to the extent that, the net income of the trust for the income year (a) is distributed or irrevocably set aside for future distribution in whole or in part to a person who at any time during such income year was a resident of Delaware, and/or (b) may be distributed in whole or in part to the creator of the trust upon the happening of some event or the exercise of any power which he reserved thereunder if at the time of creation of the trust and at any time during such income year he was a resident of Delaware.

(7) Any officer or employee of the State of Delaware or any political subdivision of Delaware.

Section 3. That Section 110, of said Chapter 6, of the Revised Code of the State of Delaware, 1935, being Code Section 144 of said Code, be and the same is hereby amended by adding at the end of the first paragraph under (d) the following:

Net income as herein defined received by a person dependent upon another person for chief support such as to entitle such other person to the exemption as head of family, shall be accounted and included in the return as net income of such other person.

Section 4. That Section 113, of said Chapter 6 of the Revised Code of the State of Delaware, 1935, being Code Section 147 of said Code, be and the same is hereby amended by adding at the end of paragraph (10) of said Section 113, the following new paragraph to be known as (10a):

(10a) Provided, however, that deduction for debts ascertained to be worthless in accordance with the provisions of paragraphs (9) or (10) of this Section may be deducted only in the income year in which it is ascertained no part of such debt is recoverable.

Section 5.. That Section 116, of said Chapter 6 of the Revised Code of the State of Delaware, 1935, as amended, being Code Section 150 of said Code, be and the same is hereby amended by striking out paragraph (4) under (b) of said Section 116, and substituting in lieu thereof a new paragraph to be known as paragraph (4) under (b) of Section 116, as follows:

Section 116. (b) (4). In the case of such property held in trust: The basis shall be the same as that which it would be if it had remained in the hands of the creator of the trust or the value thereof at the date of death of the creator of the trust if such property shall have been included in his estate for the purposes of the Delaware Estate and/or Inheritance Tax laws.

Section 6. That Section 120, of said Chapter 6 of the Revised Code of the State of Delaware, 1935, as amended, being Code Section 154 of said Code, be and the same is hereby amended by striking out the words sign and numerals "three thousand six hundred ($3,600.00)", appearing in the third line and fourth line of paragraph (d) of said Section 120, and substituting in lieu thereof the following:

four thousand eight hundred ($4,800.00)

Section 7. That Section 122, of said Chapter & of the Revised Code of the State of Delaware, being Code Section 156 of said Code, be and the same is hereby amended by striking out the sign and numerals "$1000" in the tenth line of paragraph (e) of said Section 122, and substituting in lieu thereof the following sign and numerals:

$100.00

Section 8. That all acts or parts of acts inconsistent with this act are hereby repealed only to the extent of such inconsistency.

Approved April 14, 1939.