CHAPTER 245

STATE REVENUE - RELATING TO INCOME TAX AND INCREASING SALARY OF STATE TAX COMMISSIONER AND DEPUTY

AN ACT TO AMEND CHAPTER 6 OF THE REVISED CODE OF THE STATE OF DELAWARE, 1935, AS AMENDED, IN RELATION 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 112 of said Chapter 6, of the Revised Code of the State of Delaware, 1935, being Code Section 146 of said Code, as amended, be and the same is hereby further amended by striking out paragraph (a) (1) and substituting in lieu thereof the following:

(a) (1) The proceeds of life insurance policies paid upon the death of the insured to any taxable, including the increment or interest on installment payments, whether the election for installment payments was made by the insured or by the beneficiary after the death of the insured.

Section 2. That Section 112, of said Chapter 6, of the Revised Code of the State of Delaware, 1935, being Code Section 146 of said Code, as amended, be and the same is hereby further amended by adding a new paragraph to be known as 112 (a) (14) as follows:

(a) (14) Amounts received under the G. I. Bill of Rights by former members of the armed forces of the United States in World War II. The provisions of this paragraph shall apply to all income tax returns for the year 1945 and all subsequent years.

Section 3. That Section 112, of said Chapter 6, of the Revised Code of the State of Delaware, 1935, being Code Section 146 of said Code, as amended, be and the same is hereby further amended by adding a new paragraph to be known as 112 (a) (15) as follows:

(a) (15) Amounts received as a pension from employers, or the government of the United States or from the State of Delaware. Amounts received as old age and survivor benefits under the Federal Social Security law or as aid to dependent children or old age assistance under the laws of the State of Delaware.

Section 4. That Section 112 of said Chapter 6, of the Revised Code of the State of Delaware, 1935, being Code Section

146 of said Code, as amended, be and the same is hereby further amended by adding a new paragraph to be known as 112 (b) (7) as follows:

(b) (7) In cases where a resident, as defined in the third sentence of Section 1, Chapter 10, Volume 45, Laws of Delaware, 1945, maintains a domicile outside of Delaware for occupancy by his wife or' by such other person or persons chiefly dependent upon him for support to the extent that such dependency would entitle a taxable to head of family exemption if such dependent or dependents resided with him in Delaware, the resident shall be allowed the personal exemption of a married man living with wife or head of family exemption as though said wife or other dependents resided with him in Delaware.

Section 5. That Section 113, of said Chapter 6, of the Revised Code of the State of Delaware, 1935, being Code Section

147 of said Code, as amended, be and the same is hereby further amended by adding a new paragraph to be known as 113 (1) (a) as follows:

(1) (a) The ordinary and/or necessary expenses paid by or incurred by the taxable for the production or collection of income, or for the management, conservation, or maintenance of property held for the production of income.

Section 6. That Section 113 of said Chapter 6, of the Revised Code of the State of Delaware, 1935, being Code Section 147 of said Code, as amended, be and the same is hereby further amended by striking out sub-paragraph (5) thereof and by striking out sub-paragraph (5a), being Chapter 10, Section 7, paragraph (5a) of Volume 45, Laws of Delaware, 1945, and by substituting in lieu thereof the following paragraph to be known and styled sub-paragraph (5):

(5) Contributions or donations to the State of Delaware or to any political subdivision thereof or to any institution supported in whole or in part by the State or any contribution or donation, to a corporation, or church, or community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific or educational purposes, or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual and no substantial part of the activities of which is carrying on propaganda, or otherwise attempting to influence legislation; provided, that where such contribution or donation is made other than in cash, the fair market value of the property at the date contributed or donated shall be the basis for deduction; and further provided, that contributions or donations shall not exceed fifteen per centum of the taxpayer's net income, as computed without the benefit of this paragraph.

Section 7. That Section 116, of said Chapter 6, of the Revised Code of the State of Delaware, 1935, being Code Section 150 of said Code, as amended, be and the same is hereby further amended by striking out paragraph (d) (III) of said Section 116, and substituting in lieu thereof the following:

(d) (III) In the case of property not used in trade or business, the personal residence of a taxable excepted, proper adjustment shall be made for exhaustion, wear and tear, obsolescence and depletion which have been sustained since the acquisition of the property. The exception in this paragraph of the personal residence of a taxable shall apply to all income tax returns for the year 1945 and all subsequent years.

Section 8. That Section 118, of said Chapter 6 of the Revised Code of the State of Delaware, 1935, being Code Section 152 of said Code, be and the same is hereby amended by adding thereto a new paragraph to be known as 118 (b) (1) as follows:

(b) (1) After the expiration of the term of office of the State Tax Commissioner on November 1, 1949, the State Tax Commissioner shall be paid a salary of Six Thousand Five Hundred Dollars ($6,500.00) per annum in equal monthly installments.

Section 9. That Section 120, of said Chapter 6 of the Revised Code of the State of Delaware, 1935, being Code Section 154 of said Code, be and the same is hereby amended by striking out the period at the end of paragraph (d) of said Section as amended, and by substituting a semi-colon for the period and adding after the semi-colon the following words:

provided, however, that the Tax Commissioner may appoint one deputy at an annual salary not to exceed Five Thousand Five Hundred Dollars ($5,500.00) per annum.

Section 10. That Section 130, of said Chapter 6, of the Revised Code of the State of Delaware, 1935, being Code Section 164 of said Code, be and the same is hereby amended by striking out the words "Two Hundred Dollars", appearing in the seventh line of paragraph (b) of said Section 130, and substituting in lieu thereof the following:

Five Hundred Dollars

Section 11. That the provisions of this Act in so far as they relate to taxable income, exempt income and allowable deductions, shall be given effect in returns of income for the entire taxable year beginning January 1, 1947, and all taxable years thereafter, unless otherwise specifically provided herein.

Section 12. That all acts or parts of acts inconsistent with this Act are hereby repealed only to the extent of such inconsistency.

Approved April 9, 1947.