CHAPTER 53

AN ACT AMENDING TITLE 30, DELAWARE CODE, ENTITLED "STATE TAXES" RELATING TO INCOME TAX DEDUCTIONS.

Be it enacted by the General Assembly of the State of Delaware:

Section 1. § 1118, Title 30, Delaware Code, is amended by adding a new paragraph thereof to read as follows:

(16) (A) An individual may elect to use a standard deduction which shall be an amount equal to ten percent of the adjusted gross income or $500, whichever is the lesser; such standard deduction to be in lieu of all other deductions authorized by this section except a deduction for Federal Income taxes paid not to exceed $300. A married couple filing a joint return under I§ 1163 may elect to use a standard deduction which shall be equal to ten percent of the adjusted gross income or $1,000, whichever is the lesser; such standard deduction for a married couple filing jointly to be in lieu of all other deductions authorized by this section except for Federal Income taxes paid, not to exceed $600.

(B) For the purpose of this section "adjusted gross income" means the amount the taxable's net income would be if the exemptions allowed under § 1117 and the deductions allowed under §1118 were not allowed.

(C) The standard deduction shall not be allowed to a husband or wife if the other spouse elects not to take the standard deduction.

(D) The standard deduction shall not be allowed in computing the net income of a non-resident alien individual, an estate or trust, a common trust fund or partnership.

(E) If the taxpayer, on making his return, fails to signify his election to take the standard deduction such failure shall be considered his election not to take the standard deduction, and

when the taxpayer, on making his return, has signified his election to take or not to take the standard deduction, this election may not be changed.

Section 2. This Act shall apply to taxes due and owing for the year ending December 31, 1959 and thereafter.

Approved June 9, 1959.