AN ACT ESTABLISHING A CAPITAL INVESTMENT FUND AND PROVIDING FOR THE PAYMENT INTO THE FUND OF ALL INCOME TAX PAYMENTS TO THE STATE OF DELAWARE BASED ON TAXABLE INCOME RESULTING FROM DISTRIBUTIONS OF DIVESTED STOCK AS DEFINED IN SECTION 1111 OF THE UNITED STATES INTERNAL REVENUE CODE OF 1954.
Be it enacted by the General Assembly of the State of Delaware:
Section 1. Title 29, Delaware Code, is amended by adding thereto a new Chapter to read:
CHAPTER 62. CAPITAL INVESTMENT FUND
§ 6201. Capital Investment Fund
There is hereby created and established a Capital Investment Fund. The Fund shall be administered and subject to the same controls as the General Fund of the State of Delaware except as otherwise provided in this Chapter.
§ 6202. Transfer of tax proceeds received from distribution of stock pursuant to a court order enforcing the antitrust laws
(a) The State Treasurer shall transfer each year from the General Fund to the Capital Investment Fund a sum equal to the amount of revenue deemed received by the State of Delaware from the income taxation in the preceding calendar year of a distribution of divested stock as defined in Section 1111 of the Internal Revenue Code of 1954, as amended, U. S. Code, Title 26.
(b) The amount to be transferred each year shall be the sum of the amounts determined by multiplying the "net divestiture gain", as hereinafter defined, of each taxable for the preceding calendar year by the highest Delaware income tax rate paid on his net income for such year. "Net divestiture gain" is the amount of capital gain taken into account in computing a taxable's net income pursuant to Section 1148 of Chapter 11, Title 30, Delaware Code, less all his allowed capital losses in excess of all his other capital gains.
(c) The amount to be transferred each year shall be determined by the State Tax Commissioner, and he shall notify the State Treasurer thereof in writing not later than the fifteenth day of June of that year.
§ 6203. Custodian and administrator of fund
The Budget Commission of the State of Delaware shall be the custodian of and administrator of the Capital Investment Fund subject to the provisions of this Chapter.
§ 6204. Investment of Moneys in the fund
(a) The Budget Commission may invest and reinvest the idle moneys deposited in the Capital Investment Fund in:
(1) Obligation of the United States.
(2) Time deposit accounts of the Farmers Bank of the State of Delaware, not to exceed a total amount invested of $25,000.
(b) All earnings and interest from the invested funds shall accrue to the Capital Investment Fund.
§ 6205. Reports to General Assembly; expenditure of fund
The Budget Commission shall advise the General Assembly as to the condition of the Fund and shall make recommendations to the General Assembly concerning its disposition. Monies shall be expended from the Capital Investment Fund only pursuant to an Act of the General Assembly.
Juno 30, 1963, and June 30, 1964, for the purpose of hiring additional personnel to audit tax returns and payments made pursuant to Section 1148 of Title 30 and to administer this Chapter. The sums hereby appropriated shall be paid out of the Capital Investment Fund, provided that at the end of each fiscal year any unused portion of the sums so appropriated shall revert to the Capital Investment Fund.
Section 3. All laws or parts of laws inconsistent with this Act are hereby repealed to the extent of such inconsistency.
Approved May 3, 1963.
NOTE: Chapter 39, Section 4, Volume 54, Laws of Delaware, changed "Budget Commission" to "Budget Director".