CHAPTER 707

AN ACT TO AMEND TITLE 30, DELAWARE CODE RELATING TO INTEREST RATES ON UNPAID TAXES AND REFUNDS.

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

Section 1. Title 30, Section 1171 (e), Delaware Code, is hereby amended by striking the words "6% per annum," and substituting in lieu thereof the words "1% for each month or fraction of a month,".

Section 2. Title 30, Section 1183, Delaware Code, is hereby amended by striking subsection (b) thereof in its entirety, and substituting in lieu thereof the following:

"(b) In the case of a refund, interest shall be allowed at the rate of 1% for each month or fraction of a month to the date the refund is paid, commencing ninety days after the latest of the following dates: the due date of the return, the date the return was filed or the date the tax was paid,

(1) If the refund is paid within ninety days of the last date prescribed for filing the return, or paid within ninety days of the date the return was filed if filed after the last date prescribed for filing the return, or if paid within ninety days after the tax was paid, whichever date is latest, no interest shall be paid on such refund.

(2) If a delay in making the refund is caused by any action or inaction by the taxable no interest shall be allowed during such period of delay."

Section 3. Title 30, Section 1183 (c), Delaware Code, is amended by striking the phrase "1/s of 1% per month" as the same appears immediately after the words "at the rate of", and substituting in lieu thereof the phrase "1 % per month".

Section 4. Title 30, Section 1353, Delaware Code, is hereby amended by striking the last sentence thereof in its entirety, and inserting in lieu thereof the following:

Interest on such refunds shall be allowed at the rate of 1% per month or fraction thereof from the date the application was received by the Tax Department, except that no interest shall be allowed if refund is made within ninety days after the date the application is received by the State Tax Department.

Section 5. Title 30, Section 1509, Delaware Code, is hereby amended by striking the last sentence thereof in its entirety, and inserting in lieu thereof the following:

Interest on such refunds shall be allowed at the rate of 1% per month or fraction thereof from the date the application was received by the Tax Department except that no interest shall be allowed if refund is made within ninety days after the date the application is received by the Tax Department.

Section 6. Title 30, Section 1705, Delaware Code, is hereby amended by striking the words "4% per annum" as the same appear in line 4 thereof and substituting in lieu thereof the following:

"1% per month or fraction thereof".

Section 7. Title 30, Section 1904, Delaware Code, is hereby amended by striking the phrase "6% per annum" as it appears immediately following the words "with interest at the rate of" in the fourth main paragraph of this section, and inserting in lieu thereof the phrase "1% per month or fraction thereof".

Section 8. Title 30, Section 1912 (d), Delaware Code, is hereby amended by striking the words "one-half of one percent" as the same appear on line 2 of said subsection, and inserting in lieu thereof the words "one percent".

Section 9. Title 30, Section 5411, Delaware Code, is hereby amended by adding to the catchline thereof the following:

"; interest".

Section 10. Title 30, Section 5411, Delaware Code, is further amended by adding thereto a new subsection to be designated as "(d)" and to read as follows:

(d) Interest added to any determination of additional tax shall be computed at the rate of 1% per month or fraction thereof from the date any realty transfer tax should have been paid to the date paid.

Section 11. Title 30, Section 5413, Delaware Code, is hereby amended by adding the letter "(a)" before the word "Upon" as the same appears in line 1 of said section.

Section 12. Title 30, Section 5413, Delaware Code, is further amended by adding thereto a new subsection to be designated as "(b) " and to read as follows:

(b) Interest on such refund shall be allowed at the rate of 1% per month or fraction thereof from the date the tax was paid to the date the refund is made.

Approved July 14, 1970.