CHAPTER 14

FORMERLY HOUSE BILL NO. 48

AS AMENDED BY

HOUSE AMENDMENTS NO. I, 5, 6, AND 8

AN ACT TO AMEND TITLE 22, DELAWARE CODE, ENTITLED "MUNICIPALITIES" BY ADDING THERETO A NEW CHAPTER 9 AUTHORIZING CITIES WITH A POPULATION IN EXCESS OF 50,000 PERSONS TO ENACT A TAX ON INCOME OF ITS RESIDENTS; AND A TAX ON THE INCOME OF NONRESIDENTS ENGAGED IN ANY OCCUPATION, BUSINESS OR PROFESSION WITHIN THE CITY.

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

Section I. Title 22, Delaware Code, is amended by the addition thereto of a new Chapter 9 to read as follows:

CHAPTER 9. MUNICIPAL USER TAX

§ 901. Authority to levy, assess and collect tax

Any municipality of this State with a population in excess of 50,000 persons is hereby authorized to levy, assess and collect a tax for general revenue purposes on earned income of its residents and on any income earned within the city by persons not residing within such city but engaged or employed in any business, profession or occupation within such city.

§902. Limitations

Any tax assessed within the provisions of this tax shall not exceed 1.5 percent of the income of residents of such city per annum; and 1.5 percent of the income of nonresidents earned within the city per annum.

§ 903. Income; definition

`Income' means the total income from whatever source earned by any resident of such city; and the total income earned within such city by any nonresident of the city.

§ 904. Regulations

Each such municipality is authorized to promulgate and enforce such regulations as it deems necessary for the assessment, collection and enforcement of such tax.

§ 905. Severability

The provisions of this Act are severable and should any portion of this Act be declared to be invalid for any reason the remaining portions shall continue to be valid and enforceable.

§906. Suit in Superior Court

Any such municipality which adopts the provisions of this Act is in addition to all other means of enforcement mailable authorized to bring suit in the Superior Court of the county in which such city is located.

§907. Collection and enforcement

Taxes due under any Municipal User Tax adopted prior to the passage of this Act shall continue to be collected and enforced and shall not be abated.

§ 908. Effective period

This Act shall be effective until June 30, 1973, and shall not be effective for any time thereafter except for the collection and enforcement of any taxes due for the aforementioned effective time.

§909. Termination

The authority granted under Section 901 of this chapter shall be terminated as to any municipality which shall decrease its real estate tax rate after the passage of this Act or during the effective time of this Act.

Approved March 30, 1971.