CHAPTER 141

FORMERLY

SENATE BILL NO. 390

AN ACT ESTABLISHING A TAX STUDY COMMITTEE AND PROVIDING AN EMERGENCY SUPPLEMENTARY APPROPRIATION FOR A STUDY OF THE PRESENT TAX STRUCTURE.

WHEREAS, there is a demonstrated interest and need for the establishment of a committee to evaluate the inequities in the State's present tax structure, to propose reforms thereto, and to investigate other revenue sources such as a gross receipts tax; and

WHEREAS, because of these present inequities, many millions of possible tax dollars are thought to be lost, especially in the areas of mercantile taxes and licensing; and

WHEREAS, this is a matter of utmost importance to the citizens of the State, and it is essential that the Committee be appointed and begin its work as rapidly as possible;

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

Section 1. A "Delaware Tax Study Committee" be and hereby is created to consist of seven (7) members, two (2) of whom shall be members of the Senate and appointed by the President Pro Tempore, and two (2) of whom shall be members of the House of Representatives and appointed by the Speaker of the House. The remaining three (3) members shall be appointed by the Governor. The President Pro Tempore and the Speaker of the House shall each appoint one (1) member from one (1) major political party and one (1) member from the other major political party. The Governor shall not appoint more than two (2) members from any one political party. Any vacancy shall be filled by the appointing authority. The members of the Committee shall elect one (1) member to serve as its Chairman. The appointments shall be made on or before July 10, 1973.

Section 2. The Committee shall study the tax laws of the State, existing inequities in the mercantile and licensing taxes, and alternative taxes, such as a gross receipts tax, which will provide revenues in the amount of the anticipated revenue refunds for the taxable year beginning on or after January 1, 1973, and such additional revenues as necessary to replace taxes enacted by, or to be enacted by, the First Special Session of the 127th General Assembly, and shall report its findings and recommendations in these areas to the General Assembly and the Governor on or before October 15, 1973.

Section 3. On or about October 30, 1973, the President Pro Tempore and the Speaker shall convene a special session of the General Assembly to review the Committee's findings and recommendations and consider enactment of additional revenue measures and a revenue package to replace, in whole or in part, those taxes passed during the First Special Session of the 127th General Assembly with the effective date of January 1, 1974.

Section 4. The Committee is authorized to employ such advisors, attorneys, and clerical assistants as are essentially required and to reimburse its members for actual expenses incurred in attending the meetings of the Committee.

Section 5. The sum of SIXTY THOUSAND DOLLARS ($60,000.00) is hereby appropriated to the Department of Finance for use by the Tax Study Committee, at the direction of such committee, for the purpose of carrying out and accomplishing the purposes of this Act. This is an emergency supplementary appropriation within the meaning of Section 6337 of Title 29, Delaware Code, and the monies appropriated shall be paid by the State Treasurer out of funds in the General Fund of the State of Delaware not otherwise appropriated. Any monies appropriated herein and unexpended shall revert to the General Fund of the State of Delaware on June 30, 1974.

Approved July 6, 1973.