CHAPTER 57

FORMERLY

SENATE BILL NO. 275

AN ACT TO AMEND AN ACT ENTITLED "AN ACT TO AMEND CHAPTER 11, TITLE 30, DELAWARE CODE, RELATING TO THE REDUCTION OF EACH PERSONAL INCOME TAX RATE AND EMPLOYER'S RETURN AND PAYMENT OF TAX WITHHELD; TO AMEND CHAPTER 19, TITLE 30, DELAWARE CODE, RELATING TO THE DETERMINATION OF THE ENTIRE NET INCOME OF A CORPORTION AS IT RELATES TO THE COST OF MODIFICATION FOR HANDICAPPED PERSONS; AND TO AMEND CHAPTER 13, TITLE 30, DELAWARE CODE, PERTAINING TO THE VALUATION OF CERTAIN FARM AND SMALL BUSINESS REAL PROPERTY FOR INHERITANCE TAX", FORMERLY KNOWN AS HOUSE BILL NO. 334 OF THE 130TH GENERAL ASSEMBLY.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. An Act entitled, "An Act to amend Chapter ll, Title 30, Delaware Code, relating to the reduction of each personal income tax rate and employer's return and payment of tax withheld; to amend Chapter 19, Title 30, Delaware Code, relating to the determination of the entire net income of a corporation as it relates to the cost of modification for handicapped persons; and to amend Chapter 13, Title 30, Delaware Code, pertaining to the valuation of certain farm and small business real property for inheritance tax", formerly known as House Bill No. 334 of the 130th General Assembly is hereby amended by adding thereto two new sections to be denominated as Section 6 and Section 7 to read as follows:

"Section 6. In the event that a general sales tax is enacted after the effective date of this Act, the provisions of this Act shall be repealed and the provision of Chapter 11 of Title 30 that were amended by this Act shall be reinstated in full force and effect. For the purpose of this section, the term 'general sales tax' means a tax imposed at one rate in respect of the sale at retail of a broad range of classes of items. In the case of items of food, clothing, medical supplies and motor vehicles — (a) the fact that the tax does not apply in respect of some or all of such items shall not be taken into account in determining whether the tax applies in respect of a broad range of classes of items, and (b) the fact that the rate of tax applicable in respect of some or all of such items is lower than the general rate of tax shall not be taken into account in determining whether the tax is imposed at one rate. The repeal resulting from this section shall be effective for taxable years beginning after December 31st of the calendar year in which such general sales tax is effective.

Section 7. If any provision, section, subsection, sentence, phrase, or word contained in this Act or the application thereof to any person or substance is held invalid, such invalidity shall not affect any of the provisions, sections, subsections, sentences, phrases, or applications of the Act which can be given effect without the invalid provision or application and to that end, the provisions of this Act are declared to be severable."

Approved June 6, 1979.