CHAPTER 204

FORMERLY

HOUSE BILL NO. 337

AN ACT ENTITLED "THE TAX REDUCTION ACT OF 1985" WHICH AMENDS CHAPTER 11, TITLE 30 OF THE DELAWARE CODE, RELATING TO THE REDUCTION OF PERSONAL INCOME TAX RATES.

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

Section 1. Amend Section 1102. Chapter 11. Title 30 of the Delaware Code by inserting in paragraph (2) of subsection (a) thereof, following the words "after December 31. 1984." and before the words "the amount of tax", the words and before January 1. 1986.".

Section 2. Amend Section 1102. Chapter II, Title 30 of the Delaware Code by adding a new paragraph (3) to subsection (a) thereof to read as follows:

"(3) For taxable years beginning after December 31. 1985, the amount of tax shall be determined as follows:

1.2% of the amount of taxable income not in excess of $1,000;

1.6% of the amount of taxable income in excess of $1,000. but not in excess of $2,000; 2.5% of the amount of taxable income in excess of $2,000, but not in excess of $3,000; 3.5% of the amount of taxable income in excess of $3,000. but not in excess of $4.000: 4.3% of the amount of taxable income in excess of $4,000. but not in excess of $5,000; 5.1% of the amount of taxable income in excess of $5,000, but not in excess of $6,000; 5.9% of the amount of taxable income in excess of $6,000. but not in excess of $8,000; 6.6% of the amount of taxable income in excess of $8,000. but not in excess of $10.000; 6.7% of the amount of taxable income in excess of $10.000. but not in excess of $15.000: 6.9% of the amount of taxable income in excess of $15,000. but not in excess of $20.000; 7.2% of the amount of taxable income in excess of $20.000. but not in excess of $25,000; 7.7% of the amount of taxable income in excess of $25,000. but not in excess of $30.000; 9.0% of the amount of taxable income in excess of $30,000. but not in excess of $40,000; 9.7% of the amount of taxable income in excess of $40,000."

Section 3. Amend Section 1102. Chapter 11. Title 30 of the Delaware Code by striking from subsection (c) thereof the phrase "paragraph (2)" where it appears and substituting in lieu thereof the phrase "paragraph (3)".

Section 4. Amend Section 1102. Chapter 11. Title 30 of the Delaware Code by striking in its entirety the final sentence of subsection (c) and substituting in lieu thereof the following:

In the event of any revocation of the tax rates established by paragraph (3) of subsection (a) of this section. the following rates shall become effective:

1.2% of the amount of taxable income not in excess of $1,000; 1.6% of the amount of taxable income in excess of $1,000, but not in excess of $2,000; 2.5% of the amount of taxable income in excess of $2,000. but not in excess of $3,000; 3.5% of the amount of taxable income in excess of $3.000, but not in excess of $4.000:4.3% of the amount of taxable income in excess of $4,000, but not in excess of $5.000; 5.1% of the amount of taxable income in excess of $5,000. but not in excess of $6,000; 5.9% of the amount of taxable income in excess of $6.000, but not in excess of $8,000; 6.6% of the amount of taxable income in excess of $8,000, but not in excess of $10,000; 6.7% of the amount of taxable income in excess of $10,000. but not in excess of $15,000; 6.9% of the amount of taxable income in excess of $15,000, but not in excess of $20.000: 7.2% of the amount of taxable income in excess of $20.000. but not in excess of $25,000; 7.7% of the amount of taxable income in excess of $25.000. but not in excess of $30,000: 9.0% of the amount of taxable income in excess of $30,000. but not in excess of $40,000; 10.0% of the amount of taxable income in excess of $40.000, but not in excess of $50,000; 11.1% of the amount of taxable income in excess of $50.000."

Section 5. Effective with respect to taxable years beginning after December 31. 1985. amend Section 1161, Chapter 11. Title 30 of the Delaware Code by striking from subdivision (1) thereof the figure "$800" and ubstituting in lieu thereof the figure "j1,000".

Section 6. Effective with respect to taxable years beginning after December 31. 1985. amend Section 1161, Chapter 11. Title 30 of the Delaware Code by striking from subdivision (1) the figure "$1.600" and substituting in lieu thereof the figure "j2.000".

Approved September 5, 1985.