HOUSE BILL NO. 117
AN ACT TO AMEND CHAPTER 11, TITLE 5 OF THE DELAWARE CODE BY PROVIDING FOR THE FILING OF ESTIMATED BANK FRANCHISE TAX AND PAYMENT IN QUARTERLY INSTALLMENTS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Three-fifths of all members elected to each House thereof concurring therein):
Section 1. Amend §1101, Title 5, Delaware Code, by deleting subsections (a) and (e) in their entirety and redesignating subsections (b), (c), (d), (f), and (g) as subsections (a), (b), (c), (d), and (e) respectively.
Section 2. Amend the new subsection (a) by striking the portion of the first sentence starting with the words "In lieu of" and ending with "December 31, 1982,". Further amend the first sentence of said subsection by inserting the word "hereby" between the words is and "imposed".
Section 3. Amend subsection (b) of §1103 of Title 5, Delaware Code, by striking the period after "national bank." and adding the following language, "less any payments having been received in accordance with §1104 of this Chapter."
Section 4. Amend §1104, Title 5, Delaware Code, by designating the existing language as subsection (a). Further amend said section by striking all subsequent language following the phrase "by the State Bank Commissioner", replacing the comma after said phrase with a period and adding the following:
"Except that with respect to a bank, trust company and national bank whose franchise tax liability for the current year is estimated to exceed $10,000 a tentative return covering estimated bank franchise tax liability for the current income year, to be in such form and containing such information as the State Bank Commissioner shall prescribe, shall be filed with the State Bank Commissioner on or before the first day of August of the current income year."
Section 5. Further amend §1104, Title 5, Delaware Code by adding subsections (b) and (c) to read as follows:
"(b) The estimated tax liability as calculated per §1104 (a) shall be due and
payable in installments of 25% of the estimated tax liability on September 1 and December 1 of the current taxable year with 25% to be paid on March 1 and the balance on June 1 of the succeeding year.
(c) Underpayment of estimated tax. - (1) Addition to Tax. - In the case of any underpayment of estimated tax or installment of estimated tax required by this Chapter, there shall be added to the tax for the taxable year an amount determined at the rate of 1% per month, or fraction thereof, upon the amount of underpayment for the period of the underpayment.
(2) Amount of Underpayment - For purposes of paragraph (1) of this subsection, the amount of the underpayment shall be the excess of:
a. The amount of the estimated tax or installment payment which would be
required to be made if the estimated tax were equal to 80 percent of the tax shown on the final return for the taxable year, or if no return was filed, 80 percent of the tax for such year, over
a. The amount, if any, of the estimated tax or the installment paid on or before the last date prescribed for payment.
(3) Period of Underpayment - The period of the underpayment shall run from the date the estimated tax or installment was required to be paid to the date of the final payment of tax for the year.
(4) Exception - Notwithstanding the foregoing provisions of this subsection,
the addition to the tax with respect to any underpayment of estimated tax or any installment shall not be imposed if the total amount of all payments of estimated tax made on or before the last date prescribed for the payment thereof equals or exceeds the amount which would have been required to be paid on or before such date if the estimated tax were the tax shown on the final return of the bank, trust company and national bank for the preceding taxable year."
Section 6. If any provision of the act or the application thereof to any person or circumstance is held invalid it shall not affect other provisions or applications of this act that can be given effect without the invalid provision or application, and to that end the provisions of this act are declared severable.
Section 7. This Act shall be effective July 1, 1987.
Approved May 18, 1987.