CHAPTER 86

FORMERLY

HOUSE BILL NO. 370

AN ACT TO AMEND CHAPTER 11, TITLE 30 OF THE DELAWARE CODE RELATING TO THE PERSONAL INCOME TAX.

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 §1102(a), Chapter 11, Title 30 of the Delaware Code by striking the phrase "For taxable years beginning after December 31, 1986" as it appears in paragraph (4) of said subsection and substitute in lieu thereof the phrase For taxable years beginning after December 31, 1986, and before January 1, 1988."

Section 2. Amend §1102(a), Chapter 11, Title 30 of the Delaware Code by adding thereto a new paragraph (5) to read as follows:

"(5) For taxable years beginning after December 31, 1987, the amount of tax shall be determined as follows:

3.2% of taxable income in excess of $2,000, but not in excess of $5,000; 5.0% of taxable income in excess of $5,000, but not in excess of $10,000; 6.0% of taxable income in excess of $10,000, but not in excess of $20,000; 6.6% of taxable income in excess of $20,000, but not in excess of $25,000; 7.0% of taxable income in excess of $25,000, but not in excess of $30,000; 7.6% of taxable income in excess of $30,000, but not in excess of $40,000; 7.7% of taxable income in excess of $40,000."

Section 3. Amend §1107, Chapter 11, Title 30 of the Delaware Code by striking

subsection (b) of said Section and by designating existing subsection (a) of said Section as §1107.

Section 4. Amend §1109(a), Chapter 11, Title 30 of the Delaware Code by adding to

paragraph (2) of said subsection a new subparagraph c. to read as follows:

"c. An amount equal to twelve percent of itemized deductions determined under this Section without regard to this subparagraph."

Section 5. Amend §1123, Chapter 11, Title 30 of the Delaware Code by striking said

Section in its entirety and substitute in lieu thereof a new §1123 to read as follows:

"A non-resident taxpayer shall be allowed the same standard deduction allowed to resident taxpayers under §1108 of this Title, subject to the limitations in §1126 of this Title."

Section 6. Amend §1126, Chapter 11, Title 30 of the Delaware Code by striking the phrase "itemized deductions" as it appears in said Section and substitute in lieu thereof the phrase "itemized deductions, standard deductions,".

Section 7. Amend §1127, Chapter 11, Title 30 of the Delaware Code by striking said Section in its entirety.

Section 8. Section 4 of this Act shall be effective for taxable years beginning after December 31, 1986, and before January 1, 1988. All other provisions of this Act shall be effective for taxable years beginning after December 31, 1987.

Approved July 2, 1987.