SENATE BILL NO. 207
AN ACT TO AMEND CHAPTER 27, TITLE 30 OF THE DELAWARE CODE RELATING TO THE LICENSE TAXES IMPOSED ON CERTAIN PERSONS ENGAGED IN THE ACTIVITY OF MANUFACTURING.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend §2701, Chapter 27, Title 30 of the Delaware Code, by adding thereto a new subsection (5) to read as follows:
"(5) Whenever a person: (a) is engaged in the activity of manufacturing, as
defined in subsection (2) of this section; (b) performs such services exclusively on materials provided under bailment by another manufacturer licensed under this Chapter; and (c) the product produced by such person is intended for inclusion as a part of a product manufactured by the other manufacturer within this State, then such person shall himself be licensable as a manufacturer and his gross receipts shall include fees paid to him for services rendered in this State as described in this subsection. In all other cases where the person is engaged in and receives consideration for manufacturing as a service apart from or in addition to the sale of a product, then such person shall be licensed under Chapter 23 of this Title."
Approved July 9, 1987.