CHAPTER 289

FORMERLY

HOUSE BILL NO. 627

AN ACT TO AMEND TITLES 7 AND 30 OF THE DELAWARE CODE AND CHAPTER 80, VOLUME 68 OF THE LAWS OF DELAWARE RELATING TO TAXES ON GROSS RECEIPTS.

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

Section 1. Amend Section 14 of Chapter 80, Volume 68 of the Laws of Delaware by striking the date "July 1, 1995" wherever it appears in said section and substituting in lieu thereof the date "January 1, 1995".

Section 2. Amend § 2301(d), Title 30 of the Delaware Code, by

striking paragraph (2) of said subsection in its entirety and substituting in lieu thereof a new paragraph (2) to read as follows:

"(2) Notwithstanding paragraph (1) of this subsection, if the taxable gross receipts prescribed by paragraph (1) of this subsection during the lookback period as defined in § 2122 of this title do not exceed $750,000, the return and payment of the additional license fee imposed for such month shall be due on or before the 20th day of the 1st month following the close of the quarter. In the case of such return, in computing the fee due on such aggregate gross receipts for each quarter, there shall be allowed a deduction of $45,000. For purposes of this paragraph, all branches or 'entities comprising an enterprise with common ownership or common direction and control shall be treated as one, and shall be allowed only 1 quarterly deduction from the aggregate gross receipts of the entire enterprise. The quarterly return shall be accompanied by a certified statement on such forms as the Department of Finance shall require in computing this fee due."

Section 3. Amend § 2301(d), Title 30 of the Delaware Code, by

striking paragraph (3) of said subsection in its entirety.

Section 4. Amend § 2502(c), Title 30 of the .Delaware Code, by

striking paragraph (2) of said subsection in its entirety and substituting in lieu thereof a new paragraph (2) to read as follows:

"(2) Notwithstanding paragraph (1) of this subsection, if the taxable gross receipts prescribed by paragraph (1) of this subsection during the lookback period as defined in § 2122 of this title do not exceed $750,000, the return and payment of the additional license fee imposed for such month shall be due on or before the 20th day of the 1st month following the close of the quarter. In the case of such return, in computing the fee due on such aggregate- gross receipts for each quarter, there shall be allowed a deduction of $36,000. For purposes of this paragraph, all branches or entities comprising an enterprise with common ownership or common direction and control shall be treated as one, and shall be allowed only 1 quarterly deduction from the aggregate gross receipts of the entire enterprise. The quarterly return shall be accompanied by a certified statement on such forms as the Department of Finance shall require in computing this fee due."

Section 5. Amend § 2702(b), Title 30 of the Delaware Code, by

striking paragraph (2) of said subsection in its entirety and substituting in lieu thereof a new paragraph (2) to read as follows:

"(2) Notwithstanding paragraph (1) of this subsection, if the taxable gross receipts prescribed by paragraph (1) of this subsection during the lookback period as defined in § 2122 of this title do not exceed $90,000, the return and payment of the additional license fee imposed for such month shall be due on or before the 20th day of the 1st month following the close of the quarter. In the case of such return, in computing the fee due on such aggregate gross receipts for each quarter, there shall be allowed a deduction of $1,800,000. For purposes of this paragraph, all branches or entities comprising an enterprise with common ownership or common direction and control shall be treated as one, and shall be allowed only 1 quarterly deduction from the aggregate gross receipts of the entire enterprise. The quarterly return shall be accompanied by a certified statement on such forms as the Department of Finance shall require in computing this fee due."

Section 6. Amend § 2902(c), Title 30 of the Delaware Code, by striking paragraph (2) of said subsection in its entirety and substituting in lieu thereof a new paragraph (2) to read as follows:

"(2) Notwithstanding paragraph (1) of this subsection, if the taxable gross receipts prescribed by paragraph (1) of this subsection during the lookback period as defined in § 2122 of this title do not exceed $650,000, the return and payment of the additional license fee imposed for such month shall be due on or before the 20th day of the 1st month following the close of the quarter. In the case of such return, in computing the fee due on such aggregate gross receipts for each quarter, there shall be allowed a deduction of $60,000. For purposes of this paragraph, all branches or entities comprising an enterprise with common ownership or common direction and control shall be treated as one, and shall be allowed only 1 quarterly deduction from the aggregate gross receipts of the entire enterprise. The quarterly return shall be accompanied by a certified statement on such forms as the Department of Finance shall require In computing this fee due."

Section 7. Amend § 2903(c), Title 30 of the Delaware Code, by striking paragraph (2)

of said subsection in its entirety and substituting in lieu thereof a new paragraph (2) to read as follows:

"(2) Notwithstanding paragraph (1) of this subsection, if the taxable gross receipts prescribed by paragraph (1) of this subsection during the lookback period as defined in § 2122 of this title do not exceed $750,000, the return and payment of the additional license fee imposed for such month shall be due on or before the 20th day of the 1st month following the close of the quarter. In the case of such return, in computing the fee due on such aggregate gross receipts for each quarter, there shall be allowed a deduction of $39,000. For purposes of this paragraph, all branches or entities comprising an enterprise with common ownership or common direction and control shall be treated as one, and shall be allowed only 1 quarterly deduction from the aggregate gross receipts of the entire enterprise. The quarterly return shall be accompanied by a certified statement on such forms as the Department of Finance shall require in computing this fee due."

Section 8. Amend § 2904(c), Title 30 of the Delaware Code, by striking paragraph (2) of said subsection in its entirety and substituting in lieu thereof a new paragraph (2) to read as follows:

"(2) Notwithstanding paragraph (1) of this subsection, if the taxable gross receipts prescribed by paragraph (1) of this subsection during the lookback period as defined in § 2122 of this title do not exceed $750,000, the return and payment of the additional license fee imposed for such month shall be due on or before the 20th day of the 1st month following the close of the quarter. In the case of such return, in computing the fee due on such aggregate gross receipts for each quarter, there shall be allowed a deduction of $39,000. For purposes of this paragraph, all branches or entities comprising an enterprise with common ownership or common direction and control shall be treated as one, and shall be allowed only 1 quarterly deduction from the aggregate gross receipts of the entire enterprise. The quarterly return shall be accompanied by a certified statement on such forms as the Department of Finance shall require in computing this fee due."

Section 9. Amend § 2905(b), Title 30 of the Delaware Code, by striking paragraph (2) of said subsection in its entirety and substituting in lieu thereof a new paragraph (2) to read as follows:

"(2) Notwithstanding paragraph (1) of this subsection, if the taxable gross receipts prescribed by paragraph (1) of this subsection during the lookback period as defined in § 2122 of this title do not exceed $500,000, the return and payment of the additional license fee imposed for such month shall be due on or before the 20th day of the 1st month following the close of the quarter. In the case of such return, in computing the fee due on such aggregate gross receipts for each quarter, there shall be allowed a deduction of $105,000. For purposes of this paragraph, all branches or entities comprising an enterprise with common ownership or common direction and control shall be treated as one, and shall be allowed only 1 quarterly deduction from the aggregate gross receipts of the entire enterprise. The quarterly return shall be accompanied by a certified statement on such forms as the Department of Finance shall require in computing this fee due."

Section 10. Amend § 2906(c), Title 30 of the Delaware Code, by

striking paragraph (2) of said subsection in its entirety and substituting in lieu thereof a new paragraph (2) to read as follows:

"(2) Notwithstanding paragraph (1) of this subsection, if the taxable gross receipts prescribed by paragraph (1) of this subsection during the lookback period as defined in § 2122 of this title do not exceed $500,000, the return and payment of the additional license fee imposed for such month shall be due on or before the 20th day of the 1st month following the close of the quarter. In the case of such return, in computing the fee due on such aggregate gross receipts for each quarter, there shall be allowed a deduction of $105,000. For purposes of this paragraph, all branches or entities comprising an enterprise with common ownership or common direction and control shall be treated as one, and shall be allowed only 1 quarterly deduction from the aggregate gross receipts of the entire enterprise. The quarterly return shall be accompanied by a certified statement on such forms as the Department of Finance shall require in computing this fee due."

Section 11. Amend § 2907(c), Title 30 of the Delaware Code, by striking paragraph (2) of said subsection in its entirety and substituting in lieu thereof a new paragraph (2) to read as follows:

"(2) Notwithstanding paragraph (1) of this subsection, if the taxable gross receipts prescribed by paragraph (1) of this subsection during the lookback period as defined in § 2122 of this title do not exceed $750,000, the return and payment of the additional license fee imposed for such month shall be due on or before the 20th day of the 1st month following the close of the quarter. In the case of such return, in computing the fee due on such aggregate gross receipts for each quarter, there shall be allowed a deduction of $39,000. For purposes of this paragraph, all branches or entities comprising an enterprise with common ownership or common direction and control shall be treated as one, and shall be allowed only I quarterly deduction from the aggregate gross receipts of the entire enterprise. The quarterly return shall be accompanied by a certified statement on such forms as the Department of Finance shall require in computing this fee due."

Section 12. Amend Chapter 21, Title 30 of the Delaware Code, by adding to said chapter a new § 2122 to read as follows:

"§ 2122. Definitions. For purposes of this Part, the term 'lookback period' shall refer to the twelve month period between July 1 and June 30 immediately preceding the taxable year for which the filing frequency is determined by reference to the lookback period. Persons who were, during the entirety of the lookback period, not required to be licensed under a specific chapter of Part III, shall be deemed to have had no taxable gross receipts during the lookback period with regard to that chapter.

Section 13. Amend § 534, Title 30 of the Delaware Code, by adding to said section a new subsection (k) to read as follows:

"(k) For purposes of subsection (a) of this section, reasonable cause shall be deemed established in the case of failure to file a return in the time prescribed by Part III of this title, where the taxpayer filed within the time prescribed in a written notification by the Director that the taxpayer is eligible to file returns on a basis less frequent than is actually the case."

Section 14. Amend Chapter 21, Title 30 of the Delaware Code by adding to said chapter a new § 2123 to read as follows:

"§ 2123. Annual Filing Requirements. The Director may, by regulation, to include by means of instructions accompanying returns, waive quarterly filing of returns relative to taxes on gross receipts in the case of taxpayers who have had no taxable gross receipts within the quarter. In no event shall taxpayers required to report gross receipts be permitted to file any less frequently than annually."

Section 15. Amend § 9114(d), Title 7 of the Delaware Code, by striking the phrase "and before April 1, 1994" as it appears in said subsection.

Section 16. Sections 1 through 14 of this Act shall be effective for returns reflecting gross receipts received after December 31, 1994. Section 15 of this Act shall be effective April 1, 1994.

Section 17. If any provisions of this Act or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the Act which can be given effect without the invalid provision or application, and to this end the provisions of this Act are declared to be severable.

Approved July 1, 1994.