CHAPTER 290

FORMERLY

SENATE BILL NO. 447

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO THE PUBLIC UTILITY TAX.

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

Section 1. Amend § 5502, Title 30 of the Delaware Code, by designating existing subsection (b) of said section as paragraph (1) of said subsection (b) by striking the period (".") at the end of said paragraph and by substituting in lieu of said period (".") the phrase "other than electricity commodities or services subject to taxation under paragraph (2) of this subsection."

Section 2. Amend § 5502(b), Title 30 of the Delaware Code, by adding

thereto a new paragraph (2) to read as follows:

"(2) A tax is imposed upon any distributor of electricity commodities or services to business locations used primarily for the manufacture (as 'manufacturing' is defined in § 2701 of this title and shall not include scientific, agricultural or industrial research, development or testing) of goods within this State, which tax shall be at the rate of 2% of the gross receipts or tariff charges received by the distributor for said commodities or services distributed within this State. For purposes of this paragraph, in order for a business location to be 'used primarily for the manufacture of goods within this State,' more than 70% of the employees employed at the business location must be employed in the manufacture of goods exclusively within this State. Employees employed, by way of example and not limitation, in the management or administrative support of facilities other than or in addition to a Delaware manufacturing facility are not employed exclusively in the manufacture of goods within this State. For purposes of this paragraph, the business location' means all contiguous real property in which the manufacturer or any of its affiliates has an interest, including a possessory interest."

Section 3. This Act shall be effective for electricity services or commodities distributed after September 30, 1994.

Approved July 1, 1994.