SENATE BILL NO. 1
AS AMENDED BY
SENATE AMENDMENT NO. 1
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(b) of Title 30 of the Delaware Code by striking paragraph (2) of said subsection in its entirety and substitute in lieu thereof 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; for food processing (as food processing is described in §2903 of this title), agribusiness processing, or the hatching of chickens in conjunction with either food processing or agribusiness processing 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 or food and agri-business processing within this State,' more than 70% of the employees employed at the business location must be employed in such activity 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 or food or agri-business processing facility are not employed exclusively in the manufacture of goods or food and agri-business processing within this State. For purposes of this subsection, the 'business location' means all contiguous real property in which the manufacturer or food or agri-business processor, as the case may be, has an interest, including a possessory interest. For purposes of this section 'agribusiness processing' means any processing, working, development, change, conditioning or reconditioning of raw materials or products into products of a different character, or effecting any combination or composition of materials, the inherent nature of which is changed such that the resulting product is food for consumption by livestock or is fertilizer for agricultural use."
Section 2. This Act shall be effective for services or commodities distributed on or after January 1, 1995.
Approved February 3, 1995