CHAPTER 488

FORMERLY

HOUSE BILL NO. 716

AN ACT TO AMEND CHAPTER 5. TITLE 4 OF THE DELAWARE CODE RELATING TO TAXES ON SPIRITS.

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

Section 1. Amend § 581 (a)(3). Chapter 5. Title 4 of Delaware Code by striking said paragraph in its entirety and substituting in lieu thereof a new paragraph (3) to read as follows

"(3) For each gallon of spirits containing 25 percent or less of ethyl alcohol 11 , volume, $2.50;"

Section 2. Amend § 581 (a)(4), Chapter 5, Title 4 of Delaware Code by striking said paragraph in its entirety and substituting in lieu thereof a new paragraph (4) to read as follows

"(4) For each gallon of spirits containing more than 25 percent of ethyl alcohol by volume, $3.75;"

Section 3. If any provision of this Act or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications 01 the Act which can be given effect without the invalid provision or application.

Section 4. This Act shall apply to all spirits purchased and received from any manufacturer or importer on or after January 2, 1997. Section I and Section 2 of this Act shall apply to floor stock or inventories purchased and received by licensed Delaware importers on or after November 1, 1996, and which are resting in the State of Delaware on January 2, 199' A tax credit shall be applied on such floor stock or inventories equal to the difference between the amount of the tax already paid on such floor stuck or inventories and the decreased amount 01 tax specified in this Act. The tax credit shall apply only in the 1997 tax year. and no carryover of the credit to future years shall be permitted. The tax credit claimed shall be reported in accordance with Commission and Division of Revenue rules and regulations. "Me Commission and the Director of Revenue shall be authorized to promulgate regulations having the three and Oleo at law to provide for the implementation and enforcement of the provisions of this Act.

Section 5. The tax rate reductions established in Section I and Section 2 of this Act shall expire on December 31, 1999, unless the Commission, through the adoption of a rule. determines that it has been affirmatively shown that the tax rate reductions set Roll in this Act have resulted in a corresponding reduction in retail prices for consumers Such order shall be ineffective unless it is accompanied by express findings of fact supporting the Commission's determination

Approved July 11, 1996