CHAPTER 489

FORMERLY

HOUSE BILL NO. 678

AN ACT TO AMEND TITLE 30 OE THE DELAWARE CODE, RELATING TO GROSS RECEIPTS AND USE TAXES.

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

Section 1. Designate § 2120 of Title 30 of the Delaware Code as subsection (a) thereof.

Section 2 Amend § 2120. Title 30 of the Delaware Code, by adding to said section a new subsection (b) to read as follows.

(b) 'Gross receipts' (and, in the case of Chapter 43 of this title. 'rent' and 'lease rental payments' I shall not include amounts received from a related entity. Entities are related whenever: 1) more than eighty percent (80%) in value of the stock, partnership interests. beneficial trust interests or other ownership interests of each entity is owned directly, indirectly, or beneficially by the same five or fewer individuals; or 2) one hundred percent 1100%) of each entity is owned by a member or members of one family "Family" for purposes of this section shall mean those individuals specified in paragraphs (1), (2) and (3) of § 1322 of Title 30 of the Delaware Code or such successor section as Class A, B or C beneficiaries of a decedent For purposes of determining ownership interest of five or fewer individuals I and not members of a family ownership of stock, partnership interests, trust beneficial interests, or other ownership interests shall be determined m accordance with the attribution rules set out in § 544(a) of the Internal Revenue Code of 1986 (26 U.S.C. §544) or successor section."

Section 3 Amend § 2301(d)1 Title 30 of the Delaware Code, by deleting the words 'shall be treated as one, and" as the same appear after the word "control" and before the word "shall" as the same appear in the third sentence of said section.

Section 4 Amend § 2301(d)(2). Title 30 of the Delaware Code. by deleting the words "shall be treated as 1, and" as the same appear after the word "control" and before the word "shall" as the same appear in the third sentence of said section

Section 5 Amend § 2502(c)(1) Title 30 of the Delaware Code. by deleting the words "shall be treated as one and" as the same appear alter the word "control" and before the word "shall" as the same appear in the third sentence of said section

Section 6 Amend § 2502(c)(2), Title 30 of the Delaware Code, by deleting the words 'Shall he treated as 1, and" as the same appear after the word "control" and before the word "shall" as the same appear in the third sentence of said section

Section 7 Amend § 2702(b)(1), Title 30 of the Delaware Code. by deleting the words 'shall be treated as 1, and" as the same appear after the word "control" and before the word "shall" as the same appear in the third sentence of said section

Section 8 Amend § 2702(b1(2), Title 30 of the Delaware Code. by deleting the words "shall be treated as 1, and" as the same appear after the word "control" and before the word "shall" as the same appear in the third sentence of said section.

Section 9. Amend § 2902(c)(1), Title 30 of the Delaware Code by deleting the words "shall be treated as 1. and" as the same appear after the word "control" and before the word "shall" as the same appear in the third sentence of said section

Section 10. Amend § 2902(c)(2), Title 30 of the Delaware Code, by deleting the words "shall be treated as 1, and" as the same appear after the word "control" and before the word "shall" as the same appear in the third sentence of said section.

Section 11. Amend § 2903(c)(1), Title 30 of the Delaware Code, by deleting the words "shall be treated as one and as the same appear after the word "control" and before the word "shall" as the same appear in the third sentence of said section.

Section 12. Amend § 2903(c)(2), Title 30 of the Delaware Code, by deleting the words "shall be treated as I. and" as the same appear after the word "control" and before the word "shall" as the same appear in the third sentence of said section.

Section 13. Amend § 2904(c)(1), Title 30 of the Delaware Code, by deleting the words "shall be treated as one and as the same appear after the word "control" and before the word "shall" as the same appear in the third sentence of said section.

Section 14. Amend § 2904(c)(2), Title 30 of the Delaware Code, by deleting the words "shall be treated as I, and" as the same appear after the word "control" and before the word "shall" as the same appear in the third sentence of said section.

Section 15. Amend § 2905(b)(1), Title 30 of the Delaware Code, by deleting the words "shall be treated as I, and" as the same appear after the word "contra' and before the word "shall" as the same appear in the third sentence of said section.

Section 16. Amend § 2905(b)(2), Title 30 of the Delaware Code, by deleting the words "shall be treated as I, and" as the same appear after the word "control" and before the word "shall" as the same appear in the third sentence of said section.

Section 17. Amend § 2906(c)( I ), Title 30 of the Delaware Code, by deleting the words "shall be treated as 1, and" as the same appear after the word "control" and before the word "shall" as the same appear in the third sentence of said section.

Section 18. Amend § 2906(c)(2), Title 30 of the Delaware Code, by deleting the words "shall be treated as 1, and" as the same appear after the word "control" and before the word "shall" as the same appear in the third sentence of said section.

Section 19. Amend § 2907(0(1), Title 30 of the Delaware Code, by deleting the words "shall be treated as one and as the same appear after the word "control" and before the word "shall" as the same appear in the third sentence of said section.

Section 20. Amend § 2907(c)(2), Title 30 of the Delaware Code, by deleting the words "shall be treated as I, and" as the same appear after the word "control' and before the word "shall" as the same appear in the third sentence of said section.

Section 21. Amend § 4305(b), Title 30 of the Delaware Code, by deleting the words "shall be treated as one and as the same appear after the word "control" and before the word "shall" as the same appear in the third sentence of said section.

Section 22. Sections 1 and 2 of this Act shall be effective for taxable periods beginning on or after January I, 1997. Sections 3 through 21 clarify existing law and relate back to the effective date of the original provisions they amend.

Section 23. If any provision of this act or the application thereof to any person or circumstances is held invalid, the invalidity shall not affect other provisions or applications of this act which can be given effect without the invalid provision or application, and to this end the provisions of this act are severable.

Approved July 11, 1996