CHAPTER 104

FORMERLY

HOUSE BILL NO. 216

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO TAXES.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Three-fifths of all members elected to each house thereof concurring therein):

Section 1. Amend § 2301(o), Title 30 of the Delaware Code, by striking the phrase “or Chapter 15 of Title 2 of this Code" as it appears in said subsection and substituting in lieu thereof the following phrase: “(but only with respect to gross receipts or the sale price of services and commodities taxable under, or with respect to which taxes are imposed by, chapter 55 of this title)”.

Section 2. Amend § 2901(7)b., Title 30 of the Delaware Code, by striking said paragraph in its entirety and substituting in lieu a new paragraph b. to read as follows:

"b. For purposes of this chapter, the word 'wholesaler' shall not apply to a person who is licensed to catch, take, and sell eels, food fish, or shellfish by the Delaware Department of Natural Resources and Environmental Control pursuant to Chapters 9 and 18 and Part II of Title 7 of the Delaware Code.".

Section 3. Amend § 2906, Title 30 of the Delaware Code, by adding thereto a new subsection "(d)" as follows:

"(d) Persons licensed as a retailer or grocery supermarket retailer pursuant to § 2905 or § 2908 of this title and who derive at least 90 percent of their sales of food suitable for human consumption from food that is not ‘immediately consumable,’ as that term is defined by § 2908(a), shall be exempt from this section, provided that the retailer or grocery supermarket retailer reports the gross receipts derived from activities otherwise subject to this chapter as retail or grocery supermarket retail sales, as the case may be.”.

Section 4. Amend § 2901(2)b., Title 30 of the Delaware Code, by deleting the punctuation and phrase " provided however, that, for purposes of this chapter, 'physically delivered within this State' includes delivery to the United States mail or to a common or contract carrier for shipment to a place within this State irrespective of F.O.B. or other terms of payment for delivery;" as it appears at the end of subparagraph (iv) of said subparagraph.

Section 5. Amend § 2901, Title 30 of the Delaware Code, by adding thereto a new subsection (4) to read as follows:

"For purposes of this chapter, the term 'physically delivered within this State' includes delivery to the United States mail or to a common or contract carrier for shipment to a place within this State irrespective of F.O.B. or other terms of payment for delivery.".

Section 6. Amend § 1503(b)(1), Title 30 of the Delaware Code, by inserting the phrase "plus all intangible personal property" immediately following the word "State" as it appears in said paragraph.

Section 7. Amend § 2120(b), Title 30 of the Delaware Code, by striking the phrase “specified in § 1322(1)-(3) of Title 30 or such successor section as Class A, B or C beneficiaries of a decedent” as it appears therein and substituting in lieu thereof the following: “standing in a close family relationship to each other. For purposes of this subsection, a ‘close family relationship’ shall mean the following relationships: a husband or wife; a parent, grandparent, child by birth, spouse or surviving spouse of a child by birth, a child by legal adoption, the lineal descendant of the decedent, a stepchild of the decedent or the lineal descendant of a stepchild; or any person whose relationship is within 5 degrees of consanguinity, whether by the whole or half blood, and whether a blood relative of the decedent or a relative by virtue of legal adoption.”.

Section 8. Sections 2 and 3 of this Act shall be effective for tax periods commencing after December 31, 1999. Sections 1, 4, 5, and 7 of this Act are intended to clarify and not change existing law. Section 6 of this Act shall be effective for the estates of decedents dying after December 31, 1998.

Section 9. If any clause, sentence, section, provision or part of this Act shall be adjudged to be unconstitutional or invalid for any reason by any court of competent jurisdiction, such judgment shall not impair, invalidate, or affect the remainder of this Act, which shall remain in full force and effect.

Approved July 01,1999