CHAPTER 111

FORMERLY

SENATE BILL NO. 147

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 :

Section 1. Amend § 1133, Title 30 of the Delaware Code, by striking subsection (b) of said section in its entirety and substituting in lieu thereof a new subsection (b) to read as follows:

"(b) Exempt associations, trusts and organizations. --

(1) An association, trust, or other unincorporated organization which by reason of its purposes or activities is exempt from federal income tax, shall be exempt from the tax imposed by this chapter, except with respect to its unrelated business taxable income.

(2) Notwithstanding paragraph (1) of this subsection, a trust shall be exempt from the tax imposed by this chapter to the extent a corporation is exempt from income tax pursuant to the provisions of paragraphs (1) through (5) of §1902(b) of this title.".

Section 2. This Act shall be effective for tax periods commencing after December 31, 1998.

Approved July 01,1999