SENATE BILL NO. 128
AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO MANUFACTURERS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE :
Section 1. Amend §2701(5), Title 30 of the Delaware Code, by deleting said subsection in its entirety and substituting in lieu thereof a new subsection (5) to read as follows:
“(5)Whenever a person: (i) is engaged in the activity of manufacturing within this State as described in subsection (2) of this section; (ii) performs such activity exclusively on raw materials or products provided under bailment by another person engaged in manufacturing; and (iii) the product produced by such person is intended for inclusion as a part of a product manufactured by the other manufacturer, then such person shall himself be licensable as a manufacturer and his gross receipts shall include all proceeds paid to him for services rendered in this State as described in this paragraph, including the fair market value of any products produced as the result of such services and consumed by such person, where the fair market value of such products is not received. In all other cases where a person is engaged in, and receives consideration for, manufacturing as a service apart from or in addition to the sale of a product, then such person shall be licensed under Chapter 23 of this Title, and shall not to that extent be considered subject to license under this chapter.”
Section 2. This Act shall be effective for tax periods commencing after December 31, 1999.
Approved July 20,1999