CHAPTER 220

FORMERLY

HOUSE BILL NO. 231

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO PENALTIES FOR FAILURE TO OBTAIN BUSINESS LICENSES.

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 § 534, Title 30 of the Delaware Code, by adding to said section a new subsection (1) to read as follows:

“(1) In the case of failure of any person to obtain or renew a business license required under the provisions of Part III of Title 30 of the Delaware Code, unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount of the business license fee required to be paid a penalty in the amount of $200. Whenever a penalty has been proposed for assessment under this subsection, the Director shall not be required to issue a business license to the taxpayer to whom such assessment has been proposed unless and until the taxpayer has paid any license fee necessary for issuance of such license and has either: (1) paid the assessment provided under this subsection (subject to any claim for refund); or (2) filed a written protest regarding such assessment of penalty pursuant to § 523. The penalty described in this subsection shall not be assessed in the instance of self-disclosure by a taxpayer of delinquency in meeting the licensing requirements of Part III. The penalty described in this subsection shall, only with respect to the same failure to obtain or renew a license and not with respect to failure to pay taxes on gross receipts or any other acts or omissions, be in lieu of the penalty described in subsection (a) of this section, except where such penalty determined under subsection (a) shall exceed the penalty determined under this subsection, in which event subsection (a) shall apply, and this subsection shall not apply.”

Section 2. This Act shall be effective July 1, 1999, or thirty days after its enactment into law, whichever shall be later.

Approved July 23,1999