CHAPTER 199

FORMERLY

HOUSE BILL NO. 303

AN ACT RELATING TO GROSS RECEIPTS AND TOBACCO PRODUCTS TAXES.

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

Section 1. Amend § 2502(c)(1), Title 30, Delaware Code, by striking the figure “0.624%” as appears therein and inserting in lieu thereof the figure “0.499%”.

Section 2. Amend § 2907(c)(1), Title 30, Delaware Code, by striking the figure “0.096%” as it appears therein and inserting in lieu thereof the figure “0.077%”.

Section 3. Amend § 2903(c)(1), Title 30, Delaware Code, by striking the figure “0.192%” as it appears therein and inserting in lieu thereof the figure “0.154%”.

Section 4. Amend § 2301(d)(1), Title 30, Delaware Code, by striking the figure “0.384%” as it appears therein and inserting in lieu thereof the figure “0.307%”.

Section 5. Amend 2702(b)(1), Title 30, Delaware Code, by striking the figure “0.180%” as it appears therein and inserting in lieu thereof the figure “0.144%%”.

Section 6. Amend § 2902(c)(1), Title 30, Delaware Code, by striking the figure “0.384%” as it appears therein and inserting in lieu thereof the figure “0.307%”.

Section 7. Amend § 2904(c)(1), Title 30, Delaware Code, by striking the figure “0.096%” as it appears therein and inserting in lieu thereof the figure “0.077%”.

Section 8. Amend § 2905(b)(1), Title 30, Delaware Code, by striking the figure “0.720%” as it appears therein and inserting in lieu thereof the figure “0.576%”.

Section 9. Amend § 2906(c)(1), Title 30, Delaware Code, by striking the figure “0.624%” as it appears therein and inserting in lieu thereof the figure “0.499%”.

Section 10. Amend § 4302(a), Title 30, Delaware Code, by striking the figure “1.920%” as it appears therein and inserting in lieu thereof the figure “1.536%”.

Section 11. Amend § 2902(c)(3), Title 30, Delaware Code, by striking the figure “0.240%” as it appears therein and inserting in lieu thereof the figure “0.192%”.

Section 12. Amend § 2905(g), Title 30, Delaware Code, by striking the figure “0.720%” as it appears therein and inserting in lieu thereof the figure “0.576%”.

Section 13. Amend § 2908(c), Title 30, Delaware Code, by striking the words and figures “the rate of 0.384 percent of the first $2 million per month and 0.720 percent thereafter” as they appear therein and inserting in lieu thereof the words “the rate of 0.307% of the first $2 million per month and 0.576% thereafter”.

Section 14. Amend § 2301(d), Title 30 of the Delaware Code, by striking the symbol and figure “$50,000” as it appears in paragraph (1) of said subsection and substituting in lieu thereof the symbol and figure “$80,000”.

Section 15. Amend § 2502(c), Title 30 of the Delaware Code, by striking the symbol and figure “$50,000” as it appears in paragraph (1) of said subsection and substituting in lieu thereof the symbol and figure “$80,000”.

Section 16. Amend § 2902(c), Title 30 of the Delaware Code, by striking the symbol and figure “$50,000” as it appears in paragraph (1) of said subsection and substituting in lieu thereof the symbol and figure “$80,000”.

Section 17. Amend § 2903(c), Title 30 of the Delaware Code, by striking the symbol and figure “$50,000” as it appears in paragraph (1) of said subsection and substituting in lieu thereof the symbol and figure “$80,000”.

Section 18. Amend § 2904(c), Title 30 of the Delaware Code, by striking the symbol and figure “$50,000” as it appears in paragraph (1) of said subsection and substituting in lieu thereof the symbol and figure “$80,000”.

Section 19. Amend § 2905(b), Title 30 of the Delaware Code, by striking the symbol and figure “$50,000” as it appears in paragraph (1) of said subsection and substituting in lieu thereof the symbol and figure “$80,000”.

Section 20. Amend § 2906(c), Title 30 of the Delaware Code, by striking the symbol and figure “$50,000” as it appears in paragraph (1) of said subsection and substituting in lieu thereof the symbol and figure “$80,000”.

Section 21. Amend § 2907(c), Title 30 of the Delaware Code, by striking the symbol and figure “$50,000” as it appears in paragraph (1) of said subsection and substituting in lieu thereof the symbol and figure “$80,000.”

Section 22. Amend § 2908(c), Title 30 of the Delaware Code, by striking the symbol and figure “$50,000” as it appears in paragraph (1) of said subsection and substituting in lieu thereof the symbol and figure “$80,000”.

Section 23. Amend § 2301(d), Title 30 of the Delaware Code, by striking the symbol and figure “$150,000” as it appears in paragraph (2) of said subsection and substituting in lieu thereof the symbol and figure “$240,000”.

Section 24. Amend § 2502(c), Title 30 of the Delaware Code, by striking the symbol and figure “$150,000” as it appears in paragraph (2) of said subsection and substituting in lieu thereof the symbol and figure “$240,000”.

Section 25. Amend § 2902(c), Title 30 of the Delaware Code, by striking the symbol and figure “$150,000” as it appears in paragraph (2) of said subsection and substituting in lieu thereof the symbol and figure “$240,000”.

Section 26. Amend § 2903(c), Title 30 of the Delaware Code, by striking the symbol and figure “$150,000” as it appears in paragraph (2) of said subsection and substituting in lieu thereof the symbol and figure “$240,000”.

Section 27. Amend § 2904(c), Title 30 of the Delaware Code, by striking the symbol and figure “$150,000” as it appears in paragraph (2) of said subsection and substituting in lieu thereof the symbol and figure “$240,000”.

Section 28. Amend § 2905(b), Title 30 of the Delaware Code, by striking the symbol and figure “$150,000” as it appears in paragraph (2) of said subsection and substituting in lieu thereof the symbol and figure “$240,000”.

Section 29. Amend § 2906(c), Title 30 of the Delaware Code, by striking the symbol and figure “$150,000” as it appears in paragraph (2) of said subsection and substituting in lieu thereof the symbol and figure “$240,000”.

Section 31. Amend § 2907(c), Title 30 of the Delaware Code, by striking the symbol and figure “$150,000” as it appears in paragraph (2) of said subsection and substituting in lieu thereof the symbol and figure “$240,000.”

Section 33. Amend § 2908(c), Title 30 of the Delaware Code, by striking the symbol and figure “$150,000” as it appears in paragraph (2) of said subsection and substituting in lieu thereof the symbol and figure “$240,000”.

Section 34. Amend § 4305(b), Title 30 of the Delaware Code, Title 30 of the Delaware Code, by striking the symbol and figure “$150,000” as it appears in paragraph (2) of said subsection and substituting in lieu thereof the symbol and figure “$240,000”.

Section 35. Amend § 4305, Title 30, Delaware Code by deleting the figure “0.288%” as it appears therein and inserting in lieu thereof the figure “0.230%” and by deleting the parenthetical words as they appear in paragraph (b) and inserting in lieu thereof the following:

“(applying a rate of 0.288% separately to leases of motor vehicles as provided in this subsection)”

Section 36. Amend Chapter 27, Title 30 of the Delaware Code, by designating § 2703 as new § 2704 of said chapter and by designating § 2704 as new § 2705 of said chapter.

Section 37. Amend § 2701, Title 30, Delaware Code by adding the words and punctuation “, including automobile manufacturing,” between the words “changed” and “but” as they appear in subsection (2) therein.

Section 38. Amend Chapter 27, Title 30 of the Delaware Code, by adding to said chapter a new § 2703 to read as follows:

“§ 2703 Automobile Manufacturers.

(a) Every person engaged in the business of automobile manufacturing shall be exempt from the provisions of § 2702 of this title and shall be subject to the provisions of this section. For purposes of this section, automobile manufacturing shall mean the manufacturing operations of an automobile assembly plant and shall not include the manufacture of component parts of an automobile outside an automobile assembly plant.

(b) Any person desiring to engage in business in this State as an automobile manufacturer shall first obtain a license from the Division of Revenue and pay therefor a fee of $75 for each place of business. Such license shall be valid until January 1 at which time it may be renewed for a full year and every year thereafter; provided, that the automobile manufacturer makes application therefor and payment of $75 for each place of business, plus the license fee required by subsection (c) of this section.

(c) (1) In addition to the license fee required by subsection (b) of this section, every automobile manufacturer shall pay a license fee of 0.135% of the aggregate gross receipts of such automobile manufacturer, which fee shall be payable monthly on or before the 20th day of each month with respect to the aggregate gross receipts for the immediately preceding month. In computing the fee due on such aggregate gross receipts for each month, there shall be allowed a deduction of $1,000,000. For purposes of this subsection, all branches or entities comprising an enterprise with common ownership or common direction and control shall be allowed only 1 monthly deduction from the aggregate gross receipts of the entire enterprise. The monthly returns shall be accompanied by a certified statement on such forms as the Department of Finance shall require in computing the fee due.

(2) Notwithstanding paragraph (1) of this subsection, if the taxable gross receipts prescribed therein during the lookback period as defined in § 2122 of this title do not exceed $300,000, the return and payment of the additional license fee imposed for such month shall be due on or before the last day of the 1st month following the close of the quarter. In the case of such return, in computing the fee due on such aggregate gross receipts for each quarter, there shall be allowed a deduction of $3,000,000. For purposes of this paragraph, all branches or entities comprising an enterprise with common ownership or common direction and control shall be allowed only 1 quarterly deduction from the aggregate gross receipts of the entire enterprise. The quarterly return shall be accompanied by a certified statement on such forms as the Department of Finance shall require in computing this fee due.”

Section 39. Amend Volume 74 Delaware Laws, chapter 54 by striking section 4 in its entirety.

Section 40. 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.

Section 41. This Act shall be effective for tax periods beginning after December 31, 2005.

Approved July 19, 2005