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LAWS
OF THE
STATE OF DELAWARE
ONE HUNDRED AND FIFTH
SESSION OF THE GENERAL ASSEMBLY
COMMENCED AND HELD AT DOVER
On Tuesday, January 1, A. D.
1935
AND
IN THE YEAR OF THE INDEPENDENCE OF THE UNITED STATES
THE ONE HUNDRED AND FIFTY- NINTH
VOLUME XL
Printed by
WILLIAM E. TAYLOR, iNC.
Wilmington, Delaware
Object Description
| Rating | |
| Title | Laws of the State of Delaware - Volume 40 |
| Description | Laws of the State of Delaware. One Hundred And Fifth Session Of The General Assembly Commenced And Held At Dover On Tuesday, January 1, A. D. 1935 Volume XL |
| Creator | Delaware |
| Creator2 | Delaware General Assembly |
| Contributors | William E. Taylor, Inc. |
| Publisher | Department of State |
| Type | Text |
| Format | |
| Full Text | LAWS OF THE STATE OF DELAWARE ONE HUNDRED AND FIFTH SESSION OF THE GENERAL ASSEMBLY COMMENCED AND HELD AT DOVER On Tuesday, January 1, A. D. 1935 AND IN THE YEAR OF THE INDEPENDENCE OF THE UNITED STATES THE ONE HUNDRED AND FIFTY-NINTH VOLUME XL Printed by WILLIAM E. TAYLOR, iNC. Wilmington, Delaware LAWS of DELAWARE Title One Construction of Statutes CHAPTER 1 AMENDMENT TO CONSTITUTION AN ACT AGREEING TO THE PROPOSED AMENDMENT OF SEC-TION 17, OF ARTICLE 2 OF THE CONSTITUTION OF THE STATE OF DELAWARE, RELATIVE TO THE SALE OF LOT-TERY TICKETS, POOL SELLING AND OTHER FORMS OF GAMBLING. WHEREAS, an Amendment to the Constitution of the State of Delaware was proposed in the Senate in the One Hundred and Fourth Session of the General Assembly, as follows: "AN ACT proposing an Amendment to Section 17, of Article 2, of the Constitution of the State of Delaware, relating to the sale of Lottery Tickets, Pool Selling and other forms of Gambling. Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met (two-thirds of all the members elected to each House agreeing thereto) : Section 1. That Article 2 of the Constitution of the State of Delaware be and the same is hereby amended, by striking out all of section 17, of Article 2 thereof, and by inserting in lieu thereof a new Section 17, in the following language, viz: 3 4 AMENDMENT TO CONSTITUTION Section 17. Lotteries:The sale of Lottery Tickets, Pool Sell-ing and all other forms of gambling are prohibited in this State; except wagering or betting on races at race tracks by the use of pari-mutuel machines or totalizators in connection therewith. The General Assembly shall enforce this section by appropriate legis-lation." AND WHEREAS, the said proposed Amendment was agreed to by two-thirds of all the members elected to each House in the said One Hundred and Fourth Session of the General Assembly; and WHEREAS, the said proposed Amendment was published by the Secretary of State three months before the next general election, to-wit: the general election of 1934, in three newspapers in each County in the State of Delaware; NOW, THEREFORE, Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met (two-thirds of all the members elected to each House of the General Assembly agree-ing thereto) Section 1. That the said proposed Amendment be and it is hereby agreed to and adopted and that the same shall forthwith become and be a part of the Constitution. CHAPTER 1 5 CHAPTER 2 AMENDMENT TO CONSTITUTION AN ACT AGREEING TO THE PROPOSED AMENDMENT TO SEC-TION 28 OF ARTICLE IV OF THE CONSTITUTION OF THE STATE OF DELAWARE, RELATING TO WRIT OF ERROR. WHEREAS, an Amendment to the Constitution of the State of Delaware was proposed in the Senate in the One Hundred and Fourth Session of the General Assembly, as follows: "AN ACT proposing an Amendment to Section 28 of Article IV of the Constitution of the State of Delaware, relating to Writ of Error. Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met (two-thirds of all the members elected to each House agreeing thereto): Section 1. That Section 28 of Article IV of the Constitution of the State of Delaware be amended so as to read as follows: Section 28. No writ of error shall be brought upon any judg-ment heretofore confessed, entered or rendered or upon any judg-ment hereafter to be confessed, entered or rendered, but within six months after the confessing, entering or rendering thereof; unless the person entitled to such writ be an infant, non compos mends, or a prisoner, and then within six months exclusive of the time of such disability." AND WHEREAS, the said proposed Amendment was agreed to by two-thirds of all the members elected to each House in the said One Hundred and Fourth Session of the General Assembly; and WHEREAS, the said proposed Amendment was published by the Secretary of State three months before the next general election; to wit: the general election of 1934, in three newspapers in each County in the State of Delaware; Now Therefore, 6 CHAPTER 2 AMENDMENT TO CONSTITUTION Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met (two-thirds of all the members elected to each House of the General Assembly agreeing thereto) : Section 1. That the said proposed Amendment be and it is hereby agreed to and adopted and that the same shall forthwith become and be a part of the Constitution. CHAPTER 3 AMENDMENT TO CONSTITUTION AN ACT PROPOSING AN AMENDMENT TO SECTION 15 OF ARTICLE 2 OF THE CONSTITUTION OF THE STATE OF DEL-AWARE, RELATING TO THE COMPENSATION OF THE MEMBERS AND PRESIDING OFFICERS OF THE GENERAL ASSEMBLY, AND FIXING AND LIMITING THE AMOUNT FOR CLERKS, EMPLOYEES AND ATTACHES. Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met (two-thirds of all the members elected to each House concurring therein): Section 1. That Section 15 of Article 2 of the Constitution of the State of Delaware, as amended by Chapter 15, Volume 30, Laws of Delaware, be amended by striking out all of the first para-graph of the said Section 15 of Article 2, and inserting in lieu there-of the following: The members of the General Assembly, except the presiding officers of the respective Houses, shall receive as compensation for their services a per diem allowance of Fifteen Dollars ($15.00), and the presiding officers a per diem allowance of Seventeen Dollars ($17.00), for each day of the Session, not exceeding sixty days; and should they remain longer in Session they shall serve without compensation. In case a special or extra session of the General Assembly be called, the members and presiding officers shall receive like compensation for a period not exceeding thirty days. In addition to the per diem compensation next hereinabove provided for, each Member living within a radius of twenty miles of the corporate limits of the City of Dover shall receive One Hundred Dollars ($100.00) to cover such Members traveling ex-penses in full and each Member living more than twenty miles from the corporate limits of the City of Dover but not more than forty miles therefrom, shall receive an additional sum of Two Hun-dred Dollars ($200.00) to cover such Members traveling expenses in full, and each Member living at a greater distance than forty 8, CHAPTER 3 AMENDMENT TO CONSTITUTION miles from the corporate limits of the said City of Dover shall receive an additional sum of Three Hundred Dollars ($300.00) to cover the traveling expenses of such Member in full. Except as in this Section 15 expressly provided, the members of the General Assembly shall receive no allowance or payment for services, traveling expenses, supplies or other expenses while at-tending or in connection with Sessions of the General Assembly. The expenses of the Senate during any biennial Session of the General Assembly for clerks, employees and attaches shall be lim-ited to the sum of Twelve Thousand Dollars; and the expenses of the House of Representatives during any biennial Session of the General Assembly for clerks, employees and attaches shall be lim-ited to the sum of Eighteen Thousand Dollars. The expenses of the Senate during any special or extra Session of the General Assembly for clerks, employees and attaches shall be limited to the sum of Six Thousand Dollars; and the expenses of the House of Representatives during any special or extra Session of the General Assembly for clerks, employees and attaches shall be limited to Nine Thousand Dollars. Title Two Jurisdiction and Property of the State CHAPTER 4 CESSION OF LANDS TO THE U. S. GOVERNMENT AN ACT TO AMEND AN ACT ENTITLED "AN ACT GRANTING THE CONSENT OF THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE TO THE ACQUISITION BY THE UNITED STATES OF LANDS AT THE MOUTH OF MISPIL-LION RIVER IN CEDAR CREEK HUNDRED, SUSSEX COUN-TY, STATE OF DELAWARE," BEING CHAPTER 6, VOLUME 38, LAWS OF DELAWARE. - Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly ?net: Section 1. That the Act entitled "AN ACT granting the con-sent of the General Assembly of the State of Delaware to the ac-quisition by the United States of Lands at the, mouth of the Mis-pillion River in Cedar Creek Hundred, Sussex County, State of Delaware" being Chapter 6, Volume 38, of the Laws of Delaware, be and the same is hereby amended by striking out Section 2 and by substituting in lieu thereof a new Section 2 as follows: "Section 2. Jurisdiction over the said lands, which have here-tofore been acquired or which shall hereafter be acquired, is hereby granted and ceded to the United States; provided, that the sover-eignty and jurisdiction of this State shall extend over the said lands so far as that all civil process and such criminal process as may issue 9 1 0 CHAPTER 4 CESSION OF LANDS TO U. S. GOVERNMENT under the authority of this State against any person or persons charged with crimes or other offenses committed without such lands may be executed thereon in the same way and manner as if this con-sent had not been given." Approved March 13, 1935. CHAPTER 5 CESSION OF LANDS TO U. S. GOVERNMENT AN ACT TO CEDE TO THE UNITED STATES OF AMERICA CER-TAIN LAND ALONG THE COAST LINE OF DELAWARE, BORDERING DELAWARE BAY IN THE VICINITY OF LEWES, DELAWARE, FOR THE PURPOSE OF NATIONAL DEFENSE. WHEREAS, The land along the coast line of Delaware from the Quarantine Station to the point of the Cape at Lewes, Dela-ware, is required for use by the United States of America in con-nection with the defenses of Delaware Bay; and WHEREAS, The United States of America is contemplating placing several installations on said lands if and when funds are appropriated by the United States Congress for this purpose; and WHEREAS, Said installation along said coast will be made and said land utilized in other ways in any defense of the Delaware Bay against a foreign power with which the United States of America is at war; therefore, Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met: Section 1. That all the right, title, interest, and property in and to the coast line of Delaware from the Quarantine Station to the point of the Cape at Lewes, bordering Delaware Bay in the vicinity of Lewes, Delaware, shall be and hereby is ceded to and vested in the United States of America for a period of eight (8) years as fully and to the same extent as this State now holds and is entitled to the same together with the jurisdiction thereof, pro-vided, however, that in the event said land is put to use by the placing of several installations along said coast line by the United States of America, during the period of this grant, then this grant shall be extended indefinitely, so long as the said land is continued to be used by the said Government for such purposes; provided, nevertheless, that in the event that the said Government shall cease to use the said land for the purposes hereinabove stated, then and 11 12 CHAPTER 5 CESSION OF LANDS TO U. S. GOVERNMENT in such event the said land shall revert back to the State of Dela-ware and all rights ceded by this Act shall cease and determine. Section 2. The sovereignty and jurisdiction of this State over the land herein conveyed to such extent as is existing at the present time is hereby rendered so far as that of civil and criminal processes as may issue under the authority of this State against any person or persons charged with crime or other offenses committed without such land may be executed therein in the same way and manner as if this consent had not been made. Approved March 29, 1935. CHAPTER 6 BOUNDARIES OF CERTAIN HUNDREDS IN NEW CASTLE COUNTY AN ACT TO AMEND CHAPTER TWO OF THE REVISED CODE OF THE STATE OF DELAWARE, A. D. 1915, RELATING TO THE JURISDICTION, LIMITS AND SOVEREIGNTY OF THE STATE OF DELAWARE, BY FIXING THE BOUNDARIES OF BRANDY WINE, WILMINGTON, NEW CASTLE, RED LION AND ST. GEORGES HUNDREDS. Be it enacted by the Senate and House of Representatives of the State of Delaware, in General Assembly met: Sec. 1. That 10, Sec. 9 of Chapter 2 of the Revised Code of the State of Delaware, A. D. 1915, be and the same is hereby amended by adding a new section to be known as 10-A Sec. 9-A: 10-A Sec. 9-A:BOUNDARIES OF CERTAIN HUNDREDS: Brandywine Hundred comprises that part of New Castle Coun-ty which is bounded as follows, namely: Beginning at the point where low water mark on the Westerly side of the Delaware River is intersected by the Northerly boundary line of the State of Delaware; thence by said boundary line, cross-ing the Delaware River, to low water mark on the Easterly side of the Delaware River; thence by the last mentioned low water mark to the point where said last mentioned low water mark is intersected by the Northerly boundary line of the City of Wilmington; thence by the present boundary lines dividing Brandywine Hundred from the City of Wilmington, Christiana Hundred, and the State of Pennsylvania, to the place of beginning. Wilmington Hundred comprises that part of New Castle Coun-ty which is bounded as follows, namely: All that part of New Castle County which is included within the corporate limits of the City of Wilmington. 13 14 CHAPTER 6 BOUNDARIES OF CERTAIN HUNDREDS IN NEW CASTLE COUNTY New Castle Hundred comprises that part of New Castle Coun-ty which is bounded as follows, namely: Beginning at the point where low water mark on the Westerly side of the Delaware River is intersected by the Southerly boundary line of the City of Wilmington; thence by said boundary line, cross-ing the Delaware River to the low water mark on the Easterly side of the Delaware River; thence by the last mentioned low water mark to a point which is due East of the point where the boundary line between New Castle Hundred and Red Lion Hundred inter-sects the low water mark on the Westerly side of the Delaware River; thence due West to low water mark on the Westerly side of the Delaware River; thence by the present boundary lines divid-ing New Castle Hundred from Red Lion Hundred, Pencader Hun-dred, White Clay Creek Hundred, Christiana Hundred and the City of Wilmington, to the place of beginning. Red Lion Hundred comprises that part of New Castle County which is bounded as follows, namely: Beginning at a point where low water mark on the Westerly side of the Delaware River is intersected by the present boundary line between New Castle Hundred and Red Lion Hundred; thence due East and crossing the Delaware River to low water mark on the Easterly side of the Delaware River; thence by the last men-tioned low water mark to a point which is due East of the point where the boundary line between Red Lion Hundred and St. Georges Hundred intersects the low water mark on the Westerly side of the Delaware River; thence due West to low water mark on the Westerly side of the Delaware River; thence by the present boundary lines dividing Red Lion Hundred from St. Georges Hun-dred, Pencader Hundred and New Castle Hundred to the place of beginning. St. Georges Hundred comprises that part of New Castle Coun-ty which is bounded as follows, namely: Beginning at a point where low water mark on the Westerly side of the Delaware River is intersected by the present boundary CHAPTER 6 15 BOUNDARIES OF CERTAIN HUNDREDS IN NEW CASTLE COUNTY line between Red Lion Hundred and St. Georges Hundred; thence due East and crossing the Delaware River to low water mark on the Easterly side of the Delaware River; thence by the last men-tioned low water mark to a point where the said last mentioned low water mark is intersected by the twelve-mile circle; thence Westerly and Southerly by the boundary line dividing the State of Delaware from the State of New Jersey to a point which is due East of the point where the boundary line between St. Georges Hundred and Appoquinimink Hundred intersects the low water mark on the Westerly side of the Delaware River; thence due West to low water mark on the Westerly side of the Delaware River; thence by the present boundary lines dividing St. Georges Hundred from Appoquinimink Hundred, the State of Maryland, Pencader Hundred and Red Lion Hundred to the place of beginning. All territory which shall hereafter be added to and included within the City of Wilmington shall become part of Wilmington Hundred. Whenever by the extension of the limits of the City of Wil-mington, territory forming part of any Hundred as hereby estab-lished, shall be included within the limits of the said City, such Hundred shall thereafter consist of the residue thereof not so in-cluded within said limits. No property situated within that part of any Hundred which shall have become a part of the said Hundred by virtue of this Act shall be taxable until the final determination of the effect of an agreement or compact entered into in the year 1905 between the States of New Jersey and Delaware, known as the compact of 1905 and referred to in the opinion of the Supreme Court of the United States in the case entitled "New Jersey v. Delaware," reported in 291 U. S. 361. The word "determination" as herein used may refer either to agreement between the said States or to a final Court adjudication. Approved April 12, 1935. CHAPTER 7 GRANT TO THE PHILADELPHIA, BALTIMORE AND WASHINGTON RAILROAD COMPANY AN ACT AUTHORIZING THE GRANTING TO THE PHILADEL-PHIA, BALTIMORE AND WASHINGTON RAILROAD COM-PANY, ITS SUCCESSORS AND ASSIGNS, THE UNINTER-RUPTED RIGHT IN PERPETUITY TO SWING THE WIRES AND CABLES AND APPURTENANCES OF ITS ELECTRIC POWER TRANSMISSION LINE OVER AND ABOVE A PIECE OF LAND OF THE STATE OF DELAWARE. Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met: Section 1. That the Governor of The State of Delaware be and he is hereby authorized and empowered to grant under the great seal of the State of Delaware, duly attested, unto The Phila-delphia, Baltimore and Washington Railroad Company, a corpora-tion of the State of Delaware, Maryland and Pennsylvania, its suc-cessors and assigns, the uninterrupted right, liberty and privilege in perpetuity to swing the wires and cables and appurtenances of the electric power transmission line of said Railroad Company, its suc-cessors and assigns, over and above all that certain triangular piece of land of The State of Delaware, situate in White Clay Creek Hundred, New Castle County and State of Delaware, acquired "for Experimental Purposes in the Interest of Agriculture" by The State of Delaware from The Newark Trust and Safe Deposit Company, a corporation of the State of Delaware, by deed dated July 1, 1907, and recorded in the office of the Recorder of Deeds at Wilmington, Delaware, in deed record H, Volume 21, page 396, etc., pursuant to an act of the General Assembly approved March 29, 1907, Chap-ter 50, Volume 24, Laws of Delaware, bounded and described as follows, viz: BEGINNING at an angle in the Southerly line of land of The Philadelphia, Baltimore and Washington Railroad Company and in the westerly line of land now or formerly of A. G. Stroud, at the distance of sixty-seven feet southwardly from a point in and CHAPTER 7 GRANT TO THE PHILADELPHIA, BALTIMORE AND WASHINGTON RAILROAD COMPANY measured at right angles to the line established as the center line of the railroad of said Railroad Company at survey station 2021, plus 38.06, said point in center line being at the distance of two thousand three hundred and forty-two feet, more or less, measured eastwardly along said center line, from another point therein oppo-site the center of said Railroad Company's Newark Passenger Sta-tion; extending from said place of beginning South one degree fif-teen minutes East, by said land now or formerly of A. G. Stroud, one hundred and sixty feet and eighteen one-hundredths of a foot to a point; thence North seventy-two degrees thirty-six minutes West, by other land of The State of Delaware, two hundred and seventy feet and eighty-two one-hundredths of a foot to the said southerly line of land of the Railroad Company; and thence North seventy-two degrees forty-five minutes East, along said southerly line of land of the Railroad Company, parallel with and sixty-seven feet southwardly from and measured at right angles to the said center line of railroad, the distance of two hundred and sixty-six feet and ninety-four one-hundredths of a foot to the place of beginning. CONTAINING four hundred and seventy-two one-thousandths of an acre, more or less. Section 2. This act shall be taken to be a public act. Approved March 20, 1935. 17 Title Three State Revenue CHAPTER 8 FRANCHISE TAX AN ACT TO AMEND CHAPTER 6, OF THE REVISED CODE OF THE STATE OF DELAWARE, RELATING TO FRANCHISE TAXES: Be it enacted by the Senate and House of Representatives of the State of Delaware, in General Assembly met: Section 1. That Article 8 of Chapter 6, of the Revised Code of the State of Delaware, be and the same is hereby amended by adding thereto a new Section which shall be known as 117 Section 80, as follows: 117 Section 80. Every religious corporation, and every purely charitable or educational association, and every company, association or society, which by its certificate of incorporation, had, at the time its charter became void by operation of law, for its object the as-sistance of sick, needy, or disabled members, or the defraying of funeral expenses of deceased members, or to provide for the wants of the widows and families after death of its members, whose charter has become inoperative and void by operation of Section 74 of this Act for failure to file annual reports required, and to pay taxes or penalties from which it would have been exempt if such reports had been filed, shall be deemed to have filed all such re-ports and be relieved of all such taxes and penalties, upon satis-factory proof submitted to the Secretary of State of its right to be classified under any of the classifications hereinabove set out; and upon filing with the Secretary of State a certificate of renewal and 18 CHAPTER 8 FRANCHISE TAX revival in manner and form as required by Section 73 and Section 74 of Chapter 65 of the Revised Code of Delaware of 1915. Such corporation shall pay a filing fee for the use of the State of Seven Dollars ($7.00), which shall be received in lieu of and in payment of all taxes and penalties which may or shall have accrued prior to the date of the filing of such certificate of renewal and revival. Upon the filing by the corporation of the proof of classification as required herein, and the filing of the certificate of renewal and revival, and payment of the filing fee as herein required the Secre-tary of State shall issue a certificate that such corporation's Charter has been renewed and revived as of the date of the said certificate, and upon the recording of such certificate in the office of the Re-corder of Deeds for the County in which the original charter of the said corporation was recorded, the said corporation shall be renewed and revived with the same force and effect as if its charter had not become inoperative and void, and with the validation of all acts done within the scope of its charter during the period when such charter was inoperative or void, and with the vesting in such cor-poration of all real and personal property which were its at the time its charter became inoperative or void, or which were in any manner acquired by it during the period when its charter was in-operative or void, all with the same force and effect as though its charter had at all times remained in full force and effect. Section 2. Nothing herein contained shall be deemed or con-strued to relieve any corporation of any of the classifications here-inabove set out from filing the annual report required by Section 66 of this Act; provided that no filing fee for filing such report of any such corporation shall be required. Section 3. All acts or part of acts inconsistent with this Act are hereby repealed to the extent of such inconsistency only. Approved April 12, 1935. 19 CHAPTER 9 DELAWARE ESTATE TAX AN ACT TO AMEND CHAPTER 6 OF THE REVISED CODE OF DELAWARE 1915, AS AMENDED BY CHAPTER 8 OF VOLUME 35 AND CHAPTER 8 OF VOLUME 38, LAWS OF DELAWARE, RELATING TO DELAWARE ESTATE TAX. Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met: Section 1. That Chapter 6 of the Revised Code of Delaware 1915, as amended by Chapter 8 of Volume 35 and Chapter 8 of Volume 38, Laws of Delaware, be and the same is hereby further amended by striking out and repealing all of 152A. Sec. 115A., and by inserting in lieu thereof the following new section: 152B. Sec. 115B. Delaware Estate Tax; Estates Subject to Tax; Administration and Enforcement; Collection of Tax by State Tax Department:In addition to the tax prescribed by Section 109 of this Chapter, there shall be a tax to be known as "DELAWARE ESTATE TAX" on the estate of every person dying after the twenty-sixth day of February, 1926, and who at the time of his death was a resident of the State of Delaware, provided such estate is in the class of estates that are subject under the laws of the United States to a federal estate tax. The said Delaware Estate Tax upon the estate of every dece-dent as aforesaid shall be computed as follows: The aggregate amount of the taxes due to the State of Delaware under the provi-sions of Section 109 of this Chapter in respect to any property, or estate, or interest therein, belonging to the decedent at the time of his death shall first be ascertained. To such amount there shall be added the aggregate amount of all estate, inheritance, legacy, and succession taxes actually paid to any other state or territory of the United States or to the District of Columbia in respect to any property owned by such decedent or subject to such taxes as a part of or in connection with his estate. The sum resulting from such addition shall then be deducted from an amount equal to the amount CHAPTER 9 DELAWARE ESTATE TAX of the maximum credit allowable to the estate of the decedent by the Federal Estate Tax Law or laws for estate, inheritance, legacy or succession taxes paid to any State or territory or the District of Columbia. The remainder shall constitute and be the Delaware Estate Tax upon the estate of the decedent. In case of any estate where the amount to be deducted as aforesaid is equal to or greater than the aforesaid credit, allowed by Federal Estate Tax law or laws, then the said estate shall be exempt from the Delaware Estate Tax prescribed by this section. The administration and enforcement of the provisions of this section and the collection of the taxes imposed by this section are hereby vested in the State Tax Department and the State Tax Commissioner as created and defined in Chapter 8 of Volume 36, Laws of Delaware. The State Tax Department shall: Prepare all necessary forms and blanks required in the administration and enforcement of the provisions of this section and the collection of taxes imposed by this section. Pay daily to the State Treasurer, for the use of the State, all sums collected by the said State Tax Department, except such sums as are retained in accordance with the provisions of this section. The said State Tax Department shall be and hereby is authorized to retain out of the sums collected under this section such amounts as the said State Tax Department shall deem neces-sary to defray the expenses of administering and enforcing the duties prescribed by this section, until such time as appropriation therefor is provided by the General Assembly. The said Delaware Estate Tax shall be due from every dece-dent's estate subject thereto within thirty days after the ascertain-ment of the amount of the inheritance tax prescribed in the preceding sections of this Chapter and the amount of the federal estate tax 21 22 CHAPTER 9 DELAWARE ESTATE TAX on such estate. From the due date, and until paid, said taxes shall bear interest at the rate of four per cent per annum. It shall be the duty of the said State Tax Department to com-pute and ascertain the amount of the Delaware Estate Tax on the estate of such decedent as soon as it is practicable to do so, and said State Tax Department shall forthwith deliver to the State Treasurer a statement in writing showing the several facts upon which the Delaware Estate Tax on said decedent's estate was based and com-puted as aforesaid, and the amount of said Delaware Estate Tax on said decedent's estate. Such statement shall be preserved by the State Treasurer. It shall be the duty of the executor or administrator of a decedent to pay to the State Tax Department the full amount of the said Delaware Estate Tax when the same is due as aforesaid out of any moneys belonging to such estate in his hands; the amount so paid to be for the use of the State of Delaware. If there shall be insufficient moneys in his hands for the pay-ment of the Delaware Estate Tax, the executor or administrator shall have the same powers and duties in respect to the raising of funds for the payment of said tax as in the case of raising funds for the payment of a decedent's debts generally. If the Delaware Estate Tax or any part thereof be paid out of moneys arising from the sale of any property of the decedent, real or personal, which upon the death of the decedent passes to any particular person or to particular persons (or if to avoid such sale such person or persons voluntarily paid to the executor or administrator in money the amount of said tax or any part thereof) such person or persons shall be entitled to a just and equitable con-tribution by the persons receiving any other property of the decedent which was subject to equal or prior liability for the payment of said tax. The Orphans' Court of the County of the decedent's residence, or the Orphans' Court of the County where any real property of the decedent is situated shall have all power necessary to enforce contribution as aforesaid. CHAPTER 9 DELAWARE ESTATE TAX "The State Tax Department receiving any tax under the pro-visions of this Act shall give the persons paying the same duplicate receipts therefor, one of which shall be forwarded by the person so paying as aforesaid, to the State Treasurer to be by him preserved and either of said duplicate receipts shall be evidence in suit upon the bond of said State Tax Commissioner to recover the tax so by him received. "No final settlement of the accounts of any executor or ad-ministrator shall be accepted or allowed by any Register of Wills until such Register of Wills shall have ascertained that all taxes imposed under the provisions of this Act, with interest if any is due, have been paid and the certificate of the State Tax Department filed with the Register of Wills shall be proof of such payment." Every executor or administrator, the estate of whose decedent is taxable for the Delaware Estate Tax, shall be personally liable for the payment thereof as aforesaid, and the faithful performance of his duties under this Section shall be deemed to come within the condition of his official bond. Any failure to perform his duties under this Section shall forfeit his right to all commissions for set-tling the estate of his decedent. In case any executor or administrator shall fail to perform his duties under this Section, the State Tax Department shall with-out delay notify the State Treasurer of such failure. It shall be the duty of the State Treasurer and the State Tax Department to communicate to the Attorney General any failure of any executor or administrator to perform his duties under this Sec-tion. The Attorney General shall thereupon take appropriate pro-ceedings in the premises. The provisions of this Section shall not apply to the case of any estate the federal estate tax on which was actually paid prior to April 29th, A. D. 1927. When any amount has been erroneously paid as Delaware Estate Tax it shall be lawful for the State Treasurer, on satisfactory 23 24 CHAPTER 9 DELAWARE ESTATE TAX proof rendered to him of said erroneous payment, and upon the recommendation of the State Tax Department, to refund and pay to the executor, administrator or trustee, person or persons who have paid any such tax in error, th_e amount of such tax so paid, provided that all applications for the repayment of said tax shall be made within three years from the date of said payment. Nothing in this Act shall be deemed to remit or relieve from the Delaware Estate Tax the estate of any person dying before the approval of this Act. Except where the Delaware, Estate Tax was paid and discharged prior to the approval of this Act, the Delaware Estate Tax computed and ascertained under the provisions of 152A. Section 115A., of Chapter 6, of the Revised Code of Delaware 1915, as amended by this Act, shall be deemed and held to be im-posed upon and collectible out of the estate of every person dying after the twenty-sixth day of February, 1926, and who at the time of his death was a resident of the State of Delaware, provided such estate was subject to federal estate tax. The State Tax Department shall, immediately upon the ap-proval of this Act, have jurisdiction of, and take into its control, for the purposes of further administration and final settlement, all taxes, taxable affairs, assessments, proceedings, suits, and matters now pending, and subject to existing laws of the State, which have heretofore been under the jurisdiction and control of the Registers of Wills of the several counties of the State; and said Registers of Wills are hereby directed to deliver to the State Tax Department, on demand, a full and complete itemized statement of the same. Any Register of Wills refusing or neglecting to make up and deliver such itemized statement within sixty days after demand therefor by the State Tax Department, shall be deemed guilty of a misdemeanor and upon conviction thereof by any Court of competent jurisdiction, shall be liable to a fine not exceeding One Thousand Dollars ($1,000.00), or to imprisonment for a term not exceeding one year, or to both fine and imprisonment, in the discretion of the Court. Nothing herein contained shall be deemed to relieve the said Reg-isters of Wills from liability under their respective bonds, for any responsibility that may have been heretofore incurred. Section 2. That all acts and parts of acts inconsistent with the provisions of this Act are hereby repealed to the extent of such inconsistency. Approved April 12, 1935. DELAWARE ESTATE TAX CHAPTER 9 25 26 CHAPTER 10 INHERITANCE TAX AN ACT TO AMEND CHAPTER 6 OF THE REVISED CODE OF DELAWARE 1915, AS AMENDED BY CHAPTER 8 OF VOLUME 37, LAWS OF DELAWARE, RELATING TO INHERITANCE TAX. Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met: Section 1. That Chapter 6 of the Revised Code of Delaware 1915, as amended by Chapter 8 of Volume 37, Laws of Delaware, be and the same is hereby further amended, by striking out and repealing all of 148. Sec. 111., 149. Sec. 112., 150. Sec. 113., 151. Sec. 114., and 152. Sec. 115., and by inserting in lieu thereof the following new sections: 148. Sec. 111. Administration and Enforcement; Collection of Taxes; State Tax Department: (a) The administration and enforcement of the provisions of this Act and the collection of the taxes imposed by this Act are hereby vested in the State Tax Department and the State Tax Com-missioner as created and defined in Chapter 8 of Volume 36, Laws of Delaware. (b) The State Tax Department shall: Prepare all necessary forms and blanks required in the administration and enforcement of the provisions of this Act and the collection of the taxes imposed by this Act. Pay daily to the State Treasurer, for the use of the State, all sums collected by the said Tax Department, except such sums as are retained in accordance with the provisions of this Act. The said State Tax Department shall be and hereby is authorized to retain out of the sums collected under this Act such INHERITANCE TAX amounts as it shall deem necessary to defray the expenses of admin-istering and enforcing the duties prescribed by this Act, until such time as appropriation therefor is provided by the General Assembly. 149. Sec. 112. Valuation of Estate; Determination of Tax; Appeal:The estate or interest of every person, body politic or corporate, in all real and personal property, taxable under the pro-visions of this Act, whether in remainder, reversion or otherwise, or in trust or otherwise, or conditioned upon the happening of a con-tingency or depending upon the exercise of a discretion, or subject to a power of appointment or otherwise, and all annuities taxable as aforesaid under the provisions of this Act, shall be valued by the State Tax Department, created by and existing under the pro-visions of Chapter 8 of Volume 36, Laws of Delaware, for the purpose of determining the amount of tax to be collected from such person, body politic or corporate under the provisions of this Act. When the property shall pass in trust or otherwise, to one or more persons, bodies politic or corporate, for a term of years or a greater estate or interest and with remainder or reversion to one or more other persons,. bodies politic, or corporate, the estate or interest of each beneficiary shall be valued separately according to recognized tables of mortality. In estimating the value of any estate or interest in property to the beneficial enjoyment or possession whereof there are persons or corporations presently entitled thereto, no allowance shall be made in respect to any contingent encumbrance thereon nor in re-spect to any contingency upon the happening of which the estate or property, or some part thereof, or interest therein might be abridged, defeated or diminished. Estates or interests in expectancy which are contingent or de-feasible shall be taxed at the rate which would obtain if such estate or interest fell into possession at the time of the determination of the tax. Where any beneficiary has died or may hereafter die before receiving his or her share of the estate to which he or she is entitled. CHAPTER 10 27 28 CHAPTER 10 INHERITANCE TAX and taxes on said share have not been assessed and paid, then such share shall be taxed only once and the tax shall be assessed on the property received from such share by each beneficiary thereof as if there had been no intermediate beneficiary. It shall be the duty of the Register of Wills of the several Counties of the State upon the request of the State Tax Commis-sioner, promptly to render whatever assistance the State Tax De-partment may request in connection with the valuation of any estate or interest taxable under the provisions of this Act, and in every case in which it is impossible to compute the present value of any interest in property subject to the tax imposed by this Act, the State Tax Department with the consent and approval of the State Tax Board, may effect such settlement of the tax as shall be deemed to be for the best interest of the State of Delaware and the payment of the sum so agreed upon shall be a fall satisfaction of such tax. The State Tax Department shall, within thirteen months after the death of the donor, grantor, devisor, or intestate, compute and determine all taxes assessable under this Act, provided, however, that in case an estate shall, before the expiration of said period become involved in litigation the determination of which may affect the computation of the tax imposed by this Act, the State Tax De-partment may suspend the computation and determination of taxes assessable under this Act on the disputed items, until the conclusion of the litigation. Immediately upon the determination of all taxes assessable under this Act, the State Tax Department shall give notice to the parties in interest, or to their attorneys of record, by posting the same in its office and by registered mail. Within thirty days after the tax has been determined, any person aggrieved by the determination may apply to the State Tax Board, said State Tax Board may make such corrections of the taxes as it may de-termine proper. The said State Tax Board and the State Tax Commissioner shall have power to hold hearings, summon witnesses and take testimony relative thereto. In all cases arising under this Act the Executor, Administrator or Taxable, shall have the right to appeal to the State Tax Board CHAPTER 10 INHERITANCE TAX from the decisions or rulings of the State Tax Commissioner. The State Tax Board may affirm, modify, or reverse such decisions or rulings of the State Tax Commissioner. Hearings may be informal but a record shall be made of the decisions reached. If the in-formal hearings shall prove unsatisfactory to the complainant, or to the State Tax Commissioner, said complainant or the State Tax Commissioner may, within 30 days ask for a formal hearing for the completion of the record and may, within 30 days after notice of a decision upon such formal hearing, appeal to the Superior Court from the determination of the State Tax Board as to the amount of taxes to be paid under the provisions of this Act. The Superior Court for the several Counties of the State is hereby vested with jurisdiction to hear and determine all such appeals from the de-termination of the State Tax Board and may by proper rulings pre-scribe the procedure to be followed in such appeals. Every such appeal shall be determined by the court without the aid of a jury. In any such appeal the court shall determine what part of the costs shall be paid by the State and what part shall be paid by the execu-tor, administrator or taxable as to it may appear just and equitable. It shall be the duty of the State Tax Commissioner to notify the Attorney General whenever such appeal shall be taken by the ex-ecutor, administrator or taxable and it shall be the duty of the Attorney General, or one of his deputies, to represent the State in the hearings on the appeal. In determining the value of any estate or interest taxable un-der the provisions of this Act, the State Tax Department shall make no deduction therefrom nor reduction thereof by reason or on ac-count of the payment (or liability for payment) of any Delaware inheritance, legacy or succession tax, or of any Delaware estate tax, or of any estate, inheritance, legacy or succession tax of the United States or of any State or jurisdiction outside of the State of Dela-ware. The Register of Wills referred to in this Act shall be the Register of Wills of the County where letters testamentary or of administration have been granted on the estate of the donor, grantor, devisor or intestate from whom the property aforesaid, shall have 29 30 CHAPTER 10 INHERITANCE TAX passed as set forth in Section 109 of this Act; but if no such letters have been granted, then the said Register shall be the Register of Wills of the County in which such property is or is situated. 150. Sec. 113. Collection and Payment of Taxes; Inventory of Goods and Chattels; List of Debts and Credits; Description of Real Estate; Receipt for Taxes; Refund of Taxes Erroneously Paid: All taxes imposed by this Act shall be due and payable within thirty days after the amount of tax has been finally determined in accordance with the provisions of this Act and every such tax shall be and remain a lien upon the property subject to the tax until paid. From the due date, and until paid, said taxes shall bear interest at the rate of four per cent per annum. Any administrator, executor or trustee having in charge or trust any legacies or property for distribution subject to the said tax shall deduct the tax therefrom, or if the legacy or property be not money he shall collect a tax thereon upon the appraised value thereof from the legatee or person entitled to such property, and he shall not deliver or be compelled to deliver any specific legacy or property subject to tax to any person until he shall have collected the tax thereon; and whenever any such legacy shall be charged upon or payable out of real estate, the heir, or devisee, before paying the same, shall deduct said tax therefrom and pay the same to the ex-ecutor, administrator or trustee, and the same shall remain a charge on such real estate until paid, and the payment thereof shall be enforced by the executor, administrator or trustee in the same man-ner that the said payment of said legacies might be enforced; if, however, such legacy be given in money to any person for a limited period, the executor, administrator or trustee shall retain the tax upon the whole amount, but if it be not in money he shall make application to the State Tax Department to make an apportionment if the case required is of the sum to be paid into his hands by such legatees and for such further order relative thereto as the case may require. Where a tax is imposed on an estate for life or for a term of years, or to terminate on the expiration of a certain period, and on any remainder or reversionary interest or interests, the tax on such estate or interest as between the executor, trustee, tenant for CHAPTER 10 31 INHERITANCE TAX life or for years, remainderman or reversioner and other benefi-ciaries, shall be charged to the corpus of the property in which such estate or estates exist, unless otherwise provided for by the testator or transferor, and shall be payable at once in the same manner and within the same time as if the estate or interest had vested in pos-session. All executors, administrators and trustees shall be personally liable for the payment of taxes and where proceedings for collection of taxes assessed be had, said executors, administrators and trustees shall be personally liable for the expenses, costs and fees of collec-tion. They shall have full power to sell so much of the property of the decedent as will enable them to pay said tax in the same manner as they may be enabled to do by law, for the payment of debts of their testators and intestates. All taxes collected by any executor or administrator as aforesaid shall be forthwith paid over to the State Tax Department. It shall be the duty of every executor or administrator within three months after the granting of letters testamentary, or of ad-ministration, to file in the office of the Register of Wills of the County in which said letters have been granted, and also with the State Tax Commissioner, an inventory of all goods and chattels, a list of all debts and credits, and a Statement in writing setting forth a general description of every parcel of real estate in this State of which the decedent died seized, and the name of each party entitled to any estate or interest in any parcel of said real estate, and relationship, if any, of said party, to the decedent. Such In-ventory and List and Statement shall be supported by the oath or affirmation of said executor or administrator that the facts therein, contained are true according to his best information and belief. Every such Inventory, List and Statement shall be recorded by the Register of Wills in a separate book to be kept by him for thatl purpose which shall be known as the "Inheritance and Succession Docket," and which shall be duly indexed. Whenever any parcel of real estate or any estate or interest therein described in the state-ment of the executor or administrator aforesaid, shall be subject 32 CHAPTER 10 INHERITANCE TAX to tax under the provisions of this Act, the Register of Wills shall make an entry in the docket aforesaid that said real estate is subject to tax and in the event of an appeal to the Superior Court as afore-said, shall further note in said docket the fact of said appeal. When any tax as aforesaid shall be paid and discharged, the said Register shall make a note thereof in the said docket, upon notice from the State Tax Department of said payment. It shall be the duty of the State Tax Department from time to time to examine every such docket as aforesaid, and to notify the Attorney General of any failure on the part of any Register of Wills or of any executor or administrator to perform the duties imposed upon them by this Act. The Attorney General shall in case of such failure take proper proceedings against the party or parties delinquent. The Register of Wills on the first day of each month shall, without fee, send to the State Tax Department on forms furnished by the said State Tax Department, a list of wills probated and administrators appointed together with the name of the deceased and on request from the State Tax Department shall furnish such other information as may be of record in said Register's office con-cerning such estate. If for any cause there should be no executor or administrator to receive the tax imposed under the provisions of this Act the party liable for said tax shall have the right to pay the same direct to the State Tax Department and such payment shall operate as a discharge of said tax. If, upon the decease of a person leaving an estate passing in whole or in part to legatees or heirs liable to the taxes imposed by this Act, a will disposing of such estate is not offered for probate within three months, and application for administrations is not made within three months from the date of such decease, the State Tax Department may apply to the Register of Wills for the ap-pointment of an administrator of such estate. CHAPTER 10 33 INHERITANCE TAX The State Tax Department receiving any tax under the pro-visions of this Act shall give the person paying the same duplicate receipts therefor, one of which shall be forwarded by the person so paying as aforesaid to the State Tregsurer, to be by him preserved, and either of said duplicate receipts shall be evidence in suits upon the bond of said State Tax Commissioner to recover the tax so by him received. When any amount of tax imposed under this Act shall have been paid erroneously it shall be lawful for the State Treasurer, on satisfactory proof rendered to him of said erroneous payment, and upon the recommendation of the State Tax Department, to refund and pay to the executor, administrator or trustee, person or persons who have paid any such tax in error, the amount of such tax so paid, provided that all applications for the repayment of said tax shall be made within one year from the date of said payment. It shall be the duty of the Attorney General to give counsel, advice and legal assistance to the Tax Department and to assist in the prosecution of violations of this Act when such counsel, advice or assistance is requested by the Tax Department. The additional Deputy Attorney General, authorized to be appointed and appointed by the Attorney General, in accordance with Section 22 of Chapter 8 of Volume 36, Laws of Delaware, in addition to his duties in connection therewith, shall also render advice and assistance to the Tax Department in carrying out and enforcing the provisions of this Act when called upon by the said Department, and shall re-ceive, as additional compensation for his services to the said De-partment in connection with this Act, a salary of Two Thousand Dollars ($2000.00) per annum payable monthly from the expense fund or appropriation mentioned in paragraph (5) of 148. Sec. 111. of Section 1 of this Act, which salary shall be in addition to his compensation for services to said Department as provided by Section 22 of Chapter 8 of Volume 36, Laws of Delaware. 151. Sec. 114. Liability on Executor's or Administrator's Bond:The bond of an executor or administrator shall be liable for all money he may receive for taxes, or for the proceeds of the 34 CHAPTER 10 INHERITANCE TAX sale of any estate or interest received by him under this Act, and if any executor or administrator shall fail to perform any of the duties imposed upon him under the provisions of this Act, the Register of Wills granting the letters of administration shall, upon request of the State Tax Department, revoke the same, and his bond shall be liable, and the same proceedings shall be had as if his administration had been revoked for Other cause. The powers and duties of an administrator de bonis non or de bonis non with the will annexed, shall be the same under this Act as an executor or administrator, and he shall be subject to the same liabilities. No final settlement of the account of any executor or administrator shall be accepted or allowed by any Register of Wills until such Register of Wills shall have ascertained that all taxes imposed un-der the provisions of this Act with interest, if any is due, have been paid; and a certificate of the State Tax Department filed with the Register of Wills shall be proof of such payment. 152. Sec. 115. Return of Tax Collected; Payment to State Treasurer; Liability Upon Bond; Removal From Office, When: It shall be the duty of the State Tax Department to make return daily to the State Treasurer of all sums of money received by said State Tax Department under the provisions of this Act, except such sums as are retained in accordance with the provisions of this Act, and to pay over to said State Treasurer, for the use of the State, the amounts so by said Tax Department received, at the time of making such returns. The official bond of every Register of Wills of this State, shall be deemed and held to embrace and include the faithful perform-ance by such Register, of all and every the duties imposed upon such Register by this Act; and the official bond of the State Tax Commissioner shall be deemed and held to embrace and include the faithful performance by the said State Tax Commissioner of all and every the duties imposed by this Act. The failure or neglect of any officer of the State, whose duty it shall be to administer the provisions of this Act, faithfully to execute the provisions hereof, is hereby declared to be, a misfcas- CHAPTER 10 35 INHERITANCE TAX ance in office and, upon conviction thereof in any court of com-petent jurisdiction, such officer shall be deemed to have forfeited his office. 152 A. Sec. 115 A. Savings Clauses; Repeals; Retroactive Pro-visions; Unconstitutionality or Invalidity:-148 Sec. 111 to 152, Sec. 115, of Chapter 6 of the Revised Code of Delaware 1915, both inclusive, as amended by Chapter 7 of Volume 29, Laws of Dela-ware, as amended by Chapter 7 of Volume 35, Laws of Delaware, as amended by Chapter 8 of Volume 37, Laws of Delaware, shall be and continue in full force and effect as to all taxes, assessments, proceedings, suits and matters arising out of or in connection with estates and interests taxable thereunder, and shall so continue until such time as all of said taxes, assessments, proceedings, suits or matters shall have been finally determined, collected, and disposed of, at which time said 148. Section 111 to 152, Sec. 115, both in-clusive, as amended, shall be repealed; provided, that the State Tax Department shall, immediately upon the approval of this Act, have jurisdiction of, and take into its control, for the purposes of further administration and final settlement, all taxes, taxable af-fairs, assessments, proceedings, suits, and matters now pending, and subject to existing laws of the State, which have heretofore been under the jurisdiction and control of the Registers of Wills of the several counties of the State; and said Registers of Wills are hereby directed to deliver to the State Tax Department, on demand, a full and complete itemized statement of the same. Any Register of Wills refusing or neglecting to make up and deliver such item-ized statement within sixty days after demand therefor by the State Tax Department, shall be deemed guilty of a misdemeanor and upon conviction thereof by any Court of competent jurisdiction, shall be liable to a fine not exceeding One Thousand Dollars ($1,000.00), or to imprisonment, for a term not exceeding one year, or to both fine and imprisonment in the discretion of the Court. Nothing herein contained shall be deemed to relieve the said Registers of Wills from liability under the respective bonds, for any responsibility that may have been heretofore incurred. All acts or parts of acts inconsistent with the provisions of this Act shall be and the same are hereby repealed. 36 CHAPTER 10 The exemption provided in this Act shall be deemed to be retroactive so far as concerns the property and estates and interest therein, of decedents dying after the sixth day of May, A. D. 1929, except where the inheritance, transfer or succession taxes thereon were paid and discharged prior to the approval of this Act. If any clause, sentence, paragraph or part of this Act shall, for any reason, be adjudged by any Court of competent jurisdiction, to be invalid, such judgment shall not affect, impair or invalidate the remainder of this Act, but shall be confined in its operation to the clause, sentence, paragraph or part thereof directly involved in the controversy in which such judgment shall have been rendered. No caption of any SECTION or set of SECTIONS of this Act shall in any way affect the interpretations of this Act, or any part thereof. Approved April 12, 1935. INHERITANCE TAX CHAPTER 11 INCOME TAX AN ACT TO AMEND AN ACT ENTITLED "AN ACT TO PROVIDE REVENUE FOR SCHOOL PURPOSES," BEING CHAPTER 8, VOLUME 36, LAWS OF DELAWARE, AS AMENDED. Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met: Section 1. That Section 1 of Chapter 8, Volume 36, Laws of Delaware, as amended, be and the same is hereby amended by strik-ing out paragraph (b) (4) and inserting in lieu thereof the fol-lowing: Section 1 (b) (4) :A Fiduciary, including a receiver, guard-ian, trustee, agent or representative of the taxable or the executor or the administrator of the estate of a decedent. Section 1 (b) (5) :Any officer or employee of the State of Delaware or any political subdivision of Delaware. Section 2. That Section 1 of Chapter 8, Volume 36, Laws of Delaware, as amended, be and the same is hereby amended by striking out paragraph (d) and inserting in lieu thereof the fol-lowing: Section 1 (d) :The phrase "net income" means gains or profits and income derived and actually received into possession of, or credited subject to withdrawal by, a taxable from any source whatever, and shall include the aggregate of all gains, capital gains, profits, salaries (including salaries or emoluments of State officers), wages and compensation for personal services of whatever kind and in whatever form paid (including bonuses, honorariums and fees) ; Dividends and interest derived from maturity or cancellation of shares in Building and Loan Associations, and endowment con-tracts; 37 38 CHAPTER 11 INCOME TAX Income derived from professions, vocations, business, trade, commerce, sales, exchange or other disposition of or dealings in real or personal property growing out of the ownership or use of or interest in such property or otherwise; Income derived from interest, dividends, securities or the trans-action of any business carried on for gain or profit; The share of the profits of any taxable in an unincorporated association of persons, syndicate, joint venture or co-partnership whether such profits have been divided or otherwise; All amounts recovered during the income year from bad debts, overpayment of taxes, or capital losses that have been deducted from income in any return of income to this State; Less the aggregate of the exemptions provided for in Section 3 (a), paragraphs 1 to 11, inclusive, and of the deductions provided for in Section 4. Section 3. That Section 1 of Chapter 8, Volume 36, Laws of Delaware, as amended, be and the same is hereby amended by striking out paragraphs (g) and (h) and inserting in lieu thereof the following: Section 1 (g) :----(I) "Capital assets" means property held by the taxable whether or not connected with his trade or business, but does not include stock in trade of the taxable or other property of a kind which would properly be included in the inventory of the taxable, if on hand at the close of the taxable year, or property held by the taxable primarily for sale to customers in the ordinary course of his trade or business. (2) For the purposes of this Act, stock in trade shall not include stocks, bonds, or other securities. Section 1 (h):(1) "Capital gains or losses" means gains or losses resulting from the sale, exchange or other disposition CHAPTER 11 39 INCOME TAX other than by gift, donation, devise, or inheritance, of capital assets including real or personal property, stocks, bonds, notes or securities. (2) Capital losses shall include all debts ascertained to be worthless during the income year, excepting accounts or bills re-ceivable arising from professional fees, salaries or wages or from sales of merchandise or stock in trade appertaining to the business of the taxable, as provided for in Section 4, paragraph (9). Section 1 (1) :The "Basis for determining the capital gain or loss" resulting from the sale, exchange or disposition other than by gift, donation, devise or inheritance, of capital assets including real or personal property, stocks, bonds, notes, or securities acquired before January 1, 1920, shall be as provided for in Section 7. Section 4. That Section 2 of Chapter 8, Volume 36, Laws of Delaware, as amended, be and the same is hereby amended by adding the following paragraphs: Section 2 (h):In the case of the death of a taxpayer, there shall be included in computing net income for the taxable period in which falls the date of his death, amounts accrued up to the date of death, if not otherwise properly includible in respect of such period or a prior period. Section 2 (i):The net income shall be computed upon the basis of the taxable's annual accounting period, fiscal year or calen-dar year as the case may be, in accordance with the method of ac-counting regularly employed in keeping the books of such taxable; but if no such method of accounting has been so employed, or if the method employed does not clearly reflect the income the com-putation shall be made in accordance with such method as in the opinion of the Commissioner does clearly reflect the income. If the taxable's annual accounting period is other than a fiscal year, or if the taxable has no annual accounting period or does not keep books, the net income shall be computed on the basis of the calendar year. 4 40 INCOME TAX Section 2 (j):Whenever in the opinion of the Commissioner the use of inventories is necessary in order clearly to determine the income of any taxable, inventories shall be taken by such taxpayer upon such basis as the Commissioner shall prescribe, and conform-ing as nearly as may be to the best accounting practice in the trade or business, and as most clearly reflecting the income. Section 5. That Section 3 of Chapter 8, Volume 36, Laws of Delaware, as amended, be and the same is hereby amended by inserting after paragraph (a) (10) thereof the following: Section 3 (a) (11) :Amounts received, through accident or health insurance as compensation for personal injuries or sickness, and the amount of any damages received whether by suit or agree-ment on account of personal injuries or sickness. Section 6. That Section 4 of Chapter 8, Volume 36, Laws of Delaware, as amended, be and the same is hereby amended by striking out Section 4 and inserting in lieu thereof the following: Section 4. In computing net income, the following deductions shall be allowed: The ordinary and necessary expenses actually paid by or incurred by the taxable in carrying on any business or trade, not including expenses incurred pertaining to income exempt under this Act and not including personal, living or family expenses, and not including transportation costs between residence and usual place of business. Interest paid or accrued by the taxable within the income year on his indebtedness, except interest on indebtedness incurred or continued to purchase or carry securities, the interest on which is exempt from tax under this Act. Taxes imposed upon and accrued or paid by the taxable within the income year except taxes imposed by this Act and taxes CHAPTER 11 'A CHAPTER 11 41 INCOME TAX assessed for local benefits of a kind tending to increase the value of the property assessed. A reasonable allowance for the exhaustion, wear and tear, obsolescence and depletion of property, arising out of its use or employment in the trade or business of the taxable, but not in-cluding such allowance on the residence of the taxable. Contributions or donations to the State of Delaware or to any political subdivision thereof or to any institution sup-ported in whole or in part by the State or any contribution or dona-tion, for use in the State of Delaware only, to a corporation, or church, or community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific or educa-tional purposes, or for the prevention of cruelty to children or ani-mals, no part of the net earnings of which inures to the benefit of any private shareholder or individual and no substantial part of the activities of which is carrying on propaganda, or otherwise at-tempting to influence legislation; provided, that where such con-tribution or donation is made other than in cash, the fair market value of the property at the date contributed or donated shall be the basis for deduction; and further provided, that contributions or donations shall not exceed fifteen per centum of the taxpayer's net income, as computed without the benefit of this paragraph. Losses sustained during the income year if incurred in the operation of a trade, or business; provided, however, that any losses sustained in the sale, exchange or other disposition of capital assets, including stocks, bonds, or other securities, shall be allowed only to the extent of gains from such transactions. Losses sustained during the income year in the opera-tion of farms or in other agricultural, horticultural, dairy or poultry pursuits or in the raising or preparation of animals, birds, poultry, vegetables, fruit, fish or seafood for the market. Depreciation of buildings or other property used in such operations may be included in losses incurred but no personal or household expenses of the owner or manager of the operation or of his family shall be included in such losses. 42 CHAPTER 11 INCOME TAX Losses sustained during the income year through de-struction of property by fire, flood, lightning, storm or collision, and losses caused by other casualty or by theft, provided that such losses are not compensated for by insurance or otherwise. Proper adjustment shall be made for exhaustion, wear and tear, obsolescence and depletion which have since the acquisition of the property been allowed as a deduction under this Act or under prior Acts In the case of property not used in trade or business, proper adjustment shall be made for exhaustion, wear and tear, obsolescence and depletion which have been sustained since the acquisition of the property. Debts ascertained during the income year to be worth-less and represented by accounts or bills receivable arising from professional fees, salaries, wages or from sale of merchandise or stock in trade appertaining to the business of the taxable, provided that such accounts or bills receivable have previously and while un-collected been included as income in an income tax return to this State. Debts ascertained to be worthless within the income year represented by accounts or bills receivable that have not pre-viously and while uncollected been included in gross income, in an income tax return to this State, but such debts shall be deductible as capital losses only and to the extent that capital losses are de-ductible as provided in paragraph (11) hereof. This provision shall not apply if the income from a business, trade or profession is reported on the basis of cash receipts and disbursements, in which case such debt shall not be deductible. Losses sustained during the income year through en-dorsement or guaranty of notes or obligations of any kind or through liability on subscription to stocks, bonds and notes or through contingent liability, but such losses shall be deductible as capital losses only and to the extent that capital losses are deductible as provided in paragraph (13) hereof. CHAPTER 11 43 INCOME TAX Losses from wagering transactions shall be allowed only to the extent of the gains from such transactions. Capital losses as defined in Section 1, paragraph (h), accrued after January 1, 1920, and that have been realized during the income year, but such losses shall be deductible from capital gains and to the extent thereof only. In the case of the death of a taxpayer, there shall be allowed as deductions and credits for the taxable period in which falls the date of his death, amounts accrued up to the date of death if not otherwise properly allowable in respect of such period or a prior period. Section 7. That Section 5, Chapter 8, Volume 36, Laws of Delaware, as amended, be and the same is hereby amended by add-ing the following paragraphs (f) and (g) : Section 5 (f):Where any part of the income of a trust: (a) is, or in the discretion of the grantor or of any person not having a substantial adverse interest in the disposition of such part of the income may be, applied to the payments of premiums upon policies of insurance on the life of the grantor except policies of insurance irrevocably payable for the purposes and in the manner specified in Section 4, paragraph (5), then such part of the income of the trust shall be included in computing the net income of the grantor. Section 5 (g) :As used in this Section, the term "in the dis-cretion of the grantor" means in the discretion of the grantor, either alone or in conjunction with any person not having a substantial adverse interest in the disposition of the part of the income in question. Section 8. That Section 7, Chapter 8, Volume 36, Laws of Delaware, as amended, be and the same is hereby amended by strik-ing out paragraphs (a) and (b) (1) and inserting in lieu thereof the following: Section 7 (a) :Except as hereinafter provided in this Section, the gain derived from the sale, exchange or other disposition of 44 CHAPTER 11 INCOME TAX capital assets including property, real or personal, shall be the ex-cess of the amount realized therefrom over the basis determined in accordance with the provisions of this Section, and the loss sustained shall be the excess of such basis over the amount realized. As used in this Section: the term "amount realized" means the sum of any money plus the fair market value of the property, other than money, received from the sale, exchange or other disposition of property. Section 7 (b) (1) :In the case of such property acquired by gift: the basis shall be the same as that which it would be in the hands of the donor or the last preceding owner by whom it was not acquired by gift, except that for the purpose of determining loss the basis shall be the basis so determined, or the fair market value of the property at the time of the gift, whichever is lower. If the necessary facts are unknown to the donee, the commissioner shall obtain such facts from the donor, or from any other person cogni-zant thereof. If the Commissioner finds it impossible to obtain such facts, the basis shall be the fair market value of the property as found by the Commissioner as of the date or approximate date at which, according to the best information the Commissioner is able to obtain, the property was acquired by the donor or last pre-ceding owner. Section 9. That Section 7, Chapter 8, Volume 36, Laws of Delaware, as amended, be and the same is hereby amended by strik-ing out paragraph (c), and inserting in lieu thereof the following: Section 7 (c). The basis for ascertaining the gain derived or loss sustained from the sale, exchange or other disposition of capi-tal assets, including property, real or personal, acquired prior to January 1, 1920, shall be (1) the same as it would be if determined in accordance with the provisions of sub-division (b), or (2) the fair market value of such property as of January 1, 1920, whichever is higher, provided that in ascertaining the deductible loss under this paragraph, the loss to be deducted shall in no case exceed the actual loss sustained based upon the difference between amount received and the cost of such property. CHAPTER 11 45 INCOME TAX Section 10. That Chapter 8, Volume 36, Laws of Delaware, as amended, be and the same is hereby amended by inserting aftet Section 7, paragraph (d) (II) and before Section 7, paragraph (e) thereof, the following: Section 7 (d) (III). In the case of property not used in trade or business, proper adjustment shall be made for exhaustion, wear and tear, obsolescence and depletion which have been sustained since the acquisition of the property. Section 11. That Chapter 8, Volume 36, Laws of Delaware, as amended, be and the same is hereby amended by inserting after Section 7 (g) (2) and before Section 7 (h) thereof, the following: Section 7 (g) (3). In the case of stock carried on margin in a broker's account, sales shall be deemed to be made from the earl-iest purchase of such stock and stock dividends shall be deemed to have been received on such earliest purchases. In the application of this Section to sales of stock purchased and held in marginal accounts, identification shall be deemed made where the taxpayer, prior to a sale, causes the broker to transfer from the account from which the sale is to be made, to another account, all shares of the same kind of stock as those he intends to sell, but which were acquired prior to the acquisition of the shares which the taxpayer intends to identify as those to be sold. Section 7 (g) (4). Commissions paid in purchase of securi-ties are part of the cost price of said securities. Commissions paid in selling securities are a deduction from the selling price. Dividends charged or paid in the case of short sales of securi-ties are a part of the cost of the transaction. Section 12. That Section 7, Chapter 8, Volume 36, Laws of Delaware, as amended, be and the same is hereby amended by strik- 46 CHAPTER 11 INCOME TAX ing out paragraph (h) (5), and inserting in lieu thereof the fol-lowing: Section 7 (h) (5). If property is transferred to a corporation by one or more persons solely in exchange for stock or securities in such corporation, and immediately after the exchange such person or persons are in control of the corporation; but in the case of an exchange by two or more persons this paragraph shall apply only if the amount of the stock and securities received by each is sub-stantially in proportion to his interest in the property prior to the exchange. As used in this Section the term "reorganization" means (a) merger or consolidation, including the acquisition by one corpora-tion of at least eighty (80) per centum of the voting stock and at least eighty (80) per centum of the total number of shares of all other classes of stock of another corporation, or substantially all the property of another corporation, or (b) a transfer by a corporation of all or part of its assets to another corporation if immediately after the transfer the transferor or its stockholders, or both, are in control of the corporation to which the assets are transferred, or (c) a recapitalization, or (d) a mere change in identity, form, or place of organization, however effected. As used in this Section: the term "control- means the owner-ship of at least eighty (80) per centum of the voting stock and at least eighty (80) per centum of the total number of shares of all other classes of stock of the corporation. Section 13. That Section 12, Chapter 8, Volume 36, Laws of Delaware, as amended, be and the same is hereby amended by striking out paragraph (i) and inserting in lieu thereof the fol-lowing: Section 12 (i). Report monthly to the Tax Board the amount of all refunds, abatements and credits resulting from overpayments made with the names of the taxables concerned and the date when CHAPTER 11 47 INCOME TAX such adjustments were authorized. Such report shall be spread in the Minutes of the Board. Section 14. That Section 13, Chapter 8, Volume 36, Laws of Delaware, as amended, be and the same is hereby amended by striking out paragraphs (e) and (f), and inserting in lieu thereof the following: Section 13 (e). All persons, fiduciaries, association of per-sons, syndicates, joint ventures, co-partnerships or corporations in whatever capacity acting, including lessees or mortgagors of real or personal property, and employers, making payments to another person of interest, dividends, rent, salaries, wages, premiums, an-nuities, compensations, remunerations, emoluments, or other fixed and determinable gains, profits, and incomes, of $1,000 or more in any taxable year, shall render a true and accurate return to the Tax Department, under such regulations and in such form and manner and to such extent as may be prescribed by the Tax Department, setting forth the amount of any and all such payments made to the taxable of the State of Delaware and the names and addresses of the recipients of such payments. The provisions of this paragraph shall apply to officers or employees of the State of Delaware or of any political subdivision or any municipal corporation therein. Re-turns may be required regardless of amounts, in the case of pay-ments of any fixed or determinable income. Section 13 (f). Every person or partnership doing business in the State of Delaware as a stock broker shall, when specially re-quired by the Tax Commissioner render a correct return duly veri-fied under oath, showing the name of customers who are citizens or residents of the State of Delaware for whom such person or partnership has transacted any business, with such details as to the profits, losses or other information which the Tax Commissioner may require for each of such customers, as will enable the Tax Com-missioner to determine whether all income tax due on profits or gain of such customers has been paid. Section 13 (g). Every taxable is required to keep such specific records, including inventories, as are necessary to establish the 48 CHAPTER 11 INCOME TAX amount of his gross income and the deductions and other informa-tion, for the purpose of determining the amount of income which may be subject to tax. Section 15. That Section 15, Chapter 8, Volume 36, Laws of Delaware, as amended, be and the same is hereby amended by strik-ing out all of paragraph (e) and inserting in lieu thereof the fol-lowing: Section 15 (e). If the time for filing the return shall be ex-tended, interest at the rate of four per centum per annum, from the time when the return was originally required to be filed, to the date of payment, shall be added and paid. Section 16. That Section 16, Chapter 8, Volume 36, Laws of Delaware, as amended, be and the same is hereby amended by striking out paragraph (c) and inserting in lieu thereof the fol-lowing: Section 16 (c). If the amount of 'tax found due shall be less than the amount theretofore paid, either as a result of examination of the return by the Tax Department or by the allowance of a claim for overassessment filed by the taxable, the excess shall be refunded by the Tax Department out of the repayment fund retained by it as provided in this Act. Interest shall be allowed the taxable at the rate of one-third per cent per month or fraction of a month, from the time the pay-ment was made if tax was paid in full, to the date of the refund. If the tax was paid in installments interest shall be allowed at the rate of one-third per cent per month or fraction of a month, from the time of the most recent payments to the extent of the overpayment. No refund of or abatement, or credit of excess payment shall be made until the same has been approved by the Tax Board or a majority thereof either at a recorded meeting or in writing. CHAPTER 11 49 INCOME TAX Section 17. That Section 19, Chapter 8, Volume 36, Laws of Delaware, as amended, be and the same is hereby amended by strik-ing out paragraph (a) and inserting in lieu thereof the following: Section 19 (a). A taxable may apply to the State Tax Com-missioner, State Tax Board, and the Superior Court, in the order named, as hereinbefore provided, for refund of the taxes imposed by this Act alleged to have been erroneously or illegally assessed or collected or of any interest or penalty alleged to have been collected without authority, or of any sum alleged to have been excessive or in any manner wrongfully collected from said taxable at any time within two years from the date such return was originally required to be filed or thirty days from the date. of payment of any addi-tional tax. The Tax Board shall grant a hearing thereon and if it shall determine that the tax, interest or penalties, are excessive or incor-rect, it shall resettle the same according to the law and the facts and adjust the computation of tax, interest or penalties accordingly. The Tax Department shall notify the taxable of such determination and shall refund to the taxable the amount paid in excess of taxes, interest and penalties found by it to be due. Section 18. That Section 20, Chapter 8, Volume 36, Laws of Delaware, as amended, be and the same is hereby amended by strik-ing out the following words where they appear in paragraphs (a) (b) (c) (d) (i) and (j) "one-half of one per centum" and in-serting in lieu thereof the following words: one-third of one per-centum. Section 19. That Section 20, Chapter 8, Volume 36, Laws of Delaware, as amended, be and the same is hereby amended by striking out paragraph (k) and inserting in lieu thereof the fol-lowing: Section 20 (k). The interest provided for in this Section shall in all cases be computed from the time when the return was origi-nally required to be filed to the date of payment. 50 CHAPTER .11 INCOME TAX Section 20. That Section 21, Chapter 8, Volume 36, Laws of Delaware, as amended, be and the same is hereby amended by striking out paragraph (b), and inserting in lieu thereof the fol-lowing: Section 21 (b). The Tax Board and the officers and em-ployees of the Tax Department shall be entitled to receive from the State their actual and necessary expenses while engaged in the performance of their duties. Each member of the Tax Board shall receive compensation at the rate of Two Hundred Dollars ($200.00) per annum. All expense accounts shall be made in detail and shall be approved by the Tax Commissioner. The total shall in no case exceed the sums appropriated therefor. Section 21. That Section 27, Chapter 8, Volume 36, Laws of Delaware, as amended, be and the same is hereby amended by inserting the following paragraph: Notwithstanding the provisions of this Section, the Tax Com-missioner may permit the Commissioner of Internal Revenue of the United States or the proper officer of any State imposing an income tax upon the incomes of individuals, or the authorized representa-tative of either of such officers, to inspect the income tax return of any individual or may furnish to such officer or his authorized representative an abstract of the return of income of any individual or supply him with information contained in any return; or disclosed by the report of any investigation of the income or return of income of any individual; but such permission shall be granted or such in-formation furnished to such officer or his representative only if the statutes of the United States or of such other States, as the case may be, grant substantially similar privileges to the proper officer of this State charged with the administration of the income tax law thereof. Section 22. That Chapter 8, Volume 36, Laws of Delaware, as amended, be and the same is hereby amended by adding the following: '-CHAPTER 11 51 INCOME TAX Section 29. Chapter 8, of Volume 36, as amended, by Chap-ter 9, Volume 37, of the Laws of Delaware, shall be continued in full force and effect as to all taxes, assessments, proceedings, suits and matters arising out of or in connection with returns required to be made for the year 1934, and all prior years, and shall so continue until such time as all of said taxes, assessments, proceedings, suits and matters shall have been finally collected, determined or dis-posed of. Chapter 8, of Volume 36, Laws of Delaware, as amended by Chapter 9, Volume 37 and by this Act shall, except as otherwise provided, become effective for taxes to be assessed as provided by law on net incomes for the year 1935, and each succeeding year, due in the year 1936 and thereafter. All acts or parts of acts inconsistent with this act are hereby repealed to the extent of such inconsistency only. Approved April 24, 1935. 52 CHAPTER 12 NEW CASTLE COUNTY INCOME TAX AN ACT TO PROVIDE REVENUE FOR THE RELIEF OF CERTAIN POOR, RESIDENT IN NEW CASTLE COUNTY AND FOR THE PAYMENT TO THE LEVY COURT OF NEW CASTLE COUNTY OF MONEYS ADVANCED BY THE SAID LEVY COURT SUB-SEQUENT TO JANUARY FIRST, 1935, FOR THE SUPPORT OF SAID POOR. Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met: ARTICLE I Persons Taxable Section 1. As used in this article, the following words and phrases are defined as follows: The phrase "Income Tax" means the tax imposed by Section 2 hereof. The word -Taxable" means: A natural person twenty-one years of age or over who is a citizen or resident of New Castle County, or who has been a citizen or resident of said New Castle County at any time during the income year. A minor with a net income of one hundred dollars or more who is a citizen or resident of the said New Castle County, or who has been a citizen or resident of said New Castle County at any time during the income year. A minor citizen or resident of said New Castle County who has attained the age of 21 years during the income year. CHAPTER 12 53 NEW CASTLE COUNTY INCOME TAX (4) A fiduciary, including a guardian, trustee, agent or rep-resentative of a taxable or the executor or the administrator of the estate of the decedent. Definitions The words "Income Year" mean the calendar year or the fiscal year on the basis of which the income is computed under this Act. The phrase "Net Income" means gains or profits and income derived and actually received into possession of, or credited subject to withdrawal by, a taxable from any source whatever, and shall include the aggregate of all gains, capital gains, profits, salar-ies, wages and compensation for personal service of whatever kind and in whatever form paid, including bonus, honorariums and fees; income derived from professions, vocations, business, trade com-merce, sales, exchange or other disposition of or dealings in real or personal property growing out of the ownership or use of or inter-est in such property or otherwise; income derived from interest, dividends, securities or the transaction of any business carried on for gain or profit; the share of the profits of any taxable in an un-incorporated association of persons, syndicate, joint venture or co-partnership whether such profits have been divided or otherwise; and all amounts recovered during the income year from bad debts or capital losses that have been deducted from income in any return of income under this Ad, less the aggregate of the exemptions pro-vided for in Section 3 (a), paragraphs 1 to 11 inclusive and of the deductions provided for in Section 4. The word "Dividends" means any distribution made by a corporation, joint stock company or association out of its earnings or profits paid to or subject to withdrawal by its shareholders dur-ing the income year, whether in cash or property, but does not mean a distribution of earnings or profits accrued prior to January 1, 1920, or a distribution of capital stock of the corporation, joint stock com-pany or association making the distribution. Every distribution shall be deemed to be made out of earnings or profits to the extent there-of, and from the most recently accumulated earnings or profits. 54 CHAPTER 12 NEW CASTLE COUNTY INCOME TAX Net income shall be accounted "actually received into possession" when cash, check, script certificate or other evidence of ownership has been received by the owner or by his agent, or rep-resentative or by a fiduciary. Net income shall be accounted "credited subject to withdraw-al", when the taxable credited, or his agent, representative or a fidu-ciary has the right or option to make withdrawal. "Capital gains or losses" thean gains or losses resulting from the sale, exchange or disposition, other than by gift, donation, devise or inheritance, of real or personal property, stocks, bonds, notes or securities, but do not mean gains or losses arising from the operation of any business. Capital losses shall include all debts ascertained to be worthless during the income year, excepting ac-counts or bills receivable arising from professional fees, salaries or wages or from sales of merchandise or stock in trade appertaining to the business of the taxable, as provided for in Section 4, para-graph 8. The "Basis for determining the capital gain or loss" re-sulting from the sale, exchange or disposition other than by gift, donation, devise or inheritance, of real or personal property, stocks, bonds, notes, or securities acquired before January 1, 1920, shall be as provided in Section 7. The Income Tax - Section 2. (a) The Levy Court of New Castle County shall during the month of February, 1935, calculate and settle the amount which has been expended by it on and after January 1st, 1935, for the support of the poor resident in said County and the amount which shall be necessary to be raised for the remainder of said year for the support of said poor, and the said Levy Court shall during the month of February, 1936, calculate and settle the amount which shall be necessary to be raised for said year commencing January 1st, 1936, for the support of said poor and for the purpose of rais-ing said amounts shall levy such tax as shall be fixed by it upon CHAPTER 12 NEW CASTLE COUNTY INCOME TAX the net income of every taxable. In calculating and settling said amounts the Levy Court shall exclude therefrom the sums required by law to be appropriated by it to the hospitals located within New Castle County for the care of the indigent sick, to the State Old Age Welfare Commission for the maintenance of the State Wel-fare Home and the support of its inmates and to the Mothers' Pension Fund. (b) Said tax shall be levied, assessed and collected annually during the years 1935 and 1936 upon the entire net income re-ceived in the preceding calendar year from all sources, by every taxable, subject to the exemptions hereinafter named, at a rate to be fixed by the said Levy Court but not in excess of the following: one percentum of the amount of net income not in excess of Three Thousand Dollars; two percentum of the amount of net income in excess of Three Thousand Dollars but not in excess of Ten Thou-sand Dollars; three percentum of the amount of net income in ex-cess of Ten Thousand Dollars. Said tax shall be levied, assessed, collected and paid upon and in respect to the net income for the calendar year or for any income year ending during the said calen-dar year. The rate fixed by the said Levy Court shall on or before the first day of March of the year in which it is fixed, be certified by the Clerk of the Peace of New Castle County to the State Tax Department of the State of Delaware. If it shall appear to the said Levy Court at any time after the 15th day of March of the year in which the tax is payable, that the amount which would be collected by said State Tax Department at the rates fixed by the said Levy Court, will be in excess of the amount which the said Levy Court has calculated and settled as required by this Section as necessary for said year, the said Levy Court shall have the power and authority to make such abatement or abatements in the amount to be paid by said taxables, as the Levy Court shall deem proper, provided that in he judgment of the said Levy Court the amount which would have been produced for said year at the rate fixed by the said Levy Court less the amount of such abatement or abatements will be sufficient to pro-duce the said amount so calculated and settled by the said Levy 55 56 CHAPTER 12 NEW CASTLE COUNTY INCOME TAX Court for said year, and provided further that any such abatement or abatements if made, shall be uniform with respect to all taxables. Any such abatement so made shall within ten days after it has been made, be certified by the Clerk of the Peace of New Castle County to the State Tax Department. (b) A taxable during part of an income year, shall be taxed on the net income received during such part of the income year only or, if that amount cannot be determined, shall be taxed for a part of the whole net income proportionate to the part of the year in which such person or fiduciary, association or minor citizen has been a taxable. Exempted Income Section 3. The following income shall be exempt from in-come tax: (a) (1) The proceeds of life insurance policies paid upon the death of the insured to any taxable. The amount received by the insured as a return of pre-mium or premiums paid by him under life insurance, endowment or annuity contracts, either during the term or at the maturity of the term mentioned in the contract or upon the surrender of the contract. The value of property acquired by gift, bequest, devise or inheritance but the income received from such property after its acquisition shall be included in taxable income. The profit or loss on the sale, exchange or other disposition of such property shall be determined as provided in Section 7 of this Article. Interest upon the obligations of the State of Delaware or any political subdivision thereof or upon the obligations of the District of Columbia, of the United States or of its possessions. Dividends paid out of earnings or profits accrued prior to January 1, 1920. CHAPTER 12 57 NEW CASTLE COUNTY INCOME TAX Dividends paid in the capital stock of the corporation, joint stock company, or association which has declared and author-ized the distribution. Capital gains accrued prior to January 1, 1920. Salaries, fees, wages, or pensions received from the United States. The amount received as alimony or support from a per-son who has paid tax thereon under these Articles. Any amounts paid to injured employees or to the de-pendents of deceased employees under the terms of "The Delaware Workmen's Compensation Law of 1917." Moneys paid from the revenue derived under the pro-visions of this Act to any indigent person or food, clothing or other supplies furnished to any such indigent person. (b) In the case of the head of a family, or a married person living with husband or wife, a personal exemption of one thousand dollars, provided, however, that husband and wife living together shall receive but one personal exemption of one thousand dollars. Said one thousand dollars may be divided in the separate returns of the husband and wife in any manner they may choose. There shall be a credit of One Hundred Dollars ($100.00) for each person (other than husband or wife) dependent upon and receiving his or her chief support from the taxpayer if such de-pendent person is under twenty-one years of age or is incapable of self-support because mentally or physically defective. "Head of family" means one who maintains a dwelling, house or apartment for the use of himself or herself and another or others who pay no rent or compensation for their accommodation and who are chiefly dependent upon said head of family for support. Such other person or persons need not be related to the head of family. 58 CHAPTER 12 NEW CASTLE COUNTY INCOME TAX In the case of death or separation of husband or wife, the ex-emption authorized shall be apportioned to the time of death or separation. A separated wife or husband who is the head of a family shall be allowed an exemption of One Thousand Dollars; while a separated wife or husband who is not the head of a family shall not be allowed any exemption. If through death, change of residence or otherwise, a taxable is required to report income for a portion of the year only, ex-emption and deductions sustained during the said portion of a year shall be allowed, providing that if they cannot be accurately ascertained for the taxable period, a proportionate part of the ex-emptions and deductions for the whole year shall be allowed. Deductions Section 4. In computing net income, the following deduc-tions shall be allowed: The necessary expenses actually paid by the taxable in carrying on any business or trade, not including personal, living or family expenses and not including transportation costs between residence and usual place of business. All interest paid by the taxable within the year on his indebtedness. Taxes paid within the income year, except taxes imposed by this Act and taxes assessed for local benefits of a kind tending to increase the value of the property assessed. A reasonable allowance for the exhaustion, wear and tear, obsolescence and depletion of property, arising out of its use or employment in the trade or business of the taxable, but not including such allowance on the residence of the taxable. Contributions or donations to the State of Delaware or any political subdivision thereof or to any institution supported in whole or in part by the State or any contribution or donation for CHAPTER 12 59 NEW CASTLE COUNTY INCOME TAX religious, charitable, scientific or educational purposes for use in the State of Delaware only, provided that such contributions or donations shall not exceed fifteen per centum of the taxpayer's net income, as computed without the benefit of this paragraph. Losses sustained during the income year in the opera-tion of farms or in other agricultural, horticultural, dairy or poultry pursuits or in the raising or preparation of animals, birds, poultry, vegetables, fruit, fish or sea food for the market. Depreciation of buildings or other property used in such operations may be in-cluded in losses incurred but no personal or household expenses of the owner or manager of the operation or of his family shall be included in such' loss. Losses sustained during the income year through de-struction of property by fire, flood, lightning, storm or collision, and losses caused by other casualty or by theft, provided that such losses are not compensated for by insurance or otherwise. Debts ascertained during the income year to be worth-less and represented by accounts or bills receivable arising from professional fees, salaries, wages or from sales of merchandise or stock in trade appertaining to the business of the taxable, provided that such accounts or bills receivable have previously and while uncollected been included as income in an income tax return under this Act. Debts ascertained to be worthless within the income year represented by accounts or bills receivable that have not pre-viously and while uncollected been included in gross income, in an income tax return under this Act, but such debts shall be deductible as capital losses only and to the extent that capital losses are de-ductible as provided in paragraph (11) hereof. (This provision shall not apply if the income from a business, trade or profession is reported on the basis of cash receipts and disbursements, in which case such debts shall not be deductible). Losses sustained during the income year through en-dorsement or guaranty of notes or obligations of any kind or 60 CHAPTER 12 NEW CASTLE COUNTY INCOME TAX through liability on subscription to stocks, bonds and notes or through contingent liability but such losses shall be deductible as capital losses only and to the extent that capital losses are deduct-ible as provided in paragraph (11) hereof. (11) Capital losses as defined in Section 1, paragraph (g) accrued after January 1, 1920, and that have been realized during the income year, but such losses shall be deductible from capital gains and to the extent thereof only. Trusts and Estates Section 5. (a) The tax imposed by this Article shall apply to the income of estates or of any kind of property held in trust, including: Income received by estates of deceased persons during the period of administration or settlement of estate. Income accumulated in trust for the benefit of unborn or unascertained persons, or persons with contingent interests. Income held for future distribution under the terms of the will or trusts. Income which is to be distributed to beneficiaries period-ically, whether or not at regular intervals. Income collected by a guardian of an infant or infants to be held or distributed as the court may direct. (b) The fiduciary shall be responsible for making the return of income for an estate or trust for which he or it acts. The net income of the estate or trust shall be computed in the same manner and on the same basis as hereinbefore provided in this Article, ex-cept that there shall also be allowed as a deduction, any part of the gross income which, pursuant to the terms of the will or deed creating the trust, is during the taxable year paid to or permanently set aside for the United States, any state or territory or any political NEW CASTLE COUNTY INCOME TAX subdivision thereof, or the District of Columbia or for any cor-poration or association organized or operated exclusively for re-ligious, charitable, scientific or educational purposes or for the pre-vention of cruelty to children or animals, provided that no part of the net earnings of such corporation or association inures to the benefit of any individual stockholder or individual. In cases under paragraphs (3), (4) and (5) of subdivision (a) of this section the fiduciary shall include in the return a statement of each bene-ficiary's distributive share of net income, whether or not distributed before the close of the taxable year for which the return is made. In cases under paragraphs 1, 2, 3, 4 or 5 of subdivision (a) the tax shall be imposed upon the net income of the estate or trust and shall be paid by the fiduciary. In determining net income under this paragraph, there shall be deducted the amount of any income properly paid to or credited subject to withdrawal by any Legatee, heir or other beneficiary, and a further deduction for net income paid to or accruing to the benefit of a non-taxable. The same exemptions of income and deductions allowable under Sections 3 and 4 of this Act, shall be allowed to estates and trusts. Income properly paid or credited subject to withdrawal, deducted under subdivision (c) shall be returned by the legatee, heir or beneficiary to whom it has been paid or credited subject to withdrawal, as part of his or its income for the income year in which received or credited. Unincorporated associations of persons, syndicates, joint ventures and co-partnerships shall make a return of income for information of the State Tax Department. Said return shall show the names and addresses of taxables to whom the net income re-ceived has accrued or has been distributed and the proportionate interest of each taxable in the net income. Returns to State Tax Department Section 6. (a) Every taxable shall make a return upon the printed form provided by the State Tax Department, hereinafter CHAPTER 12 61 62 CHAPTER 12 NEW CASTLE COUNTY INCOME TAX referred to as Tax Department, stating specifically the items of gross income, if any, the deductions and such other facts as said Tax Department may require. Such taxable shall certify to the truth and correctness of the return. The return required by this Section may be made for a taxable when the taxable is unable to make return, by some other person who shall state the cause of the taxable's inability to file return and, if required, shall make oath that he has sufficient knowledge of the affairs of the taxable, for whom he makes the return, to make such return and that the return is true and correct. Such person so making a return for another may be held liable for the penalties provided in Section 20 (e) for makers of false or fraudu-lent statements or returns, if error is due to his willful neglect or false statement. Unincorporated associations of persons and partnerships shall make a return of information as provided in Section 5 (e). Officers or employees of the United States who are citizens or residents of another State but by reason of their assign-ment of duty are stationed in New Castle County, need not make a return and are exempt from payment of tax under this Act. Women receiving mother's pensions, persons receiving outside support from public funds and persons who, because of age, infirmity or mental disability, are wholly or partly dependent for support shall make return or, if incapable of so doing, return shall be made for them by the person upon whom dependent. The officer in charge of any charitable or public institu-tion in New Castle County in which reside any persons incapable of making returns shall annually on or before March 15th furnish to the Tax Department a complete list of such persons in their charge. CHAPTER 12 63 NEW CASTLE COUNTY INCOME TAX Failure to File Returns (g) If the Tax Department shall be of the opinion that any taxable has failed to file a return, or to include in a return filed, either intentionally or through error, items of taxable income, it _may require from such taxable a return or a supplementary return, under oath, in such form as it shall prescribe, of all the items of income which the taxable received during the year for which the return is made, whether or not taxable under the provisions of this Act. If from a supplementary return, or otherwise, the Tax De-partment finds that any items of income, taxable under this Act, have been omitted to be disclosed to it, under oath of the taxable, and to be added to the original return, such supplementary return and the correction of the original return shall not relieve the tax-able from any of the penalties to which he or it may be liable under the provisions of this Act. The Tax Department may proceed under the provisions of Section 20 of this Act whether or not it requires a return or a supplementary return under this Section. Determination of Amount of Gain or Loss Section 7. (a) Except as hereinafter provided in this Section, the gain derived from the sale, exchange or other disposition of property, real or personal, shall be the excess of the amount real-ized therefrom over the basis determined in accordance with the provisions of this Section, and the loss sustained shall be the excess of such basis over the amount realized. As used in this Section: the term "amount realized" means the sum of any money plus the fair market value of the property (other than money) received from the sale, exchange or other disposition of property. (b) The basis for ascertaining the gain derived or the loss sustained from the sale, exchange or other disposition of property, real or personal, acquired after December 31, 1919, shall be the cost of such property, except that: (1) In the case of such property acquired by gift: The basis shall be the same as that which it would be in the hands of the donor or the last preceding owner by whom it was not acquired by 64 CHAPTER 12 NEW CASTLE COUNTY INCOME TAX gift. If the necessary facts are unknown to the donee, the Com-missioner shall obtain such facts from the donor, or from any other person cognizant thereof. If the Commissioner finds it impossible to obtain such facts, the basis shall be the fair market value of the property as found by the Commissioner as of the date or approxi-mate date at which, according to the best information the Commis-sioner is able to obtain, the property was acquired by the donor or last preceding owner. In the case of personal property acquired by bequest, devise or inheritance: The basis shall be the value of such property as determined by the officer appointed by the Register of Wills. In the case of real property acquired by bequest, devise . or inheritance: The basis shall be the fair market value at the date of acquisition by the taxable. In the case of such property held in trust: The basis shall be the same as that which it would be if it had remained in the hands of the creator of the trust. In the case of such property acquired upon an exchange described in sub-divisions (h) and (i) of this Section: The basis shall be the same as in the case of the property exchanged, decreased by the amount of any money received in the exchange, and in-creased by the amount of gain, or decreased by the amount of loss to the taxpayer recognized upon such exchange under the law ap-plicable to the year in which such exchange was made. If the property so acquired consisted in part of the type of property per-mitted by sub-division (h) to be received without the recognition of gain or loss, and in part of other property, the basis provided in this paragraph shall be allocated between the properties (other than money) received, and for the purpose of the allocation there shall be assigned to such other property an amount equivalent to its fair market value, at the date of the exchange. In the case of stock upon which stock dividend has been paid the cost basis for original and dividend holdings shall be de-termined in accordance with the following rules: CHAPTER 12 65 NEW CASTLE COUNTY INCOME TAX Where the stock issued as a dividend is of the same character or preference as the stock upon which the dividend is paid: The basis of each share shall be the quotient found by dividing the total cost of the original shares by the total shares both original and dividend. Where the stock issued as a dividend is of a character or preference different from the stock upon which the dividend is paid: The cost of the original shares of stock shall be divided between such stock and the dividend stock in proportion, as nearly as may be, to the respective values of each class of stock at the time the dividend is paid. If no value at time of payment of divi-dend can be established preferred shares having par value shall be valued at par and the remainder of the total value shall be allotted to the common shares. (7) In the case of stock received in a distribution described in paragraph (4) of sub-division (h) the basis for the original stock and the stock received in such distribution shall be determined in accordance with the rules contained in the preceding paragraph, in the same manner as if the stock received in such distribution were received as the result of a stock dividend. The basis for ascertaining the gain derived or the loss sustained from the sale, exchange or other disposition of property, real or personal, acquired prior to January 1, 1920, shall be (1) the same as it would be if determined in accordance with the pro-visions of sub-division (b) or (2) the fair market value of such property as of January 1, 1920, whichever is higher. In computing the amount of gain or loss under sub-division (a) Proper adjustment shall be made for any expenditure or item of loss properly chargeable to capital account. The basis shall be diminished by the deductions for ex-haustion, wear and tear, obsolescence and depletion which have 66 CHAPTER 12 NEW CASTLE COUNTY INCOME TAX since the acquisition of the property been allowed to such property under this Act. Where, in the case of property received as a bonus in the purchase of other property, there is a sale, exchange or other disposition of such bonus or the property purchased, or both, the cost of the purchased property shall be fairly apportioned to such bonus and purchased property in ascertaining the basis for determin-ing the gain derived or loss sustained. But if such apportionment should be'impracticable, sales of any part of the property purchased or of the bonus shall be charged to cost until the latter shall have been completely recovered from such sales. The proceeds of fur-ther sales shall then be accounted as gain in the year such sales are made. Where, in the case of the sale, exchange or other disposi-tion of property, the amount realized is substantially less than the fair market value of such property at the time of such sales, ex-change or other disposition, the State Tax Commissioner may treat the difference between the fair market value and the amount real-iZed as a gift and not a capital loss as defined in Section 1, pro-vided, that in such event the basis of the property shall remain the same as it was before such sale, exchange or disposition. (1) In the case of the shares of stock in a corporation which are sold or exchanged from lots purchased at different dates or at different prices and when the identity of the lots cannot be determined: The stock sold shall be charged against the earliest acquired stock. (2) If the stock upon which a stock dividend is paid was purchased at different times and at different prices and the identity of the lots cannot be established, sale of the original stock shall be charged to the earliest purchases of such stock and a sale of divi-dend stock shall be accounted as made from the dividend paid on the earliest purchased original stock to the extent of the dividend chargeable to such stock. No gain or loss shall be recognized in the following cases: CHAPTER 12 67 NEW CASTLE COUNTY INCOME TAX If property held for productive use in trade or business or for investment (not including stock in trade or other property held primarily for sale, nor stocks, bonds, notes, choses in action, certificates of trust or beneficial interest, or other securities or evi-dences of indebtedness or interest) is exchanged solely for property of a like kind to be held either for productive use in trade or busi-ness or for investment. If common stock in a corporation is exchanged solely for common stock in the same corporation, or if preferred stock in a corporation exchanged solely for preferred stock in the same corporation. If stock or securities in a corporation a party to a reor-ganization are, in pursuance of the plan of reorganization, exchanged solely for stock or securities in such corporation or in another cor-poration a party to the reorganization. If there is distributed, in pursuance of a plan of reorgan-ization, to a shareholder in a corporation, a party to the reorganiza-tion, stock or securities in such corporation or in another corpora-tion a party to the reorganization, without the surrender by such shareholder of stock or securities in such a corporation, such a dis-tribution shall not be considered a distribution of earnings or profit within the meaning of sub-division (e) of Section 1. If property is transferred to a corporation by one or more persons solely in exchange for stock or securities in such cor-poration, and immediately after the exchange such person or per-sons are in control of the corporation; but in the case of an ex-change by two or more persons this paragraph shall apply only if the amount of the stock and securities received by each is substan-tially in proportion to his interest in the property prior to the ex-change. As used in this Section: The term "reorganization" means (a) a merger or consolidation (including the acquisition by one cor-poration of at least a majority of the voting stock and at least a 68 CHAPTER 12 NEW CASTLE COUNTY INCOME TAX majority of the total number of shares of all other classes of stock, of another corporation, or substantially all the properties of another corporation), or (b) a transfer by a corporation of all or part of its assets to another corporation if immediately after the transfer the transferor or its stockholders or both are in control of the corpora-tion to which the assets are transferred, or (c) a recapitalization, or (d) a mere change in identity, form or place or organization, however affected. As used in this Section: The term "control" means the owner-ship of at least 80 per centum of the voting stock and at least 80 per centum of the total number of shares of all other classes of stock of the corporation. If an exchange would be within the provisions of sub-division (h) of this Section, if it were not for the fact that the property received in exchange consists not only of property permit-ted by such sub-division to be received without the recognition of gain, but also of other property or money, then no loss shall be recognized, but the gain, if any, to the recipient shall be recognized, but in an amount not in excess of the sum of such money and the fair market value of such other property. Where property is sold or otherwise disposed of on the installment plan, gain or loss may, under regulation prescribed by the Commissioner, be determined in accordance with the following provisions: In the case of a business which regularly sells or other-wise disposes of property on the installment plan, the gain or loss from such sales or other disposition to be included in the income of such business for any income year shall be that proportion of the installment payments actually received in that year which the gross profit realized or to be realized when payment is completed, bears to the total contract price. In the case (A) of a casual sale or other casual disposi-tion of personal property (other than property of a kind which CHAPTER 12 69 NEW CASTLE COUNTY INCOME TAX would properly be included in the inventory of the taxpayer if on hand at the close of the taxable year) for a price exceeding $1,000, or (B) of a sale or other disposition of real property, if in either case the initial payments do not exceed 40 per centum of the selling price, the income may be returned on the basis and in the manner above prescribed in this sub-division. As used in this sub-division the term "Initial payments" means the payments received in cash or property other than evidences of indebtedness of the purchaser during the income year in which the sale or other disposition is made. If a taxpayer entitled to the benefits of paragraph (1) elects for any income year to report his net income on the install-ment basis, then in computing his income for the year of change or any subsequent year, amounts actually received during any such year on account of sales or other dispositions of property made in any prior year shall not be excluded. If an installment obligation is satisfied at other than its face value or distributed, transmitted, sold, or otherwise disposed of, gain or loss shall result to the extent of the difference between the basis of the obligation and (A) in the case of satisfaction at other than face value or a sale or exchangethe amount realized, or (B) in case of a distribution, transmission, or disposition otherwise than by sale or exchange--the fair market value of the obligation at the time of such distribution, transmission or disposition. The basis of the obligation shall be the excess of the face value of the obliga-tion over an amount equal to the income which would be returnable were the obligation satisfied in full. 70 CHAPTER 12 NEW CASTLE COUNTY INCOME TAX ADMINISTRATION OF INCOME TAX ARTICLE II Tax Department and Collection of Taxes Section 8. Definitions The words "Tax Department" mean the State Tax De-partment. The words "Tax Board" mean the State Tax Board. The words "Commissioner" or "Tax Commissioner" mean the State Tax Commissioner. The word "Taxable" means any person, fiduciary, asso-ciation of persons, syndicate, joint venture or co-partnership subject to making return or to payment of tax imposed by Article I of this Act. The words "Notice", "Notification" or "Receipt" re-quired to be given or provided for by these Articles mean a written notice, notification or receipt, contained in a sealed envelope, ad-dressed to the taxable at his last known address and deposited in the United States mails unless delivered to the taxable in person or to his representative or agent. State Tax Department The Administration and enforcement of the provisions of Article I and II of this Act and the collection of the taxes im-posed thereby are hereby vested in the State Tax Department, a State Tax Board and the State Tax Commissioner, created under the provisions of Chapter 8, Volume 36, Laws of Delaware, and such officers and employees as may be authorized to be appointed or employed by authority of said Chapter 8, Volume 36. CHAPTER 12 71 NEW CASTLE COUNTY INCOME TAX Section 9. The State Tax Commissioner is hereby authorized and empowered to appoint or employ such additional officers and employees as he shall deem necessary for the purpose of carrying out the provisions of this Act and the cost and expenses incurred thereby shall be paid out of the income tax collected under the provisions of this Act. Powers and Duties of the State Tax Department Section 10. The Tax Department shall: Administer, supervise, collect and enforce the Income Tax imposed by Article I of this Act. Prepare all necessary forms and blanks required in the admin-istration of the said Income Tax. Pay daily to the County Treasurer of New Castle County all sums collected by the Tax Department under the provisions of this Act, except such sums as are retained in accordance with the pro-visions of this Act as a repayment fund, a contingent fund, and for the expenses of the Tax Department as provided by Section 21 (b) of this Act. Powers and Duties of the State Tax Board Section 11. The Tax Board shall have die same powers and duties with respect to the Income Tax under this Act as are con-ferred upon it relative to the Income Tax under the provisions of Chapter 8, Volume 36, Laws of Delaware, subject to the same right of appeal, by any claimant, in the same manner, to the Superior Court for revisions of tax under the provisions of Section 17 of this Act or for other relief as is given under the provisions of said Chapter 8, Volume 36. Powers and Duties of the State Tax Commissioner Section 12. The Tax Commissioner shall: (a) On or before March 5th of 1935 and 1936, mail to the last recorded address of each person, fiduciary, association of per- 72 CHAPTER 12 NEW CASTLE COUNTY INCOME TAX sons, syndicate, joint venture or co-partnership that has made a return or report under the provisions of Chapter 8, Volume 36, Laws of Delaware, and that has not ceased to be a taxable, a blank for the purpose of making a return under the provisions of this Act. Excepting the duty imposed upon him by paragraph (g), Section 12 of said Chapter 8, Volume 36, he shall have the same powers, duties, and rights with respect to the Income Tax under this Act, as are conferred upon him relative to the Income Tax under the provisions of said Chapter 8, Volume 36. Signing and Filing Returns Section 13. (a) Returns shall be in such form as the Tax Department shall prescribe, from time to time, and shall be filed by every taxable described in Sections 1, 5, 6 and 8 hereof, with the Tax Department at its main or any branch office within New Castle County, on or before the Fifteenth day of March in each year, for the preceding year. In case of continued sickness, absence or other disability or whenever in its judgment good cause exists, the Tax Department may allow further time for filing returns. Failure to receive as provided in Section 12 (a) hereof, or to se-cure the blank forms for said return shall not relieve any taxable from the obligation of making the return. Return of the income of minors, idiots, insane persons, other persons incapable or unable to act for themselves, or for tax-ables absent from New Castle County, shall be made as provided in Section 14. A return shall be signed by the person making the re-turn or by the representative or fiduciary acting for such taxable. The signature shall be the full name, both given name or names, and surname. If a married woman, her own name as well as the name of her husband shall appear. (d) The Tax Commissioner may require a return to be cer-tified under oath. CHAPTER 12 73 NEW CASTLE COUNTY INCOME TAX Returns for Minors, Incompetents and Absentees Section 14. All returns and payments of income tax for minors, idiots, insane persons, other persons incapable or unable to act for themselves, or for taxables absent from the said New Castle County shall be made by their guardians, trustees or other persons having charge of their estate and the collection of the in-come thereof. All such fiduciaries shall have credit for the amount of such payments made on behalf of the beneficiary in any account which they make as such fiduciaries, and receipts for such payments from the Tax Department shall be sufficient vouchers to entitle these fiduciaries to such credit. Time and Place of Payment of Tax Section 15. (a) (1). The tax as the same shall appear from the face of the return, shall be paid to the Tax Department at the office where the return is filed in four equal installments as follows: one-fourth of the amount at the time fixed for filing the return; one-fourth of the amount on the fifteenth day of the third month after the time fixed for filing return; one- |
| Date Digital | 2010 |
| CONTENTdm file name | 3044.cpd |
Description
| Title | Laws of the State of Delaware - Volume 40 - Page 1 |
| Creator2 | Delaware General Assembly |
| Type | Text |
| Full Text | LAWS OF THE STATE OF DELAWARE ONE HUNDRED AND FIFTH SESSION OF THE GENERAL ASSEMBLY COMMENCED AND HELD AT DOVER On Tuesday, January 1, A. D. 1935 AND IN THE YEAR OF THE INDEPENDENCE OF THE UNITED STATES THE ONE HUNDRED AND FIFTY- NINTH VOLUME XL Printed by WILLIAM E. TAYLOR, iNC. Wilmington, Delaware |
| CONTENTdm file name | 23605.pdfpage |
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