AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATED TO TAX ADMINISTRATION.

Sections 1, 4, and 6 clarify that the funds to satisfy income tax withholding on a sale of real estate by a non-resident shall be derived from the net proceeds of the real estate sale and permit the filing of the deed if the closing attorney can establish that the non-resident seller did not receive any proceeds from the sale. Section 2 allows the Division of Revenue to use its discretion to adjust the filing frequency of employers if the taxpayer can demonstrate that complying with the statute would result in a hardship. Section 2 also broadens the requirements for filing of information returns with the Delaware Division of Revenue to include any information return required to be filed with the Internal Revenue Service for payments of any type of remuneration made to Delaware resident individuals. This will provide the Division of Revenue with greater information about income received by Delaware residents to ensure that all taxable income is reported and taxed. Section 3 corrects the recipient for donations to the Delaware Ovarian Cancer Foundation, which is now its own separate 501(c)(3) organization, allowing donations to be forwarded to them directly. Section 5 codifies the long-standing practice of the Division of Revenue to limit Net Operating Loss deductions to those deductions that were claimed on a federal return. Because Delaware tax law starts with the income reported and deductions available at the federal level, any net operating loss that exceeds that claimed on a federal return is not permitted in the calculation of Delaware tax. Section 7 eliminates the requirement that multiple business licenses for the same licensee be on the same licensing schedule, which will reduce the burden for both licensees and the Division of Revenue. Section 8 clarifies the definition of “Mercantile agency or collection agency” to include those agencies involved in the collection of both commercial and consumer debt, which removes a potential ambiguity from existing language. Section 9 provides that the sections of this act are severable in the event that one is determined to be invalid, and section 10 establishes the effective date of the legislation.