TITLE 30

State Taxes

Miscellaneous Taxes

CHAPTER 63. AFFILIATED FINANCE COMPANIES


As used in this chapter:

(1) "Affiliated corporations" means 2 or more corporations which are members of a controlled group of corporations as defined in § 1563 of the Internal Revenue Code of 1954 [26 U.S.C. § 1563].

(2) "Affiliated finance company" means a corporation substantially all of whose activity within this State is limited to the issuance of commercial paper or other debt obligations and use of the proceeds to make loans to 1 or more of its affiliated corporations or to purchase receivables from 1 or more of its affiliated corporations.

63 Del. Laws, c. 2, § 23.;

No corporation shall carry on business as an affiliated finance company after May 1, 1981, without an unexpired license issued by the Secretary of Finance authorizing the conduct of such business. The license shall be issued by the Secretary of Finance for each calendar year. Upon payment of the tax imposed by § 6303 of this title, the Secretary shall issue the license with respect to each calendar year.

63 Del. Laws, c. 2, § 23.;

(a) The tax payable by an affiliated finance company shall be in accordance with the following table:

If the capital base is: The annual license fee shall be:   

$0 to $99,999,999.99 $10,000    

$100,000,000 to $224,999,999.99 $15,000    

$225,000,000 to $749,999,999.99 $25,000    

Over $750,000,000 $50,000    

(b) The "capital base" of an affiliated finance company shall consist of its capital, surplus and retained earnings, or equivalent accounting terms, as set forth in the company's certified financial statements.

63 Del. Laws, c. 2, § 23.;

The tax imposed by § 6303 of this title shall be due and payable in a single installment on or before April 30 of the calendar year with respect to which the license is issued or as soon thereafter as the corporation shall commence operations as an affiliated finance company as shown on its certified financial statements for its fiscal year ending with or within the immediately preceding calendar year.

63 Del. Laws, c. 2, § 23.;

Notwithstanding this title, all affiliated finance companies being taxed in accordance with this chapter shall be exempt from any occupational license taxes imposed by Part III of this title.

63 Del. Laws, c. 2, § 23.;

Repealed by 68 Del. Laws, c. 187, § 22, effective Jan. 1, 1992.;