HB397 Summary

• Removes an antiquated statewide refund cap that limited tax and fee refunds, allowing refunds to be paid based on actual need rather than a fixed estimate.

• Modifies the calculation method for County Seat compensatory payments to align payments with the amount actually appropriated, using a proportional distribution formula.

• Shortens background check requirements for Division of Revenue employees and contractors with access to federal tax information from every 10 years to every 5 years to comply with IRS Publication 1075.

• Updates census tract definitions for the Creation of Employment and Qualified Investment tax credit to be reassessed after each decennial census based on socio-economic criteria, allocating 10 tracts in Wilmington, 10 in New Castle County, and 5 each in Kent and Sussex counties.

• Excludes manufacturing companies from the 2% State Realty Transfer Tax on construction contracts entered into within one year of a property transfer, and clarifies definitions of "lessor" and "lessee" for occupational and business license tax purposes.