SB 72 — AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO PERSONAL INCOME TAX.

Summary

In 2017, the federal Tax Cuts and Jobs Act (TCJA), Public Law No. 115-97, suspended many itemized deductions from individual federal taxes until January 1, 2026, including the itemized deduction for costs to maintain membership in a labor organization. Senate Bill No. 72 created a tax credit for resident individuals equal to the annual cost, not to exceed $500, to the individual to maintain membership in a labor organization. Senate Substitute No. 1 for Senate Bill No. 72 made the annual cost to a resident individual to maintain membership in a labor organization an itemized tax deduction, not to exceed $500. Senate Amendment No. 1 to SS 1 for SB 72 sunset this itemized deduction when the federal tax deduction for costs to maintain membership in a labor organization is restored. Like SS 1 for SB 72, Senate Substitute No. 2 for Senate Bill No. 72 creates an itemized tax deduction for the annual cost to a resident individual to maintain membership in a labor organization. SS 2 for SB 72 differs from SS 1 for SB 72 as follows: 1. It does not allow an individual to take this deduction if the individual has taken a deduction on their federal income tax return for any cost to maintain membership in a labor organization. 2. It clarifies that this exemption does not include payments that are not deductible under federal law for amounts paid to or through a labor organization for employee benefits, pension contributions, other compensation, or that were used in connection with lobbying or political expenditures, or settlement or investigatory costs or assessments of a government entity. 3. Does not define “labor organization”, because under § 1101 of Title 30, it has the same meaning as when used in federal law in reference to federal income taxes. If an individual deducts any cost to maintain membership in a labor organization from their federal income tax return, that deduction flows through to the state return. By limiting this deduction to individuals who have not taken a deduction on their federal income tax return for any cost to maintain membership in a labor organization, SS 2 for SB 72 does not need to sunset, because if federal law restores or creates a similar deduction in the future and an individual uses that deduction, the individual cannot claim the same deduction again on their state income tax return. This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.

Bill Text

• Bill Text View text Current pdf

Action History

1. August 31, 2023

   Signed by Governor

2. June 21, 2023

   Passed By House. Votes: 26 YES 12 NO 1 NOT VOTING 2 ABSENT

3. June 14, 2023

   Reported Out of Committee (Appropriations) in House with 5 On Its Merits

4. June 07, 2023

   Assigned to Appropriations Committee in House

5. June 06, 2023

   Reported Out of Committee (Revenue & Finance) in House with 1 Favorable, 6 On Its Merits

6. June 01, 2023

   Assigned to Revenue & Finance Committee in House

7. May 18, 2023

   Passed By Senate. Votes: 17 YES 3 NO 1 ABSENT

8. May 18, 2023

   was introduced and adopted in lieu of SB 72

Sponsors

• Eric Morrison · Primary
• Sean M. Lynn · Primary
• John "Jack" Walsh · Primary
• Bryan Townsend · Primary
• Laura V. Sturgeon · Primary
• David P. Sokola · Primary
• Marie Pinkney · Primary
• Spiros Mantzavinos · Primary
• S. Elizabeth Lockman · Primary
• Kendra Johnson · Primary
• Brian Pettyjohn · Primary
• Nicole Poore · Primary
• Sherry Dorsey Walker · Primary
• Sean Matthews · Primary
• Peter C. Schwartzkopf · Primary
• Sarah McBride · Primary
• Valerie Longhurst · Primary

Votes

Subjects