Delaware Legislature Passes Business Tax Increase

Date: April 15, 2014

On Thursday April 10, the Delaware legislature passed House
Bill 265
which will increase the annual tax on limited liabilities and
partnerships on file with the Secretary of State from $250 to $300 a year. The House
voted in favor of the bill 26-13 and the Senate
 voted to pass the bill 13-7. 

Gov. Jack Markell pushed for this legislation, which will generate an extra
$33.6 million for the state, to help pay for his proposed spending plan for
next fiscal year. Opponents of the bill argued that a vote on the tax increases
was premature because the state revenue forecast panel will meet three more
times before lawmakers must pass a budget. They also noted that Delawareans are
facing more potential tax burdens from Markell’s calls for higher gas taxes.

Administration officials acknowledged that the tax increases could affect
around 40,000 businesses in Delaware, including many
mom-and-pop operations.

  • The bill increases the annual tax on limited
    liability companies and business partnerships from $250 to $300. It also
    increases the minimum annual corporation franchise tax by $100.

  • Administration officials say the tax increases
    would be reflected in payments for this year that are due from businesses
    next spring.

NFIB thanks those who took action on this issue.

Related Content: Small Business News | Delaware

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