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.