Delaware Lawmakers Consider Raising Corporate Franchise Tax - WBOC-TV 16, Delmarvas News Leader, FOX 21 -

Delaware Lawmakers Consider Raising Corporate Franchise Tax

Posted: Updated:

DOVER, Del. -- Delaware lawmakers have introduced legislation to hike the corporate franchise tax for the largest businesses incorporated in the state, a move supporters say could lead to more than $100 million in revenue.

The bi-partisan proposal would create a new tax bracket that would require the largest corporations in Delaware to pay a new top rate with a maximum of $250,000 each year., higher than the current maximum of $180,000. It would apply to about 1,900 firms incorporated in the First State, according to a spokesman for the Delaware Department of State.

The legislation comes at a time when Delaware lawmakers and Gov. John Carney are grappling with a budget deficit of more than $382 million in the upcoming fiscal year. The plan has support from Democratic and Republican leaders, including House Speaker Pete Schwartzkopf and Senate Minority Leader Gary Simpson (R-Milford).

Although larger firms could see themselves facing up to $70,000 more in payments each year, Joshua Twilley, president of Incorporating Services in Camden, said he doesn't believe it will scare many businesses off.

"As you get into larger corporations, the benefit of having a Court of Chancery behind you is much more important than the small increases in tax."

Leaders in the Delaware State Chamber of Commerce say the proposal is reasonable but warn increasing the rate again in the near future.

"As long as they're responsible and most of the big guys are comfortable we're OK but you've gotta be careful," he said. "You keep doing this and we'll run into trouble and people who aren't happy won't leave the state."

  • Most Popular VideosMost Popular VideosMore>>

  • Invasive Spotted Lanternfly Headed Toward Maryland

    Invasive Spotted Lanternfly Headed Toward Maryland

    Farmers like Jennie Schmidt of Queen Anne's County know all too well how hard it is to grow grapes. And now Mother Nature, in the shape of a quarter-sized, red and black polka-dotted bug, is about to make Schmidt's job even more challenging. The spotted lanternfly, already pestering nearby states like Pennsylvania and Virginia, is on its way to Maryland.

    More

    Farmers like Jennie Schmidt of Queen Anne's County know all too well how hard it is to grow grapes. And now Mother Nature, in the shape of a quarter-sized, red and black polka-dotted bug, is about to make Schmidt's job even more challenging. The spotted lanternfly, already pestering nearby states like Pennsylvania and Virginia, is on its way to Maryland.

    More
  • Cruisin OC Heads back to Ocean City

    Cruisin OC Heads back to Ocean City

    It's official, Cruisin OC will be rolling through Ocean City once again in the Spring. Earlier this week, the council approved dates for the car show.
    Some locals say they're dreading for when those dates arrive. George Balunis, an Ocean City resident, says when the car events come into town, he stays inside.
    More
    It's official, Cruisin OC will be rolling through Ocean City once again in the Spring. Earlier this week, the council approved dates for the car show.
    Some locals say they're dreading for when those dates arrive. George Balunis, an Ocean City resident, says when the car events come into town, he stays inside.
    More
  • Medicare Fraud Lawsuit Names Private Ambulance Company & PRMC

    Medicare Fraud Lawsuit Names Private Ambulance Company & PRMC

    Federal authorities are investigating claims a private ambulance company committed Medicare fraud with the participation of Peninsula Regional Medical Center.

    A lawsuit filed in federal court outlines an alleged scheme to rake in tens of millions of dollars by over-billing Medicare on tens of thousands of non-emergency trips.

    More

    Federal authorities are investigating claims a private ambulance company committed Medicare fraud with the participation of Peninsula Regional Medical Center.

    A lawsuit filed in federal court outlines an alleged scheme to rake in tens of millions of dollars by over-billing Medicare on tens of thousands of non-emergency trips.

    More
Powered by Frankly

All content © Copyright 2000 - 2018 WBOC. All Rights Reserved. For more information on this site, please read our Privacy Policy, and Terms of Service, and Ad Choices