A Better Delaware opposes the State’s spend-then-tax structure. Higher taxes hurt Delaware residents and businesses, and only contribute to the State’s ever-expanding spending habits. Increased government spending has not improved critical areas such as education and health care, and is not the answer to helping Delaware communities.
This Act would build upon the State’s existing appropriation limit methodology by moving the Budget Reserve Account into a newly defined Budget Stabilization Fund, defining rules for deposits to and withdrawals from said Budget Stabilization Fund, and adding a check of the appropriation limit against an index comprised of relevant indicators of growth of the State’s economy, as well as structural reforms to the Personal Income Tax by broadening the tax base.
This Act decreases by 1% the rate of realty transfer tax to be received by the State, thereby returning to the rate that was applicable prior to August 1, 2017.
This Act creates the following new tax brackets: at $125,000, with a rate of 7.10% and at $250,000, with a rate of 7.85%.
Currently, a municipality other than the City of Wilmington must be granted the authority to impose a lodging tax through a special act of incorporation passed by the General Assembly. This Act authorizes all municipalities to impose a lodging tax, if a municipality chooses to do so.