DOVER, Del. (AP) - Lawmakers are mulling legislation changing Delaware's corporate income tax system in an effort to eliminate disincentives for multi-state firms to hire workers and invest in property in Delaware.
The legislation was to be heard in the appropriations committee Thursday after clearing the revenue and finance committee Wednesday.
The bill revises a formula that equally factors the Delaware-based percentages of a company's total payroll, property and sales in calculating the state income tax due. The legislation gradually reduces the property and payroll factors until, by 2020, a company's Delaware corporate income tax would be based solely on Delaware's portion of total sales.
The change would cost the state an estimated $23 million in fiscal 2019, but lawmakers and officials said the legislation is needed to keep Delaware competitive with other states.
