DOVER, Del. (AP) - Democratic lawmakers are proposing higher taxes on alcohol and tobacco in Delaware as part of an effort to fashion a budget for the fiscal year starting July 1.
One bill introduced Thursday raises the beer tax by two cents a can. The wine tax would increase by about three cents per serving, while taxes on liquor would jump by 15 cents per 750 milliliter bottle. The increases would net an estimated $7.2 million next year and $9.9 million the following year.
A separate bill increases a variety of tobacco taxes, including hiking cigarette taxes by 50 cents per pack, from $1.60 to $2.10. It also includes vapor products in the definition of tobacco.
Those increases are expected to generate about $11.6 million next year and $17.1 million the following year.
Corporate Tax Increase
The state Senate has given final approval to a bill increasing taxes on corporations, a key part of Gov. John Carney's plan to balance a budget for the fiscal year starting July 1.
Under the legislation approved Thursday, maximum corporate franchise tax payments paid by many companies incorporated in Delaware will increase from $180,000 to $200,000. The legislation also creates a second-tier tax of $250,000 annually for the largest corporations.
Analysts say the bill will generate an additional $116 million annually in revenue.
Senators also gave final approval to a bill eliminating Delaware's estate tax, a move Republicans sought in return for supporting the corporate tax increases.
Democrats and Republicans have yet to agree on a mix of spending cuts and other proposed tax increases to nail down a budget.
