Tue June 10, 2014
Vote Set for Measure Restricting Taxing Power of Delaware Cities
DOVER, Del. (AP) - The state House is set to vote on bill clarifying the ability of Delaware municipalities to raise taxes.
The bill to be voted on Tuesday makes clear that a municipality cannot impose a tax unless that tax is expressly authorized by the General Assembly in approving the local government's charter.
The bill was prompted by issues in Dewey Beach, which was the target of a lawsuit last year claiming that its business license fees exceed the cost of administering the business licenses, and thus amounted to unauthorized taxes.
But in a December ruling now being appealed, a judge said the town charter as approved by the legislature gives Dewey officials broad taxing authorization.