A service of Salisbury University and University of Maryland Eastern Shore
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

Car Sales Tax Hike Heads to Delaware Senate Floor

creative commons

DOVER, Del. (AP) - A Democratic proposal to raise motor vehicle fees to pay for road and infrastructure improvements in Delaware is headed to the Senate floor for a vote.

The bill was released from a Senate committee after a hearing Wednesday with the support of its four Democratic members.

The legislation increases the tax on car sales from 3.75 percent to 4.25 percent. Penalties for late license and registration renewals, along with several other fees, would increase substantially.

The increases would take effect Oct. 1 and generate about $24 million annually.

Supporters say the increases will generate much-needed funds for road projects and create jobs.

Opponents say the increases will be a burden for working-class and low-income people.

Don Rush is the News Director and Senior Producer of News and Public Affairs at Delmarva Public Media. An award-winning journalist, Don reports major local issues of the day, from sea level rise, to urban development, to the changing demographics of Delmarva.