Tax Revenues Re-examined in Delaware

Feb 16, 2015

Credit Don Rush

NEW CASTLE, Del. (AP) - A panel exploring how to make Delaware's revenue portfolio less unpredictable and more reflective of economic conditions is taking a close look at the state's corporate income and gross receipts tax systems.

Monday's meeting of the Structural Revenue Review Committee includes a background look at the corporate tax system, its conformity with the internal revenue code, and how it compares to other states.

The panel also will look at the background and history of the gross receipts tax on businesses.

The panel, which is to submit a report in April, was formed amid concerns that more than half of Delaware's revenues come from "inelastic" sources that do not respond to changes in Delaware's economy. Those revenue sources include lottery and gambling, abandoned property collections and bank and corporate franchise taxes.