Newark City Council unanimously approved a per-student tax on University of Delaware at its Council meeting Monday.
Newark officials worked with state lawmakers to amend the city’s charter in order to levy a tax on colleges and universities within city limits.
That change went into effect June 24. Newark City Council members considered the initial rate of $50 per student in an amendment Monday.
City manager Tom Coleman said city officials forgot to include how to set the tax rate in the original bill.
“Essentially, I would recommend leaving the $50 in this ordinance because this just sets the ceiling,” Coleman said. “And then through the budget process, then you have guardrails, you can go up to the 50, but you could do anything up till then.”
Monday’s meeting did not set the rate.
“We're looking to add the amendment to this bill that allows us to set the rate during our budget hearings or at a different meeting,” Mayor Travis McDermott said.
Council member Corinth Ford was one of five votes in favor of the amendment.
“We waited two years for this, so I hope – let's just do this now,” Ford said. “We're ready.”
UD Ph. D. candidate Tom Price was the only public commenter for this issue. Price said he knows his comment falls on “slightly deaf ears,” but he thinks Newark and UD need to be good neighbors.
“This bill is really a red herring,” Price said. “It's a tax on students and not the university… So while some parents will hardly notice this extra fee, grad students are kind of scratching our heads at what feels like a penalty for choosing to go to UD and participate in the local economy.”
Price added UD has seen several administrative changes in the past six months, and he believed some may be more willing to listen and work together with Newark.
Council members passed the amendment unanimously following public comment.
