On matters related to the corporation-friendly environment Delaware is known for, state senators approved a bill to solidify a long existing financial review board into law.
It heads to Gov. Matt Meyer, who has not disclosed whether he will give the bill his signature, veto, or allow it to become law without his approval.
Delaware's Economic & Financial Advisory Council has existed through executive order for the last fifty years. The bill to codify it also sailed through the house.
It was introduced by a group of both democratic and republican leadership from both chambers after Gov. Meyer removed longtime DEFAC member Mike Houghton, who had questioned lack of corporate revenue franchise information at a recent meeting. Meyer has said Houghton’s removal was not a response to these questions, but part of an efforts to add new blood to the body.
Senate President Pro Tem Dave Sokola (D-Newark) spoke on the senate floor. He said DEFAC, "...is a 50 year old experiment to see if we could get something that gives us confidence in the revenue streams. And there's little over two dozen revenue streams that the financial advisory council reviews at each meeting."
But, partisan divide over whether to increase some business taxes and fees carried over to the senate with HB 400, which passed in the house last month.
A bill to increase some business taxes and fees in Delaware heads to the Governor despite a disagreement on the vote threshold needed to pass the measure.
The bill calls for upping annual taxes and fees for businesses such as LLCs and general partnerships in Delaware.
Its co-sponsor Senator Bryan Townsend (D-Newark) said the increases mostly affect out of state groups incorporated here, of which there are approximately 1.6 million.
The bill’s language says it requires a three-fifths majority vote in both chambers because it increases taxes.
But Republican Senator Bryan Pettyjohn (R-Georgetown) argued it should need a two-thirds majority because it changes corporation law.
"Part of the concern, is that there's no clear consistency," Pettyjohn said. "We had a number two-thirds (votes), a number of three-fifths...So I just want to get an idea as to if there was any rationale between that."
A legal advisor for Legislative Services said revising fees isn’t the same as a revision to incorporation law and so three-fifths is the threshold.
In the State Senate, Democrats have a supermajority and passed the changes with the 2/3 majority Sen. Pettyjohn argued is necessary. But in the House a few weeks ago, the bill cleared by three-fifths but not two-thirds.
Increasing these fees and taxes was part of Meyer’s budget proposal and are projected to bring in $142 million of new revenue.
The bill now heads to Gov. Meyer.
