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Governance committee puts forth recommendations

A state sales tax considered regressive
December 20, 2024

Moving along with its policy recommendations for the incoming Meyer administration, the governance committee reviewed tax increases, assessments and marijuana regulation at its meeting Dec. 11.

Committee member Dave Singleton said his committee reviewed the feasibility of creating a sales tax if the state finds itself in need of more revenue, but is not recommending doing so.

“Basically recommended against it,” he said during a public meeting of the transition group. “[We’re] opposing a general sales tax because we’re one of five states without one. It gives us a competitive advantage … however, if we were to lose some of our corporation-related revenue, this might be the best area to look at to make up for that.”

Singleton said it could be made less regressive by exempting items such as food and medical care.

As property assessments are underway in all three counties, Singleton said his group recommends that assessments continue every five years.

On the subject of legalized marijuana, he said, Delaware’s tax rate is higher than neighboring states, which could be problematic in the future.

“It may well be that Delaware should consider lowering its rate to be competitive since it's easy for people to go to New Jersey and Maryland,” he said.

Piggybacking on a previous discussion, Singleton suggested possibly consolidating finance units of individual departments and moving them into the finance department.

“That might be very helpful to improving the functioning of them,” he said.

His group also recommended reauthorizing the Government Efficiency and Accountability Review Board, which was established in 2017 by executive order.

“[We] hear a lot of positives about getting the different agencies in the room together and making sure they know what’s going on and to coordinate,” Singleton said.

Gov.-elect Matt Meyer created four committees to recommend policy for his incoming administration.

 

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