Legislature passes tax changes, slavery apology
Lawmakers passed changes to Delaware's corporate income tax and a resolution apologizing for slavery on Thursday, only hours after Gov. Jack Markell voiced support for those bills during his State of the State address.
Meanwhile, members of the House of Representatives said they will reignite last year's debate over repealing the state's death penalty.
House Bill 235, called the "Delaware Competes Act," would change the way corporate income tax is calculated. Currently, companies pay the tax based on the share of their sales, property and employees in Delaware; the bill would gradually change that calculation so that only sales are considered.
"They did this to keep Chemours here," said Sen. Colin Bonini, R-Dover South, referencing the struggling Wilmington-based chemical company and DuPont spinoff.
In September, The News Journal reported Chemours has considered locations in Salem County, New Jersey, and Delaware and Chester counties in Pennsylvania as a new headquarters site.
Markell and the bill's co-sponsors, which included the leadership of both parties and both houses of the Legislature, say the current tax structure penalizes companies for hiring or expanding to new locations in Delaware and argue the changes will make the First State more competitive with its neighbors.
The bill is estimated to cost the state about $8.2 million in the next fiscal year and $48.7 million over the next three years, but supporters say state coffers will be replenished eventually because companies will hire more workers, who will then produce more tax revenue.
Only a handful of representatives voted against the bill when it sailed through the House. Sen. Bryan Townsend, D-Newark, was the only senator who did not vote yes Thursday. He opted not to vote.
"Without an established plan for how we will pay for this, I cannot support this legislation," Townsend said in a statement. "The jury is out on whether this will stimulate our economy or keep a major company here."
While the state's budget estimates aren't as bad as first feared, Townsend said it was "bad business and bad budgeting" to hope for economic development to cover the bill's costs.
Townsend is running for Delaware's seat in the U.S. House of Representatives.
A resolution apologizing on behalf of the people of Delaware for the wrongs of slavery also passed. Supporters argued the bill was an important step toward addressing racial inequalities and tensions.
Only three senators voted against the resolution: Bonini; Gerald Hocker, R-Ocean View; and David Lawson, R-Marydel.
"Slavery was abhorrent," Bonini said, "but the people I represent were not involved in slavery."
Both bills already passed the House, and their next stop will be at Markell's desk.
State of the State: Markell calls for continued change
Finally, House leaders announced that a bill to repeal Delaware's death penalty, which stalled in a committee last year, will be placed on the agenda for Jan. 28.
House Speaker Pete Schwarzkopf, D-Rehoboth, and House Judiciary Chair Larry Mitchell, D-Elsmere, both former police officers, oppose repealing the death penalty. But the issue deserves a vote, they both said.
“As a retired New Castle County Police officer, I am personally opposed to repealing capital punishment," Mitchell said in a statement. "However, it is clear to me that this issue deserves to be presented to all the members of the House for debate and an up-or-down vote."
Contact Matthew Albright at malbright@delawareonline.com, (302) 324-2428 or on Twitter @TNJ_malbright. Contact Karl Baker at kbaker@delawareonline.com or (302) 324-2329.