Civic News

Reminder: Delaware’s tax system is weird

A column from the Inquirer's Joe DiStefano paints the picture.

A rendering of cables under a raised floor at CSC's new HQ. (Courtesy image)

Let this serve as a periodic reminder that Delaware state government is unique — strange, even.

Corporate fees from companies that use Delaware as their legal home “make up 25 to 30 percent of our tax base,” making it possible for Delaware to avoid imposing a retail sales tax — unlike Pennsylvania, New Jersey, or Maryland. (Delaware, like Philadelphia, does impose a gross-receipts tax on retailers — a sales tax consumers don’t see when they patronize stores in “the Home of Tax-Free Shopping.”) Most of the state also lacks municipal government, and school districts are regional, not town-based, which helps keep property taxes a fraction of what owners pay in suburban Pennsylvania and New Jersey.

The above comes from a @PhillyJoeD riff on Gov. John Carney’s appearance at the ribbon-cutting of CSC’s new digs. (We had a story a few weeks ago about the company’s official rebranding.)
This other bit is good, too, but you should really read the whole thing:

Delaware has more corporations, partnerships, subsidiaries, and other business entities (more than a million) than people (it’s about as populous as Montgomery County or Northeast Philadelphia). Most are “foreign” corporations — companies actually based in other states, or countries. They incorporate under Delaware law so they can send finance and ownership disputes to its business-friendly, precedent-setting Court of Chancery, to take advantage of its intellectual-property income-tax exemptions, and to use other pro-corporate laws routinely updated by a business-friendly legislature, even under the currently dominant Democrats.

Read the full story

Before you go...

Please consider supporting Technical.ly to keep our independent journalism strong. Unlike most business-focused media outlets, we don’t have a paywall. Instead, we count on your personal and organizational support.

Our services Preferred partners The journalism fund
Engagement

Join our growing Slack community

Join 5,000 tech professionals and entrepreneurs in our community Slack today!

Trending

20 entrepreneurship, tech and startup events to fill your February

These simple but crucial policy updates could be game-changers for entrepreneurs with disabilities

Delaware Black Chamber of Commerce lays out its plan for combatting anti-DEI orders

How satellites and AI help fight wildfires today

Technically Media