A discussion at a recent public forum between Kent County business owners and local lawmakers inadvertently led to speculation about Delaware adopting a sales tax.
State Sen. Dave Lawson (R-Marydel) joined other Kent County state legislators for the Central Delaware Chamber of Commerce (CDCC) Legislative Luncheon. The annual event allows entrepreneurs to ask local elected leaders for their positions on issues and legislation moving through the General Assembly. Each official responded to three questions posed by the CDCC’s Legislative Affairs Committee and three from the audience.
One of the questions posed to all the lawmakers concerned Delaware’s personal income tax, pending proposals to increase rates on higher earners, and ways to make the tax more equitable.
After several of his colleagues offered their opinions, Sen. Lawson floated the idea of a sales tax replacing, or significantly curtailing, the levy on income. The senator later indicated that he raised the topic to generate discussion and insights, not as an initiative to pursue.
The comments led to multiple news stories that sparked speculation about Delaware losing its marketing moniker as “The Home of Tax-free Shopping.”
“Last week, I was asked to participate in a panel discussion [and] the idea of imposing a sales tax was discussed,” Sen. Lawson said in a statement released this week. “[While] I did initiate that conversation…some of the reporting to this point has, to put it nicely, lacked important context, so I would like to elaborate on what was said.
“To be clear, I do not support a sales tax, especially not on top of the various taxes already on the books,” Sen. Lawson continued. “I am not authoring a bill to implement one.”
Delaware is currently one of only five states that do not charge a tax on retail purchases, and the only one located in the Mid-Atlantic region. The other four states are Alaska, Montana, New Hampshire, and Oregon. Alaska and Montana allow municipalities to levy their own sales taxes.
