DOVER, Del. (AP) - A Delaware Senate panel it set to discuss a Democratic proposal to raise motor vehicle fees to pay for road and infrastructure improvements.
The legislation, which cleared the House on a straight party line vote, was on a Senate committee agenda Wednesday.
The legislation increases the tax on car sales from 3.75 percent to 4.25 percent. Penalties for late license and registration renewals, along with several other fees, would increase substantially.
The increases would take effect Oct. 1 and generate about $24 million annually.
Supporters say the increases will generate much-needed funds for road projects and create jobs.
But opponents say the increases will be a hardship for working-class and low-income people, and that lawmakers should focus on cutting spending in other areas and making smarter use of taxpayer money.
