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Clean Water Tax Plan for Delaware Homeowners and Businesses

Don Rush

DOVER, Del. (AP) - State lawmakers are proposing a new tax on Delaware homeowners and businesses to fund a host of clean-water initiatives.

A bill introduced on Thursday would add a new surcharge on personal income tax payments and business license fees.

The surcharge would equal 10 percent of the net income tax liability for individual taxpayers, but it would be capped at $80 for people filing joint returns and $40 for individual tax filers

The bill also imposes a new surcharge of $45 for business licenses.

Lawmakers estimate that the new surcharge would cost taxpayers and businesses about $20 million annually.

They also say the money would be used only for capital projects, with a companion bill establishing a "lock-box" to ensure that the funds are not diverted to pay for operating expenses.

Don Rush is the News Director at Delmarva Public Media. An award-winning journalist, Don reports major local issues of the day, from sea level rise, to urban development, to the changing demographics of Delmarva.