An Act To Amend The Charter Of The City Of Newark Authorizing The City Of Newark To Levy A Tax On Colleges And Universities Within The City Of Newark.
Summary
HB34 amends the City of Newark charter to authorize the city council to levy a new tax on colleges and universities located within city limits that host in-person classes. The tax may be imposed at up to $50 per student for each fall and spring semester, and it applies to both undergraduate and graduate students enrolled in classes taking place in Newark. The bill expressly covers institutions that are otherwise tax-exempt or are subdivisions or agencies of the State of Delaware, including the University of Delaware.
The bill also specifies how the tax must be paid: payments under this provision may not be made by credit card and must instead be processed through ACH or another payment method approved by the city manager. The measure is framed as an amendment to Newark’s revenue authority in Section 404 of the city charter, leaving the rest of the city’s taxing powers intact, including property taxes, lodging taxes, utility-related taxes, and existing exemptions.
Impact
If enacted, HB34 expands Newark’s charter-based taxing authority by creating a new revenue source tied to higher education institutions and their enrolled students. It directly affects colleges and universities operating in Newark, especially the University of Delaware, by making them subject to a per-student semester tax even if they are otherwise tax exempt. The bill does not change statewide tax law generally, but it does alter the local charter powers of the City of Newark and could increase operating costs for affected institutions.
Sentiment
The voting history shows strong bipartisan support and no recorded opposition: the House passed the bill 39-0 and the Senate passed it 18-0. With no committee transcripts available, there is no documented floor or committee debate in the provided materials, but the unanimous votes suggest the measure was broadly accepted by both chambers. The lack of dissent indicates the bill was viewed as a straightforward local revenue authorization rather than a controversial statewide policy change.
Contention
The main substantive issue in the bill is the new tax on colleges and universities, particularly its application to tax-exempt public institutions such as the University of Delaware and its per-student, per-semester structure. Potential points of contention include whether the tax shifts costs onto students or institutions, whether it is appropriate to single out higher education for local taxation, and the requirement that payments be made through ACH rather than credit card. No formal opposition is reflected in the voting record, but these are the likely policy concerns raised by the bill’s design.
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