Sections 1 and 7 of this Act update from $400 to $800 the threshold which triggers the penalty for insufficient payment of estimated tax. The current threshold has been in place since 2000. Because it has not been modified in almost 20-years, the penalties generated as a result of this low threshold are often trivial amounts, which frustrate taxpayers. However, despite the penalties’ low dollar amounts, they still require significant resources to administer and resolve. Sections 1and 7 also provide for an inflation adjustment for the threshold ensuring that it will automatically keep pace with future economic trends. Section 2 of this Act increases tax rates in all existing brackets by 0.15 to 0.4 percentage points and creates a new bracket of 6.95% at $150,000. Section 3 of this Act raises the eligibility age from 60 to 65 in one-year increments over a five-year period for the $12,500 exclusion from income of pensions and other retirement income. Section 4 of this Act eliminates itemized deductions and increases the standard deduction amount from $3,250 to $5,000 for single and married taxpayers filing separately and from $6,500 to $10,000 for taxpayers filing joint returns. In addition, Section 4 reduces from $110 to $85 the amount of the personal credit. Lastly, Section 4 raises the eligibility age from 60 to 65 in one-year increments over a five-year period for the extra, age-based personal credit. Sections 5 and 6 of this Act update cross references.
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This Act provides judicial economy in the disposition of Driving Under the Influence (“DUI”) offenses by providing a trial for misdemeanor DUI offenses only in the Court of Common Pleas. This Act permits the Justice of the Peace Court to accept guilty pleas and first offender elections. This Act also requires that any offense properly joined with a DUI offense remains so joined for the purpose of trial. Under current Delaware law, all cases are initiated in the Justice of the Peace Court for the purposes of setting bail. On June 30, 2017, the State’s ability to transfer these cases, provided by House Bill 277 of the 147th General Assembly, sunsets. Thereafter, in matters over which the Justice of the Peace and the Court of Common Pleas have concurrent jurisdiction, only the defendant has a statutory right and mechanism (11 Del. C. § 5303) to transfer to the Court of Common Pleas. A single track for the disposition of DUI offenses also provides a mechanism for all DUI offenders to be considered for the specialized, treatment-focused post-adjudication “DUI Court” in the Court of Common Pleas.
Since 1996, students across Delaware have participated in school choice. Currently, reorganized school districts, vocational technical school districts, and charter schools do not follow the same processes thus causing confusion and barriers for families seeking to access choice for their children. This Act aims to streamline the school choice process, making it easier and clearer for parents, guardians, and school administrators to navigate. This Act requires reorganized school districts, vocational-technical school districts, and charter schools to use a standard online application receipt and processing tool approved by the Department that is offered at no charge. It also clarifies that the application deadlines apply to all students, regardless of age or school. Additionally, it will prohibit schools from asking for additional information that does not directly pertain to an enrollment or program criterion. The bill will make the timing uniform for the ranked waitlist process. It aligns the sibling preference across all school types and eliminates the separate charter school April 1st enrollment requirement of 80% and moving to May 1st to allow for parents to make a final, informed decision. Under this bill, in the event of a mid-year termination of a pupil’s enrollment, the sending reorganized school district, vocational-technical school district, or charter school and the receiving reorganized school district, vocational-technical school district, or charter school shall enter into an agreement providing for the pro-ration of student funding based on a formula prescribed by the DDOE.
This Act replaces the current multistate nurse licensure compact with an enhanced version. The enhanced Nurse Licensure Compact allows for registered nurses and licensed practical nurses to have one multistate license, with the privilege to practice in their home state and other compact states. Under the enhanced version, all nurses practicing under a multistate license must meet a minimum set of licensure requirements, including a fingerprint federal criminal background check. Nurses who fail to meet these requirements will not be eligible for a multistate license, and multistate privileges will be removed from nurses when disciplinary actions are taken against a home state multistate license. If Delaware fails to enact the enhanced nurse multistate licensure compact, Delaware nurses with current multistate licenses will no longer be permitted to practice in states that have enacted the enhanced version. Currently, 13 states have adopted this enhanced Compact and legislation to adopt it is pending in 15 other states.
Recognizing a fundamental economic change toward businesses that require innovation, The Honorable John C. Carney, Governor of the State of Delaware, issued Executive Order One on January 18, 2017 creating a Working Group of business and government leaders to study methods to improve coordination between the public and private sectors, attract growing businesses and foster economic development throughout the State. The Governor appointed members of the Working Group representing government, business leaders and the community. The Working Group conducted public meetings in the State to receive input from the public on issues related to business development and retention in the changing economy. The Working Group considered research and input from experts in the area of public/private partnerships as well as statutes and data from other states. The Working Group issued a report to the Governor on April 7, 2017 recommending the establishment of a public/private partnership in Delaware to focus on investment attraction, entrepreneurship and innovation, talent development and retention, and research and analysis. Upon consideration of the Working Group report, the General Assembly intends to appropriate funding for the Public/Private Partnership, a nonprofit public/private partnership comprised of leaders in the public, business and the community to build a stronger entrepreneurial environment in the State. The Public/Private Partnership will focus on leveraging private resources to improve business recruitment, retention and expansion, identify and develop a talented workforce, connecting with the global economy and building a stronger entrepreneurial environment. To ensure public accountability the Partnership will submit to the Governor and the General Assembly tax returns, financial statements, organizational polices and will make available for inspection meeting minutes. To make the most efficient use of available resources, this legislation eliminates the Delaware Economic Development Office because the public/private partnership will be conducting business attraction and development functions formerly performed by that Office. This legislation transfers tourism, the Delaware Motion Picture and Television Commission and duties related to administration and the financial analysis of proposed economic development projects to the Department of State. The transfer will improve efficiency, eliminate redundancy and foster business attraction, innovation, tourism, small business development, business retention, minority, women, disadvantaged and veteran owned businesses. Sections 3 through 21 of this Act simply make conforming changes throughout Title 29 and other titles of the Delaware Code where references to the Delaware Economic Development Office appear. The Division of Small Business, Development and Tourism is referenced in its place. The bill also removes some Code Sections that reference funds and functions that no longer exist.
This Act authorizes a court to impose as a condition of bail that a person charged with misdemeanor Driving Under the Influence not be permitted to drive a vehicle. This Act also allows the Justice of the Peace Court to retain jurisdiction to impose, modify and enforce bail conditions for misdemeanor Driving Under the Influence offenders even after the case is transferred to the Court of Common Pleas for trial. This Act further authorizes the Justice of the Peace Court to impose bail conditions including abstinence from alcohol or drugs and monitoring necessary to ensure compliance with such condition.
This bill clarifies that the Division of Forensic Science can set reasonable fees in its regulations related to the issuance of any postmortem record, cremation permit, or statistics, which are services it currently provides at no cost. The collection of such fees is consistent with laws in other state jurisdictions.
This bill creates two new tax brackets at $125,000 with a rate of 7.10%, and $250,000 with a rate of 7.85%. Also, the bill provides a tiered reduction of the otherwise available itemized deduction based upon the individual's taxable income.
This bill makes the lodging tax apply to all hotels, motels, tourist homes, and short-term rentals. Short-term rentals are defined as being a room, dwelling, unit, or campground site being rented to overnight guests for a period of 120 days or less for any calendar year and the room or unit is not the owner’s permanent residence.
This bill lowers the current tax rate by .05% for each bracket. The bill creates a new tax bracket at $125,000 with a rate of 7.05% and an additional bracket at $250,000 with a rate of 7.80%. The bill also provides a tiered reduction of the otherwise available itemized deduction based upon the individual's taxable income.