Businesses subject to the Hazardous Substance Cleanup Act should be aware that a new tax rate of 1.0429% will go into effect Jan. 1, 2020, the Delaware Department of Finance Division of Revenue announced.
This will apply to the taxable gross receipts from the sale of petroleum or petroleum products. The Division of Revenue will update its rate in its online system before the effective date of Jan. 1, 2020. The tax rate is currently 1.5244%, through Dec. 31.
Legislation was passed in 2018 calling for future rate increases to be based on a lookback period. These adjustable rates cannot be lower than 0.675% or greater than 1.675%, and are calculated by multiplying 0.9%, the original rate, by a fraction — the numerator of which is $15,000,000 and the denominator of which is the total collections in the fund during the lookback period, July 1 to June 30 of the prior year.
The HSCA was passed by the Delaware General Assembly in July 1990 to ensure funding for the cleanup of facilities with a release or imminent threat of release of hazardous substances. The Department of Natural Resources and Environmental Control has identified more than 700 sites in Delaware as potential hazardous substance release sites.
For more, call 577-8205.