Markell signs corporate tax overhaul

Gov. Jack Markell signed Wednesday a bill to overhaul the state's corporate income taxes after leaders of both parties hustled it through the legislature in the first weeks of the legislative session.

"I really appreciate the great leadership of the General Assembly to approve this in such a timely manner," Markell said before signing the bill in his office in Legislative Hall. "We always need to be looking at how we can be making Delaware as competitive as possible."

The new law, endorsed by business leaders, changes the way companies' income taxes are calculated. Previously, the rate was figured based on a company's property, employees and sales in Delaware compared to the rest of the world — now it will  be based on sales alone.

It also changes the way that small businesses pay their taxes, allowing businesses to pay their taxes in more, smaller increments and making it so more businesses can file tax data quarterly instead of monthly.

The law is estimated to cost the state about $8.2 million in the next fiscal year and $48.7 million over the next three years, but state leaders hope to recoup some of that because of new hiring. The new law's supporters say it will help the state compete for jobs against its neighbors that already made the change.

No one voted against the bill the Senate, and two members of the House of Representatives opposed it.

Contact Matthew Albright at malbright@delawareonline.com, (302) 324-2428 or on Twitter @TNJ_malbright.