DelawareHB 34 w/ HA 1153rd General Assembly (2024–2026)HouseWALLET

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.

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 1 benefits, 6 costs, 1 mixed.

Small property tax break for seniors

The City can exempt up to $5,000 of a home's assessed value. To qualify, the owner must be over 65 and have income of $3,000 or less per year. The council sets how income is defined by ordinance.

Newark property taxes up to 2%

The City can tax assessable, taxable real estate up to 2% of its assessed value each year. The City may also add taxes needed to pay bonded debt on top of that cap. This applies only to taxable property inside Newark.

City can change utility rates

The City can set rates for city-run utilities and impose sewer rental charges. These charges can raise household and business bills. The City uses the revenue for city purposes.

Licenses and fees for traveling shows

The City may require traveling shows and other businesses to get licenses or permits. It can charge fees and control their use of city property. This can raise costs for small businesses and performers.

New per-student tax on Newark colleges

Newark can tax any college or university that hosts in-person classes in the city. The City may charge up to $50 per student each fall and up to $50 each spring for full- or part-time undergrad or grad students in Newark classes. This applies to all schools, including state agencies and the University of Delaware. Starting January 1, 2026, the City may raise the amount once a year by up to the CPI-U percent change for Philadelphia–Camden–Wilmington. Colleges must pay by ACH or another method the City Manager approves; credit cards are not allowed.

Tax on utility poles and lines

The City can tax owners or lessees of gas mains, water lines, telephone power poles, and similar structures in Newark. The tax can include attached or underground wires, cables, and equipment. Unpaid amounts can be collected like other city taxes.

Up to 3% Newark hotel tax

The City can add up to a 3% tax on room rent at hotels, motels, and tourist homes in Newark. This is in addition to the State lodging tax. Guests pay it when a room is rented.

Early tax discounts and late penalties

The City can offer discounts if you pay city taxes early. It can set penalties and forfeitures for late payment. The council also sets rules to decide which properties are exempt from city taxes.

Sponsors & Cosponsors

Sponsor

Cyndie Romer
Democratic • House

Cosponsors

Frank Burns
Democratic • House
Mara Gorman
Democratic • House
Eric Morrison
Democratic • House
Edward S. Osienski
Democratic • House
David P. Sokola
Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 58 • No: 0

Senate vote • 5/22/2025

Passed (2/3 required)

Yes: 19 • No: 0

House vote • 4/15/2025