Big changes in Delaware with the new Legislature (Wilmington, Dover: sales, real estate)

[kanling]

Compared to other states, Delaware has always been a little bit odd in its laws. No sales tax and very corporate friendly laws are two of the biggest examples.

I always thought that these types of things make Delaware unique and attractive compared to the humdrum of surrounding states.

Does anybody expect any big changes now that the new state legislature is in session?

The reason I ask is that, prior to this session, the makeup of the legislature was pretty balanced between parties. Now the legislature leans very heavily to the left. Are some of Delaware's pro-business and low-tax laws going to be at risk?

[jim kelly sells]

i doubt we will see any major damage to delaware's low tax reputation but because the state has not reassessed property value in 3 decades, this may be one thing we might see, in an effort to achieve fairness primarily. real estate taxes are so low currently - even with a slight increase they will continue to be fantastic : ) jim

[doctorjef]

It might be of historical interest to know that by the late 19th Century Delaware was actually WAY behind every other state in its corporate law -- incorporation was still strictly a prerogative of the state legislature and granted by legislative charter. As a result, DE was losing potential revenue to other states where the incorporation process was a lot more user-friendly. Some visionary DE statemen were able to turn this process around entirely, so that DE became the nation's leader in incorporation and and international corporate home.

As regards the sales tax, DE is now one of only three states without one, but before mid-20th century state sales tax laws were less pervasive than they have now become.

In terms of peculiar laws, DE was the last state to abolish the pillory, early in the 20th Century, and flogging as a punishment in the 1950's.

[kanling]

I doubt we can expect that flogging will be brought back. Although it would probably be amusing to see a public flogging once.

I wonder what effect Joe Biden will have on Delaware as a VP. There might be extra federal spending in the state. Maybe some growth for Dover AFB or federal agencies moving to Wilmington.

[doctorjef]

The State of Delaware puts constant effort into tweaking its corporation law to keep it internationally competitive. I don't believe that will change. The bigger danger is that other jurisdictions will be making ever-increasing efforts to overtake Delaware in that respect.

I don't think the Obama-Biden administration will be able to do much to help DE specifically, relative to the other 49 states, without incurring serious criticism, especially given Obama's pledge of "no earmarks" in the federal stimulus packages. Any special perks that DE gets will have to be very carefully justified. While it doesn't hurt to have Biden as VP, I'm not sure how much he will really be able to help.

I think property taxes will have to go up some and the state may find some new things to slap fees on or adjust existing fees upwards. I still think DE will have a low tax burden compared to other states in the NE.

[jskirwin]

As one of the state's few remaining Republicans I've often been quite amused by the hypocrisy of Delaware's Democratic politicians. For example both Carper and Biden sponsored the 2005 Bankruptcy Reform which was a complete giveaway to the credit card banks at the expense of consumers. The "reform" made it more difficult for borrowers to protect their homes from creditors. Now since foreclosures are on the rise there's already talk about reforming the "reform".

Delaware's Democratic party may talk the "progressive" talk, but its actions are quite pro-business and will no doubt remain so for the near future.

[rickmur]

De has all thier revenue in one pot, the transfer tax on houseing. When the bottom fell out of the houseing market it sent De realing. That has to be looked at real hard for De to survive.