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HB 34

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.

153rd General Assembly (2025-2026) Introduced by Mara Gorman and 5 co-sponsors

Newark gains authority to tax colleges and universities within city limits to increase municipal revenue from previously tax-exempt institutions.

Signed by Governor
0
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Bill Summary · HB 34

Legislative bill overview

HB 34 amends Newark's city charter to grant the city authority to impose a new tax on colleges and universities operating within its boundaries. This expands Newark's existing tax powers to generate revenue from its higher education institutions, which currently enjoy tax-exempt status under state law.

Why is this important

Newark is home to several major universities that occupy significant land area and use city services (police, fire, infrastructure) without contributing property tax revenue. This bill allows the city to recoup some costs associated with serving these institutions and could generate meaningful municipal revenue. The outcome sets a precedent for how Delaware cities can fund services while balancing relationships with educational anchors.

Potential points of contention

  • Burden on affordability: Colleges may pass tax costs to students through higher tuition, potentially reducing educational access for low-income students
  • Tax base competition: Universities might relocate or expand operations in neighboring jurisdictions without similar taxes, harming Newark's economic position
  • Implementation details unclear: The bill authorizes taxation but doesn't specify tax rates, exemptions, or assessment methods, leaving significant regulatory power to the city
  • Nonprofit mission conflict: Some argue taxing educational institutions contradicts their public benefit status and charitable missions

Compiled from official sources — confirm details with the bill’s official record.

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