Del. lawmakers, Governor Carney announce plan to provide economic relief payments to taxpayers
DOVER, Del. – Lawmakers and Governor John Carney have announced a plan that would provide direct economic relief to Delaware taxpayers this spring.
The relief plan would send $300 in direct payments to every Delawarean who filed a 2020 tax return, which is the most recent tax year where returns are available. Legislation is being drafted to enable the relief payments and is expected to be introduced during the upcoming session break and considered when the General Assembly returns in April.
The global pandemic that began two years ago led to record unemployment numbers and severe economic hardships for thousands of families in the first state. As the state and country have gone through a historic economic recovery, national inflation has risen significantly.
Additionally, as gas prices have climed well above $4 per gallon, lawmakers considered a gas tax holiday, however they say that tax revenue from the gas tax is pledged to bonds in the Transportation Trust Fund, making a holiday difficult because the state would be in immediate default of its bond agreements. We’re also told that there is no guarantee that the entire savings would be passed onto the consumer, nor would a gas tax holiday help lower income residents who rely on public transportation.
Providing a $300 rebate for each of the more than 600,000 Delawareans who filed a 2020 tax return would cost roughly $186.6 million, officials say. The relief rebate would provide a direct payment to residents and allow them to use those funds to offset additional expenses.
Earlier this week, the Delaware Economic and Financial Advisory Council met to review updated revenue projections for the current fiscal year 2022. We’re told they are projecting an additional $206 million in revenue for this fiscal year above previous estimates, which would be used to fully fund the rebate program.