Delaware
Delaware’s proposal to raise tobacco taxes could hurt low-income residents
Excise taxes versus other types of taxes
Adam Hoffer is director of excise tax policy at the Tax Foundation, a nonpartisan tax policy nonprofit organization.
He said excise taxes are different from broad funding sources like income taxes, sales taxes and property taxes, because they are specialty charges put on a targeted set of goods.
Tobacco, alcohol and fuel have been historically known as the “big three” excise taxes, but it has widened over recent years to include recreational marijuana products and sports betting.
Hoffer and other tax policy experts say one of the concerns with states relying on excise taxes is that they generate the most amount of money from the people who can least afford it.
“Almost all products that receive an excise tax are more heavily consumed by lower-income Americans,” he said. “So when we tax them, those taxes are regressive.”
Aleks Casper, director of advocacy for the American Lung Association, said they endorse states using tax increases for so-called “sin” products like tobacco, in the hopes it will drive people to change their behavior. She said they are not concerned that the price increase would hit lower-income Delawareans.
“If you look at the history of where tobacco and tobacco companies have historically marketed and targeted, it is many times those low-income communities that already suffered disproportionately from smoking-caused disease, disability and death,” she said.
She said her organization is focused on public health benefits, not on the possible revenue generating aspect of raising tobacco costs. Meyer said on WHYY’s and Delaware Public Media’s “Ask Governor Meyer” call-in show last week that he believes the state would save money if higher prices cause fewer people to smoke.
“The more people that use tobacco, the worse it is for our health care system and it increases the cost of health care,” he said.
But Hoffer said he doesn’t believe using regressive taxation to force behavior change is effective.
“If you’re trying to improve the lives, especially of lower-income households, then regressive taxes, by their definition, make that really hard to accomplish,” he said. “Because you’re going to make a lot of those households worse off because you’re taxing them more heavily.”
Hoffer said tobacco tax revenue can also be unreliable to fund an entire state government because the number of smokers in Delaware and across the U.S. has been dwindling for the past several years.
“Over the past 60 years, we’ve seen fewer people smoke each and every year,” Hoffer said. “This is an overwhelming win for public health and [the] health of American consumers, but as states have become more and more reliant on cigarette tax revenue, then they start facing bigger and bigger challenges, because it’s a shrinking tax base.”
In fiscal year 2025, Delaware collected $87.5 million in cigarette taxes, compared with $92.4 million in fiscal 24.
Last year, Meyer proposed making the state’s income tax brackets more progressive by making people earning more than $600,000 a year pay a higher rate than someone making $60,000. But legislation attempting to do that failed to garner the necessary political support in the General Assembly.
Delaware
Same-sex marriage protection takes next step toward Delaware Constitution
‘Find joy’: Trans Delawareans share their stories in Pride Month 2025
Despite challenging political times for many, transgender Delawareans shared snapshots of their stories and living as true selves in Pride Month 2025.
An amendment to enshrine the right to marry in the Delaware Constitution advanced March 11, clearing the House Administration Committee and moving closer to completing its first of two legislative hurdles.
Backed by state Sen. Russ Huxtable, the proposed amendment would recognize the right of individuals to marry as “a fundamental right.”
It adds that such rights may not be abridged or denied “on account of any basis protected” in Delaware’s most sacred legislative document, according to the bill pushing it forward. That includes race, sex, gender or national origin, to name a few. The amendment would also not “infringe upon the right to freedom of religion.”
Should this become law, all legally binding marriages under Delaware law “must be treated equally.” That also includes laws pertaining to married spouses or children of wedded spouses.
Delaware already legalized same-sex marriage in 2013 – two years before the U.S. Supreme Court made its historical decision in the case Obergefell v. Hodges.
Huxtable has previously cited ongoing efforts “rolling back” protections related to marriage equality nationwide, and he felt state legislators must now “take the next step” to enshrine it.
The bill already cleared through the Senate last year. Next, it will make its way to the House floor. Just like in the Senate, it will need two-thirds majority support to pass.
Then its legislative journey isn’t over yet.
Because this is just the first leg, it will also require passage in the next, newly minted General Assembly to make it to the state constitution.
Olivia Montes covers state government and community impact for Delaware Online/The News Journal. If you have a tip or a story idea, reach out to her at omontes@delawareonline.com.
Delaware
Crews respond to kayakers in distress along the Delaware River
Emergency crews responded to kayakers who were in need of help along the Delaware River on Tuesday.
According to the New Hope Eagle Volunteer Fire Company, on Tuesday, March 10, at 3:33 p.m., crews were alerted about a report of at least two kayakers in distress in the area of the Delaware River wing dam.
Officials said that while crews responded, additional calls came in that one person had reached shore, but the second person had drifted downstream and was out of sight in the fast-moving water.
Based on that information, officials said some crews headed for the ramp at Fireman’s Eddy off of Route 29 in Hunterdon County, New Jersey, while another set of crews went to the park near Bowman’s Tower on River Road.
Officials said one person was found with both kayaks on the New Jersey shoreline, and he did not require any help.
The other person was found by crews near a boat ramp, after officials said he had swam to shore.
“With this quick burst of spring-like weather, never underestimate the power of moving water,” officials wrote. “With the recent rain and snowmelt, the river is running high and fast. And the water is still cold! Being in the water draws heat from your body about twenty-five times faster than air of the same temperature. Hypothermia only adds to the dangers this time of year.”
Delaware
New Castle County Council finally votes on data center regulations
Is a data center coming to Delaware City?
A large data center project is in the approval process in New Castle County. County Council is deciding how to regulate them.
New Castle County Council approved regulations on the development of data centers Tuesday night.
They won’t apply to the massive proposed data center complex of Project Washington, which continues to fight through state-level objections.
The County Council meeting was standing room only. The crowd of both construction workers supporting the legislation and community members opposing it spread into the lobby of the Louis Redding City/County Building.
The ordinance requires data centers to have a closed-loop water cooling system to limit its water use and creates a 1,000-foot buffer between data centers and residential areas, with an exception for 500-foot buffers if a development can follow noise regulations. It also defaults to existing county limits on noise and lighting levels.
A unanimously approved amendment from Pike Creek representative Timothy Sheldon clarified that these new regulations count for applications submitted after this gets adopted and approved by County Executive Marcus Henry, unless an existing applicant requests to follow these new regulations.
It passed with 12 ‘yes’ votes, with Councilmember Jea P. Street absent from the vote itself.
This was the only amendment left standing. An amendment from Janet Kilpatrick, representing Hockessin, would have grandfathered existing data centers from the ordinance, clarifying that any pending proposal in the county wouldn’t be affected. Another amendment, from Claymont representative John Cartier, would’ve made the ordinance retroactive to count for Project Washington and others. Both were withdrawn at the meeting in a council compromise.
Project Washington’s plans north of Delaware City kicked local data center dialogue into high gear in 2025. The data center project would include 11 two-story data center buildings surrounded by electrical fields on two large land parcels accessible by Hamburg Road, Governor Lea Road and River Road.
It would be 6 million square feet of data center running 24 hours a day, seven days week.
The project’s developer, Starwood Digital Ventures, pledges job creation and and a colossal injection of tax revenue into the coffers of the county and Colonial School District. They said this will bring about 3,500 construction jobs and retain 700 permanent jobs to keep the facility up and running.
County Council member Dave Carter has spent months drafting the regulations that were voted on during this meeting. This is substitute number three on the original bill from August 2025, including compromises on noise and lighting restrictions. Carter wants sensible data center regulation in the county, and he told Delaware Online/The News Journal in March he thinks Project Washington is a “bad deal” for the state.
He thinks the potential demand on the state’s already strained electrical bid will hurt residents’ bills. He also disputes the developers’ promises on permanent jobs and tax revenue.
“We just have to really be cognizant and thoughtful and make sure that we are ensuring that we protect our communities, and that we manage these things well if they are coming,” Carter said at the meeting.
It hasn’t been an easy sell to the rest of County Council. Council member Janet Kilpatrick, who represents Hockessin, wanted consistent regulations on lighting and noise levels to avoid scaring off potential business. Data centers have sprung up across the country as the highly demanding AI industry exploded in popularity.
“If we don’t have some stability, these people are not going to be able to go through a lender to get money, and so that means that they leave, and I’m sure that there’s a group of people in this room that would love to see them leave, but that’s not how we build economic development,” she said at the meeting. “Part of what we need, in my mind, in economic development is that we have a stable land use code.”
Although this doesn’t apply to the controversial Project Washington, County Council will still have a say on the re-zoning of half of the project’s land. The County Board of Adjustment will also have to approve its electrical switch station, Culver said.
At the meeting, residents showed up with mainly negative comments for Project Washington. But, members of trade unions showed up in support of the project’s potential to create construction jobs.
Starwood Digital Ventures will continue to move through the approval process with no changes to Project Washington, according to Jim Lamb, who is handling media for the project.
“We’re really happy there’s a consensus within the council and it’s a really great opportunity for the residents of New Castle County,” Lamb said Tuesday night.
Now this goes to County Executive Marcus Henry’s office, who can sign or veto these regulations.
Half of Project Washington’s proposed land still needs a re-zone, which requires council approval. The project was stifled by DNREC, who ruled the proposal’s size, use and backup diesel generators violate the decades-old Coastal Zone Act.
Starwood Digital Ventures disagrees, and filed and appeal, saying the state environmental agency didn’t classify the project correctly and said it “solely focuses on alleged environmental risk and worst-case emissions, and does not fairly weigh or explain these countervailing factors in light of regulating criteria.”
The appeal’s hearing is in Dover and begins on March 24.
Shane Brennan covers Wilmington and other Delaware issues. Reach out with ideas, tips or feedback at slbrennan@delawareonline.com.
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