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Will plan to revamp incorporation law protect or damage Delaware’s $2B kingdom?

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Will plan to revamp incorporation law protect or damage Delaware’s B kingdom?


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In the parlance of Delaware political and legal insiders, “the franchise” is king.

Without the franchise, the state couldn’t pay for public schools, police, prisons, social and health programs, beach replenishment, farm preservation or so much more.

Without the franchise, taxes would be significantly higher, or the state would need to slash services.

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The franchise is Delaware’s system, which currently has 2.2 million businesses — and two-thirds of the Fortune 500 — incorporated in the nation’s second-smallest state. Amazon, JPMorgan Chase, Nvidia and the corporate parents of Google and Facebook and Instagram are among about 1,350 Large Corporate Filers who fork over $250,000 apiece in franchise taxes.

All told, those “incorporation revenues” are projected to directly generate $2 billion for the state treasury this year. That accounts for 29% of the state’s general fund revenue.

But today, fear is rampant in Delaware that the business-friendly franchise that some also call the “golden goose” is in serious danger of being cooked — that a mass corporate exodus or “DExit” is imminent.

Trepidation has grown over the last year since Elon Musk pulled Tesla and SpaceX out of Delaware and castigated the Delaware Chancery Court, which has long been considered the franchise’s crown jewel for its deft and reliable resolution of complicated business disputes.

“Absolute corruption,” Musk tweeted in December after the court’s chief judge rejected his $56 billion pay package from Tesla for the second time. The file-sharing platform Dropbox has announced it’s divorcing from Delaware, and other major companies such as Meta Platforms, the parent of social media giants Facebook and Instagram, say they might do the same.

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So this month, new Gov. Matt Meyer, legislative leaders and a cadre of legal luminaries decided to neutralize the perceived threat before it gains ground.

Together, they crafted a complex proposal to revamp Delaware corporate law by essentially making it tougher for shareholders to sue founders and top executives for perceived conflicts.

They did so, Meyer and others involved in the process say, to alleviate concerns they are hearing from the nation’s corporate community that Chancery Court has grown increasingly unfriendly to top execs like Musk in mega-dollar cases.

Meyer, a Democrat and lawyer who took office Jan. 21, echoed other supporters when the bill was introduced Feb. 17. “We will protect our reputation and continue Delaware’s tradition of a balanced and measured approach, and we will do so relentlessly,” Meyer said.

Meyer’s concern is magnified by the impact a DExit would have on balancing the $6.8 billion state budget and maintaining public services during his four-year term, especially at a time when President Donald Trump is trying to cut critical federal funding to states.

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Delaware needs and wants those $2 billion in incorporation revenues every year, plus a related $420 million the state gets from abandoned financial accounts at banks and other companies registered in the state, Meyer said.

“When one-third of your state’s budget is on the line and you’re eyeing down untold federal budget cuts, you have to make a choice: protect your residents or not. And I choose Delawareans every day,” Meyer said in an interview last week. “Any bill that helps improve our financial stability needs to be considered fully.”

Lawrence Hamermesh, professor emeritus at Widener University’s Delaware Law School and one of the bill’s drafters, said it will restore eroding confidence in corporate circles and prevent “catastrophic” cuts to the state budget.

“Unlike as long as I’ve been practicing and teaching corporate law, there is no longer the inclination to tell clients and to conclude that Delaware is the place to set up your corporation,” Hamermesh said. “That is potentially the source of a tipping point that would be devastating for the state and its taxpayers and workers and everybody here.”

The bill, which has bipartisan support that includes the Senate and House leadership, could become law within a month, said Delaware Senate Majority Leader Bryan Townsend, the chief sponsor.

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While the bill currently has no effective date — spurring speculation that it could be retroactive and change the result of cases involving Musk and other executives — state Sen. Townsend said it’s being modified so the effective date would be after it’s signed into law.



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State Police Investigating a Shots Fired Incident in Dover – Delaware State Police – State of Delaware

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State Police Investigating a Shots Fired Incident in Dover – Delaware State Police – State of Delaware


Date Posted: Sunday, November 2nd, 2025

Delaware State Police are investigating a shots fired complaint stemming from a road rage incident that occurred Saturday afternoon in Dover.

On November 1, 2025, at approximately 5:00 p.m., troopers responded to the area of North Dupont Highway, near Fork Branch Road, for a report of shots fired. The preliminary investigation revealed that as the victim was traveling southbound on North Dupont Highway, approaching Fork Branch Road, she drove around a slower moving pickup truck. While the victim was waiting at the red light on North Dupont Highway, at Fork Branch Road, the pickup truck stopped on the shoulder next to her. For reasons still under investigation, the driver of the pickup truck fired a single shot, striking the victim’s vehicle, then fled. The victim, a 56-year-old woman from Dover, Delaware, was not injured.

The fleeing vehicle was described as a dark colored pickup truck, pulling a trailer, which possibly displayed a Delaware registration plate on the trailer. The driver was described as a white male, with a slim build and facial hair, wearing a baseball hat.

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The Delaware State Police Troop 3 Criminal Investigations Unit continues to investigate this incident. Detectives are asking anyone who witnessed the incident or has relevant information to contact Detective S. Heitzman at (302) 698-8555. Information may also be provided by sending a private Facebook message to the Delaware State Police or contacting Delaware Crime Stoppers at 1-800-847-3333.

If you or someone you know is a victim or witness of a crime or have lost a loved one to a sudden death and need assistance, the Delaware State Police Victim Services Unit / Delaware Victim Center is available to offer you support and resources 24 hours a day through a toll-free hotline at 1-800-VICTIM-1 (1-800-842-8461). You may also email the Victim Services Unit at DSP_VictimServicesMail@delaware.gov.

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Delaware not quite up to FBS, Conference USA standards in 59-30 loss at Liberty

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Delaware not quite up to FBS, Conference USA standards in 59-30 loss at Liberty


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LYNCHBURG, Va. – For the first time this year, Delaware looked out of its league.

That was bound to happen at some point for the Blue Hens, first-year members of Conference USA and the Football Bowl Subdivision that they are.

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And it shouldn’t come as a great surprise that their exposure came on the campus of Liberty University, inside Williams Stadium, against a scenic Appalachian Mountains backdrop to the west.

It was truly a perfect college football setting in which Delaware’s imperfections were revealed.

That Liberty, who took an unbeaten record to the Fiesta Bowl just two years ago, was the opponent who uncovered the Blue Hens’ flaws was only a bit surprising. The Flames had not been their usual ferocious selves this year.

Based on its recent performances, it actually appeared Delaware had a prayer against the Flames.

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Those answered, however, were the exclusive domain of evangelically rooted Liberty on this day, which showed no mercy for each Delaware indiscretion in its 59-30 romp.

There were a multitude of those, including Delaware having to settle for three points instead of earning six or seven three times in the first half, with failed execution and penalties among the culprits there. It sent Delaware into halftime down 28-9.

And Liberty surely took advantage of each shortcoming while also running roughshod over the Blue Hens. Evan Dickens ran for a career-high 217 yards and four touchdowns, including his 72-scoring sprint on the second play of the second half.

It put Liberty ahead 35-9, which had to feel eerily familiar to the Blue Hens. They’d fallen behind 35-6 in their 38-25 loss at Jacksonville State Oct. 15.

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Delaware did appear more overmatched in this one, however, and again went about inflating its passing stats while playing catchup.

“It’s just an all-around butt whoopin’ is what it was,” coach Ryan Carty said afterward.

Particularly pivotal moments occurred in the second quarter. Down 14-6 with fourth-and-6 at its own 28, Delaware attempted a fake punt on which Gavin Moul took the snap and then pitched to K.T. Seay.

Liberty wasn’t fooled, dropping Seay for a 7-yard loss. The Flames scored two plays later to go up 14-6.

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“It was a terrible call in hindsight,” Carty said. “So that is what it is. Sometimes you make those  . . . It was just a well-defended play. But the look that we saw was conducive to it and the kid made a nice play, kind of ran right into it.”

Delaware did punt on its next series and almost had quarterback Ethan Vasko sacked on a third-and-8 at his 47 before he completed a 17-yard pass. Then, on a 19-yard catch that put Liberty at the 1, Seay appeared to have forced a fumble on which the ball hit the pylon – which would have been a touchback giving Delaware possession – but referees and replay officials ruled otherwise.

That was extremely pivotal. A touchdown there and another following an interception quickly put the Flames in command 28-6. It seemed like Delaware’s likelihood of winning had nearly vanished in an instant.

That’s where it’s important to remember that, as well as Delaware played to beat UConn and Florida International and nearly stun Western Kentucky, the Hens are first-year CUSA members. They’ve had one recruiting class and some transfer portal additions to build on what was already a very good FCS-level roster.

But this business of big-time college football is pitiless. Opportunity must be seized. Muscle and speed and smarts must be met with more of each.

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 And mistakes get magnified, especially against a foe as formidable as Liberty.

 On Nov. 1, they amplified the fact that, for Delaware, the 2025 seasons is an initiation and the Hens still have a lot to learn.

Contact Kevin Tresolini at ktresolini@delawareonline.com and follow on Twitter @kevintresolini. Support local journalism by subscribing to delawareonline.com and our DE Game Day newsletter.



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Delaware judge allows school districts to issue higher commercial tax rates

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Delaware judge allows school districts to issue higher commercial tax rates


What are journalists missing from the state of Delaware? What would you most like WHYY News to cover? Let us know.

The Delaware Court of Chancery threw out a lawsuit regarding recent New Castle County property reassessments, clearing the way for updated tax bills to go out in November.

The original post-assessment property tax bills were sent out in July. State lawmakers, reacting to massive backlash from homeowners facing high tax bills, approved a statute in an August special session that allowed county school districts to issue higher rates for commercial properties for the 2025-2026 tax year, similar to what the county and city of Wilmington had already implemented.

New Castle County school districts then promptly issued new tax warrants, with the tax rates for nonresidential properties climbing from 35% to 80%, while lowering rates for residential properties.

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Apartment trade organizations and mobile home operators challenged the new law in September, calling it unconstitutional. Chancery Court Vice Chancellor Lori Will heard arguments in the case on Oct. 20.

The plaintiffs had six arguments, including that the statute violated the state constitution’s uniformity clause, that it was “regressive” and that it unlawfully shifted the tax burden from homeowners onto lower-income renters and residents of manufactured homes. They also argued school districts illegally benefited from increased tax revenue without first holding a referendum.

Will rejected those arguments, saying the General Assembly has the authority to create and change classes of property.

Will said lawmakers’ concerns that homeowners would be less likely to be able to afford tax hikes than commercial properties was reasonable.

“Our constitution does not demand perfection from a tax system,” she wrote in her opinion. “To be unconstitutional, the system’s flaws must be pervasive and systemic, meaning that they are widespread and built into the system itself.”

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Will also dismissed plaintiffs’ surprise revelation in early October that New Castle County was moving to reclassify more than 1,400 properties, shifting more than $1 billion in assessed value from residential to commercial.

“The isolated examples of misclassification are correctable administrative errors, not evidence of a system deliberately designed to be non-uniform,” she wrote.



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