When determining whether to pay the local service tax in Delaware, you should keep a few things in mind. For starters, you may not have to pay the tax in Wilmington and Newark, and rates are usually lower if the municipality provides the service. Another consideration is the format of the papers. These documents should be clearly spelled out and include the appropriate information.

Newark and Wilmington are exempt from local service tax

Delaware has several local service taxes. Some of them are exempt from the state sales tax, while others are imposed only on businesses. These local service taxes are based on the exact street address of the business. There is no minimum tax amount in Delaware, and residents are not required to pay them if they make less than $2,000 per year. Delaware also has a progressive income tax, with rates ranging from zero to 6.6 percent. In Wilmington, the income tax rate is 1.25 percent. Nonresidents of Wilmington do not pay this tax.

Newark and Wilmington are the only Delaware cities that do not charge local service taxes. This is because they have police forces managed by the city and not by the county. However, New Castle County has the highest local service tax on police operations, followed by Bellefonte and unincorporated areas. Wilmington is also predicted to have the biggest increase in taxes by 2023.

Rates are reduced if your municipality performs the service

Local service rates in Delaware are generally lower than national averages because Delaware municipal electric utilities are driven by the principles of good service and lowest cost, as well as by a local community mission and sound business practices. In addition, municipal utilities are not influenced by stockholders or profits. These factors have made municipal electric utilities a model of excellence in Delaware, and they are driving effective competition in the electricity market.

Format of Delaware Local Service papers

Delaware Local Service papers are available in a variety of formats. The Delaware Division of Corporations offers online forms in PDF format. You can save the forms on your computer or print them from your local printer. These forms meet accessibility standards and comply with 508 Federal Standards. The documents are free to download and print.