Delaware News


New HSCA Rate Goes Into Effect In January

Department of Finance | Division of Revenue | Date Posted: Friday, December 3, 2021


Picture of the Delaware Division of Revenue logo

FOR IMMEDIATE RELEASE

 

REVENUE ANNOUNCES NEW HSCA RATE
EFFECTIVE JANUARY 2022

Statewide, DE (December 3, 2021) – Division of Revenue Director Jennifer Noel today announced that businesses subject to the Hazardous Substance Cleanup Act (HSCA) will see an increase in last year’s rate from 0.9067% to 1.675%. The new tax rate will go into effect on January 1, 2022, and will apply to taxable gross receipts from the sale of petroleum or petroleum products.

Legislation was passed in 2018 calling for future rate increases to be based on a lookback period. The adjustable rates cannot be lower than 0.675% or greater than 1.675%, and are calculated by multiplying 0.9% (the original rate) by a fraction – the numerator of which is $15,000,000 and the denominator of which is the total collections in the fund during the lookback period (July 1 to June 30 of the prior year).

 

The HSCA was passed by the Delaware General Assembly in July of 1990 to ensure funding for the cleanup of facilities with a release or imminent threat of release of hazardous substances. The Department of Natural Resources and Environmental Control has identified over 700 sites in Delaware as potential hazardous substance release sites.

 

If you have questions about the new adjustable tax rate, please contact the Delaware Division of Revenue at (302) 577-8205.

 

 

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Public Information Officer

Delaware Department of Finance
Division of Revenue

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New HSCA Rate Goes Into Effect In January

Department of Finance | Division of Revenue | Date Posted: Friday, December 3, 2021


Picture of the Delaware Division of Revenue logo

FOR IMMEDIATE RELEASE

 

REVENUE ANNOUNCES NEW HSCA RATE
EFFECTIVE JANUARY 2022

Statewide, DE (December 3, 2021) – Division of Revenue Director Jennifer Noel today announced that businesses subject to the Hazardous Substance Cleanup Act (HSCA) will see an increase in last year’s rate from 0.9067% to 1.675%. The new tax rate will go into effect on January 1, 2022, and will apply to taxable gross receipts from the sale of petroleum or petroleum products.

Legislation was passed in 2018 calling for future rate increases to be based on a lookback period. The adjustable rates cannot be lower than 0.675% or greater than 1.675%, and are calculated by multiplying 0.9% (the original rate) by a fraction – the numerator of which is $15,000,000 and the denominator of which is the total collections in the fund during the lookback period (July 1 to June 30 of the prior year).

 

The HSCA was passed by the Delaware General Assembly in July of 1990 to ensure funding for the cleanup of facilities with a release or imminent threat of release of hazardous substances. The Department of Natural Resources and Environmental Control has identified over 700 sites in Delaware as potential hazardous substance release sites.

 

If you have questions about the new adjustable tax rate, please contact the Delaware Division of Revenue at (302) 577-8205.

 

 

###

 

Public Information Officer

Delaware Department of Finance
Division of Revenue

image_printPrint

Related Topics:  , , , , , ,


Graphic that represents delaware news on a mobile phone

Keep up to date by receiving a daily digest email, around noon, of current news release posts from state agencies on news.delaware.gov.

Here you can subscribe to future news updates.