HB34 • 2025

AN ACT TO AMEND THE CHARTER OF THE CITY OF NEWARK AUTHORIZING THE CITY OF NEWARK TO LEVY A TAX ON COLLEGES AND UNIVERSITIES WITHIN THE CITY OF NEWARK.

Education Taxes

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Romer
Last action: 2025-06-24
Official status: Signed 6/24/25
Effective date: Not listed

Plain English Breakdown

The effective date is listed as blank in the metadata; while digest text suggests it becomes effective upon signature unless specified otherwise, the specific start date for tax collection (vs. adjustment) remains open to interpretation until further ordinance.

New Tax on Colleges in Newark

This law changes the City of Newark's rules to allow it to charge colleges and universities up to $50 per student, per semester for classes held inside city limits.

What This Bill Does

Allows the City Council to collect a tax of up to $50 for each full-time or part-time undergraduate or postgraduate student enrolled in fall or spring semesters taking in-person classes located within Newark.
Applies this tax to all colleges and universities, including state agencies and groups that are usually exempt from taxes, such as the University of Delaware.
Sets a rule that the tax amount can be adjusted annually starting January 1, 2026, based on changes in the Consumer Price Index for Urban Consumers (Philadelphia-Camden-Wilmington), with increases not exceeding the index change over the previous twelve months.
Limits how colleges pay this tax by banning credit card payments and requiring use of the Automated Clearing House (ACH) network or other approved methods.

Who It Names or Affects

Colleges and universities that host in-person classes within Newark city boundaries
Full-time and part-time undergraduate or postgraduate students enrolled in those specific classes inside the city limits

Terms To Know

Charter Amendment: A change to the official rules that govern how a city operates.
Consumer Price Index (CPI-U): A measure of price changes for goods and services used to adjust tax amounts over time, specifically using data from Philadelphia-Camden-Wilmington.
Automated Clearing House (ACH): An electronic network that moves money directly between bank accounts, required instead of credit cards for this tax payment.

Limits and Unknowns

The official text does not specify the exact effective date beyond noting adjustments start on January 1, 2026.
It is unclear how many students or schools will be subject to this tax until enrollment data for Newark classes is collected.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HA 1

1 • Collins

Passed 4/15/25

Plain English: This amendment stops a plan that would have automatically raised the new college and university tax every year based on inflation.

It deletes the rule requiring the annual tax to be adjusted using the Consumer Price Index (CPI-U).
It removes the instruction for these adjustments to start on January 1, 2026.

Bill History

2025-06-24 Delaware General Assembly
Signed by Governor
2025-05-22 Delaware General Assembly
Passed By Senate. Votes: 19 YES 2 ABSENT
2025-05-14 Delaware General Assembly
Reported Out of Committee (Elections & Government Affairs) in Senate with 1 Favorable, 3 On Its Merits
2025-04-15 Delaware General Assembly
Amendment HA 1 to HB 34 - Passed In House by Voice Vote
2025-04-15 Delaware General Assembly
Passed By House. Votes: 39 YES 1 NOT VOTING 1 ABSENT
2025-04-15 Delaware General Assembly
Assigned to Elections & Government Affairs Committee in Senate
2025-03-12 Delaware General Assembly
Reported Out of Committee (Administration) in House with 1 Favorable, 3 On Its Merits, 1 Unfavorable
2025-01-09 Delaware General Assembly
Introduced and Assigned to Administration Committee in House

Official Summary Text

AN ACT TO AMEND THE CHARTER OF THE CITY OF NEWARK AUTHORIZING THE CITY OF NEWARK TO LEVY A TAX ON COLLEGES AND UNIVERSITIES WITHIN THE CITY OF NEWARK.
This Act amends the Newark Charter by authorizing the City of Newark to levy and collect a per student, per semester tax on Colleges and Universities that host in person classes which are located within the boundaries of the City of Newark. This tax applies to all colleges and universities including any organizations that are considered subdivisions or agencies of the State of Delaware or are otherwise tax exempt, including but not limited to the University of Delaware. The amount of the tax will be adjusted annually in an amount not to exceed the change in the Consumer Price Index for all Urban Consumers (Philadelphia-Camden-Wilmington, not seasonally adjusted). It also limits the available payment methods to restrict the use of credit cards for the payment of the aforementioned tax. This Act requires a greater than majority vote for passage because § 1 of Article IX of the Delaware Constitution requires the affirmative vote of two-thirds of the members elected to each house of the General Assembly to amend a municipal charter.

Current Bill Text

Read the full stored bill text

Legislation Document

SPONSOR:

Rep. Romer & Rep. Gorman & Rep. Osienski & Sen. Sokola

Reps. Burns, Morrison

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE BILL NO. 34

AN ACT TO AMEND THE CHARTER OF THE CITY OF NEWARK AUTHORIZING THE CITY OF NEWARK TO LEVY A TAX ON COLLEGES AND UNIVERSITIES WITHIN THE CITY OF NEWARK.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Two-thirds of all members elected to each house thereof concurring therein):

Section 1. Amend Section 404 of the Charter of the City of Newark by making deletions as shown by strike through and insertions as shown by underline as follows:

404 - - POWER TO RAISE REVENUE.

The council shall have the power to levy and collect taxes on real property within the city, except that which is not assessable and taxable by virtue of any law of the State of Delaware, which shall not be more than two (2) per cent of the assessed valuation of the assessable and taxable real estate within the city in any year clear of all delinquencies and expenses of collection; provided, however, in addition thereto, the council shall have the power to levy the taxes necessary to service the bonded indebtedness of the city.

The council shall have the right to grant or refuse, and to charge fees for licenses or permits for traveling shows and other businesses of any description within the city and to control their use of any property within the city.

The council shall have the power to levy and collect franchise fees and to impose sewer rentals on sanitary sewers.

The council shall have the power by ordinance to allow discounts for early payment of taxes, to impose reasonable penalties and forfeitures for tax delinquencies, and to review and determine proper and appropriate properties to be exempt from taxation. The council shall have the power by ordinance to exempt from taxation not more than five thousand dollars ($5,000.00) of assessed value of real property of persons over sixty-five (65) years of age whose income does not exceed three thousand dollars ($3,000.00) per annum, as defined by ordinance.

The council shall have the power to fix the rates for utilities operated by the city and to collect and utilize revenues from such utilities for the benefit of the city.

The council shall have the right to levy and collect taxes upon all gas mains, water lines and telephone power poles or other erections of like character erected within the limits of the City of Newark, together with the wires, cables and appliances thereto or thereon attached, as well as such wires, cables and appliances which may be installed underground, and to this end may, at any time, direct the same to be included in or added to the city assessment. In case the owner or lessee of such poles or erections and such wires, cables and appliances shall refuse or neglect to pay the taxes that may be levied thereon, the said taxes may be collected as in the case of other taxes.

The council shall have the right to impose a lodging tax of no more than 3 percent of the rent, in addition to the amount imposed by the State, for any room or rooms in a hotel, motel or tourist home, as defined in §6101 of Title 30, which is located within the boundaries of the City Newark.

The council shall have the right to levy and collect a tax from any college or university that hosts in-person classes located within the boundaries of the City of Newark in an amount of up to $50 for each fall and each spring semester, per full or part time undergraduate or postgraduate student. This tax only applies to such students of a college or university enrolled in classes taking place within the City of Newark and is applicable to all colleges and universities including any organizations that are considered subdivisions or agencies of the State of Delaware or are otherwise tax exempt, including but not limited to the University of Delaware. The annual tax set forth in this paragraph will be adjusted annually using the Consumer Price Index for all Urban Consumers (Philadelphia-Camden-Wilmington, not seasonally adjusted) (“CPI-U”), beginning on January 1, 2026. CPI-U increases may occur not more than once in any twelve (12) month period. Any annual increase shall not exceed the percentage increase in the CPI-U, or any successor index published by the U.S. Department of Labor, for the previous twelve (12) months. Tax payments made under this paragraph cannot be made via credit card and instead must be processed using the Automated Clearing House (ACH) network or approved payment method as directed by the City Manager.

SYNOPSIS

This Act amends the Newark Charter by authorizing the City of Newark to levy and collect a per student, per semester tax on Colleges and Universities that host in person classes which are located within the boundaries of the City of Newark. This tax applies to all colleges and universities including any organizations that are considered subdivisions or agencies of the State of Delaware or are otherwise tax exempt, including but not limited to the University of Delaware. The amount of the tax will be adjusted annually in an amount not to exceed the change in the Consumer Price Index for all Urban Consumers (Philadelphia-Camden-Wilmington, not seasonally adjusted). It also limits the available payment methods to restrict the use of credit cards for the payment of the aforementioned tax. This Act requires a greater than majority vote for passage because § 1 of Article IX of the Delaware Constitution requires the affirmative vote of two-thirds of the members elected to each house of the General Assembly to amend a municipal charter.