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Delaware News


New HSCA Rate Goes Into Effect in January

Department of Finance | Division of Revenue | News | Date Posted: Wednesday, October 19, 2022


Picture of the Delaware Division of Revenue logo

For Immediate Release

REVENUE ANNOUNCES NEW HSCA RATE EFFECTIVE JANUARY 2023

Statewide, DE – Division of Revenue Director Kathy Revel today announced that businesses subject to the Hazardous Substance Cleanup Act (HSCA) will see a decrease in last year’s rate from 1.675% to 0.8389%. The new tax rate will go into effect on January 1, 2023, and it applies 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 1,100 sites in Delaware as potential hazardous substances release sites.

If you have questions about the new adjustable tax rate, please contact Leo Regalado with the Delaware Division of Revenue at (302) 577-8254.

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New HSCA Rate Goes Into Effect in January

Department of Finance | Division of Revenue | News | Date Posted: Wednesday, October 19, 2022


Picture of the Delaware Division of Revenue logo

For Immediate Release

REVENUE ANNOUNCES NEW HSCA RATE EFFECTIVE JANUARY 2023

Statewide, DE – Division of Revenue Director Kathy Revel today announced that businesses subject to the Hazardous Substance Cleanup Act (HSCA) will see a decrease in last year’s rate from 1.675% to 0.8389%. The new tax rate will go into effect on January 1, 2023, and it applies 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 1,100 sites in Delaware as potential hazardous substances release sites.

If you have questions about the new adjustable tax rate, please contact Leo Regalado with the Delaware Division of Revenue at (302) 577-8254.

###

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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 psydj.com.

Here you can subscribe to future news updates.

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