New HSCA rate increase will begin Jan. 1

DOVER – Businesses subject to the Hazardous Substance Cleanup Act will see a rate increase at the start of next year, Division of Revenue Director Jennifer Noel announced on Friday

The HSCA rate will increase from 0.9067% to 1.675%.

The new tax rate will go into effect on Jan. 1 and will apply to taxable gross receipts from the sale of petroleum or petroleum products.

The HSCA was created by the Delaware General Assembly. The body can also adjust the rate.

Legislation was passed in 2018 calling for future rate increases to be based on a lookback period, Division of Revenue officials said.

Now the rate is determined by a specialized formula.

The HSCA was passed by the General Assembly in July of 1990 to ensure funding for the cleanup of sites where the release of hazardous substances was imminent.

The Department of Natural Resources and Environmental Control has identified more than 700 sites in Delaware as potential hazardous substance release sites.

For more information about the new adjustable tax rate, call the Delaware Division of Revenue at 302-577-8205.