HB 369, refinery tax exemption, signed by Governor on June 26, 2012
We opposed HB 369, An Act to amend Chapter 29, Title 30 of the Delaware Code pertaining to wholesalers gross receipts taxes.
This bill exempts the Delaware City Refinery from certain Gross Receipts Taxes, including those from specific transactions engaged in by the Delaware City Refinery in the process of acquiring raw materials, refining such materials, and distributing the refined products. According to the Department of Finance, this bill would reduce the gross receipts tax collections by $3,600,000 in Fiscal Year 2013 and $1,500,000 in Fiscal Year 2014.
The Sierra Club opposes the use of subsidies of the fossil fuel industry. Such an exemption of the Delaware City Refinery to the Gross Receipts Tax amounts to just such a subsidy of the fossil fuel industry. Fossil fuel subsidies create an unfair economic advantage for polluting industries in comparison to renewable energy sources. While the Delaware City Refinery has reopened in 2011 after being closed for approximately one year, it has already exceeded its air pollution permits numerous times and has been demonstrated to pose a significant health risk to surrounding communities.
Unfortunately, all state-level elected officials in Delaware support such fossil fuel subsidies. HB 369 passed the House 39-0 on June 7, passed the senate 21-0 on June 21, and was signed by Governor Markell on June 26, 2012.