House approves bill raising business filing fees to shore up state revenues

The Delaware House passed House Bill 400 on April 23, 2026, advancing a multi-title update to fees and taxes administered by the Secretary of State that sponsors said are overdue and intended to stabilize state services and support businesses.

Majority Leader Leah Harris, the bill sponsor, said the measure updates fees that in some cases have not been adjusted in decades and is expected to generate approximately $142,100,000 annually beginning in fiscal year 2027 to fund education, public safety, transportation, health care and economic development. "This bill responsibly updates taxes and fees administered by the secretary of state," Harris said, arguing the changes reflect modern costs and sustain services that support Delaware businesses.

Opponents on the floor focused chiefly on the increase to LLC and related entity fees. Whip Webb Spiegelman characterized the move as a competitive risk for the state, saying raising the LLC fee from $300 to $400 is a "33% increase" that could make Delaware less attractive to businesses compared with competitor states. "It absolutely positively makes us less competitive," Spiegelman said, adding that the fee could be especially burdensome for restaurants and other small enterprises that operate on thin margins.

Representatives for the majority responded that the Secretary of State had requested a smaller increase, and that the Legislature weighed a policy choice to fund services and assistance to businesses statewide. The sponsor and other members highlighted one-on-one business coaching, EDGE grants, conservation incentives and enterprise supports they said are funded in part by the proposed revenue. "Creating a stable environment is a business-friendly policy," Harris said.

The House debated competitiveness, the cumulative effect of fees on small businesses, and how the revenue would be used. Representative Spiegelman urged colleagues to consider the message an above-market LLC fee would send to out-of-state incorporations, while proponents said Delaware’s corporate and chancery advantages remain a strong draw.

On roll call the House recorded 25 yes, 11 no and 5 absent; the measure was declared passed. The bill had required a three-fifths vote because of statutory changes. As passed, sponsors said it will take effect for filings issued, renewed or modified after the applicable effective dates in the bill; the Speaker’s office and the Secretary of State’s office will be the next administrative contacts for implementation details.

The House recessed until the call of the bell; most changes in the bill will move next to the Senate as required by the legislative calendar.