Kumpf v. City of Wilmington

HERRMANN, Chief Justice:

This appeal presents the question of whether insurance agents and brokers are exempt from paying on commission income the Municipal User Tax, imposed by the City of Wilmington under 22 Del.C. § 901,1 *294in view of the State’s pre-emption of taxation of the insurance business under 18 Del.C. § 712.2

I

Upon advice of counsel that commission income of insurance agents and brokers is not subject to the Wilmington Wage Tax (hereinafter the “Tax”), the defendant, Insurance and Financial Services, Ltd. (hereinafter “IFS”), ceased withholding the Tax from commissions earned by…