This Amendment allows a school board to set different tax rates based on real property zoning classifications effective on June 30, 2025, and limits the highest tax rate to 2 times the lowest tax rate.

Plain English Breakdown

The official text cuts off before stating the maximum revenue limit for these taxes.

Amendment to Allow Different School Tax Rates Based on Property Zoning

This amendment allows school boards to set different property tax rates based on zoning classifications effective June 30, 2025, while limiting the highest rate to twice the lowest rate.

What This Bill Does

• Allows a school board to use varying tax rates for real property based on zoning classifications in effect on June 30, 2025.
• Requires that if different rates are used, the highest rate cannot be more than two times the lowest rate.
• States that tax rates must be uniform for all properties within the same classification.

Who It Names or Affects

• Local school boards
• Owners of real property subject to zoning classifications

Terms To Know

Real Property Zoning Classifications

Categories used by local governments to group land and buildings based on how they are allowed to be used.

Severability Provision

A rule stating that if one part of the law is found invalid, the rest of the law remains in effect.

Limits and Unknowns

• The specific dollar amount for total projected revenue was cut off in the provided text.
• This amendment was stricken (removed) from consideration by the House on August 12, 2025.
• No effective date is listed because the bill did not pass final approval.

Official Summary Text

This Amendment allows a school board to set different tax rates based on real property zoning classifications effective on June 30, 2025, and limits the highest tax rate to 2 times the lowest tax rate.

Under common law, Delaware counties and municipalities have longstanding authority to separately tax different classes of real property if the classification is reasonable and, as required under § 1 of Article VIII of the Delaware Constitution, the tax rates are uniform for all property in each classification. See Green v. Sussex County, 668 A.2d 770, 776 (Del. Super. Ct. 1995), aff’d 667 A.2d 1319 TABLE (Del. 1995); Aetna Cas. & Sur. Co. v. Smith, 131 A.2d 168, 177-78 (Del. 1957); Phila. B & W R. Co. v. Mayor & Council of Wilm., 57 A.2d 759, 765-66 (Del. Ch. 1948); Conrad v. State, 16 A.2d 121, 125-26 (Del. 1940). However, to err on the side of caution, this Amendment also includes a severability provision because this Act is not amending the Delaware Code and as such, the general severability provision under § 308 of Title 1 will not apply if the language added by this Amendment is held invalid.

Current Bill Text

Legislation Document

SPONSOR:

Rep. Wilson-Anton

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE AMENDMENT NO. 2

TO

HOUSE BILL NO. 242

AMEND House Bill No. 242 on line 2 by inserting "a." after "(1)" and before "The" therein.

FURTHER AMEND House Bill No. 242 by deleting lines 3 through 5 in their entirety and inserting in lieu thereof the following and by redesignating accordingly:

“tax year, reset the local school tax rate using varying tax rates based on real property zoning classifications in effect on June 30, 2025.

b. If a school board establishes varying tax rates under paragraph (1)a. of this section, all of the following apply:

1. The highest tax rate may not be more than 2 times the lowest tax rate.

2. The tax rates must be uniform for all property in the same classification, as required under § 1of Article VIII of the Delaware Constitution.

c. The total amount of revenue projected to be collected through use of the tax rates under paragraphs (1)a. through (1)b. of this section may not exceed”.

FURTHER AMEND House Bill No. 242 after line 19 by inserting the following:

“Section 2. The provisions of this Act are severable and if any provision of this Act is held invalid, the validity of the remainder of this Act and the applicability thereof to any person is not affected.”.

SYNOPSIS

This Amendment allows a school board to set different tax rates based on real property zoning classifications effective on June 30, 2025, and limits the highest tax rate to 2 times the lowest tax rate.

Under common law, Delaware counties and municipalities have longstanding authority to separately tax different classes of real property if the classification is reasonable and, as required under § 1 of Article VIII of the Delaware Constitution, the tax rates are uniform for all property in each classification. See Green v. Sussex County, 668 A.2d 770, 776 (Del. Super. Ct. 1995), aff’d 667 A.2d 1319 TABLE (Del. 1995); Aetna Cas. & Sur. Co. v. Smith, 131 A.2d 168, 177-78 (Del. 1957); Phila. B & W R. Co. v. Mayor & Council of Wilm., 57 A.2d 759, 765-66 (Del. Ch. 1948); Conrad v. State, 16 A.2d 121, 125-26 (Del. 1940). However, to err on the side of caution, this Amendment also includes a severability provision because this Act is not amending the Delaware Code and as such, the general severability provision under § 308 of Title 1 will not apply if the language added by this Amendment is held invalid.