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
Read the full stored 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.