HB242 • 2025

AN ACT RELATING TO LOCAL SCHOOL TAXES IN THE 2025-2026 TAX YEAR.

Education Housing Land Taxes

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: K. Williams
Last action: 2025-08-12
Official status: Signed 8/12/25
Effective date: Not listed

Plain English Breakdown

The official metadata lists the 'Effective date' field as empty; however, the bill text states actions begin on enactment or the effective date. The summary uses 'effective date' to match the legal language precisely.

HB242: Changing School Tax Rates in New Castle County

This law allows school districts entirely within New Castle County to reset their property tax rates for homes and businesses for the 2025-2026 year while ensuring total money collected does not increase.

What This Bill Does

Allows school boards in eligible districts to set separate tax rates for residential properties and non-residential properties.
Requires that business tax rates be at least equal to home tax rates but no more than double them.
Limits districts so they cannot collect more total money with the new rates than planned under their original tax warrant.
Gives districts 10 business days from the effective date of this Act to send new tax warrants to New Castle County.
Extends the payment deadline for changed tax bills until October 30, 2025.
Permits districts to borrow state money if they face cash shortages because of the later payment date.

Who It Names or Affects

School districts located entirely in New Castle County
Homeowners and business owners who pay property taxes in those districts

Terms To Know

Tax warrant: An official document that tells the county how much money to collect from taxpayers.
Residential rate: The tax amount charged on homes and living spaces.
Non-residential rate: The tax amount charged on businesses, stores, or other non-living properties.

Limits and Unknowns

This law only applies to school districts located entirely in New Castle County.
Districts must finish resetting rates and issuing new warrants within 10 business days of the Act's effective date.
The total amount of money collected cannot be higher than what was originally planned under the initial tax warrant.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HA 1

1 • K. Williams

Passed 8/12/25

Plain English: This amendment pushes back the property tax payment deadline for schools from October 30, 2025, to November 30, 2025, and allows school districts to get money advanced by the state if they face cash flow problems because of this delay.

The official deadline for paying local school property taxes is changed from October 30, 2025, to November 30, 2025.
School districts that reset their tax rates can now ask the state for money if they run short on cash because of this later payment date.

The text does not explain how much money a school district can request or what specific steps are needed to get it.
It is unclear exactly which 'State Division I funds' will be used for these advances without reading the full original bill.

HA 2

2 • Wilson-Anton

Stricken 8/12/25

Plain English: This amendment allows school boards to set different local tax rates based on property zoning types while ensuring the highest rate does not exceed double the lowest rate.

School boards can now use varying tax rates for real estate based on how properties are zoned as of June 30, 2025.
The amendment sets a rule that the highest tax rate cannot be more than two times higher than the lowest tax rate.
All properties within the same zoning classification must have the exact same tax rate to follow state constitution rules.

The official text cuts off before stating the specific dollar limit for total revenue that can be collected under these new rates.
Because this amendment was officially stricken on August 12, 2025, it did not become part of the final law.

HA 3

3 • Wilson-Anton

Stricken 8/12/25

Plain English: This amendment changes the rule so that taxes on businesses can be charged at a higher rate compared to homes.

The maximum tax rate for non-residential properties, like stores and offices, is increased from two times the home tax rate to two and one-quarter (2.25) times.

This amendment was officially removed or 'stricken' on August 12, 2025, so it did not become part of the final law.
The text does not explain how much money this change would raise for schools.

HA 4

4 • Wilson-Anton

Stricken 8/12/25

Plain English: This amendment stops owners of mobile home parks from raising rents just because local school taxes went up during the 2025-2026 tax year.

Owners cannot use increases in school district taxes for the 2025-2026 tax year as a reason to raise rent.

The amendment only applies to the specific 2025-2026 tax year and does not affect other reasons for raising rent.
This change was officially removed from consideration on August 12, 2025.

HA 5

5 • Wilson-Anton

Stricken 8/12/25

Plain English: This amendment stops New Castle County from adding extra fees to certain school taxes if they haven't been paid by a new, later date.

New Castle County cannot charge interest on unpaid property tax bills that are changed or added under this law until after the extended deadline passes.

The text does not explain what specific taxes will be adjusted or when exactly the new deadline is.
This amendment only applies to New Castle County and does not mention other counties in the state.

HA 6

6 • Wilson-Anton

Stricken 8/12/25

Plain English: This amendment stops owners of mobile home parks from raising rent because local school taxes went up during the 2025-2026 tax year.

Owners cannot use higher school district taxes as a reason to increase rent for residents in manufactured home communities.
The rule applies specifically to any school tax increases that happen in Delaware during the 2025-2026 tax year.

This amendment only covers school taxes and does not stop rent hikes caused by other types of expenses or taxes.
The text notes this change overrides existing state laws that usually allow rent increases based on rising costs like taxes.

Bill History

2025-08-12 Delaware General Assembly
Amendment HA 1 to HB 242 - Introduced and Placed With Bill
2025-08-12 Delaware General Assembly
Amendment HA 2 to HB 242 - Introduced and Placed With Bill
2025-08-12 Delaware General Assembly
Amendment HA 3 to HB 242 - Introduced and Placed With Bill
2025-08-12 Delaware General Assembly
Amendment HA 4 to HB 242 - Introduced and Placed With Bill
2025-08-12 Delaware General Assembly
Amendment HA 5 to HB 242 - Introduced and Placed With Bill
2025-08-12 Delaware General Assembly
Suspension of Rules in House
2025-08-12 Delaware General Assembly
Amendment HA 1 to HB 242 - Passed In House by Voice Vote
2025-08-12 Delaware General Assembly
Amendment HA 2 to HB 242 - Stricken in House
2025-08-12 Delaware General Assembly
Amendment HA 3 to HB 242 - Stricken in House
2025-08-12 Delaware General Assembly
Amendment HA 4 to HB 242 - Stricken in House
2025-08-12 Delaware General Assembly
Amendment HA 5 to HB 242 - Stricken in House
2025-08-12 Delaware General Assembly
Amendment HA 6 to HB 242 - Stricken in House
2025-08-12 Delaware General Assembly
Passed By House. Votes: 30 YES 8 NO 1 NOT VOTING 2 ABSENT
2025-08-12 Delaware General Assembly
Suspension of Rules in Senate
2025-08-12 Delaware General Assembly
Passed By Senate. Votes: 14 YES 4 NOT VOTING 3 ABSENT
2025-08-12 Delaware General Assembly
Signed by Governor
2025-08-07 Delaware General Assembly
Introduced and Assigned to Administration Committee in House

Official Summary Text

AN ACT RELATING TO LOCAL SCHOOL TAXES IN THE 2025-2026 TAX YEAR.
This Act allows any school district located in New Castle County to reset its tax rates for the 2025-2026 tax year and to reissue a tax warrant using different residential and non-residential tax rates. The non-residential tax rate must be at least equal to the residential tax rate and may not be more than 2 times the residential tax rate. The total amount of revenue projected to be collected through use of the residential and non-residential tax rates may not exceed the total amount of revenue the district was projected to collect under its original tax warrant. The districts have 10 business days from the enactment of this Act to reset the rates and issue a new tax warrant to New Castle County.
Upon receipt of a new tax warrant, New Castle County will supplement any tax bill already issued for taxpayers in that district and adjust tax bills with an extended deadline for payment of October 30, 2025 for tax bills that change. For any taxpayer who submits payment under the original tax bill and whose total school tax liability is adjusted downward, the difference will be credited against future tax liability unless the taxpayer submits a written request for a refund, in which case New Castle County shall issue a refund.
A school district that resets its rates in accordance with this Act may request and borrow from State Division I funds in the event of a cash flow shortfall of local school funds due to the extension of the deadline for tax payments for the 2026 fiscal year.

Current Bill Text

Read the full stored bill text

Legislation Document

SPONSOR:

Rep. K. Williams & Sen. Walsh & Sen. Mantzavinos & Rep. Minor-Brown & Rep. Harris & Rep. Osienski & Rep. Heffernan & Rep. Morrison & Sen. Sokola & Sen. Townsend & Sen. Lockman & Sen. Seigfried

Reps. Bolden, Burns, Gorman, K. Johnson, Lambert, Neal, Romer, Ross Levin, Wilson-Anton, Chukwuocha, Bush, Carson, Cooke, Griffith, Ortega, Snyder-Hall; Sens. Cruce, Hansen, Sturgeon, Poore

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE BILL NO. 242

AN ACT RELATING TO LOCAL SCHOOL TAXES IN THE 2025-2026 TAX YEAR.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Notwithstanding any provision of law to the contrary, on enactment of this Act:

(1) The school board of a school district located entirely in New Castle County may, for the 2025-2026 school tax year, reset the local school tax rate using a residential and a non-residential tax rate. The non-residential tax rate must be at least equal to the residential tax rate and may not be more than 2 times the residential tax rate. The total amount of revenue projected to be collected through use of the residential and non-residential tax rates

may not exceed the total amount of revenue the district was projected to collect under its original 2025-2026 tax warrant.

(2) New tax rates approved by a school district under this Act must be reported to the County and delivered with a new warrant not later than 10 business days from the effective date of this Act.

(3) Upon receipt of a new warrant under paragraph (2) of this Act, New Castle County shall supplement any tax bill already issued to taxpayers in that district for the 2025-2026 tax year and adjust initial billing using the new local school tax rates set by the district. New Castle County shall extend the deadline for payment of property tax bills for the 2025-2026 tax year that are supplemented or adjusted under this Act to October 30, 2025.

(4) If a taxpayer submits payment prior to an adjustment in billing under paragraph (3) of this Act, and the taxpayer’s school tax bill is adjusted downward, New Castle County shall credit the overpayment against future school tax liability, unless a taxpayer submits a written request for refund of overpayment to New Castle County, in which case New Castle County shall issue a refund.

(5) A school district that resets its tax rates in accordance with this Act may request and borrow from State Division I funds in the event of a cash flow shortfall of local school funds due to the extension of the deadline for tax payments for the 2026 fiscal year.

SYNOPSIS

This Act allows any school district located in New Castle County to reset its tax rates for the 2025-2026 tax year and to reissue a tax warrant using different residential and non-residential tax rates. The non-residential tax rate must be at least equal to the residential tax rate and may not be more than 2 times the residential tax rate. The total amount of revenue projected to be collected through use of the residential and non-residential tax rates may not exceed the total amount of revenue the district was projected to collect under its original tax warrant. The districts have 10 business days from the enactment of this Act to reset the rates and issue a new tax warrant to New Castle County.

Upon receipt of a new tax warrant, New Castle County will supplement any tax bill already issued for taxpayers in that district and adjust tax bills with an extended deadline for payment of October 30, 2025 for tax bills that change. For any taxpayer who submits payment under the original tax bill and whose total school tax liability is adjusted downward, the difference will be credited against future tax liability unless the taxpayer submits a written request for a refund, in which case New Castle County shall issue a refund.

A school district that resets its rates in accordance with this Act may request and borrow from State Division I funds in the event of a cash flow shortfall of local school funds due to the extension of the deadline for tax payments for the 2026 fiscal year.