HB244 • 2025

AN ACT TO AMEND TITLE 14 OF THE DELAWARE CODE RELATING TO LOCAL SCHOOL TAXES.

Education Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: K. Williams
Last action: 2025-08-07
Official status: House Education 8/7/25
Effective date: Not listed

Plain English Breakdown

The official summary states the effective date is June 1, 2025, while the detailed text specifies July 1, 2025; this discrepancy remains unresolved in the source material.

Changes to Local School Tax Exemptions in Delaware

This bill updates how school tax exemptions are calculated and requires New Castle County to match its county tax rules for these exemptions.

What This Bill Does

Requires counties to update exemption amounts after a property reassessment to reflect changes in value and inflation.
Mandates that New Castle County use the same eligibility criteria and calculation formula for school taxes as it uses for county taxes effective July 1, 2025.
Applies these expanded exemptions during the 2025-2026 tax year if House Bill No. 242 is passed and a district reissues its tax warrant.
Extends the payment deadline to October 30, 2025, for any property tax bills adjusted under this law.

Who It Names or Affects

Property owners in New Castle County who pay school taxes
New Castle County officials responsible for issuing tax warrants and collecting taxes
School districts within New Castle County that reissue their tax warrants

Terms To Know

Tax exemption: A rule that allows certain property owners to pay less or no tax based on specific criteria.
Reassessment: The process of re-evaluating the value of all properties in a county to update their official worth for taxes.

Limits and Unknowns

This law only takes effect if House Bill No. 242 is also passed by the legislature.
The specific dollar amounts or percentage changes for exemptions are not listed in this text and depend on future county ordinances.
Refunds for overpayments will only happen to taxpayers who submit payment according to an adjusted tax bill.

Bill History

2025-08-07 Delaware General Assembly
Introduced and Assigned to Education Committee in House

Official Summary Text

AN ACT TO AMEND TITLE 14 OF THE DELAWARE CODE RELATING TO LOCAL SCHOOL TAXES.
Section 1 of this Act requires modifications to exemptions from county taxation to reasonably reflect changes in property value and inflation. This Act also requires New Castle County to use the same eligibility criteria and calculation formula for exemption from school taxes that it used for county taxes as of June 1, 2025.
Section 2 of this Act provides that upon passage of House Bill No. 242 of the 153rd General Assembly, the expanded school tax exemption will be applied during the 2025-2026 tax year in any New Castle County School district that reissues its tax warrant in accordance with House Bill No. 242.

Current Bill Text

Read the full stored bill text

Legislation Document

SPONSOR:

Rep. K. Williams & Sen. Walsh & Sen. Mantzavinos & Sen. Seigfried

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE BILL NO. 244

AN ACT TO AMEND TITLE 14 OF THE DELAWARE CODE RELATING TO LOCAL SCHOOL TAXES.

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

Section 1. Amend § 1902, Title 14 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 1902. Power of district to levy taxes for school purposes.

(a) Any district may, in addition to the amounts apportioned to it by the Department of Education or appropriated to it by the General Assembly, levy and collect additional taxes for school purposes upon the assessed value of all taxable real estate in the district, except any of the following:

(3)

Real estate exempt from taxation under a county ordinance adopted on or before January 1, 1998, granting, clarifying, or expanding any exemption from county taxation. Upon a county-wide reassessment under § 8306(b) of Title 9, a county shall, by subsequent county ordinance, modify these exemption

amounts.

amounts to reasonably reflect changes in property value and inflation.

b. For school tax exemption determinations, New Castle County must use the same eligibility criteria and exemption amount used for exemption from county property taxes that was required as of July 1, 2025 based on county ordinances in effect on that date.

Section 2. Notwithstanding any provision of Title 14 or Title 9 to the contrary, on enactment of this Act, and upon enactment of House Bill No. 242 of the 153rd General Assembly:

(1) In any school district that issues a new tax warrant under House Bill No. 242 of the 153rd General Assembly, New Castle County shall supplement any property tax bill already issued for the 2025-2026 tax year for that school district and adjust the initial billing to apply the school tax exemptions under Section 1 of this Act so that the school tax exemption is included in the tax calculation.

(2) New Castle County shall extend the deadline for payment of property tax for the 2025-2026 tax year for any bill adjusted under this Act to October 30, 2025. New Castle County shall refund any overpayment in school taxes to any taxpayer who submits payment in accordance with a tax bill that was subsequently adjusted in accordance with this Act.

SYNOPSIS

Section 1 of this Act requires modifications to exemptions from county taxation to reasonably reflect changes in property value and inflation. This Act also requires New Castle County to use the same eligibility criteria and calculation formula for exemption from school taxes that it used for county taxes as of June 1, 2025.

Section 2 of this Act provides that upon passage of House Bill No. 242 of the 153rd General Assembly, the expanded school tax exemption will be applied during the 2025-2026 tax year in any New Castle County School district that reissues its tax warrant in accordance with House Bill No. 242.