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HB245 • 2025

AN ACT TO AMEND TITLE 14 OF THE DELAWARE CODE RELATING TO LIMITATION ON PUBLIC SCHOOLS' TAX RATE AFTER GENERAL REASSESSMENT.

AN ACT TO AMEND TITLE 14 OF THE DELAWARE CODE RELATING TO LIMITATION ON PUBLIC SCHOOLS' TAX RATE AFTER GENERAL REASSESSMENT.

Education Taxes
Passed Legislature

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

Sponsor
Michael Smith
Last action
2026-03-25
Official status
House Education 8/7/25 (Tabled in Committee)
Effective date
Not listed

Plain English Breakdown

The official status shows conflicting information: one label says 'Passed Legislature' while detailed history notes it was defeated by the House on August 13, 2025. The bill has not become law.

HB245: Removing the 10% School Tax Increase After Reassessment

This bill proposes removing the rule that allows Delaware public schools to raise property taxes by up to 10% after a general reassessment of real estate values.

What This Bill Does

  • Removes the allowance for school districts to increase tax rates by up to 10% following a countywide property reassessment.
  • Requires new tax rate calculations to match revenue levels from the year before the reassessment instead of allowing an extra increase.
  • Updates Title 14 of the Delaware Code regarding how local boards calculate real estate taxes after assessments change.

Who It Names or Affects

  • Local boards of education in reorganized school districts
  • Property owners who pay public school real estate taxes

Terms To Know

General Reassessment
A process where the county updates the official value of all real estate properties.
Tax Rate
The amount charged on property values to collect money for schools.

Limits and Unknowns

  • This bill was defeated by the House and later tabled in committee, so it has not become law.
  • If passed, this change would take effect on July 1, 2025.

Bill History

  1. 2026-03-25 Delaware General Assembly

    Tabled in Committee

  2. 2025-08-13 Delaware General Assembly

    Defeated By House. Votes: 15 YES 6 NO 18 NOT VOTING 2 ABSENT. Reason Taken: Motion to Suspend Rules on HB 245

  3. 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 LIMITATION ON PUBLIC SCHOOLS' TAX RATE AFTER GENERAL REASSESSMENT.
This Act removes the up to 10% increase in school property taxes allowed after reassessment This Act takes effect July 1, 2025, and applies to all public school tax rates after July 1, 2025.

Current Bill Text

Read the full stored bill text 
Legislation Document

SPONSOR:

Rep. Michael Smith & Rep. Hensley & Sen. Buckson

Reps. Hilovsky, Postles, Shupe, Spiegelman, Yearick; Sens. Hocker, Lawson, Pettyjohn, Richardson, Wilson

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE BILL NO. 245

AN ACT TO AMEND TITLE 14 OF THE DELAWARE CODE RELATING TO LIMITATION ON PUBLIC SCHOOLS' TAX RATE AFTER GENERAL REASSESSMENT.

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

Section 1. Amend § 1916, Title 14 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 1916. Tax collection warrant and assessment list; tax rate after general reassessment.

(b) Whenever the qualified voters of a reorganized school district have approved a specific rate of taxation or specified amount of taxation under § 1903 of this title and a subsequent general reassessment of all real estate in the county changes the total assessed valuation of the school district, the local board of education of each such local school district shall calculate a new real estate tax rate

which, at its maximum, would realize no more than 10%

which realizes no

increase in actual revenue over the revenue derived by real estate tax levied in the fiscal year immediately preceding such reassessed real estate valuation

. However, if a district realizes a projected revenue loss that is from the amount raised the previous year and is due to the general reassessment, the district may increase the rate of taxation by no more than 10% to attempt to reach an overall revenue neutral position

. In the event the qualified voters of a reorganized school district approve a specific rate of taxation or specified amount of taxation under § 1903 of this title to be collected, and there is a reassessment effective after voter approval, but before actual revenue is derived from increased taxation resulting from such voter approval, the local board of education of each such local school district shall calculate a new real estate tax rate which, at its maximum, would realize no more than a 10% increase in actual revenue over the revenue announced, projected or calculated to be derived by such voter approval and prior voter approvals.

Any subsequent increase in

After the rate of taxation is increased under this subsection, the

rate of taxation

shall be achieved

may

only

be increased

by an election of the qualified voters in such local school district

according to the procedures in

under

§ 1903 of this title

or after a subsequent general reassessment of all real estate in the county under this subsection

.

(c) Notwithstanding any other provisions of this title to the contrary, the school board of the district whose jurisdiction traverses county boundary lines and whose local school taxes are made different as a result of property reassessment shall levy real estate taxes in the following manner:

(2) In the county recently reassessed, at a newly calculated rate based on the newly established assessments which

at its maximum

would bring in revenue equal to the amount authorized by law and by referendum, based on the previous year’s

assessment, plus the quarterly updates and the 10% increase as authorized by subsection (b) of this section

assessment

.

(d) The board shall, no later than the second Thursday in July, deliver its warrant, with a duplicate of the assessment list, to the receiver of taxes and county treasurer of the county or counties where the district is located.

Section 2. This Act takes effect July 1, 2025, and applies to all public school tax rates after July 1, 2025.

SYNOPSIS

This Act removes the up to 10% increase in school property taxes allowed after reassessment This Act takes effect July 1, 2025, and applies to all public school tax rates after July 1, 2025.