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

Plain English Breakdown

The official text states the state shall advance funds if a shortfall occurs, but does not detail how these advances will be repaid or funded long-term.

HB461: Adjusting School Tax Rates in New Castle County

This law allows school districts in New Castle County to reset their tax rates for the 2026-2027 year based on updated property values, while limiting revenue increases to specific exceptions.

What This Bill Does

• Allows New Castle County school boards to set a new tax rate by October 22, 2026, using the most recent assessment list for the 2026-2027 tax year.
• Limits operating revenue increases so they do not exceed the prior year's amount, with two exceptions: money from approved voter referenda and a percentage equal to each district's 5-year average property growth rate.
• Sets specific maximum growth percentages for seven districts ranging from 0.31% to 3.68% based on their 5-year average taxable property growth.
• Requires the state to advance money from State Division I funds if a school district faces a budget shortfall caused by this tax rate change.

Who It Names or Affects

• School districts located in New Castle County, Delaware
• The State Division I fund which may provide temporary money for shortfalls

Terms To Know

Tax rate reset

Changing the tax percentage charged on property to account for new property value estimates.

Referendum

A vote by citizens that approves a specific increase in school funding or taxes.

Sunset date

The day the law stops working, which is March 31, 2027 for this bill.

Limits and Unknowns

• This law only applies to New Castle County and does not affect other counties in Delaware.
• The specific tax rates depend on future property value changes that are still being reviewed or appealed.
• The law expires automatically on March 31, 2027, unless the legislature passes a new act.

Official Summary Text

AN ACT TO AMEND TITLE 14 OF THE DELAWARE CODE RELATING TO SCHOOL TAX.
This Act provides special authority to school districts in New Castle County to reset their tax rate for the 2026-2027 tax year. This authority is necessary because several adjustments to the New Castle County tax roll are continuing to be made after the completion of the general reassessment that took effect for the 2025-2026 tax year. This includes the ongoing adjudication of appeals from the assessment values set in the general reassessment as well as quality control reviews, and potential changes pending in other legislation.
This Act allows the New Castle County school districts to adjust the tax rate so that no increase in operating revenue over the prior year will be realized, with two exceptions: (1) revenue increases from approved referenda; and (2) revenue equal to the 5-year average growth rate for each district. The 5-year average growth rates for NCC districts are as follows: (1) Appoquinimink, 3.68%; (2) Brandywine, 0.54%; (3) Christina, 0.32%; (4) Colonial, 1.10%; (5) Red Clay, 0.58%; (6) Smyrna, 0.31%; and (7) New Castle County Vocational Technical, 0.96%.
This Act sunsets on March 31, 2027.

Current Bill Text

Legislation Document

SPONSOR:

Rep. Romer & Sen. Cruce

Reps. Minor-Brown, Harris, Burns, Chukwuocha, Morrison, Snyder-Hall, K. Williams; Sens. Townsend, Lockman, Huxtable, Mantzavinos

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE BILL NO. 461

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

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.

(e) Notwithstanding the provisions of

subsection (d) of this section,

this chapter and § 2601 of this title,

the school board of any district within New Castle County shall, no later than October 22, 2026, deliver its

warrant, with a duplicate of the assessment list,

warrant for the 2026-2027 tax year

to the receiver of taxes and county treasurer of the county or counties where the district is located.

The rate set under this subsection may be reset to incorporate the most recent assessment list provided by New Castle County. However, the rate set under this section may not increase the projected operating revenue of a school district, except any increase approved by referendum but not yet received and for a percentage that is equal to the 5-year average growth rate in taxable property as reported by New Castle County.

In the event a school district within New Castle County experiences a shortfall of local school funds as a result of this subsection for the 2026-2027 school tax year, the school district may request, and the State shall advance, monies from State Division I funds.

Section 2. This Act expires on March 31, 2027, unless otherwise provided by a subsequent act of the General

Assembly.

SYNOPSIS

This Act provides special authority to school districts in New Castle County to reset their tax rate for the 2026-2027 tax year. This authority is necessary because several adjustments to the New Castle County tax roll are continuing to be made after the completion of the general reassessment that took effect for the 2025-2026 tax year. This includes the ongoing adjudication of appeals from the assessment values set in the general reassessment as well as quality control reviews, and potential changes pending in other legislation.

This Act allows the New Castle County school districts to adjust the tax rate so that no increase in operating revenue over the prior year will be realized, with two exceptions: (1) revenue increases from approved referenda; and (2) revenue equal to the 5-year average growth rate for each district. The 5-year average growth rates for NCC districts are as follows: (1) Appoquinimink, 3.68%; (2) Brandywine, 0.54%; (3) Christina, 0.32%; (4) Colonial, 1.10%; (5) Red Clay, 0.58%; (6) Smyrna, 0.31%; and (7) New Castle County Vocational Technical, 0.96%.

This Act sunsets on March 31, 2027.