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

Plain English Breakdown

The bill text specifies that updates apply only to exemptions granted under ordinances adopted by January 1, 1998.

HB463: Updates to Local School Tax Exemptions

This bill requires Delaware counties to update school tax exemption amounts after property reassessments and directs New Castle County to use specific county tax rules for its school exemptions starting in fiscal year 2027.

What This Bill Does

• Requires counties to modify existing school tax exemption amounts through new ordinances following a county-wide property reassessment.
• Mandates that these updated exemption amounts reasonably reflect changes in property value and inflation.
• Directs New Castle County to use the same eligibility criteria and exemption amounts for school taxes as it used for county taxes during the fiscal year beginning July 1, 2025.

Who It Names or Affects

• County officials responsible for adopting ordinances regarding tax exemptions
• Property owners in Delaware who hold exemptions granted under county ordinances adopted on or before January 1, 1998

Terms To Know

Exemption from taxation

A rule that allows certain property to pay less or no taxes.

Reassessment

The process of re-evaluating the value of all properties in a county, which triggers updates to exemption amounts under this bill.

Limits and Unknowns

• The official text does not state an effective date for when these changes become law.
• The specific rules regarding school tax exemptions only apply directly to New Castle County; other counties must follow the general requirement to update amounts after reassessment.

Official Summary Text

AN ACT TO AMEND TITLE 14 OF THE DELAWARE CODE RELATING TO LOCAL SCHOOL TAXES.
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 in the fiscal year that began July 1, 2025.

Current Bill Text

Legislation Document

SPONSOR:

Rep. K. Williams & Rep. Michael Smith & Sen. Walsh

Reps. Burns, Chukwuocha, Minor-Brown, Morrison, Romer, Snyder-Hall, S. Moore, Ortega

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE BILL NO. 463

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)

a.

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. Beginning in the 2027 fiscal year, 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 for the fiscal year that began on July 1, 2025 based on county ordinances effective at that time.

SYNOPSIS

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 in the fiscal year that began July 1, 2025.