Plain English Breakdown
The official source does not provide details on how school districts must demonstrate their projected revenue loss.
School Tax Rate Limitation After Reassessment
This act changes how Delaware school districts can increase their property tax rates after a general reassessment by removing the previous rule and setting new limits.
What This Bill Does
- Removes the previous rule that allowed schools to raise taxes by up to 10% after a reassessment.
- Allows school districts showing they will lose money due to the reassessment to raise taxes by up to 2% each year for five years or until their lost revenue is made up, whichever happens first.
Who It Names or Affects
- Delaware school districts
- Residents and property owners in Delaware
Terms To Know
- General Reassessment
- A process where the value of properties is reviewed to make sure taxes are fair.
- Projected Revenue Loss
- The expected decrease in money a school district will receive after property values change.
Limits and Unknowns
- Does not specify how districts prove they need more tax revenue.
- It is unclear if this act has been signed into law or what the effective date might be.