KLS Keeping Law Simple Legislation in plain English

Straight-ahead summaries built from the official bill text. We keep the source links front and center and leave the decision up to you.

Back to Delaware

SB204 • 2025

AN ACT TO AMEND TITLE 22 OF THE DELAWARE CODE RELATING TO MUNICIPAL TAX RATES BASED ON PROPERTY CLASSIFICATION.

AN ACT TO AMEND TITLE 22 OF THE DELAWARE CODE RELATING TO MUNICIPAL TAX RATES BASED ON PROPERTY CLASSIFICATION.

Taxes
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Pettyjohn
Last action
2025-08-12
Official status
Signed 8/12/25
Effective date
Not listed

Plain English Breakdown

The official source does not provide specific details on when the act will take effect.

Act Allowing Different Tax Rates for Property Types

This act allows Delaware municipalities to set different tax rates for residential and non-residential properties, provided the rates are uniform within each property type.

What This Bill Does

  • Allows cities and towns in Delaware to have separate tax rates for homes (residential) and businesses (non-residential).
  • Requires that all similar types of property must be taxed at the same rate within a city or town.

Who It Names or Affects

  • Municipalities in Delaware
  • Homeowners and business owners who pay property taxes

Terms To Know

Property classification
Grouping properties into categories like residential or non-residential.
Uniform tax rate
The same tax rate applied to all similar types of property within a municipality.

Limits and Unknowns

  • It does not specify when the act will take effect.
  • Does not change how counties are taxed, only municipalities.

Bill History

  1. 2025-08-12 Delaware General Assembly

    Suspension of Rules in Senate

  2. 2025-08-12 Delaware General Assembly

    Lifted From Table in Senate

  3. 2025-08-12 Delaware General Assembly

    Passed By Senate. Votes: 19 YES 2 ABSENT

  4. 2025-08-12 Delaware General Assembly

    Suspension of Rules in House

  5. 2025-08-12 Delaware General Assembly

    Suspension of Rules in House

  6. 2025-08-12 Delaware General Assembly

    Passed By House. Votes: 31 YES 4 NO 3 NOT VOTING 3 ABSENT

  7. 2025-08-12 Delaware General Assembly

    Signed by Governor

  8. 2025-08-11 Delaware General Assembly

    Introduced and Laid on Table in Senate

Official Summary Text

AN ACT TO AMEND TITLE 22 OF THE DELAWARE CODE RELATING TO MUNICIPAL TAX RATES BASED ON PROPERTY CLASSIFICATION.
This Act codifies the longstanding authority of Delaware counties and municipalities, under common law, to separately tax different classes of real property if the classification is reasonable and, as required under § 1 of Article VIII of the Delaware Constitution, the tax rates are uniform for all property in each classification. See Green v. Sussex County, 668 A.2d 770, 776 (Del. Super. Ct. 1995), aff’d 667 A.2d 1319 TABLE (Del. 1995); Aetna Cas. & Sur. Co. v. Smith, 131 A.2d 168, 177-78 (Del. 1957); Phila. B & W R. Co. v. Mayor & Council of Wilm., 57 A.2d 759, 765-66 (Del. Ch. 1948); Conrad v. State, 16 A.2d 121, 125-26 (Del. 1940).

The City of Wilmington has different tax rates for residential and non-residential properties and upon enactment on July 30, 2025, House Substitute No. 1 for House Bill No. 144 amended the Charter of the City of New Castle to allow varying tax rates based on property classification. This Act clarifies that all municipalities have this authority, avoiding the need for separate legislation amending the municipal charter of each municipality to provide this clarity.

This Act requires a greater than majority vote for passage because § 1 of Article IX of the Delaware Constitution requires the affirmative vote of two-thirds of the members elected to each house of the General Assembly to amend a charter issued to a municipal corporation.

Current Bill Text

Read the full stored bill text 
Legislation Document

SPONSOR:

Sen. Pettyjohn & Rep. Dukes

Sens. Buckson, Hoffner, Huxtable, Lawson, Lockman, Mantzavinos, Poore, Richardson, Sokola, Townsend; Reps. Hilovsky, Jones Giltner, Michael Smith, Wilson-Anton

DELAWARE STATE SENATE

153rd GENERAL ASSEMBLY

SENATE BILL NO. 204

AN ACT TO AMEND TITLE 22 OF THE DELAWARE CODE RELATING TO MUNICIPAL TAX RATES BASED ON PROPERTY CLASSIFICATION.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Two-thirds of all members elected to each house thereof concurring therein):

Section 1. Amend Chapter 11, Title 22 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 1107. Tax Rates.

(a) A municipality may establish, by local law or ordinance, a different tax rate for each of the following:

(1) Residential real property.

(2) Nonresidential real property.

(b) Tax rates established under subsection (a) of this section must be uniform for all property in the same classification, as required under § 1 of Article VIII of the Delaware Constitution.

SYNOPSIS

This Act codifies the longstanding authority of Delaware counties and municipalities, under common law, to separately tax different classes of real property if the classification is reasonable and, as required under § 1 of Article VIII of the Delaware Constitution, the tax rates are uniform for all property in each classification. See Green v. Sussex County, 668 A.2d 770, 776 (Del. Super. Ct. 1995), aff’d 667 A.2d 1319 TABLE (Del. 1995); Aetna Cas. & Sur. Co. v. Smith, 131 A.2d 168, 177-78 (Del. 1957); Phila. B & W R. Co. v. Mayor & Council of Wilm., 57 A.2d 759, 765-66 (Del. Ch. 1948); Conrad v. State, 16 A.2d 121, 125-26 (Del. 1940).

The City of Wilmington has different tax rates for residential and non-residential properties and upon enactment on July 30, 2025, House Substitute No. 1 for House Bill No. 144 amended the Charter of the City of New Castle to allow varying tax rates based on property classification. This Act clarifies that all municipalities have this authority, avoiding the need for separate legislation amending the municipal charter of each municipality to provide this clarity.

This Act requires a greater than majority vote for passage because § 1 of Article IX of the Delaware Constitution requires the affirmative vote of two-thirds of the members elected to each house of the General Assembly to amend a charter issued to a municipal corporation.

Author: Senator Pettyjohn