Bill > SB149

This bill establishes a comprehensive framework for how Delaware counties and municipalities can handle property taxes for Low-Income Housing Tax Credit (LIHTC) properties. The legislation allows local governments to create ordinances that exempt these affordable housing properties from standard property taxation, instead requiring them to make an annual payment equal to 5% of their total annual revenue. LIHTCs are federal tax credits designed to incentivize the development of affordable housing, and in this context, properties receiving these credits must maintain specific rent and income restrictions. Under the bill, LIHTC properties must apply for the tax exemption, remain compliant with LIHTC requirements, and have their payment divided proportionally among political subdivisions based on their respective tax rates. Additionally, the bill stipulates that school districts will also be exempt from taxing these properties. The payments will be collected by county tax receivers and treasurers in the same manner as standard tax collection, with potential penalties for unpaid balances as determined by local ordinance. This approach aims to support affordable housing development while ensuring that local governments still receive some financial compensation for these tax-exempt properties.

Housing and Urban Affairs

https://legis.delaware.gov/BillDetail?LegislationId=142324