Bill > HB242

This bill allows school districts located entirely in New Castle County, Delaware, to adjust their local school tax rates for the 2025-2026 tax year under specific conditions. The bill permits school boards to reset tax rates using separate residential and non-residential rates, with the non-residential rate required to be at least equal to the residential rate but no more than double it. The total projected revenue from these new rates cannot exceed the amount originally projected in the district's initial tax warrant. School districts must report their new tax rates to the county within 10 business days of the act's enactment, and New Castle County will be required to supplement existing tax bills with the new rates. The county must also extend the property tax payment deadline to November 30, 2025. If taxpayers have already made payments and their tax bills are subsequently adjusted downward, they can either receive a credit against future taxes or request a refund. Additionally, if the tax rate reset causes a cash flow shortfall for the school district, the district may request a state funds advance to cover the gap. The bill provides flexibility for local school districts to potentially adjust their tax structure while maintaining revenue neutrality.

Government Affairs

https://legis.delaware.gov/BillDetail?LegislationId=142680