Bill > HB245

This bill amends Delaware law regarding school property tax rates after a general reassessment, removing the previous automatic allowance for up to a 10% increase in tax rates. Under the new legislation, school districts will be required to calculate a new real estate tax rate that realizes no increase in actual revenue compared to the previous fiscal year. However, if a district is projected to experience a revenue loss due to reassessment, it may increase the tax rate by up to 10% to maintain a revenue-neutral position. Any further tax rate increases would require voter approval through an election or subsequent to another general reassessment. The bill specifically modifies Section 1916 of Title 14 of the Delaware Code, which governs tax collection and assessment procedures for school districts. The changes aim to provide more transparency and control over school property tax rates, ensuring that taxpayers are not automatically subject to significant tax increases following property reassessments. The bill will take effect on July 1, 2025, and will apply to all public school tax rates after that date, giving school districts and local governments time to prepare for the new regulations.

Education

https://legis.delaware.gov/BillDetail?LegislationId=142682