Bill > SB204

This bill amends Title 22 of the Delaware Code to explicitly codify the existing legal practice of allowing municipalities to establish different tax rates for residential and nonresidential real property. Specifically, the bill provides that municipalities can create separate tax rates for residential and nonresidential real estate, with the critical requirement that all properties within each classification must be taxed at a uniform rate. This codification reflects longstanding legal precedent established through Delaware court cases, which have consistently upheld the ability of local governments to classify and tax real property differently, as long as the classification is reasonable and the rates within each classification remain consistent. The bill essentially transforms what was previously understood through common law and court decisions into a clear, written statutory provision, providing more explicit guidance for municipal tax-setting practices while maintaining the constitutional requirement of uniform taxation within property classifications.

https://legis.delaware.gov/BillDetail?LegislationId=142690