HB 461

                SPONSOR:
                Rep. Romer & Sen. Cruce
                Reps. Minor-Brown, Harris, Burns, Chukwuocha, Morrison, Snyder-Hall, K. Williams; Sens. Townsend, Lockman, Huxtable, Mantzavinos
        HOUSE OF REPRESENTATIVES
        153rd GENERAL ASSEMBLY
        HOUSE BILL NO. 461
        AN ACT TO AMEND TITLE 14 OF THE DELAWARE CODE RELATING TO SCHOOL TAX.
        BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
        Section 1. Amend § 1916, Title 14 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
        § 1916. Tax collection warrant and assessment list; tax rate after general reassessment.
        (e) Notwithstanding the provisions of
        subsection (d) of this section,
        this chapter and § 2601 of this title,
        the school board of any district within New Castle County shall, no later than October 22, 2026, deliver its
        warrant, with a duplicate of the assessment list,
        warrant for the 2026-2027 tax year
        to the receiver of taxes and county treasurer of the county or counties where the district is located.
        The rate set under this subsection may be reset to incorporate the most recent assessment list provided by New Castle County. However, the rate set under this section may not increase the projected operating revenue of a school district, except any increase approved by referendum but not yet received and for a percentage that is equal to the 5-year average growth rate in taxable property as reported by New Castle County.
          In the event a school district within New Castle County experiences a shortfall of local school funds as a result of this subsection for the 2026-2027 school tax year, the school district may request, and the State shall advance, monies from State Division I funds.
        Section 2. This Act expires on March 31, 2027, unless otherwise provided by a subsequent act of the General
        Assembly.
        SYNOPSIS
        This Act provides special authority to school districts in New Castle County to reset their tax rate for the 2026-2027 tax year. This authority is necessary because several adjustments to the New Castle County tax roll are continuing to be made after the completion of the general reassessment that took effect for the 2025-2026 tax year. This includes the ongoing adjudication of appeals from the assessment values set in the general reassessment as well as quality control reviews, and potential changes pending in other legislation.
        This Act allows the New Castle County school districts to adjust the tax rate so that no increase in operating revenue over the prior year will be realized, with two exceptions: (1) revenue increases from approved referenda; and (2) revenue equal to the 5-year average growth rate for each district. The 5-year average growth rates for NCC districts are as follows: (1) Appoquinimink, 3.68%; (2) Brandywine, 0.54%; (3) Christina, 0.32%; (4) Colonial, 1.10%; (5) Red Clay, 0.58%; (6) Smyrna, 0.31%; and (7) New Castle County Vocational Technical, 0.96%.
        This Act sunsets on March 31, 2027.