Budget & Taxes

This Act updates certain statutory fees in Title 7 and establishes or updates certain permit and licensing fees found in 68 Del. Laws Ch. 86 (1991). These are fees charged for regulatory activities within the Department of Natural Resources and Environmental Control (DNREC) divisions of Air Quality, Waste and Hazardous Substances, Water, and Watershed Stewardship, most of which have not changed or been updated since 1991. The intent of the increased and new fees is to bring revenue generated by fees more in line with the cost of the regulatory programs and activities they support, including the cost of employees who work in those areas. The effective date for the fee changes is 180 days after enactment. Fees that are assessed by application or activity will be seen by applicants or permit holders the next time they apply for or renew permits or licenses after the effective date. Those who apply for permits or renewals before the effective date will pay current fees. Fees that are assessed on an annual basis will be seen by applicants the first time they pay the fee after the effective date. Certain fees for municipalities will not take effect until July 1, 2026 and will be billed at 50% of the new rate in the first year. DNREC is required to keep a complete list of fees and assessment on its public website. This Act requires a greater than majority vote for passage because § 10 of Article VIII of the Delaware Constitution requires the affirmative vote of three-fifths of the members elected to each house of the General Assembly to increase the effective rate of any tax levied or license fee imposed.

The Department of Transportation commissioned a study which was performed by the University of Delaware which calculated the impact on the Transportation Trust Fund by the increase in registration of electric motor vehicles, plug-in electric motor vehicles, non-plug-in electric motor vehicles, and other fuel motor vehicles. The Transportation Trust fund is the source of funding for the Department to perform all road and bridge improvements in the State. This Act assesses an additional registration fee on owners of electric motor vehicles, plug-in electric motor vehicles, non-plug-in electric motor vehicles, and other fuel motor vehicles to make up for the declining motor fuel tax revenue impacts on the Department, as well as the increased costs associated with these types of vehicles which are generally heavier than traditional passenger motor vehicles with increasing roadway impacts. This Act further increases several revenue sources in the following ways: 1) Assesses a one-time set up fee to a nonprofit organization to create a special license plate. 2) Increases the fee for issuance and renewal of a driver’s license from $40 to $50. 3) Increases the fee for a sex offender registration license replacement from $5 to $10. 4) Increases the issuance and renewal of a commercial driver’s license from $48 to $55. 5) Increases the fee for renewal of a non-commercial driver’s license Class A or B from $40 to $50. 6) Increases the fee for adding an endorsement to a commercial driver’s license from $5 to $10. A $10 fee for removing a restriction on a commercial driver’s license is now charged. 7) Increases the fee for taxicab endorsement and renewal from $3.45 to $10. 8) Makes the fee for a duplicate identification card for a lost or destroyed identification card set at $20. 9) Makes the fee for a replacement identification card due to name change $10. 10) Increases the fee for a dealership license from $100 and $50 for renewal. 11) Increases the document from 4.25 % to 5.25%. The effective date for these increases is generally October 1, 2025 to allow time for computer reprogramming and effective implementation. This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.

This Act gives a county, upon a county-wide reassessment of real property under § 8306(b) of Title 9, the authority to adopt an ordinance modifying the school property tax exemption amounts that were put in place on or before January 1, 1998. In doing so, this Act protects seniors and individuals with disabilities from significant school tax increases related to county-wide reassessments of property values.