Budget & Taxes (Property Tax)

Section 1 of this Act requires modifications to exemptions from county taxation to reasonably reflect changes in property value and inflation. This Act also requires New Castle County to use the same eligibility criteria and calculation formula for exemption from school taxes that it used for county taxes as of June 1, 2025. Section 2 of this Act provides that upon passage of House Bill No. 242 of the 153rd General Assembly, the expanded school tax exemption will be applied during the 2025-2026 tax year in any New Castle County School district that reissues its tax warrant in accordance with House Bill No. 242.

This Act amends the Charter of the City of New Castle by authorizing the City Council to levy taxes on real property at varying rates based upon property classification (e.g. residential, commercial, or industrial). H.S. 1 to H.B. 144 clarifies that any taxes on real property must be in “just portions” sufficient to cover the aggregate of the budget.

HB 73 increases Delaware's maximum annual property tax credit for seniors from $500 to $1,000. This change directly benefits eligible Delaware seniors who pay property taxes by allowing them to receive up to $1,000 in tax relief each year. The bill amends specific sections of Delaware Code (Titles 14 and 29) to adjust the credit cap without altering eligibility requirements. This policy change provides greater financial relief for seniors with property tax burdens.

This Act removes the up to 10% increase in school property taxes allowed after reassessment This Act takes effect July 1, 2025, and applies to all public school tax rates after July 1, 2025.