AN ACT TO AMEND TITLE 14 OF THE DELAWARE CODE RELATING TO LOCAL SCHOOL TAXES.

153rd General Assembly (2025-2026) Introduced by Eric Morrison and 9 co-sponsors

HB 463 would modify how local school taxes are assessed and distributed in Delaware, potentially changing tax bases, rates, or revenue allocations for districts.

Assigned to Executive Committee in Senate

Summary of HB 463 (Session 153, Delaware)

Purpose and Intent

HB 463 seeks to amend Title 14 of the Delaware Code in relation to local school taxes. While the bill’s full text is not provided here, the title indicates that the measure intends to modify how local school taxes are assessed, administered, or funded at the municipal or school-district level. The bill has been introduced and assigned to the Administration Committee in the House.

Key Provisions (as indicated by the bill’s scope)

Amends Title 14 of the Delaware Code, which governs public education, school districts, and related funding mechanisms in Delaware.

The exact changes are not specified in the provided summary, but potential areas of modification commonly addressed by such amendments include:

Tax base adjustments (teacher/property tax base for schools)
Allocation or reform of local school tax rates
Assessment procedures, exemptions, or credits related to school taxes
Allocation of local tax revenues to school districts or specific programs
Procedures for Local Education Agencies (LEAs) to levy or rate local taxes

The bill would affect the administration or calculation of local school taxes, potentially altering revenue streams for school districts or the requirements under which local taxes are levied.

Affected Parties

Local school districts within Delaware, as they are the primary collection and administration points for local school taxes.

Property owners and residents who pay local school taxes, since changes in tax base, rates, or exemptions could impact personal tax bills.

Delaware Department of Education and related state and municipal tax authorities responsible for implementing school tax laws and ensuring compliance.

Policymakers and administrators involved in local school funding decisions.

Procedural and Timeline Aspects

Introduced: June 4, 2026.

Assigned to: Administration Committee in the House, indicating initial committee-level review and potential amendment before floor consideration.

Co-sponsors: A bipartisan group including Bryant Richardson, Jack Walsh, Kim Williams, Trey Paradee, Claire Snyder-Hall, Eric Morrison, and Cyndie Romer, suggesting cross-chamber interest and potential broader support.

Practical Implications

If enacted, school tax calculations and revenue distribution to districts could change, impacting budgeting, staffing, and program funding at the local level.

Local governments and school districts may need to adjust tax collection practices, reporting, and compliance procedures.

Taxpayers could see changes in their local school tax bills, depending on how the bill alters rates, bases, exemptions, or revenue allocations.

Notes for Further Review

The precise text of HB 463 is necessary to provide a detailed, itemized summary of each provision, its fiscal impact, and any transitional provisions.

It will be important to track committee amendments, fiscal notes, and the bill’s progression through the House and any potential Senate consideration.