In 2025, the General Assembly passed House Bill No. 242 (now found at Chapter 135, Volume 85 of the Laws of Delaware), allowing school districts located entirely in New Castle County to use different tax rates for residential and non-residential properties. This Act amends the Delaware Code to continue the authority for non-vocational technical school districts in New Castle County to utilize a residential and non-residential tax rate for school tax purposes. Such a split rate may be established or adjusted in the year after a general reassessment or as part of a referendum. The rate must be uniform for each class of property. Under this Act, the non-residential rate must be at least equal to the residential rate and may be no more than 1.85 times the residential rate. For purposes of the split tax rate, a school district must follow the classifications of the county in which the district is located. Under the transition provisions of this Act, a district that initially established split tax rates under the authority of House Bill No. 242, may continue to use those split rates at the same or a lower ratio between residential and non-residential tax rates established in the 2025-2026 tax year. But if a district’s non-residential tax rate for the 2025-2026 tax year was more than 1.85 times the residential tax rate, it must adjust its rates to meet the 1.85 maximum ratio permitted under this Act. The New Castle County Vocational Technical District may not continue the use of different tax rates past the 2025-2026 tax year. The Act also changes the amount a school district must add to its tax rate to account for delinquencies and late payments to “up to 10%” rather than requiring that a school district must add exactly 10% to its tax rate for this purpose. This Act also makes technical corrections to conform this chapter of the Delaware Code to the Delaware Legislative Drafting Manual and strikes references to the City of Wilmington School District, which no longer exists. It also revises § 1913 of Title 14 to reflect current practice. It strikes an outdated requirement in § 1918 of Title 14 that the school districts deliver a copy of the assessment list to the County along with their tax warrant. This is inconsistent with the role of the school districts and with current practice.
HB 500 authorizes the State of Delaware and its transportation authorities to issue bonds and allocate funds for capital projects in fiscal year 2027. The bill allows the state to sell general obligation bonds and the Delaware Transportation Authority to sell revenue bonds to finance infrastructure improvements. It also sets specific rules for how these funds can be spent and reprograms existing money within the state's transportation trust fund. This legislation directly impacts the state's budget and the funding available for transportation construction and upgrades.
This bill allocates state funds to cover government operations for the fiscal year ending June 30, 2027, directly affecting all state agencies and departments. It establishes specific rules and limits on how these funds can be spent and updates related state laws to reflect these financial constraints. The legislation has been passed by both the Senate and the House of Representatives, moving it closer to becoming law.
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.
Chapter 35 of Title 19 prohibits an employer from improperly classifying an individual who is an employee as an independent contractor. Not only is this improper classification unfair to employees because it violates state and federal laws related to income tax withholding, unemployment insurance, wage laws, and workers’ compensation, it is also unfair to contractors who comply with Chapter 35 and these other employment laws. When employers who violate Chapter 35 are subcontractors who have not registered as contractors as required under Chapter 36 of Title 19, the Department of Labor (Department) has no recourse for enforcing compliance with Chapter 35. This Act makes a general contractor responsible for a subcontractor’s compliance with Chapter 35 by making the general contractor jointly and severally liable for restitution and penalties assessed against the subcontractor. This Act also allows the Department to deny, suspend, or revoke the certificate of registration of a contractor who contracts with a subcontractor who has not registered on any project. In addition, Section 3 of this Act makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.
In Chapter 70, Subchapter V of Title 25, the Manufactured Home Relocation Trust Fund was established. It is administered by a Board of Directors. The Board was directed to set a monthly assessment for deposit in the Trust Fund for each rented lot in a manufactured home community. This Act removes the cap of the Trust Fund, currently set at $15 million. This Act also raises the amount of the tenant portion of the monthly assessment to be redirected to the Delaware Manufactured Home Owner Attorney Fund from 50 cents of the tenant portion to $1.50. This Act takes effect on the date of enactment.
HB 225 is the state's budget bill for the fiscal year ending June 30, 2026. It allocates state funds to government agencies and programs, while establishing specific rules and limits on how those funds can be spent. The bill also updates certain state laws to support the budget's implementation. This legislation directly affects how state agencies manage taxpayer-funded operations during the 2025-2026 fiscal year.
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.
