AN ACT TO AMEND TITLE 14 OF THE DELAWARE CODE RELATING TO SCHOOL TAX.
HB461 creates a temporary, district-specific adjustment to school tax procedures for New Castle County for the 2026-2027 tax year. It requires school boards in New Castle County to deliver their tax warrant and assessment list by October 22, 2026, and allows the tax rate to be reset using the most recent county assessment list. The bill is designed to account for ongoing changes to the county tax roll after the general reassessment, including appeal outcomes, quality-control corrections, and possible changes from other legislation.
The bill limits the reset so that it may not increase a district’s projected operating revenue beyond the prior year, except for revenue tied to approved referenda that have not yet been collected and an amount equal to each district’s five-year average growth rate in taxable property. If a district experiences a shortfall in local school funds because of this cap, it may request an advance from State Division I funds. The act expires on March 31, 2027, unless extended by later legislation.
HB461 temporarily amends Title 14 of the Delaware Code governing school tax collection and rate-setting, but only for New Castle County school districts and only for the 2026-2027 tax year. It gives districts a limited opportunity to reset tax rates after reassessment while constraining revenue growth and authorizing state advances to cover any resulting local funding shortfalls. The bill affects school boards, county tax officials, and the state education finance system, and it operates as a short-term exception to the usual school tax and assessment rules.
The bill appears generally pragmatic and corrective in tone, aimed at resolving administrative and revenue-setting issues created by the timing of New Castle County’s reassessment and related appeals. The synopsis frames the measure as necessary to preserve stability in school funding while reassessment work continues. No committee transcript or vote record was provided, so there is no direct evidence of opposition or support beyond the bill’s stated purpose and structure.
The main point of potential contention is the balance between limiting school district revenue growth and ensuring districts remain fully funded during a period of reassessment uncertainty. Districts may be concerned that the cap could reduce expected local revenue, while taxpayers may view the bill as a needed restraint on tax increases. Another possible issue is the reliance on State Division I advances to cover shortfalls, which shifts temporary funding pressure to the state. The bill’s narrow application to New Castle County and its sunset date also suggest it is a stopgap measure rather than a permanent policy change.