An Act To Amend Title 9 Of The Delaware Code Relating To Assessments And Taxation Of Structures Located On Land In Agricultural, Horticultural, And Forest Use.
SB 35 amends Delaware’s property tax statutes for land in agricultural, horticultural, and forest use to extend the state’s preferential assessment framework to certain structures located on that land. Under current law, farmland and forest land can be assessed based on its use value rather than full market value if it meets statutory eligibility requirements. This bill adds “qualified farm structures” to that system and defines them to include structures such as poultry houses and other buildings used to store, maintain, or house farm implements, crops, livestock, poultry, and related products.
The bill also updates the assessment, application, review, and rollback-tax provisions so that qualified farm structures are treated similarly to qualifying land. It requires owners to apply for the benefit, allows automatic renewal if eligibility does not change, and imposes rollback taxes if a structure is converted to nonagricultural use, rezoned, or otherwise loses eligibility. The State Farmland Evaluation Advisory Committee would also be responsible for developing valuation ranges that include an appropriate assessed percentage reduction for qualified farm structures.
SB 35 would expand Delaware’s agricultural-use property tax relief beyond land itself to include qualifying farm buildings and related structures, changing Title 9’s assessment rules for eligible properties. It would affect county and local taxing districts, assessors, the State Farmland Evaluation Advisory Committee, and farm owners who use structures for agricultural, horticultural, or forest purposes. The bill also creates or clarifies procedures for valuation, annual review, rollback taxes, liens, and penalties tied to changes in use, thereby integrating these structures into the existing farmland preservation tax framework.
The bill’s stated purpose and synopsis reflect strong support for helping farmers, especially small and medium-sized operators, by reducing the property tax burden on farm structures. The overall framing is favorable to agricultural preservation and is presented as a response to development pressure and the financial strain on farm businesses. No committee transcript or recorded vote information was provided, so there is no additional evidence of opposition or debate in the available record.
The main policy issue is whether property tax relief should be extended from land to structures, and how broadly “qualified farm structures” should be defined and valued. Potential concerns include reduced local tax revenue, the administrative burden on assessors, and the risk that structures could receive preferential treatment even if their use changes over time. The bill addresses those concerns by requiring applications, annual eligibility review, rollback taxes, liens for nonpayment, and penalties for failure to notify assessors of a change in use.