Local School Taxes

Del. Code tit. 14, ch. 19
in effect

Del. Code tit. 14, § 1901 Definitions.

For purposes of this chapter: (1) “District” means a reorganized school district. (2) “General reassessment” or “reassessed” means the general reassessment of all real property in the district by a county under § 8306 of Title 9. (3) “School board” means a board of education of a reorganized school district.

Del. Code tit. 14, § 1902 Power of district to levy taxes for school purposes.

(a) Except as provided under Chapter 26 of this title, a district may, in addition to the amounts apportioned to it by the Department of Education or appropriated to it by the General Assembly, levy and collect additional taxes for school purposes upon the assessed value of all taxable real estate in the district, except any of the following: (1) Real estate exempt from taxation under other law of this State. (2) Real estate exempt from taxation under a county ordinance adopted before June 26, 1995, exempting property for the purpose of attracting or expanding a for-profit business. (3) Real estate exempt from taxation under a county ordinance adopted on or before January 1, 1998, granting, clarifying, or expanding any exemption from county taxation. Upon a county-wide reassessment under § 8306(b) of Title 9, a county shall, by subsequent county ordinance, modify these exemption amounts. (4) Real estate owned by the Delaware Pharmacists Society. (5) Real estate owned by the Trustees of the Sewell C Biggs Trust. (6) Real estate owned by the Dover Interfaith Mission for Housing. (7) Real estate owned by the Inner City Cultural League. (8) Real estate owned by Todmorden Foundation and used for the purposes of affordable housing. (9) Real estate owned by the Central Delaware Housing Collaborative. (b) In any instance except major capital improvement and new funds for educational advancement, as defined in Chapter 17 of this title, where the State shall make appropriations to school districts for any purpose and the applicable statute requires a local district contribution to the appropriation or expenditure, the local school board may levy such tax as is necessary to support the local district contribution without the necessity of a referendum in the local school district, notwithstanding § 1903 of this title. (c) Pursuant to the provisions of subsection (b) of this section, all local districts shall be authorized to assess a local match for Fiscal Year 2010 reading resource teachers and mathematics resource teachers/specialists and Fiscal Year 2008 extra time.

Del. Code tit. 14, § 1903 Election preceding levy of tax.

(a) Except as specifically provided under this title, before a school board levies or increases a tax under § 1902 of this title, the school board must do all of the following: (1) Determine if the proposed tax is on the basis of a specified amount or of a specified rate of taxation. (2) Call a special election. The special election must be held under subchapter IV of Chapter 10 of this title. (b) A school district may not hold more than 2 special elections under this section during a 12-month period.

Del. Code tit. 14, § 1904 Tax rate for different classes of property.

(a) A school board of a district located entirely in New Castle County may use different tax rates for residential and nonresidential properties in the district in accordance with this section. A school board may initiate different tax rates or adjust the ratio between the different rates under the following circumstances: (1) As part of an election under § 1903 of this title. (2) When a school board calculates a new tax rate under § 1916(b) of this title. The combined projected revenue for a residential and nonresidential tax rate established or adjusted under this paragraph may not exceed the limit established under § 1916(b) of this title. (b) If a school board uses different tax rates under this section, the tax rates must be uniform for all real property in the same classification, as required under § 1 of Article VIII of the Delaware Constitution. (c) A nonresidential tax rate established under this section must be at least equal to a district’s residential tax rate and may be no more than 1.85 times the district’s residential tax rate. (d) For purposes of classification and taxation under this chapter, a school board must follow the residential and nonresidential classifications established by New Castle County. (e) In an election based on a specified rate of taxation conducted under § 1903 of this title, a district that uses a residential and nonresidential tax rate, or proposes to use a residential and nonresidential tax rate after a successful election, must state on the ballot the proposed new tax rate for each class of real property. If the election under § 1903 of this title is held on the basis of a specified amount to be raised, the district must state the proportion of the amount that is proposed to be raised from each class of real property. (f) As used in this section, “tax rate” means the aggregate tax levied upon a real property by a school district, including operating funds, match tax, tuition tax, and capital debt service. (g) A vocational-technical school district may not use different tax rates for residential and nonresidential properties under this section.

Del. Code tit. 14, § 1905 Qualified voters.

At an election under § 1903 of this title, every person qualified to vote under § 1077 of this title may vote, and §§ 1078 and 1085 of this title shall apply to such election.

Del. Code tit. 14, § 1907 Hours of election.

For an election under § 1903 of this title, the polls must open at 7:00 a.m. and must close at 8:00 p.m., prevailing local time, on the day advertised.

Del. Code tit. 14, § 1908 Method of voting; referendum to transfer tax funds.

(a) For an election under this chapter to increase taxes, the election shall be conducted by the use of voting machines. The wording on the voting machine shall include a statement of the question which is being voted for and against. (b) For an election under this chapter for the purpose of increasing the real estate tax under this chapter, while simultaneously decreasing the real estate tax under Chapter 21 of this title by the same amount or the transfer of tax funds for 1 purpose to another purpose, the election shall be conducted by the use of voting machines. The wording on the voting machine shall include a statement of the question which is being voted for and against. (c) The Department of Elections conducting the election shall provide a sufficient number of voting machines necessary to carry out the election hereunder, and the cost of transportation of the voting machines and other necessary charges for use of the voting machines shall be borne by that Department of Elections.

Del. Code tit. 14, § 1909 §§ 1909, 1910. Certifying and declaring result of election; recount.

Repealed by 74 Del. Laws, c. 122, § 46, effective July 8, 2003.

Del. Code tit. 14, § 1911 Required vote for authorization of additional tax.

If the majority of the votes cast at the election, under § 1903 of this title, shall be for additional tax, the tax shall be levied and collected as provided in this chapter.

Del. Code tit. 14, § 1912 Assessment list; school capitation tax.

(a) The school board of the district in which an additional tax is to be levied shall use the assessment list of the county in which that district is located as a basis for any school district tax. There may also be added a school capitation tax on all persons 18 years of age and upward residing in the district of such amount as shall be determined by the school board, provided that such school capitation tax is approved by the voters of the district in the same manner as required by this chapter for the levy of taxes upon the assessed value of real estate. (b) In the event a school capitation tax is approved by the voters of the district in New Castle County, the Department of Finance shall collect such taxes and make deposits of the moneys so collected in accordance with § 1917 of this title. Warrants or drafts on the said fund shall be drawn by the school board of the district. (c) Every person who would be entitled to any exemption from taxation if such person owned real estate, pursuant to subchapter II of Chapter 81 of Title 9, shall be entitled to an exemption from the school capitation tax, whether such person owns real estate or not.

Del. Code tit. 14, § 1913 Rate of tax [For application of this section, see 85 Del. Laws, c. 135, § 1, and c. 230, § 1].

(a) If the additional tax was authorized on the basis of amount of tax to be collected, the school board shall, upon the completion of the assessment, fix the rate sufficient to raise the amount determined to be raised at that time with an addition of up to 10% added thereto for delinquencies and costs of collection. If the additional tax was authorized on the basis of a specified rate of taxation, the board may add thereto up to 10% of said authorized rate for delinquencies and costs of collection. (b) Notwithstanding any other provision of this title to the contrary, any school district which traverses county boundary lines, which has tax rates established in accordance with § 1916(c) of this title, and which subsequently receives approval through referendum to change the limit on such tax rate, shall establish a new or changed tax rate, including up to 10% for delinquencies and costs of collection, such that the tax rate levied upon the full valuation of real estate will be uniform on all real estate in the school district regardless of the county in which it is located. For purposes of this subsection, the term “tax rate” shall mean the total tax rate levied for all school purposes. For purposes of this subsection, the term “full valuation” shall mean the assessed valuation of a real property divided by the most current assessment to sales price ratio for property within each county as established by the Director of the Office of Management and Budget in accordance with § 1707 of this title. (1)-(3) [Repealed.]

Del. Code tit. 14, § 1914 Levy of annual school tax without election.

(a) A school board that has, for 1 year, levied a local tax under this chapter may continue annually, without a further election or referendum, to levy that local tax in an amount that does not exceed any of the following, as calculated under § 1913 of this title: (1) The tax originally authorized by an election, if the original authorization was on the basis of an amount of tax. (2) The rate of tax originally authorized by an election, if the original authorization was on the rate of taxation. (3) The amount or rate of tax under paragraph (a)(1) or (a)(2) of this section as increased under subsection (b) of this section. (b) A school board that has levied a local tax under § 1902(a) of this title may, without a further election or referendum, annually increase the rate of that tax under this chapter for the next fiscal year by an amount that does not exceed 2% of the tax rate levied for the school district for the immediately prior fiscal year, as follows: (1) A school board may not increase the tax rate if any of the following apply: a. The district’s operational reserve balance is more than 10% of the district’s annual revenue. b. For the same fiscal year as a new tax rate is established after a general reassessment under § 1916(b) of this title. (2) A school board may implement this subsection (b) beginning the earlier of the following: a. For fiscal year 2031. b. After the first time a new tax rate is established by the district following a general reassessment after July 23, 2026. (c) If the amount or rate of tax is increased under subsection (b) of this section, state funding may not be decreased in any subsequent tax year based on the levy of that increase.

Del. Code tit. 14, § 1915 Demand for new election.

If in any year, not less than 2 months before the date of the regular school election, a number of voters, not fewer than 25 percent of the number of qualified voters of the district, shall demand over their signatures that an election be held, the board of education shall call an election as provided in § 1903 of this title, and the result of such election shall be binding until another election.

Del. Code tit. 14, § 1916 Tax collection warrant and assessment list; tax rate after general reassessment [Effective until Mar. 31, 2027].

(a) Based on the total value of all taxable property as shown on the county assessment list and on the amount to be raised, the board of the district shall fix the rate of taxation plus up to 10% for delinquencies. (b) (1) After a general reassessment, a school board shall calculate a new tax rate that projects the total amount of money that is equal to or less than the sum of all of the following: a. The actual operating revenue derived by the tax levied in the fiscal year immediately preceding the general reassessment. b. A percentage that is equal to the average growth rate, during the previous 5 years, in taxable property in the district. (2) If a general reassessment is completed after a new tax or a tax increase is approved under § 1903 of this title but before actual revenue is derived from that approved tax, the school board shall calculate a new tax rate that projects the total amount of money that is equal to or less than the sum of all of the following: a. The projected operating revenue announced, projected, or calculated to be derived by approved tax. b. A percentage that is equal to the average growth rate, during the previous 5 years, in taxable property in the district. (3) Paragraphs (b)(1) and (b)(2) of this section do not apply to general reassessments before January 1, 2026, and this paragraph (b)(3) applies only to general reassessments before January 1, 2026. If the qualified voters of a reorganized school district have approved a specific rate of taxation or specified amount of taxation under § 1903 of this title and a subsequent general reassessment of all real estate in the county changes the total assessed valuation of the school district, the local board of education of each such local school district shall calculate a new real estate tax rate which, at its maximum, would realize no more than 10% increase in actual revenue over the revenue derived by real estate tax levied in the fiscal year immediately preceding such reassessed real estate valuation. In the event the qualified voters of a reorganized school district approve a specific rate of taxation or specified amount of taxation under § 1903 of this title to be collected, and there is a reassessment effective after voter approval, but before actual revenue is derived from increased taxation resulting from such voter approval, the local board of education of each such local school district shall calculate a new real estate tax rate which, at its maximum, would realize no more than a 10% increase in actual revenue over the revenue announced, projected or calculated to be derived by such voter approval and prior voter approvals. (4) Any subsequent increase in the rate of taxation may only be achieved as follows: a. Under § 1914(b) of this title. b. By an election of the qualified voters in the school district under § 1903 of this title. (c) Notwithstanding any other provisions of this title to the contrary, the school board of the district whose jurisdiction traverses county boundary lines and whose local school taxes are made different as a result of property reassessment shall levy real estate taxes in the following manner: (1) In the county not reassessed, at a rate authorized by law and referendum. (2) In the county recently reassessed, at a newly calculated rate based on the newly established assessments which at its maximum would bring in revenue equal to the amount authorized by law and by referendum, based on the previous year’s assessment, plus the quarterly updates and the 10% increase as authorized by subsection (b) of this section. (d) The board shall, no later than the second Thursday in July, deliver its warrant to the receiver of taxes and county treasurer of the county or counties where the district is located. (e) Notwithstanding the provisions of this chapter and § 2601 of this title, , the school board of any district within New Castle County shall, no later than October 22, 2026, deliver its warrant for the 2026-2027 tax year to the receiver of taxes and county treasurer of the county or counties where the district is located. The rate set under this subsection may be reset to incorporate the most recent assessment list provided by New Castle County. However, the rate set under this section may not increase the projected operating revenue of a school district, except any increase approved by referendum but not yet received and for a percentage that is equal to the 5-year average growth rate in taxable property as reported by New Castle County. In the event a school district within New Castle County experiences a shortfall of local school funds as a result of this subsection for the 2026-2027 school tax year, the school district may request, and the State shall advance, moneys from State Division I funds.

Del. Code tit. 14, § 1917 Collection and deposit of school taxes [Effective until Aug. 12, 2028].

(a) (1) The receiver of taxes and county treasurer shall collect school taxes in the same manner and at the same time as provided by law for the collection of taxes for other purposes, and, except as provided in subsection (c) and (d) of this section, shall allow no abatement or discount upon any taxes levied for school purposes required to be collected by them. (2) a. Except as provided under paragraph (a)(2)b. of this section, the Receiver of Taxes of Kent and Sussex Counties and the Receiver of Taxes and County Treasurer for New Castle County shall, after the date the tax is due in the year in which the tax rolls shall be delivered to them, assess a penalty of 1% per month until the same shall be paid. b. The county tax collection authority shall waive the penalties described in paragraph (a)(2)a. of this section for any residential taxpayer who enters into and complies with a payment plan authorized under § 8604 of Title 9. (b) All money so collected shall be paid to the State Treasurer and shall be deposited by the State Treasurer in a separate account in the depository for other school moneys to the credit of the district. (c) (1) a. If authorized by majority vote of the whole school board of the local school district pursuant to § 6102(q) of Title 29, there shall be allowed a credit against taxation imposed pursuant to this chapter on the valuation of any qualified property. For purposes of this subsection, “qualified property” shall mean property owned and occupied as a dwelling by and as the principal residence of a qualified person. A “qualified person” is a person who, as of June 30 immediately prior to the beginning of the county fiscal year, is of the age of 65 or more and meets the following requirement: 1. For claimants establishing legal domicile in this State after December 31, 2012, but on or before December 31, 2017, only claimants who, as of June 30 immediately prior to the beginning of the county fiscal year, have been legally domiciled within the State for a period of at least 3 consecutive years are eligible to receive a credit. 2. For claimants establishing legal domicile in this State after December 31, 2017, only claimants who, as of June 30 immediately prior to the beginning of the county fiscal year, have been legally domiciled within the State for a period of at least 10 consecutive years are eligible to receive a credit. b. Mere seasonal or temporary residence within the State, of whatever duration, shall not constitute domicile within the State for the purposes of this section. Absence from this State for a period of 12 months shall be prima facie evidence of abandonment of domicile in this State. The burden of establishing legal domicile within the State shall be upon the claimant. The maximum such credit authorized by vote of local school boards shall be the lesser of: 1. Fifty percent of such tax remaining after taking into account any exemption pursuant to Title 9 and Title 22 and any tax reduction pursuant to § 6102 of Title 29; or 2. Five hundred dollars. The receiver of taxes and county treasurer shall apply such credit after any change to the current expense tax rate pursuant to § 6102 of Title 29. (2) No credit against taxation on the valuation of real property as provided in this subsection shall be allowed except in accordance with a form of written application prescribed by the Secretary of Finance in consultation with the receiver of taxes and county treasurer and provided by the receiver of taxes and county treasurer for use by the claimants under this subsection. Such application shall be filed with and received by the receiver of taxes or county treasurer no later than April 30 immediately prior to the beginning of that tax year. (3) The Secretary of Finance shall have the authority to waive the date of application in the case that an individual is financially disabled defined herein as unable to manage such individual financial affairs by reason of a medically determinable physical or mental impairment (excluding impairment caused by voluntary use of alcohol or unlawful use of a controlled substance as defined in Chapter 47, Title 16) which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months, but shall not include individuals for whom an individual’s spouse, guardian, or any other person is authorized to act on behalf of such individual in financial matters. (4) a. Where title to property on which a credit is claimed is held by claimant and another or others, either as tenants in common or as joint tenants, claimant shall not be allowed a credit against that claimant’s interest in said property in excess of the assessed valuation of that claimant’s proportionate share in said property, which proportionate share, for the purposes of this subsection, shall be deemed to be equal to that of each of the other tenants unless it is shown that the interests in question are not equal, in which event claimant’s proportionate share shall be as shown. b. Nothing in this subsection shall preclude more than 1 tenant, whether title be held in common or joint tenancy, from claiming a credit against the property so held, but no more than the equivalent of 1 full credit in regard to such property shall be allowed in any year, and in any case in which the claimants cannot agree as to the apportionment thereof, the credit shall be apportioned between or among them in proportion to their interests. Property held by husband and wife as tenants by the entirety shall be deemed wholly owned by each tenant, but not more than 1 credit in regard to such property shall be allowed in any year. c. Right to claim a credit under this subsection shall extend to property the title to which is held by a partnership to the extent of the claimant’s interest as a partner therein, or by a guardian, trustee, committee, conservator or other fiduciary for any person who would otherwise be entitled to claim a credit under this subsection, but not to property the title to which is held by a corporation. d. Right to claim credit under this subsection shall be withdrawn for the subsequent tax year from any taxpayer who has not paid in full such taxpayer’s property tax bill by the end of the tax year for which a credit was reported for that taxpayer to the Secretary of Finance by the receiver of taxes and county treasurer. Taxpayers who fail to pay in full their property tax bill by the end of the tax year for which a credit was reported for that taxpayer to the Secretary of Finance by the receiver of taxes and county treasurer may qualify for credits under this subsection in subsequent tax years upon the payment in full of property taxes and penalties owed prior to the beginning of the subsequent tax year. (5) The Secretary of Finance may, in consultation with the receiver of taxes and county treasurer, promulgate such rules and regulations and prescribe such forms as the Secretary shall deem necessary to implement this subsection. The Secretary may require that any return or other writing required to be filed with respect to the credit allowed under authority of this subsection be signed by the maker of such return or writing under oath or affirmation, subject to the penalties of perjury. (6) An aggrieved taxpayer may appeal from the disposition of a claim for credit under this subsection in the same manner as provided for appeals from property tax assessments generally. (7) Whenever the Secretary of Finance shall determine that a credit has been claimed in disregard of the conditions under which such claims may be made and for the Secretary has authorized payment under § 1919(c) or (d) of this title, the Secretary may assess such claimant for the amount of the credit and, unless it is shown that such disregard is due to reasonable cause and not due to wilful neglect, with a penalty of 20% of the credit claimed along with interest at 1% for any month or fraction of a month commencing on the date on which the claim for credit was filed. (d) (1) a. If authorized by majority vote of the whole school board of the local school district under § 6102(r) of Title 29, there will be allowed a credit against taxation in the full amount of tax liability imposed by this chapter on the valuation of any qualified property. b. For purposes of this subsection, “qualified property” means property owned and occupied as a dwelling by and as the principal residence of a qualified person. c. For purposes of this subsection, a “qualified person” means a veteran who satisfies both the following: 1. Receives from the United States Department of Veterans Affairs, or its successor agency, 100% disability compensation due to a service-connected, permanent and total disability based on individual unemployability or a 100% disability rating. 2. Is legally domiciled in this State for a period of at least 3 consecutive years. Mere seasonal or temporary residence within this State, of whatever duration, does not constitute domicile within this State for the purposes of this subsection. Absence from this State for a period of 12 months is prima facie evidence of abandonment of domicile in this State. d. If a local school board has authorized the tax credit under paragraph (d)(1)a. of this section, then the credit must be allowed for a surviving spouse of a deceased qualified person if all of the following apply: 1. The deceased qualified person, immediately before death, was both claiming the credit and had not had the right to claim the credit withdrawn. 2. The surviving spouse was a titled owner of the qualified property before the deceased qualified person’s death. 3. The surviving spouse has not remarried. 4. The surviving spouse owns and occupies the qualified property as their principal residence. e. A surviving spouse is no longer eligible for the credit if they do any of the following: 1. Remarry. 2. Stop being a titled owner of the qualified property. 3. Stop occupying the qualified property as their principal residence. f. The burden of establishing that the claimant meets the definition of “qualified person” or is an eligible surviving spouse is on the claimant. g. The receiver of taxes and county treasurer shall apply such credit after any change to the current expense tax rate pursuant to § 6102 of Title 29. (2) a. A credit against taxation on the valuation of real property as provided in this subsection may not be allowed except in accordance with a form of written application prescribed by the Secretary of Finance in consultation with the receiver of taxes and county treasurer and provided by the receiver of taxes and county treasurer for use by the claimants under this subsection. Such application must be filed with and received by the receiver of taxes or county treasurer no later than April 30 immediately before the beginning of that tax year. b. Notwithstanding the application deadline in paragraph (d)(2)a. of this section, the Secretary of Finance, in consultation with the receiver of taxes and country treasurer, shall establish a process for the receiver of taxes and county treasurer to use to verify the eligibility of a surviving spouse of a deceased qualified person and to maintain the credit for an eligible surviving spouse without disruption occasioned by the death of the qualified person. (3) The Secretary of Finance shall have the authority to waive the date of application in the case that an individual is financially disabled defined herein as unable to manage such individual financial affairs by reason of a medically determinable physical or mental impairment (excluding impairment caused by voluntary use of alcohol or unlawful use of a controlled substance as defined in Chapter 47, Title 16) which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months, but shall not include individuals for whom an individual’s spouse, guardian, or any other person is authorized to act on behalf of such individual in financial matters. (4) a. Where title to property on which a credit is claimed is held by claimant and another or others, either as tenants in common or as joint tenants, the claimant is not allowed a credit against that claimant’s interest in the property in excess of the assessed valuation of that claimant’s proportionate share in the property. For the purposes of this subsection, the claimant’s proportional share is deemed to be equal to that of each of the other tenants unless it is shown that the interests in question are not equal, in which event claimant’s proportionate share must be as shown. b. Nothing in this subsection shall preclude more than 1 tenant, whether title be held in common or joint tenancy, from claiming a credit against the property so held, but no more than the equivalent of 1 full credit in regard to such property shall be allowed in any year, and in any case in which the claimants cannot agree as to the apportionment thereof, the credit shall be apportioned between or among them in proportion to their interests. Property held by husband and wife as tenants by the entirety shall be deemed wholly owned by each tenant, but not more than 1 credit in regard to such property shall be allowed in any year. c. Right to claim a credit under this subsection shall extend to property the title to which is held by a partnership to the extent of the claimant’s interest as a partner therein, or by a guardian, trustee, committee, conservator or other fiduciary for any person who would otherwise be entitled to claim a credit under this subsection, but not to property the title to which is held by a corporation. d. Right to claim credit under this subsection will be withdrawn for the subsequent tax year from any taxpayer who has not paid in full such taxpayer’s property tax bill by the end of the tax year for which a credit was reported for that taxpayer to the Secretary of Finance by the receiver of taxes and county treasurer. Taxpayers who fail to pay in full their property tax bill by the end of the tax year for which a credit was reported for that taxpayer to the Secretary of Finance by the receiver of taxes and county treasurer may qualify for credits under this subsection in subsequent tax years upon the payment in full of property taxes and penalties owed before the beginning of the subsequent tax year. A claimant must notify the receiver of taxes or county treasurer of any modification in status that results in the claimant no longer meeting the definition of “qualified person” set forth in paragraph (d)(1) of this section or of eligible surviving spouse under paragraph (d)(1)d. of this section. e. To the extent that a claimant qualifies for a credit pursuant to both this subsection and subsection (c) of this section, the claimant shall be entitled to the credit authorized under this subsection and shall have no right to claim a credit authorized under subsection (c) of this section. (5) The Secretary of Finance may, in consultation with the receiver of taxes and county treasurer, promulgate such rules and regulations and prescribe such forms as the Secretary shall deem necessary to implement this subsection. The Secretary may require that any return or other writing required to be filed with respect to the credit allowed under authority of this subsection be signed by the maker of such return or writing under oath or affirmation, subject to the penalties of perjury. (6) An aggrieved taxpayer may appeal from the disposition of a claim for credit under this subsection in the same manner as provided for appeals from property tax assessments generally. (7) Whenever the Secretary of Finance shall determine that a credit has been claimed in disregard of the conditions under which such claims may be made and for which the Secretary has authorized payment under § 1919 (e) of this title, the Secretary may assess such claimant for the amount of the credit and, unless it is shown that such disregard is due to reasonable cause and not due to wilful neglect, with a penalty of 20% of the credit claimed along with interest at 1% for any month or fraction of a month commencing on the date on which the claim for credit was filed.

Del. Code tit. 14, § 1918 Disbursement of school taxes; financial statement.

(a) Warrants or drafts on the said fund shall be drawn by the school board of the district and applied only for the purpose for which the levy is made. (b) The district shall prepare at the close of each fiscal year a financial report as specified in § 1507 of this title. This financial report shall have been examined and approved by the Board prior to its publication and submission to the Secretary of Education, not later than August 31 for the prior fiscal year. Copies of the financial report shall be placed on file for review by the public in each school in the district, in the district’s central administrative offices and in each public library located within the school district. (c) This section shall apply for fiscal years beginning on or after July 15, 1988.

Del. Code tit. 14, § 1919 Report of school tax collections and payment of collected taxes.

(a) Each receiver of taxes and county treasurer shall on the first day of each month make a report to the school board of the district for which the receiver or treasurer is collecting taxes, to the State Treasurer and the Department of Education, of all taxes collected in the previous month. The forms shall show a complete breakdown of taxes collected, such as capitation, debt service and current expenses, and such other information as may be required. (b) Each receiver of taxes and county treasurer shall, not less than once each calendar month, pay over to the State Treasurer all funds collected by him or her for any district. (c) (1) For tax years beginning on or after May 1, 1999, but before May 1, 2000, each receiver of taxes and county treasurer shall, in accordance with rules and deadlines established by the Secretary of Finance, report to the Secretary of Finance the amount of credits allowed under § 1917(c) for the current tax year. Credits shall be allowed and reported to the Secretary of Finance only in the event the claimant has paid the school tax due for the tax year. (2) The Secretary of Finance shall, after receiving the report required under paragraph (c)(1) of this section, pay over to each receiver of taxes and county treasurer an amount from the Elderly Property Tax Relief and Education Expense Fund established pursuant to § 6102(q) of Title 29, Delaware Code, to offset administrative costs to each county an amount up to 5% of the value of credits claimed, but not to exceed $50,000. The Secretary of Finance may use an amount from the Elderly Property Tax Relief and Education Expense Fund established pursuant to § 6102(q) of Title 29, Delaware Code to offset administrative costs up to 5% of the value of credits claimed, but not to exceed $50,000. (3) For tax years beginning on or after May 1, 1999 and before May 1, 2000, each receiver of taxes and county treasurer shall, no later than January 31, 2000, submit a list to the Secretary of Finance of taxpayers qualifying and approved for the credit under § 1917(c) of this Title, the amount equal of the school tax paid by said taxpayer, and the school tax that would have been due taking into account the credit under § 1917(c), along with such other information as deemed appropriate by the Secretary of Finance. (4) For tax years beginning on or after May 1, 1999 and before May 1, 2000, the Secretary of Finance shall refund to taxpayers qualifying and approved for the credit under § 1917(c) of this title an amount equal to the school tax paid by said taxpayer less the school tax that would have been due taking into account the credit under subsection (c) of this section. (5) The Secretary of Finance may promulgate such rules and regulations and prescribe such forms and reports as the Secretary of Finance shall deem necessary to implement this subsection. (d) For tax years beginning on or after May 1, 2000, each receiver of taxes and county treasurer shall report to the Secretary of Finance the amount of credits allowed under § 1917(c) of this title for that tax year within 90 days of the date of any property tax billing. Such reports shall contain such further information and be in such form as the Secretary shall prescribe. The Secretary shall pay over to the State Treasurer, no later than 30 days following receipt of such report, an amount from the Elderly Property Tax Relief and Education Expense Fund established pursuant to § 6102(q) of Title 29 equal to the allowable credits which shall be deposited into a separate account in the depository for other school moneys to the credit of the district. (e) For tax years beginning on or after May 1, 2022, each receiver of taxes and county treasurer shall report to the Secretary of Finance the amount of credits allowed under § 1917(d) of this title for that tax year within 90 days of the date of any property tax billing. Such reports shall contain such further information and be in such form as the Secretary shall prescribe. The Secretary shall pay over to the State Treasurer, no later than 30 days following receipt of such report, an amount from the Disabled Veterans Property Tax Relief and Education Expense Fund established pursuant to § 6102(r) of Title 29 equal to the allowable credits which shall be deposited into a separate account in the depository for other school moneys to the credit of the district.

Del. Code tit. 14, § 1920 Penalty.

Whoever, being a receiver of taxes and county treasurer of any county, or other person authorized to collect school taxes, or a member of any school board, fails, neglects or refuses to perform all or any of the duties imposed upon that person by this chapter shall be fined not less than $10 nor more than $100. Justices of the peace shall have jurisdiction of offenses under this section.

Del. Code tit. 14, § 1921 Refund of county taxes paid in error; refund after assessment appeal.

(a) Local county school taxes paid through error or by mistake may be refunded by the school district to which the taxes were paid as follows: (1) The person claiming a refund of taxes shall file with the board of the school district a request for refund under oath or affirmation stating the payment of the taxes, the person, firm, corporation or association by whom the taxes were paid, and the date of payment and stating why it is believed the taxes were paid in error; (2) The school board shall submit the request for refund to the receiver of taxes of the county for the receiver’s approval of the payment of the refund and shall make no refund unless the receiver of taxes approves the refund in writing, except that capitation taxes may be refunded without such approval; (3) The school board and the receiver of taxes shall keep a record of all refunds for at least 3 years, which record shall be open for public inspection during regular business hours. (b) Local county school taxes determined to be overpaid after an assessment appeal by a taxpayer shall be refunded or credited in accordance with § 8311 of Title 9.

Del. Code tit. 14, § 1922 Borrowing in anticipation of taxes.

School districts may borrow money in anticipation of local school taxes, as imposed by this chapter, to an amount not to exceed 25% of such annual taxes, which shall be pledged for the payment of such loan or loans, and issue revenue anticipation notes or certificates, executed in accordance with § 2111 of this title. Such revenue anticipation notes or certificates shall mature and be payable within 90 days of the date such money is borrowed. They shall be redeemable at a state or national bank designated by the school district. The faith and credit of the school district is pledged for the payment of the principal and interest of the revenue anticipation notes or certificates of indebtedness which shall be exempt from taxation for any purpose by this State. All expense incident to the advertising, preparing, issuing and delivering of the revenue anticipation notes or certificates, and principals and interest thereon shall be paid by the school district. No such borrowing shall constitute an increase of bonded debt within the meaning of § 2107 of this title.

Del. Code tit. 14, § 1923 Payment of interest upon local school funds on deposit.

(a) The State Treasurer shall credit to the account of each local school district that has funds on deposit with the State Treasurer such amount of interest as determined by this section upon such funds. The rate of interest applied shall be based upon net interest earned and calculated under guidelines established by the Cash Management Policy Board. (b) On or before the last day of each month, the State Treasurer shall credit the operating and debt service accounts respectively of each school district’s operating and debt service funds with interest on the average balances in operating and debt service funds for the preceding month. The amount of interest due shall be calculated upon the average daily account balances determined by the respective financial activity reports of the Department of Finance. (c) On or before the last day of each month, the State Treasurer shall credit the debt service account of each local school district’s construction fund with interest on the average balance of that proportion of the construction account contributed by the local school district. The amount of interest due shall be calculated upon the average daily account balances determined by the respective financial activity reports of the Department of Finance.

Del. Code tit. 14, § 1924 Tax rates in districts resulting from consolidation pursuant to court order or created after February 1, 1978, but prior to July 30, 1978.

(a) For the purpose of this section: (1) “Consolidated area” shall refer to a contiguous geographical area in which all school districts (except vocational-technical school districts unless specifically included by the court or the consolidation) are being organized into 1 or more reorganized school districts. (2) “Reorganized school district” shall mean any school district created by consolidation of whole existing school districts or parts of existing school districts or any combination thereof pursuant to court order or created by consolidation of whole existing school districts or parts of existing school districts or any combination thereof which occurs after February 1, 1978, but prior to July 30, 1978, except for consolidation of districts created specifically to administer a system of vocational and/or technical education. (b) The interim board of education or board of education or other authority mandated by the court or by this title for each reorganized school district may annually set a tax rate for current operating expenses not greater than a maximum rate to be determined by the State Board of Education in accordance with the following mathematical procedure: (1) Determine the total aggregate dollar amount of local tax funded current operating cost expenditure in the school districts (except vocational-technical school districts unless such districts are included in the consolidation) of the consolidated area in the year prior to consolidation. In determining such total amount the State Board shall take the known total aggregate dollar amount of local tax funded current operating cost expenditure in the fiscal year preceding the year prior to consolidation and shall adjust this amount to take into account historic annual percentage changes in such total dollar amounts; (2) Calculate the average per pupil local tax funded operating cost expenditure by dividing the dollar amount determined in paragraph (b)(1) of this section by the total number of students resident in the consolidated area who attend public schools of the districts (except vocational-technical school districts unless such districts are included in the consolidation) within the consolidated area on September 30 of the year prior to consolidation; (3) Multiply the per pupil figure determined in paragraph (b)(2) of this section by the projected number of pupils expected to attend school in the reorganized school district in the first year of consolidation, such projected number to be determined by the State Board of Education by whatever tests or standards it finds appropriate; (4) Determine the tax rate which, when multiplied by the total assessed value of all taxable real estate in the reorganized school district at the time the maximum is calculated, except taxable real estate which is exempt from county taxation, as determined and fixed for county tax purposes, would yield tax dollars collectible equal to 110 percent of the total dollar amount determined in paragraph (b)(3) of this section. (c) The maximum rate of tax authorized in accordance with subsection (b) of this section includes the percentage for delinquencies and costs of collection provided for in § 1913 of this title. (d) The interim board of education or the board of education or other authority mandated by the court or by this title for each reorganized school district may at an appropriate time during each fiscal year set a tax rate for debt service for the next fiscal year that shall be adequate to make the payments for principal and interest on debts evidenced by bonds or bond obligations of the reorganized district and bonds or bond obligations in each of the whole component school districts included in the reorganized district and for that fraction of the bond obligation of each component school district partially included in the reorganized district equal to the fraction of the assessed value (except taxable real estate which is exempt from county taxation, as determined and fixed for county tax purposes) of such partially included district located in the reorganized district. (e) The interim board of education or board of education or other authority mandated by the court or by this title for each reorganized school district may each fiscal year determine and set tax rates for tuition and for minor capital improvements for the next fiscal year. (f) Each reorganized school district may annually levy and collect taxes at rates set in accordance with this section upon the assessed value of all taxable real estate in such district, except taxable real estate which is exempt from county taxation, as determined and fixed for county tax purposes. Whenever this section provides for a maximum rate of tax, the levy of any taxes in excess of such maximum rate of tax shall in all respects be subject to this subchapter, notwithstanding this section.

Del. Code tit. 14, § 1925 School tax districts.

(a) If the State Board of Education divides a school district pursuant to the authority of § 1028(k) of this title, the geographical area encompassed by the district being divided shall be established as a school tax district for the collection of taxes at a uniform rate throughout the school tax district, said taxes to be distributed according to § 1028(k) of this title. Such a school tax district shall serve no other function nor shall any staff or governing board be established for such a district. (b) The tax rate for current operating expenses shall be the rate of taxes levied for current operating expenses in the district being divided in the fiscal year in which the State Board of Education adopts the plan dividing the district. (c) The tax rate for the meeting of bond obligations shall be set by the taxing authorities of the county wherein the school tax district is located after consultation with the Treasurer of the State and levied throughout the school tax district in order to meet the obligations of §§ 1028(k) and 2121 of this title. (d) The official of the county wherein the school tax district is located who is authorized to collect school taxes pursuant to § 1917 of this title shall annually set the tax rate, in compliance with subsections (b) and (c) of this section, for taxes to be collected in the following year. (e) This section shall supersede § 1924 of this title upon the effective date of the division pursuant to § 1028(k) of this title.
Source: DE Code (Official Site)URL: https://delcode.delaware.gov/title14/c019/sc01/index.htmlFetched: 10/4/2026

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