Limitations Upon Taxing Power

Del. Code tit. 9, ch. 81
in effect

Del. Code tit. 9, § 8101 Property subject to county taxation [For application of this section, see 85 Del. Laws, c. 132, § 5].

(a) All real property situated in this State shall be liable to taxation and assessment for public purposes by the county in which the property is located, except as otherwise provided in this chapter. (b) Real property shall consist of the following: (1) Land; (2) Buildings; (3) Improvements; and (4) Special betterments. (c) Improvements shall mean annexations to land other than buildings which increase the market value of the land when used for general purposes permitted by law, or annexations to buildings which increase the market value of the buildings when used for general purposes permitted by law. (d) The taxation and assessment of lands, buildings and improvements shall exclude the value of any annexation and other addition to lands other than buildings and the value of any annexation and other addition to buildings or improvements, to the extent its use is limited primarily to a particular trade, business, occupation, profession, industry or similarly restricted activity. Such annexation or other addition may be taxed and assessed as a special betterment, if included in the enumeration in subsection (e) of this section. (e) Special betterments, whether or not also considered to be improvements, shall include and be limited to the following: (1) Bridges, wharves or piers; (2) Mains, pipes and tanks, used for conducting steam, heat, water, oil or gas, not used in a manufacturing, assembling, processing or refining operation; (3) Railroad sidings, roads, walkways and parking areas; (4) Fences and yard lighting; (5) Storage tanks; (6) Sewer systems including piping, separators, septic tanks and waste treatment systems; water systems, including cooling and drinking water lines, both above and below ground; (7) Poles, towers, wires and cable, for distribution of electrical energy either above or below ground, not used in a manufacturing, assembling, processing or refining operation; (8) Poles, wires, cable and conduit for distribution of telephone communication services either above or below ground; provided, however, that in no event shall the amount of tax imposed on communications providers that were paying tax on such property as of June 30, 2015, exceed the amount actually paid by such provider to each political subdivision in the fiscal year ending June 30, 2015; (9) Fire protection systems, including all facilities which are components of the fire protection systems; (10) Racetracks, stadiums and airports; (11) Bank vaults and bank teller windows; and (12) Outdoor motion picture theaters. (f) The taxation and assessment of lands, buildings and improvements shall exclude the value of any lands, buildings, and improvements upon which are situated, or which are in active use as, compost bins, manure sheds, or other nutrient storage, disposal, or management structures or facilities pursuant to a nutrient management plan required pursuant to Chapter 22 of Title 3. In order to receive an exemption pursuant to this subsection, the taxpayer must notify the county of the existence of the qualifying land, buildings, or improvements and request the exemption.

Del. Code tit. 9, § 8102 Transfers of real property subject to county taxation [For application of this section, see 81 Del. Laws, c. 384, § 3].

(a) Notwithstanding any statute to the contrary, the county government of each county shall have the power by ordinance to impose and collect a tax, to be paid by the transferor or transferee as determined by the county, upon the transfer of real property within the unincorporated areas of the county; provided however, that any realty transfer tax which is imposed by any county government shall not be greater than 1½ percent of the value of the real property as represented by the document transferring the property; and further provided, that the county government shall exempt from such taxation “first-time home buyers”, as that term is defined in § 5401 of Title 30, up to at least the value of the property or $400,000 whichever is less and such county may by ordinance increase the exemption amount. Any revenues from a tax upon the transfer of real property derived from an ordinance hereinafter adopted by the government of Kent County pursuant to the provisions of this section shall first be dedicated for and applied to Kent County’s cost component of the Statewide Paramedic Funding Program as is more particularly set forth in § 9814 of Title 16. (b) The provisions of §§ 5401 and 5403 of Title 30 shall apply with respect to any realty transfer tax imposed by a county government pursuant to the authority granted in this section. (c) Any funds realized by a county pursuant to this section shall be segregated from the county’s general fund and the funds, and all interest thereon, shall be expended solely for the capital and operating costs of public safety services, economic development programs, public works services, capital projects and improvements, infrastructure projects and improvements, debt reduction, assessments of real property as provided for in § 8101 of this title, recreational amenities, workforce and affordable housing programs, and land preservation programs.

Del. Code tit. 9, § 8103 Personal property.

No county or other political subdivision of the State shall levy, assess or collect any tax upon personal property, whether tangible or intangible.

Del. Code tit. 9, § 8104 Placement of mobile homes subject to Sussex County taxation.

Notwithstanding any statute to the contrary, the Sussex County government shall have the power by ordinance to impose and collect a tax, to be paid by the applicant, upon the application for a permit for the placement of a mobile home within the unincorporated areas of the county; provided, however, that any tax upon the placement of a mobile home shall not be greater than 1 percent of the value of the mobile home as represented by the permit application; and further provided, that nothing herein shall limit or otherwise affect the power of the county to impose and collect by ordinance fees for placement permits for mobile homes; and further provided, that the county government shall by ordinance exempt from taxation mobile homes owned by those organizations contained in §§ 8105 and 8106 of this title; and further provided, that the county government shall by ordinance exempt from taxation mobile homes which are not subject to taxation pursuant to § 8363 of this title. The funds realized by the county pursuant to this tax shall be segregated from the county’s general fund and the funds, and all interest thereon, shall be expended solely for the benefit of the county’s independent libraries. The government of Sussex County may adopt by ordinance or ordinances to provide for the effective administration and regulation of any taxes adopted pursuant to the authority conferred by this section.

Del. Code tit. 9, § 8105 Property owned by governmental, religious, educational or charitable agency.

Property belonging to this State, or the United States, or any county of this State, or owned by any municipality of this State and held for public use, or any church or religious society, and not held by way of investment, or any college or school and used for educational or school purposes, except as otherwise provided, shall not be liable to taxation and assessment for public purposes by any county or other political subdivision of this State. Nothing in this section shall be construed to apply to ditch taxes, sewer taxes and/or utility fees. Corporations created for charitable purposes and not held by way of investment that are in existence on July 14, 1988, together with existing and future charitable affiliates of such corporations that are also not held by way of investment, shall not be liable to taxation and assessment for public purposes by any county, municipality or other political subdivision of this State.

Del. Code tit. 9, § 8106 Specific organizations and purposes.

(a) No real property owned and used by the organizations listed below or for the purposes stated below, except that which is held by way of investment, shall be liable to taxation and assessment for public purposes by any county or other political subdivision of this State. Delaware Historical Society. New Castle Historical Society. All incorporated relief associations for volunteer firefighters (limit, $25,000 per association). Nonsectarian Young Women’s Christian Associations. Nonsectarian Young Men’s Christian Associations. Salvation Army. Burial lots and cemeteries. Children’s Home, Inc. Sunday Breakfast Mission. The Family Society. Woods Haven School for Girls. Ferris Industrial School. Florence Crittenton Home. All incorporated homes of refuge for reformed women (limit, $25,000 per home). Charitable homes for incurables (limit, $15,000 per home). Day nurseries or homes for babies owned by any corporation or association maintained by charity (limit, $50,000 per nursery or home). Charitable incorporated homes or associations for deaconesses (limit, $10,000 per home). Delaware Commission for the Blind [repealed]. Charitable incorporated settlement houses. Soldiers’ rest rooms. Incorporated college fraternities (limit, $10,000 per fraternity). Wilmington Institute Free Library. Public parks in and near Wilmington. American Legion Posts. Veterans of Foreign Wars Posts. Delaware Anti-Tuberculosis Society. Delmar Lions Club. Polish Army Veterans of Delaware, Post 48, Inc. Lions Club of Smyrna. Pencader 4-H Club Center, Inc. Wilmington Drama League, Inc. Council of Churches of Wilmington and New Castle County, Inc. New Temple Corporation. Edgemoor Terrace Civic Association, Incorporated. Hyde Park Civic Association, Inc. Brookland Terrace Civic Club. Manor Community Center, Inc. Collins Park Community and Civic Association, Inc. Veteran Employees Association, Delaware Division, Pennsylvania Railroad. Pencader Grange # 60 P. of H., Inc. Taylor’s Bridge Community Center, Incorporated. Blackbird Community Center, Inc. Oakhill Community Center, Inc. The Brookside Community, Inc. Women’s Civic Club of Richardson Park. Hillside Civic Association. The Klair Estates Civic Association, Inc. The Castle Hills Civic Association. Westview Maintenance Corporation. Suburban Century Club. Sussex Chapter of Delaware Humane Association. Imperial Drive Civic Association. Fruitland Grange, No. 16, Camden, Delaware. Windy Hill Civic Association. Perth Community and Civic Association, Inc. Women’s Club of Claymont. Swanwyck Estates Civic Association. The Eastern Shore Fox Hunters’ Association. Delaware Society for Crippled Children and Adults, Inc. Yorklyn Parent-Teacher Association, Inc. Wycliffe Civic Association, Inc. Blue Rock Community Club. Civic Association of Belvedere and Vicinity. Lamborn Library Association. Lutheran Senior Services, Inc. University Drama Group, Inc. Central Grange # 61. Penn Acres Swim Club, Inc. Viola-Canterbury-Felton Ruritan Club. Lewes Senior Citizens Center, Incorporated. Cannon Grange No. 65 P. of H. Broadcreek Grange No. 59 P. of H. Midland Grange No. 27 P. of H. B’nai B’rith Lodge 470. Jefferson Farms Swim Club, Inc. Disabled American Veterans, Inc. House of Pride, Inc. Ministry of Caring, Inc. Sacred Heart Housing, Inc. The Greater Dover Foundation. Habitat for Humanity of New Castle County. Central Delaware Habitat for Humanity. Sussex County Habitat for Humanity. Friends of the Capitol Theater, Inc. Serenity Place, Inc. Any land bank formed under Chapter 47 of Title 31. (b) No real property which has been required by New Castle County to be set aside for public parkland or public open space during the zoning or subdivision process shall be liable to taxation and assessment for public purposes by the county or other political subdivision of the State or county. Any outstanding penalty or interest incurred as a result of unpaid taxes on said property shall be forgiven. (c) (1) All community-owned and community-maintained swimming pools within New Castle County shall not be liable for taxation and assessment for public purposes by any county or other political subdivision of this State. “Community-owned” and “community-maintained” shall consist of any civic organizations as defined in § 8110 of this title which is the owner of parkland as defined in § 8110 of this title. (2) Any amounts previously taxed and assessed against a community-owned and community-maintained swimming pool, heretofore not collected by the county or other political subdivision of this State, are hereby declared null and void. (d) All community-owned and community maintained swimming pools within Kent County shall not be liable for taxation and assessment for public purposes by any county or other political subdivision of this State. “Community-owned” and “community-maintained” shall consist of any civic organization as defined in § 8110 of this title which is the owner of parkland as defined in § 8110 of this title.

Del. Code tit. 9, § 8106A New Castle County property tax exemptions; applications; refunds [For application of this section, see 83 Del. Laws, c. 468, § 3].

(a) (1) This section applies to property in New Castle County that is entitled to an exemption as any of the following: a. Owned by a religious, educational, or charitable agency, under § 8105 of this title or under New Castle County Code § 14.06.101. b. Owned by a specific organization or for a specific purpose, under § 8106(a) of this title. c. Parkland owned by a civic association, under § 8110 of this title. d. Recreational properties, under New Castle County Code § 14.06.601. e. Cemetery properties, under New Castle County Code § 14.06.701. (2) No exemption from taxation for any property under paragraph (a)(1) of this section is allowed except after written application and the approval of New Castle County. (b) An application for exemption must be filed with the Assessment Division of the New Castle County Office of Finance (Assessment Division), using the form provided by the Assessment Division. The date of the application is the date the application is received by the Assessment Division. (c) (1) An exemption under this section is effective the later of the following: a. The date the property owner met the criteria for the exemption. b. Three years before the date of the application. (2) If reviewing an application for exemption under this section that was decided on or after January 1, 2017, New Castle County shall determine and process any refund of New Castle County taxes to the property owner, regardless of who paid the property taxes, based on all of the following: a. The effective date of the exemption under paragraph (c)(1) of this section. b. Proration calculated under § 8111A of this title. (3) If property is transferred from an owner eligible for an exemption under this section while that owner’s exemption application is pending, New Castle County shall refund county taxes paid for the period of the exempt transferor’s ownership, as prorated using the calculations under § 8111A(b) of this title. (4) Interest does not accrue and is not owed on any credit or refund issued under this section. (5) Paragraphs (c)(2) and (c)(3) of this section do not apply to school taxes levied under Title 14, and New Castle County may not refund school taxes under this section. (d) Governmental entities entitled to exemption under this subchapter are not required to submit an application under this section.

Del. Code tit. 9, § 8107 Motion picture studios and plants.

(a) For a period of 15 years from the beginning of operation, motion picture studios and plants which shall be established in this State on or after July 1, 1937, including all lands, buildings and chattels, whether owned by a person, firm or corporation, utilized in connection therewith, and all raw materials going into the finished products of such studios and plants, as well as the finished products or films, shall be exempt from all ad valorem taxation. (b) The exemption authorized in this section shall not apply to real estate owned by such motion picture studios and plants except the real estate occupied as the location required to house such motion picture studios and plants and other buildings incidental to the operation of such studios and plants together with such lands as may be required for housing officers and employees, and for warehouses, laboratories, cutting rooms, projection rooms, storage, trackage, shipping facilities, sets and locations.

Del. Code tit. 9, § 8108 Railroad property.

(a) All the real estate of railroad corporations within this State, excepting such real estate of such corporations as shall be included within the limits of the rights-of-way or roadbeds of their respective lines of railroads, shall be subject to taxation and assessment for county and municipal purposes in the same manner as other like property of individuals is subject thereto for like purposes, any provisions of any existing law or laws to the contrary notwithstanding. (b) Any building erected in whole or in part within the limits of any such right-of-way or roadbed shall not, by reason of the exception made in this section, be exempted from assessment and taxation, although the land, upon which such building shall be wholly or in part located, is by this section expressly exempted therefrom.

Del. Code tit. 9, § 8109 Off-street parking facilities; exemptions.

Any county, municipality or other political subdivision of this State, by resolution or ordinance duly passed and approved, may exempt from taxation and assessment for public purposes for a period up to 20 years, any structure above or under the ground which may hereafter be constructed and located within the county, municipality or other political subdivisions of this State and used by the public for the parking of automobiles off the street or highway. The exemption shall be limited to that portion of the structure exclusively used for or devoted to the parking of automobiles and vehicles of that nature.

Del. Code tit. 9, § 8110 Civic organizations owning parkland.

(a) As used in this section: (1) The term “civic organization” shall be defined as any nonprofit organization that is the owner of parkland, as defined herein, provided that: a. The organization is not organized for profit or is qualified as an exempt organization under § 501(c) of the Internal Revenue Code of 1954 [26 U.S.C. § 501(c)], as amended; b. No part of the net earnings of the organization inures to the benefit of any private shareholder or individual; and c. Upon liquidation or dissolution of the organization, or abandonment by the organization, none of the assets of the organization nor benefits from its property will inure to the benefit of any person or organization except a community chest, fund, foundation, government, governmental agency, civic organization, maintenance corporation or other nonprofit organization. (2) The term “parkland” means real property, including improvements erected thereon and fixtures attached thereto, used primarily for recreational purposes and dedicated as parkland, public open space, private open space or other public use on a recorded subdivision plan, or through valid and binding restrictive covenants, provided that: a. The property is not used by the civic organization or by any other person so as to benefit any officer, trustee, director, shareholder, member, employee, contributor or bondholder of the organization or operator or any other person through the distribution of profits or the payment of excessive compensation; b. The property is used for recreational purposes; and c. The use of the property is open, without charge, to the public, or to members of the civic organization, or to the residents of the neighborhood, or to residents of the community or to residents of the subdivision in which the property is located, regardless of sex, race, creed, color, national origin, or any other basis protected under Chapter 45 of Title 6. (b) No parkland owned by a civic organization shall be liable to taxation and assessment for public purposes by any county or other political subdivision of the State or county. (c) Any taxes heretofore levied by any county or other political subdivision of the State or county on any such parkland owned, at the time of said levy, by a civic organization are voidable and the counties and political subdivisions of the State shall remove said taxes from their records upon receipt of an application filed by the organization establishing its entitlement under this section. (d) This section shall not affect any taxes levied on any such property at any time prior to its acquisition by the civic organization, and such taxes, and any penalty that may accrue thereon, shall remain a lien against the property in accordance with the provisions of this title.

Del. Code tit. 9, § 8111 Proration of yearly taxes when property in Kent County is transferred to an exempt entity.

(a) When real property in Kent County that is not exempt from taxes is transferred to an entity which is eligible for tax exemption pursuant to § 8105 or § 8106 of this title, tax is due and owing for the property for the tax year in which the transfer takes place, but only for the portion of the year, on a prorated basis, during which the property was owned by the nonexempt transferor. Proration is permitted only if the property is approved for exemption by the Kent County exemption application process. Proration pursuant to this section is permitted, notwithstanding the provisions of §§ 8313 and 8601 of this title. (b) A proration under subsection (a) of this section is determined by dividing the total amount of property tax for the tax year in question by 365 and by multiplying the resulting number by the number of days in the tax year that the nonexempt transferor owned the property. (c) If real property is transferred to an exempt transferee by a nonexempt transferor and the nonexempt transferor paid the taxes due for the property for the tax year of the transfer prior to the transfer, the nonexempt transferor may apply for a refund based on a proration pursuant to subsections (a) and (b) of this section of the taxes paid which are designated as county taxes, but not of the taxes paid which are designated as school taxes. If the refund application is approved, the county shall refund the proper amount to the nonexempt transferor.

Del. Code tit. 9, § 8111A Proration of yearly taxes when property in New Castle County is transferred to an exempt entity [For application of this section, see 83 Del. Laws, c. 468, § 3].

(a) When real property in New Castle County that is not exempt from taxation is transferred to an entity that is approved for a tax exemption under § 8106A of this title, tax is due and owing for the property for the tax year in which the transfer occurs, but only for the portion of the year when the property was owned by the nonexempt transferor. (b) Proration under subsection (a) of this section is determined by dividing the total amount of property tax, for the tax year when the ownership of the property was transferred, by 365 and multiplying that total by the number of days in the tax year that the nonexempt transferor owned the property.

Del. Code tit. 9, § 8112 Lodging tax.

(a) New Castle County may impose, by duly enacted ordinance, a local lodging tax of no more than 3% of the rent, in addition to the amount imposed by the State, for any room in a “hotel,” “motel,” “tourist home,” or “short-term rental” as defined in §§ 6101 and 6201 of Title 30, which is located within the unincorporated areas of the county. (b) [Repealed.] (c) Sussex County may impose, by duly enacted ordinance, a local lodging tax of no more than 3% of the rent, in addition to the amount imposed by the State, for any room or rooms in a “hotel,” “motel,” “tourist home,” or “short-term rental” as defined in §§ 6101 and 6201 of Title 30, which is located within the unincorporated areas of Sussex County. Any funds realized by Sussex County pursuant to this subsection shall be expended solely within Sussex County, for the capital and operating costs of beach nourishment, waterway dredging, economic development, tourism programs, recreational activities, and water quality and flood control projects. An amount not to exceed 5% of the funds realized from the tax may be used to pay the costs of administering projects funded under this subsection. (d) Rentals by the Department of Natural Resources and Environmental Control are exempt from the lodging tax established by this section. (e) Notwithstanding any other provisions in this section, any funds realized by any county under this section may be used for workforce and affordable housing programs within that county.

Del. Code tit. 9, § 8113 Fire protection fee.

(a) For purposes of this section: (1) “Ambulance service provider” means an organization that is a recipient of a grant-in-aid for the current fiscal year for the operation and maintenance of ambulances in the public service. (2) “Fire company” means a nonprofit fire company that is a recipient of a grant-in-aid for the current fiscal year. (3) “Fire protection” means the prevention and extinguishment of fires; maintenance of apparatus and equipment, including ambulances, rescue trucks, aerial, or platform trucks and rescue boats; provision of basic life support; and operation of stations. (4) “Fire protection provider” means a fire company or an ambulance service provider that provides fire protection outside the City of Wilmington. (b) (1) A county may impose, by ordinance, a fire protection fee. (2) A fire protection fee may be collected from property that is otherwise exempt from taxation and assessment unless any of the following apply: a. The property is owned by this State. b. An exemption from the collection of the fire protection fee is provided by the county. (c) (1) A county must do all of the following with any money collected under this section: a. Deposit and hold all of the money in an account that is segregated from the county’s general funds. b. Except as provided under paragraph (c)(3) of this section, distribute all of the money, including any accrued interest, in the manner required under paragraph (c)(2) of this section, within 18 months of receipt. (2) a. The money collected under this section may only be distributed to fire protection providers providing fire protection in the county. b. A county shall establish criteria for how the money is distributed under paragraph (c)(2)a. of this section. (3) A county may use no more than 5% of the money annually deposited under paragraph (c)(1)a. of this section for administering this section. (d) If a fire protection fee is not paid as and when due, all of the following apply: (1) A penalty on the unpaid balance may accrue and be due to the county at a rate and in a manner set by ordinance. The county may establish procedures for the abatement of this penalty. (2) The unpaid balance and any penalties accrued thereon shall be a lien on the property upon which the fire protection fee was incurred. This lien shall be superior and paramount to the interests in such property of any owner, lessee, tenant, mortgagee, or other person, except the lien of taxes. (3) The county may institute a proceeding for the enforcement of a lien under paragraph (d)(2) of this section with accrued penalties, and all costs thereon, under the method for collecting delinquent taxes established under Chapter 87 of this title. Grounds and buildings, or any part thereof, may be sold by the sheriff of the county as is provided by law. (e) A fire protection provider must include the money received under this section in the annual audit required under § 6608 of Title 16.

Del. Code tit. 9, § 8131 Definitions [For application of this section, see 81 Del. Laws, c. 314, § 2].

As used in this subchapter: (1) “Income” means all income from whatever source derived including realized capital gains and, in their entirety, pension, annuity, retirement, and Social Security benefits. For any tax year for which an exemption is claimed, income’' is determined to be equal in amount to the income received during the pretax year. (2) “Pretax year” means the calendar year immediately preceding the “tax year.” (3) “Resident’' means one legally domiciled within the State for a period of 10 years immediately preceding October of the pretax year. a. Mere seasonal or temporary residence within the State, of whatever duration, does not constitute domicile within the State for the purposes of this subchapter. Absence from this State for a period of 12 months is prima facie evidence of abandonment of domicile in this State. The burden of establishing legal domicile within the State is on the claimant. b. For claimants establishing legal domicile in this state after December 31, 2018, 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. (4) “Tax year” means the calendar year in which the county real estate tax is due and payable.

Del. Code tit. 9, § 8132 Qualifications and amount of exemption.

(a) Every person, a resident of this State of the age of 65 or more years, having an income not in excess of $3,000 per year and residing in a dwelling house owned by the person which is a constituent part of the person’s real property, shall be entitled, on proper claim being made therefor, to exemption from taxation on such real property to an assessed valuation not exceeding $5,000 in the aggregate, except that: (1) No such exemption shall be in addition to any other exemption to which said person may be entitled; and (2) No such exemption shall be permitted where said person’s spouse lives in said dwelling house and has an income in excess of $3,000 per year. (b) Nothing in this subchapter shall be construed to apply to property taxes levied within and by a municipality. (c) Nothing in this subchapter shall be construed to apply to ditch taxes and sewer taxes.

Del. Code tit. 9, § 8133 Application for exemption.

(a) No exemption from taxation on the valuation of real property as provided in this subchapter shall be allowed except on written application therefor, which application shall be on a form prescribed by the governing bodies of the respective counties and provided for the use of the claimants under this subchapter by the governing body of the taxing district in which such claim is to be filed. (b) An application for exemption under this subchapter shall be filed with the assessor of the taxing district by a date determined by the taxing district, which shall not be earlier than 45 days prior to the last date of the pre tax year; provided, however, that unless the income of the applicant has changed to exceed the $3,000 allowed, or unless the applicant no longer owns the dwelling which is a constituent part of the applicant’s real property, or unless the applicant’s spouse has income exceeding the $3,000 maximum, annual renewal shall not be required to qualify under this subchapter.

Del. Code tit. 9, § 8134 Contents of application.

Every fact essential to support a claim for exemption under this subchapter shall exist on September 1 of the pretax year. Every application by a claimant therefor shall establish that the applicant was, on September 1 of the pretax year: (1) A resident of this State for the period required; (2) Of the age of 65 or more years; (3) The owner of a dwelling house which is a constituent part of the real property for which such exemption is claimed; (4) Residing in said dwelling house. Such applicant shall also establish that his or her income for the yearly period as provided by this subchapter did not exceed $3,000, and that his or her spouse, if living in said dwelling house, does not have an income in excess of $3,000.

Del. Code tit. 9, § 8135 Allowance of exemption.

If an application is approved by the assessor, the assessor shall allow an exemption from taxation against the assessed valuation of the real property assessed to the claimant in the amount of the claim approved by the assessor.

Del. Code tit. 9, § 8136 Continuance of exemption.

Any assessor may, at any time, require the filing of a new application or such proof as the assessor shall deem necessary to establish the right of a claimant to continued exemption. A claimant shall inform the assessor of any change in the assessor’s status or property which may affect the assessor’s right to continuance of exemption.

Del. Code tit. 9, § 8137 Tenants in common or joint tenants.

(a) Where title to property on which an exemption is claimed is held by claimant and another or others, either as tenants in common or as joint tenants, claimant shall not be allowed an exemption against the claimant’s interest in said property in excess of the assessed valuation of the claimant’s proportionate share in said property, which proportionate share, for the purposes of this subchapter, 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 subchapter shall preclude more than 1 tenant, whether title be held in common or joint tenancy, from claiming exemption against the property so held, but no more than the equivalent of 1 full exemption 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 exemption shall be apportioned between or among them in proportion to their interest. Property held by husband and wife, as tenants by the entirety, shall be deemed wholly owned by each tenant, but not more than 1 exemption in regard to such property shall be allowed in any year. (c) Right to claim exemption under this subchapter 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, and by a guardian, trustee, committee, conservator or other fiduciary for any person who would otherwise be entitled to claim exemption under this subchapter, but not to property the title to which is held by a corporation.

Del. Code tit. 9, § 8138 Rules and regulations.

The Department of Finance of New Castle County or Board of Assessments for Kent County or Board of Assessments for Sussex County may promulgate such rules and regulations and prescribe such forms as they shall deem necessary to implement this subchapter. They may, in their discretion, eliminate the necessity for sworn application, in which event all declarations by the claimant shall be considered as if made under oath and the claimants, as to false declarations, shall be subject to the penalties as provided by law for perjury.

Del. Code tit. 9, § 8139 Oaths.

Each assessor and collector and his or her duly designated assistants may take and administer the oath, where required, on any claim for exemption under this subchapter and no charge shall be made for the taking of any affidavit or the preparation of any form required by this subchapter.

Del. Code tit. 9, § 8140 Appeals.

An aggrieved taxpayer may appeal from the disposition of an exemption claim under this subchapter in the same manner as is provided for appeals from assessments generally.

Del. Code tit. 9, § 8141 Exemption from property taxes on real estate in Kent County.

The provisions of this chapter notwithstanding, the Kent County Levy Court shall by ordinance provide for the exemption of real property owned by citizens over age 65 from real estate taxes to such degree and in such manner as it determines will best promote the public welfare; provided, however, that any such ordinance adopted shall include language substantially similar to that of § 8133(b) of this title.

Del. Code tit. 9, § 8151 Property subject to exemption.

Land and improvements held by a church, religious society, charitable corporation, or nonprofit organization principally devoted to housing of elderly persons and not held for investment and which is constructed pursuant to the provisions of § 231 of the National Housing Act, as presently in effect and set forth in 12 U.S.C. § 1715v and which is regulated by the Federal Housing Commissioner pursuant to such section and pursuant to the applicable federal regulations presently in effect adopted by the Federal Housing Commissioner, shall not be liable to taxation and assessment for public purposes by any county or other political subdivision of this State; provided, however, that no less than 75% of the dwelling units in the property shall be rented and occupied at all times by elderly persons as defined in § 8152 of this title and the entire property shall be operated on a nonprofit basis.

Del. Code tit. 9, § 8152 Definitions.

As used in this subchapter, the term “elderly persons” means persons who have attained their sixty-second birthday.

Del. Code tit. 9, § 8153 Certification as tax exempt.

No church, religious society, charitable corporation or nonprofit organization shall be entitled to the exemption granted by § 8151 of this title unless it is certified as tax exempt by this State for purposes of corporate franchise taxes and income taxes, and by the United States government for purposes of income taxes; such certification must be filed with the appropriate tax assessment office of the county and other political subdivision of this State in which the project is situate.

Del. Code tit. 9, § 8154 Conditions for charitable exemptions; penalty for false statement or certification.

No church, religious society, charitable corporation or other nonprofit organization shall be entitled to the exemption granted pursuant to this subchapter unless the following additional conditions are satisfied: (1) An affidavit must be filed with the taxing authorities of the county and other political subdivisions by the president of the organization or the executive director or presiding authority of the organization, certifying that said organization is nonprofit and that the project for which exemption is sought is operated on a nonprofit basis and is principally devoted to housing for the elderly as defined in § 8152 of this title. The affidavit must further state the name and address of the officers of the organization, the purposes of the organization, and the basis for the authority of the officer to make and file such affidavit on behalf of the organization; (2) A certified financial statement must be filed with the taxing authorities showing all income received by the organization from any source in connection with the project and all expenditures made to any person in connection with the project for which exemption is sought; the statement must be certified by a certified public accountant authorized and licensed to practice in this State. The statement must be filed on or before July 1 of each calendar year; a projected statement must be filed for the first year of operation; (3) A certification must be filed with the taxing authorities of the county and other political subdivision by the authorized officials of the organization certifying, warranting and covenanting that the project for which exemption is sought will be operated on a nonprofit basis during its entire existence and that it will not be sold, transferred, or conveyed except to another nonprofit church, religious society, charitable corporation or nonprofit organization qualifying for exemption under this subchapter and will not be principally devoted to any purpose other than housing for elderly persons as defined in § 8152 of this title. This certification shall bind the organization filing it in perpetuity and shall be enforceable in law and at equity by the county and other political subdivision of this State in which the project is situate; (4) Any person, officer or director acting on behalf of any church, religious society, charitable corporation or nonprofit organization filing a false statement or certification shall be fined not less than $1,000 nor more than $10,000 and/or be imprisoned for not more than 10 years.

Del. Code tit. 9, § 8155 Assessed valuation; lien for taxes on termination of nonprofit use or ownership.

(a) The county board of assessment and the assessment boards of other political subdivisions shall each year establish the assessed value of any property for which exemption is granted pursuant to this subchapter in the same manner as other properties which are taxable are assessed. (b) In the event that a project granted exemption under this subchapter is ever operated on a profit-making basis or conveyed to a profit-making corporation, organization or other person, or is principally devoted to any purpose other than housing for the elderly as defined in § 8152 of this title, then and in that event, a tax lien shall attach to the land and improvements previously granted tax exemption, in the amount of the taxes which would have been due and owing the county and other political subdivision for all past years, including interest and penalties, if tax exemption had not been granted.

Del. Code tit. 9, § 8156 Special assessments in lieu of taxes.

Any church, religious society, charitable corporation or nonprofit organization granted a tax exemption pursuant to this subchapter, shall pay to the county and other political subdivision in which the project is situate, in lieu of taxes, a special assessment in an amount not less than 10% of the gross rentals derived from the project, less the cost of utilities and the cost of providing special social services to the elderly persons residing in the project. This sum shall be divided between the county and other political subdivisions having authority to levy ad valorem taxes on land and improvements in which the project is situate in proportion to their respective tax rates.
Source: DE Code (Official Site)URL: https://delcode.delaware.gov/title9/c081/sc01/index.htmlFetched: 10/4/2026