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HB 242 DE
Became Law

AN ACT RELATING TO LOCAL SCHOOL TAXES IN THE 2025-2026 TAX YEAR.

DE · session 153 · Assembly / House · bill

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Introduced Aug 7, 2025

Latest action (Aug 12, 2025) Signed by Governor

Summary

This Act allows any school district located in New Castle County to reset its tax rates for the 2025-2026 tax year and to reissue a tax warrant using different residential and non-residential tax rates. The non-residential tax rate must be at least equal to the residential tax rate and may not be more than 2 times the residential tax rate. The total amount of revenue projected to be collected through use of the residential and non-residential tax rates may not exceed the total amount of revenue the district was projected to collect under its original tax warrant. The districts have 10 business days from the enactment of this Act to reset the rates and issue a new tax warrant to New Castle County. Upon receipt of a new tax warrant, New Castle County will supplement any tax bill already issued for taxpayers in that district and adjust tax bills with an extended deadline for payment of October 30, 2025 for tax bills that change. For any taxpayer who submits payment under the original tax bill and whose total school tax liability is adjusted downward, the difference will be credited against future tax liability unless the taxpayer submits a written request for a refund, in which case New Castle County shall issue a refund. A school district that resets its rates in accordance with this Act may request and borrow from State Division I funds in the event of a cash flow shortfall of local school funds due to the extension of the deadline for tax payments for the 2026 fiscal year.

Sponsors (26)

Action history (17)

  1. Aug 7, 2025 Introduced and Assigned to Administration Committee in House · lower
  2. Aug 12, 2025 Amendment HA 1 to HB 242 - Introduced and Placed With Bill · lower
  3. Aug 12, 2025 Amendment HA 2 to HB 242 - Introduced and Placed With Bill · lower
  4. Aug 12, 2025 Amendment HA 3 to HB 242 - Introduced and Placed With Bill · lower
  5. Aug 12, 2025 Amendment HA 4 to HB 242 - Introduced and Placed With Bill · lower
  6. Aug 12, 2025 Amendment HA 5 to HB 242 - Introduced and Placed With Bill · lower
  7. Aug 12, 2025 Suspension of Rules in House · lower
  8. Aug 12, 2025 Amendment HA 1 to HB 242 - Passed In House by Voice Vote · lower
  9. Aug 12, 2025 Amendment HA 2 to HB 242 - Stricken in House · lower
  10. Aug 12, 2025 Amendment HA 3 to HB 242 - Stricken in House · lower
  11. Aug 12, 2025 Amendment HA 4 to HB 242 - Stricken in House · lower
  12. Aug 12, 2025 Amendment HA 5 to HB 242 - Stricken in House · lower
  13. Aug 12, 2025 Amendment HA 6 to HB 242 - Stricken in House · lower
  14. Aug 12, 2025 Passed By House. Votes: 30 YES 8 NO 1 NOT VOTING 2 ABSENT · lower
  15. Aug 12, 2025 Suspension of Rules in Senate · upper
  16. Aug 12, 2025 Passed By Senate. Votes: 14 YES 4 NOT VOTING 3 ABSENT · upper
  17. Aug 12, 2025 Signed by Governor · executive

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