SB 241 — AN ACT TO AMEND TITLE 14 AND TITLE 29 OF THE DELAWARE CODE RELATING TO DISABLED VETERANS SCHOOL TAX CREDIT.

Summary

This Act expands the Disabled Veterans School Tax Credit to include a deceased disabled veteran's surviving spouse. HB 214 with HA 1, passed by the 151st General Assembly, created the Disabled Veterans Property Tax Relief and Education Expense Fund. School boards are currently authorized to create a credit against school taxes for up to the full amount of school tax liability for property owned by a disabled veteran who meets certain requirements. This Act would allow a disabled veteran's surviving spouse to maintain the credit that their deceased veteran spouse was claiming if their deceased veteran spouse, immediately before death, was both claiming the credit and had not had the right to claim the credit withdrawn and the surviving spouse meets all of the following requirements: (1) Was a titled owner of the qualified property before the deceased veteran’s death. (2) Has not remarried. (3) Owns and occupies the qualified property as their principal residence. A surviving spouse is no longer eligible to maintain 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. This Act requires the Secretary of Finance, in consultation with the receiver of taxes and county treasurer, to establish a process to determine the eligibility of a surviving spouse and to allow an eligible surviving spouse to maintain the credit without disruption after the death of their disabled veteran spouse. This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.

Bill Text

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This bill expands the Disabled Veterans School Tax Credit to allow surviving spouses of deceased disabled veterans to maintain the credit under certain conditions.

• § 1917, Title 14

  If authorized by majority vote of the whole school board of the local school district pursuant to under § 6102(r) of Title 29, there shall will be allowed a credit against taxation in the full amount of tax liability imposed pursuant to by this chapter on the valuation of any qualified property. → If authorized by majority vote of the whole school board of the local school district pursuant to § 6102(r) of Title 29, there shall be allowed a credit against taxation in the full amount of tax liability imposed by this chapter on the valuation of any qualified property.

  Clarifies the language regarding the authorization of tax credits by local school boards.

• § 1917(d), Title 14

  “qualified person” means a veteran who receives satisfies both the following: → “qualified person” means a veteran who satisfies all of the following:

  Updates the definition to improve clarity for qualification requirements.

• § 1917(d)(1), Title 14

  Receives from the United States Department of Veterans Affairs Affairs, or its successor agency agency, 100% disability compensation due to a service-connected, permanent and total disability based on individual unemployability or a 100% disability rating, who is rating. → 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.

  Removes redundant wording to clarify the eligibility requirements for qualified persons.

• § 1917(d)(2), Title 14

  For purposes of this subsection, a “qualified person” means a veteran who receives satisfies both the following: → A surviving spouse is eligible for the credit if all of the following apply:

  Introduces requirements for surviving spouses to maintain eligibility for the tax credit.

• § 1917(d)(4), Title 14

  The burden of establishing that the claimant meets the definition of qualified person shall be upon or is an eligible surviving spouse is on the claimant. → The burden of establishing that the claimant meets the definition of qualified person or is an eligible surviving spouse is on the claimant.

  Clarifies the responsibility of the claimant in proving eligibility.

• § 6102(r)(1), Title 29

  to be known as the “Disabled Veterans Property Tax Relief and Education Expense Fund,” to which shall must be deposited $1,000,000 received in any revenue source not otherwise committed to a special fund and from which shall must be paid claims made under this subsection and § 1919(e) of Title 14. → to be known as the “Disabled Veterans Property Tax Relief and Education Expense Fund,” to which shall be deposited $1,000,000 received in any revenue source not otherwise committed to a special fund and from which shall be paid claims made under this subsection and § 1919(e) of Title 14.

  Corrects grammatical inconsistencies for clarity.

• § 6102(r)(3), Title 29

  If a local school board has authorized the tax credit, then the credit must be allowed for a surviving spouse of a deceased qualified person who satisfies the eligibility requirements in § 1917(d) of Title 14. → If a local school board has authorized the tax credit, then the credit must be allowed for a surviving spouse of a deceased qualified person if all of the following apply: (1) Was a titled owner of the qualified property before the deceased veteran’s death. (2) Has not remarried. (3) Owns and occupies the qualified property as their principal residence.

  Specifies the conditions under which a surviving spouse can receive the tax credit.

Action History

1. November 02, 2022

   Signed by Governor

2. June 30, 2022

   Passed By House. Votes: 41 YES

3. June 29, 2022

   Reported Out of Committee (Administration) in House with 5 On Its Merits

4. June 23, 2022

   Assigned to Administration Committee in House

5. June 23, 2022

   Passed By Senate. Votes: 21 YES

6. May 11, 2022

   Reported Out of Committee (Veterans Affairs) in Senate with 6 Favorable, 4 On Its Merits

7. March 08, 2022

   Introduced and Assigned to Veterans Affairs Committee in Senate

Sponsors

• Kimberly Williams · Cosponsor
• Dave G. Lawson · Primary
• Darius J. Brown · Primary
• William J. Carson · Primary
• Gerald W. Hocker · Cosponsor
• Trey Paradee · Cosponsor
• Brian Pettyjohn · Cosponsor
• Bryant L. Richardson · Cosponsor
• David L. Wilson · Cosponsor
• William Bush · Cosponsor
• Edward S. Osienski · Cosponsor
• Charles S Postles Jr. · Cosponsor
• Daniel B. Short · Cosponsor
• Michael F. Smith · Cosponsor
• Lyndon D. Yearick · Cosponsor
• Stephen Smyk · Cosponsor
• Ernesto B Lopez · Cosponsor
• Bruce C. Ennis · Cosponsor
• Colin Bonini · Cosponsor

Votes

Subjects