HB 214 — AN ACT TO AMEND TITLES 14 AND 29 OF THE DELAWARE CODE RELATING TO DISABLED VETERANS’ SCHOOL TAX CREDIT.

214 by deleting “may” as it appears on line 131 and substituting in lieu thereof “shall”.

FURTHER AMEND House Bill No.

214 by deleting lines 133 through 140 and substituting in lieu thereof the following:

“change to the current expense tax rate pursuant to this subsection.

In the event that local school boards choose not to authorize the aforementioned credit against taxation, the sums appropriated herein will revert to the General Fund.

In the first year after a school board authorizes a credit, the Secretary of Finance, in consultation with the receiver of taxes or county treasurer, shall determine the effective date of such credit based upon reasonable implementation requirements and operational capacity.

Section 4.

This Act takes effect upon enactment.

Section 5.

In FY 2022, the Secretary of Finance may use up to 5% of the amount appropriated for the Disabled Veterans Property Tax Relief and Education Expense Fund established pursuant to this Act to offset administrative expenses.

The Secretary of Finance shall pay over to each receiver of taxes and county treasurer an amount equal to 2% of the amount appropriated for the Disabled Veterans Property Tax Relief and Education Expense Fund established pursuant to this Act to offset administrative expenses.” SYNOPSIS This amendment does the following:

1.

Makes technical corrections.

2.

Lowers the reserve amount for the Disabled Veterans Property Tax Relief and Education Expense Fund to $1 million.

3.

Establishes that where an individual qualifies for both the Disabled Veterans and the Senior Property Tax Credit, they shall receive only the Disabled Veterans Credit – which entitles them to 100% tax relief on their school tax obligation and prevents the possibility of being credited an amount greater than the tax liability.

4.

Provides an allocation of funds for administrative expenses of the counties and the Department of Finance.

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06/17/202106/02/2021 12:1306:45 PM 5.(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.

ClarifiesThe Secretary may require that aany schoolreturn boardor mayother choosewriting required to adoptbe thefiled 100%with respect to the credit setallowed forthunder inauthority of this subsection be signed by the bill,maker butof notsuch areturn portionor thereof.writing under oath or affirmation, subject to the penalties of perjury.

6.(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.

Clarifies(7) thatWhenever the ActSecretary takesof effectFinance immediately,shall butdetermine that a qualifiedcredit personhas willbeen notclaimed in disregard of the conditions under which such claims may be eligiblemade and for the creditSecretary untilhas afterauthorized payment under § 1919(c) or (d) of this title, the Secretary may assess such claimant for the amount of Financethe credit and, unless it is shown that such disregard is due to reasonable cause and countynot officialsdue implementto wilful neglect, with a penalty of 20% of the credit afterclaimed aalong votewith interest at 1% for any month or fraction of a localmonth schoolcommencing board.on the date on which the claim for credit was filed.

7.Section 2.

AddsAmend the§ requirement1919, thatTitle a14 qualifiedof personthe must be domiciled in Delaware forCode atby leastmaking 3deletions yearsas beforeshown becomingby eligiblestrike forthrough the Disabled Veterans Credit and requiresinsertions thatas ifshown aby personunderline ceasesas tofollows: qualify they must notify the county treasurer or receiver of taxes.

§ 1919.

Report of school tax collections and payment of collected taxes.

(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, 2000, 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.

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06/17/202106/02/2021 12:1306:45 PM 214151034779 Section 3.

Amend § 6102, Title 29 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 6102.

Composition of General Fund;

Delaware Higher Education Loan Program Fund.

(q) (1) A special fund of the State is created in the Department of Finance to be known as the “Elderly Property Tax Relief and Education Expense Fund,” to which shall be deposited $13,000,000 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 1919(d) of Title 14.

Should such claims exceed $13,000,000 during any fiscal year, the Secretary of Finance, with the approval of the Director of the Office of Management and Budget and Controller General, may transfer from the general contingency line in the Department of Education to the Elderly Property Tax Relief and Education Expense Fund the amount of such reasonably foreseen additional claims.

Any balance remaining in the Elderly Property Tax Relief and Education Expense Fund at the conclusion of any fiscal year shall revert to the General Fund.

(2) Sums appropriated pursuant to this section shall be allocated to school districts using a method that recognizes factors including, but not limited to, the number of primary residential households owned by persons 65 or over who meet the durational residency requirement of § 1917 1917(c) of Title 14 in each school district, the relative value of residential property owned by persons 65 and over, the relative property values of each school district, the school tax rates of each school district, and the average rate of application for tax relief pursuant to this section.

The final method and allocation of these moneys shall be approved by the Secretary of Finance in consultation with the Controller General.

(3) Local school boards shall decide through majority vote of the whole school board whether to authorize a credit against taxation imposed pursuant to Chapter 19 of Title 14 on the valuation of any qualified property, as defined in § 1917 1917(c) of Title 14.

The maximum such credit shall be the lesser of 50% of such tax remaining after taking into account any exemption pursuant to Title 9 and Title 22, or $500.

The receiver of taxes and county treasurer shall apply such credit after any change to the current expense tax rate pursuant to this section.

Should the local school board decide to authorize less than the maximum amount of credit against taxation, the local school board shall develop a plan for using moneys received pursuant to this subsection, provide appropriate and reasonable public notice and comment on the proposed plan, and approve the plan through majority vote of the local school board.

Local school boards shall submit the approved plan to the Secretary of Finance, the Secretary of Education, the Director of the Office of Management and Budget and the Controller General.

In the event that local school boards choose not to authorize the aforementioned credit against taxation, the sums appropriated herein will result in increased state funding for education-related expenses of the school districts.

Education-related expenses for the purposes of this subsection HD :

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06/02/2021 06:45 PM shall be defined as including, but not being limited to, computer hardware and software, library resources and other instructional materials, and minor capital improvements to school facilities.

Local school boards and all other responsible parties under this paragraph are hereby directed to cause such conditions to be met as soon as practicable after the enactment of this section, but in no event later than October 30, 1999, and shall notify the Secretary of Finance and the Controller General as soon as such conditions are met.

Notwithstanding any of the foregoing to the contrary, funds received pursuant to this section shall not be used for major capital improvements or debt service.

(r) (1) A special fund of the State is created in the Department of Finance to be known as the “Disabled Veterans Property Tax Relief and Education Expense Fund,” to which shall be deposited $2,500,000 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.

Should such claims exceed $2,500,000 during any fiscal year, the Secretary of Finance, with the approval of the Director of the Office of Management and Budget and Controller General, may transfer from the general contingency line in the Department of Education to the Disabled Veteran Property Tax Relief and Education Expense Fund the amount of such reasonably foreseen additional claims.

Any balance remaining in the Disabled Veteran Fund at the conclusion of any fiscal year shall revert to the General Fund.

(2) Sums appropriated pursuant to this section shall be allocated to school districts using a method that recognizes factors including, but not limited to, the number of primary residential households owned by disabled veterans in each school district, the relative value of residential property owned by disabled veterans, the relative property values of each school district, the school tax rates of each school district, and the average rate of application for tax relief pursuant to this section.

The final method and allocation of these moneys shall be approved by the Secretary of Finance in consultation with the Controller General.

(3) Local school boards shall decide through majority vote of the whole school board whether to authorize a credit against taxation imposed pursuant to Chapter 19 of Title 14 on the valuation of any qualified property, as defined in § 1917(d) of Title 14.

The credit may be for the full amount of tax remaining after taking into account any exemption pursuant to Title 9 and Title 22.

The receiver of taxes and county treasurer shall apply such credit after any change to the current expense tax rate pursuant to this section.

Should the local school board decide to authorize less than the maximum amount of credit against taxation, the local school board shall develop a plan for using moneys received pursuant to this subsection, provide appropriate and reasonable public notice and comment on the proposed plan, and approve the plan through majority vote of the local school board.

Local school boards shall submit the approved plan to the Secretary of Finance, the Secretary of Education, the Director of the Office of Management and HD :

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06/02/2021 06:45 PM Budget and the Controller General.

In the event that local school boards choose not to authorize the aforementioned credit against taxation, the sums appropriated herein will revert to the General Fund.

Section 4.

This Act takes effect for the first full fiscal year after the January 1 following its enactment.

SYNOPSIS This Act creates the Disabled Veterans Property Tax Relief and Education Fund.

Pursuant to this legislation, school districts are authorized to create a credit against school taxes for up to the full amount of school tax liability for property owned by a veteran with a 100% disability rating who is domiciled in this state.

The full amount of such credit will be reimbursed by a transfer from the State’s General Fund to the County Receiver for distribution to such school districts.

It has a delayed effective date to allow for implementation of the program.

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