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§ 1901. | § 1902. | § 1903. | § 1904. | § 1905. | § 1906. | § 1907. | § 1908. | §§ 1909, | § 1911. | § 1912. | § 1913. | § 1914. | § 1915. | § 1916. | § 1917. | §§ 1, | § 1918. | § 1919. | § 1920. | § 1921. | § 1922. | § 1923. | § 1924. | § 1925.

TITLE 14

Education

Free Public Schools

CHAPTER 19. LOCAL SCHOOL TAXES

Subchapter I. General Provisions

§ 1901. Definitions.

As used in this chapter:

(1) “District” means a reorganized school district and the school

district of the City of Wilmington.

(2) “School board” means a board of education of a reorganized school

district and the Board of Education of the school district of the City of

Wilmington.

(14 Del. C. 1953, § 1901; 57 Del. Laws, c. 113.)

§ 1902. Power of district to levy taxes for school purposes.

(a) Any 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 such district except real estate exempt from

taxation under:

(1) State law;

(2) A county ordinance adopted prior to June 26, 1995, exempting

property for the purpose of attracting or expanding a for-profit business; and

(3) A county ordinance adopted on or before January 1, 1998, granting,

clarifying or expanding any exemption from county taxation.

(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. In the

case of the school district of the City of Wilmington, such tax as is

necessary to support its local district contribution may be levied,

notwithstanding the maximum tax rate specified in § 11, Chapter 92, Volume 23,

Laws of Delaware, as amended by Chapter 9, Volume 56, Laws of Delaware and,

unless otherwise specifically provided, such tax rate as may be so specified

on or after June 3, 1968.

(32 Del. Laws, c. 160, § 54; Code 1935, § 2737; 14 Del. C. 1953, § 1902; 56

Del. Laws, c. 292, § 19; 59 Del. Laws, c. 453, § 1; 60 Del. Laws, c. 328, § 2;

70 Del. Laws, c. 106, § 1; 71 Del. Laws, c. 180, § 119; 72 Del. Laws, c. 21, §

1.)

§ 1903. Election preceding levy of tax.

Before any school board levies a tax under § 1902 of this title, it

shall determine whether the tax shall be on the basis of a specified amount or

of a specified rate of taxation and shall call a special election to be held

at the polling place or places designated by the Department of Elections

conducting the election. There shall be not more than 2 such special elections

held during any 12-month period.

(32 Del. Laws, c. 160, § 54; Code 1935, § 2738; 47 Del. Laws, c. 303, § 1; 14

Del. C. 1953, § 1903; 55 Del. Laws, c. 86, § 1; 69 Del. Laws, c. 192, § 1; 74

Del. Laws, c. 122, § 41.)

§ 1904. Notice of election.

Repealed by 74 Del. Laws, c. 122, § 42, effective July 8, 2003.

§ 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.

(32 Del. Laws, c. 160, § 54; Code 1935, § 2738; 47 Del. Laws, c. 303, § 1; 14

Del. C. 1953, § 1905; 56 Del. Laws, c. 292, § 27; 74 Del. Laws, c. 122, § 43.)

§ 1906. Election officers.

Repealed by 74 Del. Laws, c. 122, § 44, effective July 8, 2003.

§ 1907. Hours of election.

For an election under § 1903 of this title, the polls shall open 10:00

a.m. and shall close at 8:00 p.m., prevailing local time, on the day

advertised.

(32 Del. Laws, c. 160, § 54; Code 1935, § 2739; 14 Del. C. 1953, § 1907; 50

Del. Laws, c. 137, § 1; 51 Del. Laws, c. 240, § 9; 64 Del. Laws, c. 255, § 2;

76 Del. Laws, c. 138, § 5.)

§ 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 one 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.

(32 Del. Laws, c. 160, § 54; Code 1935, § 2739; 14 Del. C. 1953, § 1908; 51

Del. Laws, c. 240, § 10; 58 Del. Laws, c. 402; 60 Del. Laws, c. 582, § 1; 62

Del. Laws, c. 25, § 1; 62 Del. Laws, c. 184, §§ 1, 2; 66 Del. Laws, c. 359, §

2; 67 Del. Laws, c. 243, §§ 4, 6, 8; 74 Del. Laws, c. 122, § 45.)

§§ 1909, 1910. Certifying and declaring result of election; recount.

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

§ 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.

(32 Del. Laws, c. 160, § 54; Code 1935, § 2740; 14 Del. C. 1953, § 1911.)

§ 1912. Assessment list; school capitation tax.

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 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.

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.

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.

(32 Del. Laws, c. 160, § 54; Code 1935, § 2741; 14 Del. C. 1953, § 1912; 51

Del. Laws, c. 240, § 11; 54 Del. Laws, c. 292; 55 Del. Laws, c. 69, § 1; 56

Del. Laws, c. 109; 56 Del. Laws, c. 285; 59 Del. Laws, c. 48, § 3.)

§ 1913. Rate of tax.

(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 10 percent 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 shall add thereto 10

percent 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 the 10 percent 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 among

the following sources of such ratios:

(1) The aggregate assessment to sales price ratio for all types of real

estate in that county as presented in the 1982 Taxable Property Values and

Assessments survey for Delaware, United States Bureau of Census.

(2) The assessment to sales price ratio established by the Director of

the Office of Management and Budget in accordance with § 1707 of this title.

(3) The county's assessment to sales ratio used in its most recent

assessment.

(32 Del. Laws, c. 160, § 54; Code 1935, § 2743; 47 Del. Laws, c. 303, § 2; 14

Del. C. 1953, § 1914; 65 Del. Laws, c. 99, § 1; 75 Del. Laws, c. 88, § 21(7).)

§ 1914. Levy of annual school tax without election.

The school board of any district, which has for 1 year levied a local

tax under this chapter, may continue annually, without a further election or

referendum, to levy such local tax not exceeding in amount the tax originally

authorized by an election if said original authorization was on the basis of

an amount of tax, or not to exceed the rate of tax originally authorized by an

election if said original authorization was on the rate of taxation, each

together with an added 10 percent for delinquencies and costs of collection as

provided in § 1913 of this title.

(36 Del. Laws, c. 214, § 1; Code 1935, § 2747; 47 Del. Laws, c. 303, § 3; 14

Del. C. 1953, § 1915.)

§ 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.

(36 Del. Laws, c. 214, § 1; Code 1935, § 2747; 14 Del. C. 1953, § 1916; 74

Del. Laws, c. 122, § 47.)

§ 1916. Tax collection warrant and assessment list; tax rate after general

reassessment.

(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 10% for delinquencies.

(b) Whenever 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. Any subsequent increase in rate of taxation shall be achieved only

by an election of the qualified voters in such local school district according

to the procedures in § 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, with a duplicate of the assessment list, to the receiver of taxes

and county treasurer of the county or counties where the district is located.

(32 Del. Laws, c. 160, § 54; 36 Del. Laws, c. 215, § 1; Code 1935, § 2743; 14

Del. C. 1953, § 1917; 51 Del. Laws, c. 240, § 12; 58 Del. Laws, c. 428; 65

Del. Laws, c. 8, § 1; 72 Del. Laws, c. 274, § 1.)

§ 1917. Collection and deposit of school taxes.

(a) 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) of this section, shall allow no abatement or discount upon any taxes

levied for school purposes required to be collected by them. The Receiver of

Taxes and County Treasurer for New Castle County only shall, after September 1

in the year in which the tax rolls shall be delivered to them, assess a

penalty of 5% to taxes which are due and owing but unpaid, and shall each

month thereafter add to such unpaid taxes a penalty of 1% per month until the

same shall be paid. The Receiver of Taxes of Kent and Sussex Counties only

shall, after September 30 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) 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) 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 the beginning of the tax year, is of the age of 65 or

more. The maximum such credit authorized by vote of local school boards shall

be the lesser of:

a. 50% 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

b. $500.

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 as follows:

a. For tax years beginning on or after May 1, 2000, but before May 1,

2001, no later than February 16, 2001.

b. For all subsequent tax years, no later than September 1 immediately

following 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.

(32 Del. Laws, c. 160, § 54; Code 1935, § 2743; 14 Del. C. 1953, § 1918; 51

Del. Laws, c. 240, § 13; 51 Del. Laws, c. 313; 60 Del. Laws, c. 161, § 1; 62

Del. Laws, c. 225, § 1; 70 Del. Laws, c. 186, § 1; 71 Del. Laws, c. 401, §

130; 72 Del. Laws, 1st Sp. Sess., c. 256, §§ 3º2_, 4º3_; 73 Del. Laws, c. 9,

§§ 1, 3.)

§ 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.

(32 Del. Laws, c. 160, § 54; Code 1935, § 2743; 14 Del. C. 1953, § 1919; 51

Del. Laws, c. 240, § 14; 66 Del. Laws, c. 399, § 1; 67 Del. Laws, c. 47, §

238; 69 Del. Laws, c. 64, § 280; 71 Del. Laws, c. 180, § 120A.)

§ 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 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 (1) of this subsection, 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.

(36 Del. Laws, c. 215, § 2; 37 Del. Laws, c. 203, § 3; Code 1935, § 2745; 47

Del. Laws, c. 280, § 1; 14 Del. C. 1953, § 1920; 51 Del. Laws, c. 240, § 15;

70 Del. Laws, c. 186, § 1; 71 Del. Laws, c. 180, § 121; 72 Del. Laws, 1st Sp.

Sess., c. 256, §§ 5º4_, 6º5_; 73 Del. Laws, c. 9, § 2.)

§ 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.

(36 Del. Laws, c. 215, § 3; Code 1935, § 2746; 14 Del. C. 1953, § 1921; 70

Del. Laws, c. 186, § 1.)

§ 1921. Refund of county taxes paid in error.

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.

(14 Del. C. 1953, § 1922; 54 Del. Laws, c. 315; 70 Del. Laws, c. 186, § 1.)

§ 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.

(14 Del. C. 1953, § 1923; 56 Del. Laws, c. 66; 63 Del. Laws, c. 142, § 32.)

§ 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.

(14 Del. C. 1953, § 1924; 57 Del. Laws, c. 284; 57 Del. Laws, c. 376; 60 Del.

Laws, c. 511, § 66; 60 Del. Laws, c. 722, § 3; 63 Del. Laws, c. 142, § 33; 63

Del. Laws, c. 404, §§ 1, 2, 6; 72 Del. Laws, c. 304, § 1.)

§ 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/oor

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.

(61 Del. Laws, c. 211, § 1.)

§ 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.

(62 Del. Laws, c. 351, § 3.)

NOTICE: The Delaware Code appearing on this site was prepared by the Division of Research of Legislative Council of the General Assembly with the assistance of the Government Information Center, under the supervision of the Delaware Code Revisors and the editorial staff of LexisNexis, includes all acts up to and including 76 Del. Laws, c. 246, effective June 19, 2008.

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