Delaware General Assembly

Senate Finance 3/19/26

Awaiting consideration in Committee

SB 35

3/19/26

Hoffner

Reps. Bush, Carson, Harris

AN ACT TO AMEND TITLE 9 OF THE DELAWARE CODE RELATING TO ASSESSMENTS AND TAXATION OF STRUCTURES LOCATED ON LAND IN AGRICULTURAL, HORTICULTURAL, AND FOREST USE.

This Act is a substitute for and differs from Senate Bill No. 35 by making the following substantive changes from the original bill: 1. Establishes and provides additional clarity to the definition of “qualified farm structure” to include buildings such as poultry houses, barns, sheds, silos, commodity storage facilities, greenhouse and packing or cooling facilities. To qualify, these structures must be located on land devoted to agricultural, horticultural, or forest land, as already defined in this chapter. Notably, this definition excludes any dwelling units used as residences and any buildings that are used for commercial, industrial, or non-farm businesses. 2. Removes Sections 3 through 6 of Senate Bill No. 35 as unnecessary due to the new definition of “qualified farm structure.” 3. Includes the new definition of “qualified farm structure” to clarify that qualified farm structures are eligible for valuation within this chapter. 4. Establishes that qualified farm structures are to be valued using a cost approach method, with only 50% of the fair market value of these structures subject to tax. This reduced rate excludes any residential dwellings or structures used for commercial, industrial, or other non-farm business purposes. 5. Eliminates references to any proposed changes to § 8337 pertaining to the State Farmland Evaluation Advisory Committee that were originally considered in Senate Bill No. 35. This substitute also makes technical corrections to conform to the standards set by the Delaware Legislative Drafting Manual. Agriculture is currently the leading industry in Delaware but as housing and other development occurs less farmland becomes available. For farmers in general, but in particular the small and medium sized farm owners, the real estate taxes imposed on their farm structures impose a significant financial impact and adversely affects their ability to survive. At least eighteen other states have recognized this problem and have through legislation provided real estate tax relief for qualified farm structures.

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