chp529

LAWS OF DELAWARE

VOLUME 83

CHAPTER 529

151st GENERAL ASSEMBLY

FORMERLY

SENATE BILL NO. 241

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

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend § 1917, Title 14 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 1917. Collection and deposit of school taxes.

(d) (1) a. 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.

b. For purposes of this subsection, “qualified property” shall mean means property owned and occupied as a dwelling by and as the principal residence of a qualified person. A

c. For purposes of this subsection, a “qualified person” means a veteran who receives satisfies both the following:

1. 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.

2. Is legally domiciled in this State for a period of at least 3 consecutive years. Mere seasonal or temporary residence within the this State, of whatever duration, shall not does not constitute domicile within the this State for the purposes of this section subsection . Absence from this State for a period of 12 months shall be is prima facie evidence of abandonment of domicile in this State.

d. If a local school board has authorized the tax credit under paragraph (d)(1)a. of this section, then the credit must be allowed for a surviving spouse of a deceased qualified person if all of the following apply:

1. The deceased qualified person, immediately before death, was both claiming the credit and had not had the right to claim the credit withdrawn.

2. The surviving spouse was a titled owner of the qualified property before the deceased qualified person’s death.

3. The surviving spouse has not remarried.

4. The surviving spouse owns and occupies the qualified property as their principal residence.

e. A surviving spouse is no longer eligible for 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.

f. 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.

g. 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) a. No A credit against taxation on the valuation of real property as provided in this subsection shall may not 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 must be filed with and received by the receiver of taxes or county treasurer no later than April 30 immediately prior to before the beginning of that tax year.

b. Notwithstanding the application deadline in paragraph (d)(2)a. of this section, the Secretary of Finance, in consultation with the receiver of taxes and country treasurer, shall establish a process for the receiver of taxes and county treasurer to use to verify the eligibility of a surviving spouse of a deceased qualified person and to maintain the credit for an eligible surviving spouse without disruption occasioned by the death of the qualified person.

(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, the claimant shall not be is not allowed a credit against that claimant’s interest in said the property in excess of the assessed valuation of that claimant’s proportionate share in said property, which proportionate share, for the property. For the purposes of this subsection, the claimant’s proportional share is 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 must be as shown.

d. Right to claim credit under this subsection shall will 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 before the beginning of the subsequent tax year. A claimant must notify the receiver of taxes or county treasurer of any modification in status that results in the claimant no longer meeting the definition of qualified person set forth in paragraph (d)(1) of this section or no longer an eligible surviving spouse under paragraph (d)(1) of this section .

Section 2. 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.

(r) (1) A special fund of the this 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 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. Should such claims exceed $1,000,000 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 Disabled Veterans Property Tax Relief and Education Expense Fund the amount of such reasonably foreseen additional claims. Any balance remaining in the Disabled Veterans Fund at the conclusion of any fiscal year shall must revert to the General Fund.

(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. 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. The credit shall 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 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.

Approved November 2, 2022