General Assembly Vote Tracker

HB99 – Limiting a School Tax Credit for Retirees

HB99 seems to limit a tax break available to Delaware retirees. Currently, a Delaware resident who is 65 or older can claim a tax credit against school taxes they paid so long as they have been a resident of the state for 3 years.   This bill would extend that time period to 10 years, while grandfathering in (no pun intended ) those residents who would have become eligible over the last three years under the prior version of the statute will remain eligible.

I suppose this bill is a revenue raiser for the budget, but it might also affect the flow of retirees who move to Delaware to take advantage of our tax laws.

HB99 – AN ACT TO AMEND TITLES 14 AND 29 OF THE DELAWARE CODE RELATING TO ADMINISTRATION OF SCHOOL PROPERTY TAX CREDITS.


SPONSORS: Williams, Walsh, Hocker, Simpson, Baumbach, Bennett, Q.Johnson, Keeley, Kowalko, Longhurst, Lynn, Matthews, Mulrooney, Osienski, Paradee, Spiegelman, Wilson


YES VOTES:


NO VOTES:


HISTORY: Assigned to the House Administration Committee on 4/6/17.


STATUS: Waiting for hearing in committee.


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3 comments on “HB99 – Limiting a School Tax Credit for Retirees

  1. mikem2784

    Even without any discount, our rate is lower than all surrounding states by a significant amount, especially considering the age of the assessments.

  2. Gene Bracken

    I’m guessing mikem2784 isn’t a retiree living on a third of his income before he retired and recently moved to DE. A $500 maximum tax break means a lot to residents living on a fixed, limited retirement income. The current 3-year residency requirement is eminently reasonable. Arbitrarily raising it to 10 years as a clever way to gain more revenue is something else – it’s government picking on old people.

  3. mikem2784

    The thinking is that people are choosing to retire in Delaware in part because our property tax rates are much lower. I have a neighbor from NJ who came here for just that reason to spend his later years. Denying him a cut that no one else gets until he’s been a long term resident and has paid into the system like those of us “lifers” isn’t a punishment. I do think those already here should be grandfathered in though so as not to break the initial promise of a tax credit after three years. I get that many are struggling, I truly do, but so are non-retirees who do not get any break whatsoever. Even without the credit, the rate will still be significantly lower than surrounding states.

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