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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.


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

YES VOTES:  HOUSE: B. Short, Baumbach, Bennett, Bentz, Bolden, Brady, Briggs King, Carson, D. Short, Dukes, Gray, Heffernan, Hudson, J.Johnson, Jaques, K.Williams, Keeley, Kenton, Kowalko, Longhurst, Lynn, M.Smith, Matthews, Mitchell, Mulrooney, Osienski, Outten, Paradee, Postles, Potter, Q.Johnson, Ramone, Schwartzkopf, Spiegelman, Smyk, Viola, Wilson.  SENATEBushweller, Cloutier, Delcollo, Ennis, Hansen, Henry, Lavelle, Lawson, Lopez, Marshall, McBride, Poore, Richardson, Simpson, Sokola, Townsend, Walsh

NO VOTES:  HOUSE: Collins, Hensley [Yearick and Miro were absent].  SENATE: Bonini, Hocker,Pettyjohn  [McDowell did not vote]

HISTORY: Passed the House 37-2-2. Passed Senate 17-3-1.

STATUS: Sent to Governor for signature.

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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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