House Bill 240

Passed

Assessment Appeal Refunds & Timeline Extensions

What House Bill 240 Does, in Simple Terms

If your property assessment appeal results in a lower assessed value and you've overpaid county or school taxes, this bill guarantees you a refund (or credit) if the overpayment is $50 or more, and allows the county to refund or credit even smaller amounts.

The Key Changes

What this law changes about property tax refunds after appeals

Current Problem

Current law does not clearly spell out a uniform refund process after a successful property assessment appeal.

New Solution

Requires counties and school districts to refund or credit overpaid taxes after a successful appeal if the overpayment is $50 or more.

Allows but does not require counties to refund or credit amounts under $50.

Ensures that both county taxes and school taxes follow the same rule.

How It Works in Practice

Step-by-step process for getting your refund

Win Your Appeal

You appeal your property's assessed value and win, resulting in a lower property value.

Calculate Overpayment

Because property taxes are based on assessed value, your bill for that tax year should have been lower.

Determine Eligibility

If you already paid your taxes before winning the appeal, you've overpaid.

Get Your Refund

Under HB 240, if the overpayment is $50 or more, the county must issue a refund or apply a credit toward your next bill. If under $50, they may still refund it.

What Residents Can Expect

Faster Refunds

Counties and school districts will have to process qualifying refunds after an appeal without ambiguity.

Credit Option

If you don't want to wait for a check, the county can apply the overpayment as a credit toward your next tax bill.

Uniform Process

Both county and school tax refunds will follow the same $50 threshold rule.

Important Details to Remember

Appeals Only: Applies only after a successful assessment appeal that reduces your assessed value.

Doesn't Change Appeals: This bill doesn't change the appeals process itself. It only affects what happens if you win and have overpaid.

Record Keeping: Counties and school districts must keep a record of refunds for at least 3 years.

Bill Status

✅ Passed

Signed into law by the Governor

Effective: Immediately upon signing

Applies to: All successful appeals

Why This Matters

After Delaware's property reassessment, many appeals are expected. Without a clear refund rule, counties could handle overpayments inconsistently.

Creates consistent statewide refund rules

Prevents taxpayers from losing overpaid money

Saves administrative costs for small amounts

Official Documents