Proposed System Could Mean Millions for Del. School Districts - WBOC-TV 16, Delmarvas News Leader, FOX 21 -

Proposed System Could Mean Millions for Del. School Districts

Posted:

DOVER, Del.-  Unpaid property taxes are costing Delaware school districts millions of dollars. State lawmakers want to fix that.

The proposed system is called tax intercept. It's already used to retrieve money people owe for things such as child support.

The bill under consideration would allow school districts and counties to take money from a person's income tax refund if they haven't paid their property taxes.

"We have about $700,000 in unpaid taxes," said John Ewald, superintendent at Laurel School District. "That, of course, could go a long way for our students. The tax intercept bill would allow us to receive some of that funding."

That number is even larger in other districts. The bill's sponsor Rep. Danny Short says, for example, Indian River's number is $2.9 million. Capital School District in Dover says it is missing out on about $2 million in property tax due from 2010 to 2012. Current law specifically prohibits districts from using tax intercept to get the money. Short says they need this mechanism to deal with people avoiding paying what they owe.

"The intercept doesn't mean we just take the money. It's better than that. It means they get notified that we're going to take the money if they don't come in and settle their bill."

That might provide the opportunity to set up something like a payment plan. By whatever method, for districts like Laurel, getting as much of the money they're owed as possible is important right now as some funding sources are drying up.

"We have about $180,000 we're about to lose with sequestration," Ewald said. "We have Race to the Top that will go away next year. So, any type of tax revenue that the school can count on and plan for, with our students in mind, is going to be beneficial."

The state House of Representatives could vote on this bill next week. Last year the chamber gave it unanimous approval. But it stalled in the Senate.

  • Most Popular StoriesMost Popular StoriesMore>>

  • 2 Men Charged With Soliciting Children for Sex

    2 Men Charged With Soliciting Children for Sex

    Thursday, July 24 2014 8:06 AM EDT2014-07-24 12:06:43 GMT
    The Attorney General's Office says two men have been arrested after they allegedly arranged to meet children for sex in separate incidents in Dover.More
    The Attorney General's Office says two men have been arrested after they allegedly arranged to meet children for sex in separate incidents in Dover.More
  • Cause of Tractor Trailer and Motorcycle Crash Revealed

    Cause of Tractor Trailer and Motorcycle Crash Revealed

    Thursday, July 24 2014 8:20 AM EDT2014-07-24 12:20:39 GMT
    A motorcyclist is dead after being struck by a tractor trailer in Denton Tuesday afternoon.The victim's identity will be released upon confirmation from the state medical examiner's office.More
    A motorcyclist is dead after being struck by a tractor trailer in Denton Tuesday afternoon.The victim's identity will be released upon confirmation from the state medical examiner's office.More
  • Chikungunya Virus Continues Spreading Across Country

    Chikungunya Virus Continues Spreading Across Country

    Wednesday, July 23 2014 11:29 PM EDT2014-07-24 03:29:19 GMT
    A new mosquito-borne illness called Chikungunya is spreading across the nation, and is even popping up in the region, creating some concern from state agencies. As of Tuesday, the Center for Disease Control reported that there were 497 cases nationwide of the Chikungunya Virus, spanning across 35 states.More
    A new mosquito-borne illness called Chikungunya is spreading across the nation, and is even popping up in the region, creating some concern from state agencies. As of Tuesday, the Center for Disease Control reported that there were 497 cases nationwide of the Chikungunya Virus, spanning across 35 states.More
Powered by WorldNow

All content © Copyright 2000 - 2014 Worldnow and WBOC. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service