County committee advances discussion on 10-year property tax exemption for surviving spouses of line-of-duty military deaths

The Administrative Finance Committee on March 10 heard a presentation on Ordinance 26-021, which would amend New Castle County Code Chapter 14 to extend a 10-year real property tax exemption to surviving spouses or domestic partners of residents who suffer an active-duty, line-of-duty death.

Kenny Dunn, deputy chief administrative officer, described the proposal during the committee meeting. "The 0 2 1 exempts property taxes for, the surviving spouse or domestic partner of, line of duty death," Dunn said, and clarified that the exemption would not apply to streetlight, ditch or stormwater taxes. He said the county plans a 15-year lookback to identify eligible survivors who might apply and expects the fiscal impact to be "very small" — "low thousands of dollars per year." Dunn added the county will seek companion legislation at the General Assembly to address school taxes.

Why it matters: The change would reduce property tax liability for families who lose a household member in an on-duty military death and may require coordination with the state. Dunn said the qualifying event must be certified by the Department of Defense and by the Delaware insurance commissioner; survivors would file county forms and supply the federal/state certification.

Committee members raised two main implementation questions. Councilman Street said he was "troubled by this being limited to death benefits only" and asked whether long-term disabilities from on-the-job incidents could be covered. Dunn replied that "if a county employee was permanently disabled in the line of duty, they would be eligible for the county disability tax exemption that's already in place," and said staff are reviewing county job specifications with HR, law and public works to determine which classifications automatically qualify under state definitions (for example, sworn constables). Dunn said the county has discussed reciprocity with Kent and Sussex counties.

Next steps: Committee members asked to be listed as co-sponsors and the item was slated for the council's evening agenda for further consideration. The chair and staff said they will return with any needed revisions and follow-up legislation to broaden or clarify eligible job classifications.