2018 Legislative Session
April 30, 2018
House Bill (HB) 380, sponsored by Delaware Speaker of the House Pete Schwartzkopf, will be in the House Economic Development/Banking/Insurance/Commerce Committee on May 2. This bill would exempt first-time homebuyers from their portion of the 1 percent state realty transfer tax increase. HB 380 is also retroactive; first-time homebuyers who purchased on or after August 1, 2017, would qualify for a rebate of up to $2,000. DAR expects this bill to move easily out of committee on Wednesday. Read HB 380 here.
Representative Ruth Briggs King is sponsoring HB 389, which would “allow real property tax itemized deductions to continue in Delaware notwithstanding recently enacted changes to Federal income tax laws.” Delaware, as a “piggyback state,” automatically follows the Federal Government when it comes to tax law unless there is action from the Delaware General Assembly to decouple Delaware from a Federal tax initiative. This bill would decouple Delaware from the recent Federal tax reform in regards to the mortgage interest deduction and the property tax deduction. Read HB 389 here.
Delaware Legislators are in session for the next two weeks; the session will then break for Joint Finance Committee meetings from May 14 until June 5.
Realtor Party Mobile Alerts keep you connected on your cell phone or tablet, allowing you to know when a national or state legislative call for action is launched. You’ll get a brief text message with the information. Don’t be left out of the loop! Sign up for Realtor Party Mobile Alerts here or simply text the word REALTORS to 30644.
Remember that the DAR Legislative Action Day is June 7 at 12:30 p.m. in Dover’s Legislative Hall. This is a great opportunity to meet members of the Delaware Legislature and support your industry and property owners in Delaware. All DAR members are invited to attend.
from April 23, 2018
First-Time Homebuyer Bill Released: Speaker of the House Pete Schwartzkopf has introduced House Bill (HB) 380: An Act to Amend Titles 9 and 30 of the Delaware Code Relating To Realty Transfer Tax. Although this bill falls short of what DAR was working to accomplish this session, it does provide the following relief to first-time homebuyers:It exempts buyers who have never owned a home from their half of the 1 percent realty transfer tax hike that was imposed at the end of last session.
It’s retroactive, so first-time buyers who purchased on or after August 1, 2017, can apply for a refund.
There is a cap on the price of a home that qualifies for the exemption in this bill. The cap was originally going to be $250,000 but was raised to $400,000 without a “cliff,” so all first-time buyers are exempted up to the first $400,000 of their purchase regardless of the home price.
DAR President Bayard Williams recently met with the Speaker to discuss this legislation and DAR sees this as a good first step in mitigating the impact of the 1 percent realty transfer tax hike. Our commitment to eliminating Delaware’s transfer tax continues. Read HB 380 by clicking here.
DAR also continues to work on many bills this legislative session, including exempting Realtors from municipal licensing requirements. Stay tuned for more!
Mark your calendar now for DAR Legislative Action Day on June 7 at 12:30 p.m. in Dover’s Legislative Hall. This is a great opportunity to meet members of the Delaware Legislature and support your industry and property owners in Delaware. All DAR members are invited to attend. Watch this space for details.
from April 16, 2018
DAR is anticipating the introduction of the First-Time Homebuyer State Transfer Tax Exemption legislation. We understand that this bill, when released, would exempt a first-time homebuyer from their portion of the 1 percent realty transfer tax hike that was initiated on the last day of the 2017 legislative session. Further, we expect this bill may contain a $400,000 cap, where only the first $400,000 of any first-time buyer’s purchase will be exempted. We expect this bill will be introduced next week by the Speaker of the Delaware House of Representatives, Pete Schwartzkopf. The tax treatment of first-time buyers in Delaware is one of our top priorities for the 2018 Legislative Session, and we plan to work with the Speaker to improve the bill. We will keep you updated on this legislation and any other that affects first-time buyers.
New Castle County Executive Matt Meyer last week signed legislation to expand property tax relief for disabled veterans and service members. Read the article from the Delaware Business Times here.
Have you ever thought about running for elected office? A whopping 15 percent of sitting legislators are retiring this year, opening General Assembly seats up for grabs. The following House and Senate Districts have open seats this year: Senate Districts 2, 17, 18; House Districts 5, 7, 16, 29, 35 and 36. If you live in one of these Districts and would like to discuss the possibility of running for elected office, please contact Maria Evans, Government Affairs Director, at email@example.com.
Save the Date: Legislative Action Day is June 7, 12:30 p.m., at Legislative Hall in Dover. DAR encourages all members to come to the Hall and let their voices be heard. More details to come.
From NAR: FEMA Changes Encourage Private Flood Insurance: “In the absence of legislative reform by Congress, there’s only so much the Federal Emergency Management Agency can do to encourage the growth of private flood insurance. But FEMA, which oversees federal flood insurance, has come up with a few small but meaningful program changes that will make it easier for households to switch to private insurance if they can get a better deal that way.” Read the full story here.
The Delaware General Assembly reconvenes at the State house on Tuesday, April 17.
from April 9, 2018
The DAR Public Policy Committee voted to recommend support for Senate Bill 133, legislation that would prohibit the dissemination of natural resource data without first disclosing the date and method of collection, and without the written permission of the property owner. The first line of the bill’s synopsis says it all: “This Act acknowledges that the Department of Natural Resources and Environmental Control has been collecting natural resource data for years without the consent of the respective property owners.” You can read SB 133 here.
Legislative Action Day is June 7, 12:30 p.m., at Legislative Hall in Dover. DAR encourages all members to come to the Hall and let their voices be heard. Save the date! Details to come.
DAR, the New Castle County Board of Realtors and the Homebuilders Association of Delaware have signed a joint letter to the USDA requesting that the Middletown area remain eligible for the USDA Rural Housing Mortgage Loan Program.
News from the Federal Trade Commission: The Federal Trade Commission (FTC) and Department of Justice (DOJ) will hold a joint public workshop in Washington, D.C. on June 5, 2018, to explore competition issues in the residential real estate brokerage industry. The residential real estate brokerage industry has seen significant change in recent years, including the emergence of new business models. The workshop will focus on developments since the publication of the Report on Competition in the Real Estate Brokerage Industry in 2007.” Learn more about the workshop here.
The Delaware General Assembly reconvenes at the State house on April 17.
from April 4
The Delaware General Assembly’s Spring Break is underway. Legislators return to the State house on April 17.
Representative Bobby Outten (R – Harrington) is the 9th Delaware legislator to announce retirement.
The 2,232-page omnibus appropriations bill President Trump signed into law a week ago contains provisions related to housing that Realtors have been fighting for, including extension of the National Flood Insurance Program through mid-summer and an infusion of funds to the Low-Income Housing Tax Credit, which developers use to attract private capital to affordable rental housing. You can download the complete list of NAR Public Policy Priorities here.
NAR’s advocacy website, REALTORParty.com, gets a new address starting May 16: REALTORParty.realtor. Make a note to update your bookmarks and other saved links at that time.
from March 26
All legislative committee hearings were cancelled on Wednesday, March 21, due to the weather.
DAR is anticipating the release of legislation that would exempt first-time homebuyers from the state portion of the realty transfer tax. Governor Carney, in his budget address, committed to giving first-time homebuyers some relief from the realty transfer tax hike. His proposal, however, would only exempt first-time homebuyers from their half of the 1 percent realty transfer tax hike passed at the end of the last legislative session. DAR is working with members from the General Assembly to exempt first-time homebuyers from their half of the full 2.5 percent state portion of the transfer tax. This legislation is DAR’s top priority for the 2018 legislative session.
HB 297, The 1 Percent Transfer Tax Repeal Bill: This bill is still awaiting a committee hearing. DAR is working to gain support for a hearing on this bill in the House of Representatives and for the release of this bill from committee for a full vote.
The General Assembly’s Spring Break begins March 30. Legislators return to the State house on April 17.
from March 19
DAR Legislative Action Day is scheduled this year for June 7 at Legislative Hall in Dover, following the 2017 AmeriCorps Framing Frenzy and Annual Homeownership Celebration, beginning at 1:00pm on the Legislative Green. DAR’s event that day will begin at 12:30p.m. in the 2nd Floor House Hearing Room with a luncheon to which all legislators are also invited. All DAR members are urged to attend this year’s Legislative Action Day to assist DAR with our 2018 legislative priorities. Members are also urged to make appointments to meet with their own legislators on June 7.
First-time Homebuyer State Transfer Tax Exemption: Governor Carney, in his budget address, committed to giving first-time homebuyers some relief from the realty transfer tax hike. His proposal, however, would only exempt first-time homebuyers from their half of the 1% realty transfer tax hike from the end of the last legislative session. DAR is working with members from the General Assembly to exempt first-time homebuyers from their half of the full 2.5 percent state portion of the transfer tax.
HB 297, The 1 Percent Transfer Tax Repeal Bill: This bill is still awaiting a committee hearing. DAR is working to gain support for a House hearing on this bill and for the release of this bill from committee for a full vote on the House floor.
DAR is closely monitoring SB 50; this bill would put DelTECH on the county property tax bill with the ability to raise the tax with no legislative oversight. DAR opposes this legislation because there is already a mechanism in place for Delaware’s colleges and universities to receive funding from the state through the General Assembly’s Joint Finance Committee. Additionally, without legislative authorization for raising this tax, it would amount to taxation without representation — something Caesar Rodney, who was a delegate to the October 9, 1765 “Stamp Act Congress” and later went on to sign the Declaration of Independence — clearly would have opposed.
Representatives from DAR attended the Tuesday, March 14, New Castle County Council meeting to speak against Resolution 18-045, which urges the Delaware General Assembly to allow the County to set their own cap on their first-time homebuyer program. With the number of Delaware first-time homebuyers well below the national average as a percentage of the whole, DAR opposes any attempt to legislate or any enabling legislation that would give authority to the counties to cap or reduce their first-time homebuyer programs. Unfortunately, the Resolution passed the Council with only one “no” vote, cast by Council President Karen Hartley Nagle.
The General Assembly’s Spring Break begins March 30 and reconvenes April 17.
2017 Legislative Session
Access the 2017 review of session issues here.