Those expecting a sizable income tax refund every year may be disappointed if they’re behind on their local school district property tax bill.
Local districts across the state have $32.4 million in uncollected property tax over the past five years and a new bill from state lawmakers would garnish state tax refunds to try and recoup it by including them in the state’s intercept program.
It would also apply to any gambling winnings earned by those with outstanding debts.
New Castle County school districts stand to collect more than $20 million, Sussex County schools are out nearly $7.5 million and Kent County districts are down $4.7 million.
House Minority Leader Danny Short (R-Seaford) says that money could help plug expected budget gaps.
“That $32 million number is no little bit of chump change with regard to the problem we’re having education our kids and finding the source of revenue to do that,” said Short.
The tax intercept program is already in place for debts owed to state agencies, colleges and universities.
Scott Kessel, chief financial officer for Brandywine School district, says the $2.8 million it’s owed could delay them going out for a tax referendum increase by a year or two.
“Every little bit helps and, of course, we would direct as much of that as we could right to the classroom. That’s what it’s all about,” said Kessel.
Legislators say it could also help plug expected budget gaps for the upcoming fiscal year.
The bill has significant bipartisan support and is awaiting a hearing in the House Education Committee.