Delaware Senate Bill SB176

Delaware 2025-2026 Regular Session

• Introduced: 6/5/25
• Refer: 6/5/25
• Engrossed: 6/12/25
• Refer: 6/12/25

Caption

An Act To Amend Title 9 Of The Delaware Code Relating To Building Permit Fees.

Impact

If enacted, SB176 would authorize Sussex County to add a surcharge up to 1.25% of the construction value to building permit applications. However, it stipulates that this surcharge would not apply to permits for construction valued at $30,000 or less if filed after the original certificate of occupancy is issued. The bill aims to create a dedicated funding stream for schools that may be impacted by population growth due to new housing developments, thereby ensuring that infrastructure keeps pace with community growth.

Summary

Senate Bill 176 proposes amendments to Title 9 of the Delaware Code that would allow Sussex County to implement building permit fees that specifically fund local school capital construction programs. The bill seeks to establish an impact fee on building permits, enabling the county to collect funds necessary to support educational infrastructure improvements within the school districts affected by new construction. This approach aims to further streamline funding for schools and ensure that new developments contribute to the needs of local educational institutions.

Sentiment

The general sentiment surrounding SB176 seems to be one of cautious support. Advocates for the bill highlight the necessity of funding school construction in growing areas, emphasizing its potential to address the rising demand for educational facilities. However, there may be concerns about additional costs imposed on builders and the implications this could have on housing affordability. The bill signals a move towards more localized funding solutions for educational facilities, which could create a sense of fairness in distributing the costs associated with community growth.

Contention

Notably, some points of contention could arise regarding the implementation of these fees. Builders may argue that additional fees could deter development or lead to increased housing costs. Furthermore, there may be debate over the specific use of funds and whether the impact fee amounts are sufficient to meet the needs of the school districts. As the bill progresses, discussions are likely to focus on balancing the need for adequate educational infrastructure support with the economic implications of the proposed fees.