Delaware (Summary)
Last Updated: March 2020
Tax Type: Current Use Tax and Timberland Exemption
Description: Exemption tax is 30-year county property tax exemption.
Law: Current Use (Del. Code tit. 9, §§ 8329-8335) and the "Commercial Forest Plantations" (Del. Code tit. 3, § 2601)
Principal Forest Property Tax Incentive Programs:
1. Program legal-common name: General property tax program (forest land use)
Objective: Conserve the State's natural resources and to provide for the welfare and happiness of the inhabitants of the State; Prevent the forced conversion of farm land and forest land to more intensive uses as a result of economic pressures caused by the assessment thereof for purposes of property taxation at values incompatible with their preservation as such farm land and forest land.
Program Requirements
Min/Max Acreage: No minimum size, parcels less than 10 acres have to meet additional income requirements to be eligible.
Min. Stocking Growth: Sufficient growth in such quantity and so spaced and maintained as to constitute in the opinion of the State Forester a forest area to develop into merchantable timber as determined by State Forester.
Forest Management Plan: N/A
Evidence of Use: N/A
Duration of Enrollment: Land has been so devoted for the two (2) previous years prior to application.
Penalties for Use Change: Rollback taxes equal to the difference between the taxes paid and the taxes that would have been paid had the land been assessed as other land in the taxing district for the preceding 10 years.
Program Administration
State: State Farmland Evaluation Advisory Committee establishes a range of values for each classification of land in agricultural, horticultural or forest use in the State.
County Tax Assessor and Commissioner: County tax assessor determines the eligibility and shall consider the values established by the State Farmland Evaluation Advisory Committee.
University: N/A
Landowner: Make application
2. Program legal-common name: Commercial Forest Plantations
Objective:The law was designed to provide an incentive for private forest landowners to manage their lands as commercial forest plantations for the production of wood products.
Program Requirements
Min/Max Acreage: 10 acres
Min. Stocking Growth: Sufficient forest growth of suitable character and so distributed as to give reasonable assurance that a stand of merchantable timber will develop therefrom, as determined by the State Forester.
Forest Management Plan: A forest management plan approved by the State Forester and sworn statement of compliance. Must notify transferee of management plan obligation when property is sold.
Evidence of Use: A forester from the Delaware Forest Service shall have the right to enter upon the property for the purpose of inspection.
Duration of Enrollment: 30 years. Eligible landowners need to reapply at the end of 20 years for a new exemption.
Penalties for Use Change: Past tax due
Program Administration
State: The Delaware Department of Agriculture Forest Service administers the program.
County Tax Assessor and Commissioner: County tax assessor removes land from tax rolls at recommendation of Department of Agriculture and calculates past tax due in the event of withdrawal.
University: N/A
Landowner: Make application to the Delaware Department of Agriculture Forest Service
3. Program legal-common name: Forest Preservation Program
Objective:The law was designed to conserve, protect and encourage the proper utilization of the States forestland resources.
Program Requirements
Min/Max Acreage: at least 10 acres
Min. Stocking Growth: viable and potentially productive forestlands
Forest Management Plan: A forest management plan is required to be prepared by a professional forester to address the landowners forest management goals. The plan shall be made available for inspection by the State Forester's office and the plan shall be revised and updated at a minimum every 5 years.
Duration of Enrollment: 10 years
Program Administration
State: Delaware Agricultural Lands Preservation Foundation and the State Forester
County Tax Assessor and Commissioner: County tax assessor removes land from tax rolls
University: N/A
Landowner: Make application to the foundation
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