DE SB201

Expands compensatory payment eligibility to include cities with populations over 25,000 and at least 20% tax-exempt property, in addition to existing county seat recipients (Wilmington, Dover, and Georgetown).

Increases the annual payment cap from $3,000,000 to $3,500,000 in state fiscal year distributions.

Revises payment formulas to create tiered compensation: county seats under 50,000 population with less than 20% tax-exempt property receive 36.0%, those with more than 20% tax-exempt property receive 18.0%, county seats over 50,000 receive 100.0%, and qualifying non-county seat cities receive 12.0%.

Removes Delaware State University and University of Delaware from exempt properties, requiring them to be assessed and compensated like other state-owned property.

Establishes proportional payment reduction mechanism if total calculated payments exceed the annual cap, ensuring funds are distributed proportionally based on each eligible city's calculated compensation.