DE SB257

Expands compensatory payment eligibility to municipalities with populations over 25,000 that have at least 20% State-owned tax-exempt property, in addition to the three county seats (Wilmington, Dover, and Georgetown).

Increases the annual payment cap from $3,000,000 to $3,500,000 for all compensatory payments distributed under this section.

Adjusts payment percentages: county seats with populations of 50,000 or less and no more than 20% tax-exempt property receive 36.0% of assessed taxes (increased from 30.8%); those with more than 20% tax-exempt property receive 18.0%; county seats over 50,000 receive 100%; and qualifying municipalities receive 12.0%.

Excludes Delaware Housing Authority and Delaware Solid Waste Authority properties from tax assessments (previously also excluded Delaware State University and University of Delaware properties).

Implements a proportional reduction mechanism that apportions the annual cap among county seats and municipalities if total calculated payments exceed the $3,500,000 limit.