DOVER, DE- Delaware lawmakers spent hours in a special session Tuesday addressing public outcry over steep property tax increases, particularly in New Castle and Sussex counties.
After hours of debate, the General Assembly passed seven bills aimed at providing short-term property tax relief and clarifying counties’ taxing authority.
The property tax increases come after a court order requiring all counties to reassess property values for the first time in more than 40 years.
When the court issued the order, Sussex and New Castle counties requested delays, while Kent County moved ahead. Kent County is now in its second year under the new values. Sussex County mailed new bills last week, while many New Castle County neighbors are experiencing sticker shock, with some seeing property tax increases of more than 400%.
Earlier in the day, Republican minority leaders criticized suspending legislative rules to fast-track the bills, while Democrats said urgent action was needed.
Sen. Brian Pettyjohn, R-Georgetown, said more work will be needed when the legislature reconvenes in January.
"These bills are a band-aid, and there's going to have to be further discussion about this entire process and the impact that it's having on property owners."
Rep. Kerri Evelyn Harris, D-Dover, said thousands of Delawareans cannot wait until January for help and feels the bills are needed to provide short-term solutions.
"We're not moving heaven and earth, but what we are doing — payment plans are going to make a difference. The cash refunds are going to make a difference. The split rates will make a difference. And as we go forward, we want to see how we can even lower the pain threshold."
The General Assembly approved seven measures aimed at providing relief to taxpayers:
Senate Concurrent Resolution 122 — Passed the Senate 19–0, with two absent; passed the House on a voice vote. Urges state, local and school district officials to work with lawmakers to review the recent statewide property reassessment and ensure future reassessments are fair, transparent and equitable.
Senate Bill 203 — Passed the House 30–9, with two absent; passed the Senate 18–1, with two absent. Affirms counties' and municipalities' authority to tax different classes of real property separately if reasonable classifications and tax rates are uniform within each class. Applies retroactively and moving forward.
Senate Bill 204 — Passed the Senate 19–0, with two absent; passed the House 31–4, with three absent. Codifies the authority of all municipalities to tax different classes of real property at separate rates without individual charter amendments, provided classifications are reasonable and rates are uniform.
Senate Substitute 1 for Senate Bill 202 — Passed the Senate 14–0, with five not voting and two absent; passed the House 31–6, with two not voting and two absent. Only New Castle County is required to submit quarterly reports on reassessment impacts and update property terminology to match the realty transfer tax return language.
House Bill 240 — Passed the Senate 18–0, with three absent; passed the House 35–4, with two absent. Requires counties to refund property tax overpayments of $50 or more after an appeal. Overpayments under $50 may be refunded or credited toward future taxes.
House Bill 241 with House Amendments 3, 7 and 10 — Passed the House 35–5, with two absent; passed the Senate 17–0, with one not voting and three absent. Requires counties to offer payment plans to residential taxpayers whose school tax increases by $300 or more after a general reassessment. Also, New Castle County's late payment penalty for school taxes is reduced to 1% per month, matching Kent and Sussex counties. The measure expires after three years.
House Bill 242 with House Amendment 1 — Passed the Senate 14–0, with four not voting and three absent; passed the House 30–8, with one not voting and two absent. Allows New Castle County school districts to reset 2025–26 residential and non-residential tax rates within limits, provides refunds or credits to taxpayers whose bills are reduced, and extends the payment deadline to Oct. 30, 2025.
In a conversation with WBOC Kent County Commissioner Jody Sweeney, who attended Tuesday's meeting, said his county has already weathered the reassessment process.
"Kent County's average increase in assessed value was about 640%. New Castle's was only 433%. Yet Kent was able to get through this uproar. Kent County is not in favor of any bills, including reporting requirements, that impact Kent County. Our reassessment is done, with zero impact on foreclosures, monitions or increases in collections."
At a Republican press event earlier in the day, leaders said they had not heard from the governor regarding the legislation being discussed later that day. When asked again just before the session began, they said they still had not received any communication from Gov. Matt Meyer or his staff about the bills or the special session.