DOVER, DE - The Delaware legislature is poised to hold a special legislative session in response to public backlash sparked by a recent New Castle County property tax reassessment.
Delaware’s three counties had not seen property reassessments in decades. Before the counties’ most recent reassessments, the last held in Kent County was in 1987, 1983 for New Castle County, and 1974 for Sussex County.
Following a Delaware court order that the state’s existing property tax assessment system was unconstitutional, the three counties moved to ensure compliance. Kent and Sussex Counties completed their reassessment based on fair market values as of July 1, 2023, producing new tax bills for residents, but also adjusting tax rates to keep the counties revenue neutral.
“As we’ve explained before, a Delaware court declared our existing property tax assessment system unconstitutional,” the Kent County Levy Court said in a letter to property owners in July of 2024. “We joined our sister Counties of Sussex and New Castle in fighting a long legal battle but lost. All three Counties were forced to conduct a reassessment of properties.”
In Sussex County, officials said only one percent of residents appealed their reassessments. On Monday, August 16, Sussex officials announced they had begun issuing this year's property tax bills following reassessment. Neighbors in Sussex County can find an updated property tax calculator here.
The recent reassessment in New Castle County, which holds the highest concentrations of Delaware’s businesses and more residents than Sussex and Kent combined, has drawn public outcry as property tax bills spike. More than 5,000 New Castle County residents have yet to see a decision on their appeals while the September 30 property tax deadline approaches.
In addition, multiple Delaware communities saw school districts implement higher tax revenues by the full 10% permitted by law following a reassessment, further increasing the economic sting.
In the midst of the public ire, a special legislative session was set for August 12 to find a solution.
Ahead of the special session, Delaware lawmakers last week introduced a slew of bills to consider, all aimed at addressing the reassessment and tax concerns of residents across Delaware. Some included proposals for tax freezes for low-income or elderly Delawareans, others sought to limit public school tax rates following general reassessments, or even breaking up the three counties’ tax collections into quarterly or monthly bases.
Late Friday, August 8, however, saw the special sessions agenda released with only three bills for lawmakers to consider on Tuesday.
HB 240
HB 240 aims to allow for direct cash refunds from the county to any Delawarean that successfully appeals their reassessment and overpaid $50 or more. Overpayments under $50 could be credited by the county towards future taxes.
HB 241
Sponsored by Nnamdi Chukwuocha (D-Wilmington), HB 241 would establish a payment plan for those whose tax bill rose $300 or more following a general reassessment. Those with new tax increases and on a payment plan would also see their late fees and interest waived if they remain in compliance with the plan.
HB 242
Allows school districts in New Castle County to reset its tax rates for the 2025-2026 school year. New Castle school districts would then reissue their taxes with the ability to implement new, separate taxes for non-residential properties.
Tuesday's special legislative session is scheduled to begin at 2 p.m.