Delaware Lawmakers Debate Reassessment Challenges with Calls to Restart from Scratch
In Delaware, lawmakers are grappling with the complexities of property reassessments in New Castle County. Recent decisions have allowed school districts to maintain split property tax rates for residential and commercial property owners. This development follows a ruling by Delaware’s Court of Chancery, which supported legislative efforts to enable this tax structure.
Continued Discussions on Property Reassessment
State Senator Bryan Townsend expressed relief for residential taxpayers but emphasized ongoing discussions about reassessments. A special committee is scheduled to reconvene in the near future to deliberate further on the topic. Townsend mentioned, “There will be at least three hearings before the group concludes its work, at which point we will then be developing legislation to run in Dover.”
Calls for a Complete Reassessment
Meanwhile, GOP State Representatives Kevin Hensley and Mike Smith have advocated for a comprehensive redo of property reassessments. Hensley criticized existing property valuations, particularly those affecting farmland, labeling them as “badly flawed.” He assured property owners that a new reassessment would not result in increased bills, stating, “They would pay the same amount as last year’s bills.”
Hensley also highlighted the need for bipartisan collaboration, saying, “I think this needs to be a bipartisan effort.” He expressed hope that the committee would propose effective measures to address property assessment issues, proposing a case-by-case approach as a possible solution.
Concerns Over Legal Implications
On the other hand, House Democratic leaders warned that reverting to previous property values could breach a court-approved education funding settlement, potentially provoking another lawsuit. They criticized such a move as a regression, stating it would “reinstate assessments that the courts already found fundamentally broken and unlawful.” Additionally, they noted it could destabilize existing budgets for school districts and county finances that rely on the new tax rates.
Disagreements on Reevaluation Strategies
Townsend countered the arguments presented by Hensley and Smith. He urged caution against drastic measures, asserting that the committee should focus on limited inaccuracies rather than a complete overhaul. He stated, “I think we’ve already heard very clearly why that is neither feasible nor legally required, nor appropriate.”
An example of the reassessment’s impact can be seen with an Amazon facility in Newport, which experienced a $2.5 million reduction in its property tax bill following the reassessment.
Next Steps for the Special Committee
Hensley expressed concern for individuals still awaiting appeals related to property assessments. The timeline for the special committee’s remaining hearings has not yet been established, leaving many aspects of property tax strategies in Delaware uncertain as discussions continue.
