DOVER – On Tuesday, lawmakers passed 7 pieces of legislation to address the immediate concerns that arose from the recent statewide property tax reassessments.
“The property reassessments that took place were mandated as a result of a 2020 lawsuit. And they were necessary. New Castle County had its first reassessment since 1983, Kent since 1987, and Sussex since 1974. Our economy has changed drastically since those times. We knew going into this that there would inevitably be some kinks to work out, we just didn’t know how severe,” said Speaker Melissa Minor-Brown.
“The legislation we passed today during special session are legally-sound and responsibly drafted bills that we hope will provide short-term relief to impacted residents by addressing systemic issues within the reassessment and taxation processes. Our work is not done, but I am proud of the first step that we took today.”
House Bill 242, sponsored by Rep. Kimberly Williams and Sen. Jack Walsh, specifically addresses school district tax rates. This legislation would give any school district located in New Castle County the ability to reset its tax rates for the 2025-2026 tax year, and reissue a tax warrant using different tax rates for residential and non-residential property.
The non-residential tax rate must be at least equal to the residential tax rate, and may not be more than two times the residential tax rate. Additionally, the total amount of revenue projected to be collected through use of the residential and non-residential tax rates may not exceed the total amount of revenue the district was projected to collect under its original tax warrant.
The extended property tax deadline is November 30, 2025.
This follows widespread reports that non-residential properties were underassessed, while residential properties were overassessed. The amount that one pays in school taxes is directly tied to the assessed value of their home. The average New Castle County resident saw their assessed home values rise by 433% – sometimes leading to values increasing by hundreds of thousands of dollars.
Despite commercial/non-residential property values going down or rising at a much lower rate, they are being taxed under the same school tax rate as residential properties.
“HB 242 will provide meaningful relief to our constituents by providing districts the authority to reset, split and reissue for 2025-2026 school taxes. This bill will allow school districts to set two tax rates, one for residential and a separate rate for non-residential “commercial” properties. With this new rate structure, we hope to ease the tax burden for many Delawareans in New Castle County,” said Rep. Kim Williams.
“This bill is just one part of a range of short and long-term changes to assist with the tax burden that has been placed on residential taxpayers throughout this reassessment. This bill is just the first step, and I look forward to working with my colleagues to continue on reforms to this system.
“I would like to thank both House and Senate Leadership along with all Chief Financial Officers & Superintendents of many school districts and New Castle County for their assistance and support on this important issue.”
House Bill 240, also sponsored by Rep. Kim Williams and Sen. Jack Walsh, would allow residents who successfully appeal their property values to be eligible for direct cash refunds if they have overpaid on their tax bills by $50 or more.
If the overpayment is less than $50, a county may elect to refund or credit the amount against future taxes due.
Amounts in school taxes determined to have been overpaid by a residential taxpayer after an assessment appeal will be refunded by the county following the same rule.
“In tandem, House Bills 240 and 242 work to put money back in the hands of families in need of relief,” said Sen. Jack Walsh.
“We share in the frustration of hardworking Delawareans who are struggling to keep up with rising costs, and we remain committed to making Delaware more affordable for everyone who calls the First State home.”
House Bill 241 with House Amendments 3, 7, and 10, sponsored by Rep. Nnamdi Chukwuocha and Sen. Spiros Mantzavinos, requires that, during the first tax year following a general reassessment, a payment plan be made available to residential taxpayers in all three counties whose tax bill increases by $300 or more over the prior year.
Payments must be accepted on a quarterly or more frequent basis, and cannot include any late fees, interest, or penalties, so long as the taxpayer is compliant.
Additionally, under HA3, New Castle County is prohibited from collecting unpaid county and school taxes from a taxpayer’s real or personal property, if the taxpayer has entered into a tax payment plan and complies with the payment plan.
“This legislation was drafted with one clear goal: helping the people of Delaware,” said Rep. Nnamdi Chukwuocha.
“Far too many residents, especially those in New Castle County, opened their mail to see astronomically high tax bills following the recent property tax reassessments. For those living on a budget, that caused fear and panic. Allowing Delawareans to enter into payment plans is a bandaid fix, but it’s a bandaid that the people need right now. When we return in January I promise to do everything in my power to stop the bleed and ensure that we get this right for Delaware.”
HB 241 also reduces late payment penalties for school taxes in New Castle County to 1% per month for those not enrolled in payment plans, which is the current penalty for late payment in Kent and Sussex.
In addition to 3 House bills, the General Assembly passed 4 Senate bills: Senate Bill 202, Senate Bill 203, Senate Bill 204 and Senate Concurrent 122.
“Property tax reassessments are a necessary step in rectifying inequity in our school funding system, and something that I have worked to address with previous General Assemblies. However, we did not foresee the dramatic increase in fees that would be shouldered by hardworking Delawareans who are already struggling to keep pace with a rapidly growing cost of living,” said Senate President Pro Tempore Dave Sokola.
“The bills that came before the Senate today are intended to offer immediate relief to those who need it most as we work to find more sustainable, long-term solutions to help more of our neighbors make ends meet.”
Also sponsored by Sen. Mantzavinos, along with Rep. Cyndie Romer, Senate Bill 203 works to ensure that Delaware’s counties retain clear legal authority to set fair and reasonable property tax classifications.
Currently, under Delaware law, county taxation authority is limited in two ways:
- By the Uniformity Clause in the Constitution, which requires taxes to be uniform but allows reasonable classifications, and
- By the specific state Code statutes that relate to each county.
“Senate Bill 203 clarifies and supports the authority of county governments to classify property for tax rate setting,” said Sen. Spiros Mantzavinos.
“The implications of these reassessments have been widespread, requiring legislative solutions to be comprehensive and collaborative across all levels of government. This bill aims to ensure that corporations are paying their fair share and that homeowners are not required to shoulder a disproportionate financial burden.”
Senate Substitute 1 for Senate Bill 202, sponsored by Sen. Kyra Hoffner and Rep. Eric Morrison, institutes regular data collection requirements that will help lawmakers track trends and identify any potential problems caused by property reassessments. SB 202 gives the State access to data from New Castle County that will be delivered to the General Assembly, the Governor, the Director of the Office of Management and Budget (OMB), and the Secretary of the Department of Finance on a quarterly basis.
“Senate Bill 202 gives both the state – and the people we serve – a clearer picture of what is really happening with property taxes and how reassessments are impacting residents,” said Sen. Kyra Hoffner.
“This bill gives the State access to county-level data so that we can collaboratively and efficiently identify problems and find solutions.”
Beginning in September, all three counties are instructed to document and openly report:
- All parcels enrolled in payment plans, including their identifiers, classifications, amounts owed, and current/delinquent status.
- Data on property assessment appeals, with metrics for filings, dismissals, and success rates, broken down by zip code.
- Every property sold, along with both its purchase and assessed values, helps us understand market trends versus tax policy impacts.
- The full amount of property tax revenue collected and distributed to school districts—ensuring our communities and schools see fair and accurate allocations.
“Senate Bill 202 is a measure that will bring much-needed transparency, accountability, and actionable insight to county property tax administration throughout Delaware. As stewards of public trust, it is our duty to ensure that fiscal policies are informed by real data—not just estimates or emotions,” said Rep. Eric Morrison.
Similar to SB 203, Senate Bill 204 allows municipalities to set separate tax rates. SB 204 is sponsored by Senate Minority Whip Brian Pettyjohn and House Minority Leader Tim Dukes with significant bipartisan support from both chambers.
Because SB 204 changes municipal charters, it requires a ⅔ vote of both the Senate and the House.
Finally, Senate Concurrent Resolution 122, sponsored by Senate Majority Leader Bryan Townsend and Rep. Kendra Johnson, calls for an immediate review of the recent statewide property reassessment by the members of the General Assembly, in collaboration with state, local, and school district officials, to develop legislative and operational measures that ensure future reassessments are conducted fairly, transparently, and equitably.
“The sudden, crushing financial burden of recent property reassessments have impacted Delawareans of all political ideologies, communities, and backgrounds,” said Sen. Bryan Townsend.
“SCR 122 honors the very real frustrations of our constituents and reflects the General Assembly’s commitment to two key steps: identifying ways to provide tax relief to Delawareans in the coming weeks and months, and beyond that to ensuring future reassessments are fair, transparent, and equitable.”
Together, these pieces of legislation, which were drafted in close consultation with school district and county leaders, aim to provide short-term relief to impacted residents by addressing systemic issues within the reassessment and taxation processes.
“I’m appreciative of this opportunity to work collaboratively with the General Assembly to address some of the unintended outcomes of the reassessment process that were beyond County control,” said New Castle County Executive Marcus Henry.
“It’s clear that waiting over four decades since the last county-wide property assessment made an already complicated process more difficult, but we remain committed to working in the interest of fairness and equity. Our team will work diligently to put the necessary systems in place to implement the solutions that were passed today.”
The legislature will reconvene in January 2025, during which time they will consider legislation to create more permanent solutions.
###
