Delaware’s Court of Chancery has mandated a statewide property reassessment following a 2018 lawsuit challenging the fairness of the state’s public school funding system. Before this rule, it had been decades since counties last updated property values: Kent County in 1985, New Castle County in 1984, and Sussex County as far back as 1974.
In 2021, all three counties agreed to move forward with updated assessments. Kent County completed its reassessment last summer, resulting in sharp increases in property taxes for residents, including farmers. New Castle County completed its reassessment this year, with many property owners facing tax increases of up to 500%. Farmers in New Castle County, much like those in Kent the year before, were among the hardest hit.
To address growing concerns, the Delaware General Assembly convened a Special Session on Tuesday, August 12. Legislators considered seven pieces of legislation, all of which passed both chambers and were signed into law by Governor Meyer that same evening. The Delaware Farm Bureau played an active role during the session, ensuring that the voices of farmers were represented.
Key Legislation Passed:
- House Bill 240 (Rep. Kimberly Williams) requires counties to issue refunds for property tax overpayments over $50 following an assessment appeal. For amounts under $50, counties may apply the credit to future taxes. School tax overpayments follow the same rule.
- House Bill 241 (Rep. Nnamdi Chukwuocha) allows residential taxpayers with primary residences to pay increased school taxes in three equal installments if their bill rises by $300 or more. Late fees, interest, and penalties are waived for those enrolled in the plan, and New Castle County’s school tax late payment penalty is reduced to 1% per month.
- House Bill 242 (Rep. Kimberly Williams) permits New Castle County school districts to reset tax rates for the 2025–2026 year and reissue a tax warrant, differentiating between residential and non-residential rates. Non-residential rates must be at least equal to, but no more than twice, the residential rate. The property tax payment deadline is extended to October 30, 2025.
- Senate Substitute 1 for SB 202 (Sen. Kyra Hoffner) requires New Castle County to submit quarterly reports detailing parcel classifications, payment plan status, and other property data.
- SB 203 (Sen. Spiros Mantzavinos) and SB 204 (Sen. Brian Pettyjohn) codify the authority of counties and municipalities to tax different classes of real property separately, provided classifications are reasonable and rates remain uniform within each class.
- Senate Concurrent Resolution 122 (Sen. Bryan Townsend) calls for an immediate review of the statewide reassessment, urging collaboration among state, local, and school district officials to ensure future assessments are fair, transparent, and equitable.
With these legislative actions now in place and the statewide reassessment review underway, Delaware has taken important steps to address the immediate challenges faced by property owners and farmers. The reassessment process has had a significant financial impact across the state, with farmers and homeowners among those most affected. The swift action of the General Assembly during the Special Session demonstrates the urgency of responding to these concerns and providing meaningful relief through new legislation.
While the recently enacted bills aim to improve fairness, flexibility, and oversight in the reassessment process, continued efforts will be essential to ensure long-term stability and equity. The Delaware Farm Bureau will remain actively engaged throughout the review, advocating for policies that protect farmers and promote a reassessment system that is fair, transparent, and sustainable for all Delawareans.
For more information on DEFB’s efforts regarding property reassessments and taxation, contact Sydnie Grossnickle, DEFB Government Affairs Coordinator, at (302) 697-3183 or sydnie.grossnickle@defb.org.
