Delaware House Passes Bill That Aims to Provide Tax Parity, Fair Funding to School Districts and Counties
The Delaware House has passed a measure that would require county-wide property tax assessments every five years. House Bill 62 would mandate that properties be assessed every five years to reflect current fair market value. The reason for the bill, according to Rep. Madinah Wilson-Anton, is so that the state can be fairer in its taxation structure, ensuring that property owners finally have parity. HB 62 now moves to the Senate for consideration.
Additional Information from the Delaware House of Representatives:
The House this week passed a measure from Rep. Madinah Wilson-Anton and Sen. Elizabeth “Tizzy” Lockman that would require county-wide property tax assessments every five years. There are currently hundreds of thousands of properties with vastly differing market values across Delaware. This has exacerbated inequities in school and county funding in New Castle, Kent and Sussex counties.
House Bill 62 would mandate that properties be assessed every five years to reflect current fair market value. The reasoning, according to Rep. Wilson-Anton, is so that the state can be fairer in its taxation structure, ensuring that property owners finally have parity.
“Currently, we have a situation where some are paying too much, some too little and others the correct amount,” said Rep. Wilson-Anton, D- Newark/Bear. “This bill brings parity to a problem of outdated property values and ensures inequitable county and school funding streams are finally addressed. Hopefully this bill will prevent future lawsuits, in which saves taxpayers money.”
Some properties haven’t been reassessed since 1974 and Rep. Wilson-Anton explained that the state currently has no statue dictating the timeline for those reassessments, although there is a constitutional requirement to do so periodically.
In its 2020 landmark ruling, the Court of Chancery upheld that Delaware’s existing property tax system violated the Delaware Constitution. The case, brought forth by educational and civil rights advocates, drew much attention.
While at the time the court wasn’t definitive in its remedy, continuing litigation between parties resulted in agreement that the counties would undertake reassessment. The statewide reassessment process for New Castle, Kent and Sussex counties is estimated to be complete by 2025.
“Enacting consistent and routine property reassessments will help us prevent Delaware from continuing the same funding disparities and racial inequities that have been a hallmark of our public education system for decades,” said Sen. Lockman, vice chair of the Senate Education Committee and vice chair of the Redding Consortium for Educational Equity. “Clear deadlines for counties to complete property reassessments also will ensure homeowners in our communities never again face the financial uncertainty that comes with the first countywide reassessment in 50 years.”
HB 62 now moves to the Senate for consideration.
