Court Ruling on Property Values Set for Appeal

A recent court decision has opened the door for New Castle County to utilize two distinct property value assessments, but an appeal is in the works.

The Newark Association of Realtors, along with various commercial real estate groups, opposed this ruling, claiming it violates the constitution by allowing different tax rates for residential versus non-residential properties. However, the bill was upheld by several defendants including school districts and county officials in a recent court case involving House Bill 242.

The plaintiffs are now planning to take their case to the Delaware Supreme Court. They sought a stay on the ruling while the appeal is processed, but this request was denied by Vice Chancellor Lori Will. Notably, she had heard arguments earlier this month and delivered her opinion not long after.

The Supreme Court is expected to hear the appeal’s oral arguments next Monday. If all goes well, a new tax bill could be ready by November 18. Additionally, related matters will be discussed in a special session of the state Senate this Thursday.

In her ruling, Will mentioned several considerations, including the likelihood of success on the appeal and the potential irreparable harm to the claimants if a stay wasn’t granted. She pointed out that the ongoing litigation could significantly delay the billing process.

She emphasized, “This litigation is pushing the billing schedule to its limits. Delays will only make matters worse and could lead to substantial economic harm for certain defendants.” In fact, delays have already cost county and school districts about $549 million in revenue, with an estimated loss of over $8 million in investment income resulting from a 60-day hold-up.

“This isn’t just a theoretical issue; it’s a direct financial hit to the public institutions relied upon by our residents and students,” she concluded.