Both chambers of the 153rd General Assembly will return in special session on August 12th to consider issues raised by the property reassessment process.
After decades of inaction, Delaware’s three county governments agreed in 2021 to conduct property reassessments to settle a lawsuit that alleged outdated valuations had resulted in unequitable property taxes, shortchanging Delaware public schools.
Before the settlement, none of the counties had conducted a reassessment in decades.
Under state law, reassessment is supposed to be done in a relatively revenue-neutral manner, with tax rates reset in tandem with the new valuations, ensuring the same approximate total revenue is generated after the process. However, on an individual taxpayer basis, the process can result in a variety of outcomes.
Due to the significant amount of time that has passed since the last assessments, property values have undergone substantial changes, leading to dramatic tax hikes for some homeowners and businesses, even after the tax rates were adjusted.
Last week, State House Republican Leader Tim Dukes (R-Laurel), State House Republican Whip Jeff Spiegelman (R-Townsend, Smyrna, Clayton), State Senate Republican Leader Gerald Hocker (R-Ocean View), and State Senate Republican Whip Brian Pettyjohn (R-Georgetown) suggested that the Speaker of the House and the President Pro Tem of the Senate consider bringing legislators back into session to deal with the issues connected to the reassessment process. All four leaders indicated a willingness to work across the aisle to explore and craft approaches that would lessen the pain on working Delawareans.
Currently, it is unknown what specific measures will be considered when lawmakers return to work.
One bill being circulated by State Rep. Mike Smith (R-Pike Creek Valley) proposes to change Delaware’s reassessment law, which allows school districts to realize a total revenue gain of up to 10% following reassessment (Title 14, Chapter 19, § 1916). The new measure is the latest version of similar bills Rep. Smith introduced in the previous two General Assemblies. Neither of the earlier incarnations was allowed to advance to the floor for debate.
“The new bill would allow districts to increase revenue after a reassessment, but limited solely to situations where they would be facing a projected deficit and only to the extent needed to balance the budget,” Rep. Smith said.
Another bill that lawmakers may take up on August 12th is a proposal filed earlier this year. House Bill 109 has been pending action in the House Elections & Government Affairs Committee since early April.
To eliminate the counties’ demonstrated reluctance to conduct reassessments, the state enacted a statute two years ago requiring the process to be performed at least once every five years. State Rep. Kevin Hensley (R-Townsend, Odessa, Port Penn), the prime sponsor of HB 109, says that the law was an overcorrection. His proposal would require reassessment to occur every 10 years, an interval he says would save taxpayer money, while still ensuring timely valuations.
