DELAWARE - Delaware lawmakers on Thursday introduced legislation aimed at easing the financial burden on residents affected by the state’s first property tax reassessments in decades.
The reassessments the first since 1983 in New Castle County, 1987 in Kent, and 1974 in Sussex resulted in major increases for many homeowners. Some in New Castle County saw their property values jump more than 500%, translating to thousands in additional annual taxes.
"While I fully acknowledge and respect the fact that the reassessment process was intended to create a fairer and more equitable funding structure, it has caused serious and unexpected financial strains for many Delawareans," said House Speaker Melissa Minor-Brown. "We must act now."
HB 242: Resetting School Tax Rates
HB 242, sponsored by Rep. Kim Williams and Sen. Jack Walsh, would allow school districts in New Castle County to reset tax rates for the 2025–2026 year. Districts could set different rates for residential and non-residential properties, as long as the non-residential rate is at least equal to but no more than twice the residential rate. The total revenue collected must not exceed the original tax warrant.
This comes after reports that residential properties were over assessed while many commercial properties were undervalued. New Castle County homeowners saw average assessments rise by 433%.
"HB 242 will allow school districts to reset and set new tax rates for residential and non-residential ‘commercial’ properties," Williams said. "This will provide districts with an immediate capability to adjust their residential tax rates."
School districts would have 10 business days after the bill’s enactment to issue revised tax warrants. New Castle County must then void previous bills, reissue them, and extend the payment deadline to Oct. 30. Refunds will be issued if the recalculated bill is lower.
Districts experiencing cash flow issues due to the delay can request to borrow from future state education funds.
HB 240: Tax Refunds for Appeals
HB 240, also from Williams and Walsh, would allow residents who successfully appeal their assessments to receive direct refunds if they overpaid by $50 or more. Smaller overpayments could be refunded or credited at the county’s discretion.
"In tandem, House Bills 240 and 242 work to put money back in the hands of families in need of relief," Walsh said. "We share in the frustration of hardworking Delawareans."
More than 5,000 New Castle County residents are still awaiting decisions on their appeals. Property taxes are due Sept. 30.
HB 241: Payment Plans and Lower Penalties
HB 241, sponsored by Rep. Nnamdi Chukwuocha and Sen. Spiros Mantzavinos, would require payment plans for residential taxpayers whose bills increased by $300 or more. The plans must include at least three equal installments, with no interest or late penalties for those who remain compliant.
"I am appalled by the crushing burden it has placed on far too many taxpayers," Chukwuocha said. "Allowing taxpayers to utilize a payment plan is the least we can do to help them stay afloat."
The bill would also reduce New Castle County’s school tax penalty rate to 1% per month in line with Kent and Sussex counties.
"House Bill 241 is a compassionate response that aims to ease this financial burden," Mantzavinos said.
What’s Next
House Bills 240, 241, and 242 will be considered during a special legislative session on Aug. 12. Broader reassessment and school funding reforms are expected to be taken up in the 2026 legislative session.