DELAWARE- A bipartisan group of lawmakers met Tuesday in Dover to hear how Delaware’s recent statewide property reassessment is affecting businesses, manufactured homeowners, and multi-family housing.
The Special Committee on Property Reassessment held its fourth hearing, gathering testimony from several professional and housing organizations, including the Delaware Apartment Association, Delaware Association of Realtors, Delaware Manufactured Home Owners Association, Delaware Restaurant Association and the Delaware Farm Bureau.
The General Assembly approved a law in August allowing school districts to set different tax rates for residential and non-residential properties.
That change came after reports that non-residential properties in New Castle County had been undervalued for years, while many homes were over assessed. A coalition of landlords and property groups challenged the law, but both the Court of Chancery and the Delaware Supreme Court upheld it.
Even with the ruling, lawmakers say they want a better understanding of how reassessment is affecting non-residential property owners.
Housing Groups: Higher Taxes Passed to Renters
Representatives from multiple housing organizations told lawmakers that higher non-residential tax rates often translate into higher rents for tenants.
Jerry Heisler of the First State Manufactured Housing Association said many manufactured homes were significantly over assessed — in some cases, by more than nine times what he believes they are worth.
The Realtors Association said some property owners struggled to secure appeal hearings, while the Delaware Manufactured Home Owners Association said rising assessments and taxes are hitting seniors especially hard.
Dave Weglinski, who lives in a manufactured home community in Dover, told lawmakers that seniors on fixed incomes are being squeezed by higher housing costs, healthcare expenses, and inflation. He said an increase in lot rent tied to reassessment could push some residents into a monthly deficit.
Small Businesses Say Costs Are Piling Up
Childcare providers, restaurant owners, and farmers also testified about sharp increases in costs connected to reassessment.
Jamie Schneider with the Delaware Association for the Education of Young Children said property tax increases could make it harder for childcare centers to stay open, hire staff, and keep care affordable.
Delaware Restaurant Association President & CEO Carrie Leishman said restaurants are already dealing with rising healthcare premiums and higher costs for goods. Without clearer guidance on tax changes, she warned some small businesses may not survive.
The Delaware Farm Bureau said farmers reported triple-digit assessment increases on some parcels, inconsistent classifications, and new taxes on farm structures. The organization said higher taxes could force farmers to raise prices, delay equipment upgrades, or leave the industry altogether.
What’s Next
The committee’s next hearing is scheduled for Dec. 9 at 9:30 a.m. in the Senate Chamber at Legislative Hall.