Delaware property tax classification bill draws county and school-district opposition

Property tax bill meets resistance

Delaware Senate Bill 350 remained in the Senate Executive Committee after June 30, leaving Governor Matt Meyer’s proposed property tax classification plan unresolved after lawmakers ended session work.

The proposal faced opposition from Delaware’s three county governments and New Castle County school finance leaders, who raised concerns about revenue losses and complex rate-setting duties during legislative review.

Reassessment fallout shaped debate

New Castle County’s first property reassessment in more than 40 years changed taxable values and pushed lawmakers toward temporary property tax fixes during Delaware’s 2025 special session agenda.

The reassessment valued taxable property at fair market levels as of July 1, 2024, changing local and school tax calculations for many parcels across New Castle County communities.

Senate Bill 350 arrived late

Senate President Pro Tempore David P. Sokola introduced the bill on June 19, 2026, with four scheduled working days left before Delaware’s annual legislative session closed in Dover.

Sponsors included Senators Bryan Townsend and S. Elizabeth Lockman, plus Representative Cyndie Romer, linking Senate leadership and New Castle County lawmakers to the classification framework through Senate Bill 350.

Meyer urged quick action

Governor Matt Meyer urged the Delaware General Assembly to approve Senate Bill 350 before the annual session ended on June 30 under a compressed legislative calendar in Dover.

Meyer framed the bill as a path for treating apartments as residential property, while opponents questioned whether lawmakers had enough time to review possible tax consequences before voting.

Four classes would guide rates

Under the proposal, Senate Bill 350 would place one- to four-family homes in Class A and multifamily residential properties with five or more units in Class B.

Class C would cover non-residential property, including commercial, industrial, utility, and institutional parcels, while Class D would apply to mixed-use properties containing residential and other uses within parcels.

Counties would keep choices

The bill would let counties, school districts, and vocational-technical districts set separate tax rates for property classes, with uniform charges required within each category under the proposed framework.

County governments also could create additional reasonable classes by ordinance or keep one uniform rate for all taxable real property within their jurisdiction by choice under the legislation.

Fun fact: Delaware was the first state to ratify the U.S. Constitution, helping it earn its lasting nickname, The First State, in the new nation.

Multifamily property would shift

Senate Bill 350 would define Class A and Class B properties together as Delaware’s residential housing sector for property tax purposes, changing apartment tax treatment under the proposal.

That framework would keep multifamily housing outside commercial or industrial treatment, addressing complaints from apartment owners who faced higher bills under New Castle County split-rate rules during reassessment fallout.

Little-known fact: Property taxes remain the primary revenue source for most local governments in the United States, supporting schools and other public services.

Apartment rate caps would narrow

Under Senate Bill 350, counties could not tax Class B multifamily property above the Class A county rate during the same fiscal year if separate rates applied locally.

School and vocational-technical district rates for Class B property could not exceed 120% of the Class A rate in the same jurisdiction and tax year under the measure.

Revenue limits would remain

Under the proposal, any rate reset process that uses new classes must remain revenue-neutral relative to projected collections on the applicable school or county tax warrant for that fiscal year.

Senate Bill 350 also would preserve existing post-reassessment limits, including the 15% county cap and 10% school district revenue constraints for local tax changes in Delaware under the law.

House Bill 462 moved separately

House Bill 462 passed the Delaware General Assembly on June 30 and awaited Governor Matt Meyer’s action after clearing both chambers during extended session hours before adjournment in Dover.

That bill would extend split-rate authority for non-vocational school districts in New Castle County, with non-residential rates capped at 1.85 times residential rates if signed into Delaware law.

Local governments raised fiscal concerns

Local government representatives opposed the measure during Senate Executive Committee consideration, after New Castle, Kent, and Sussex governments submitted letters against it to Delaware lawmakers during a late-session review.

Fiscal concerns centered on possible revenue losses for counties, municipalities, and school districts if multifamily charges moved below other non-residential property levels under the proposed local classification framework.

School finance leaders objected

Emily Falcon, chief operating and financial officer of the Colonial School District, opposed the bill on behalf of New Castle County school finance officers during a committee hearing.

Falcon argued the proposal would complicate school tax planning and shift higher rates toward property types outside multifamily housing across affected local districts during annual district budget planning.

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The proposal lacked approval

Senate Bill 350 did not receive a formal committee vote before the June 30 session closed, leaving the classification plan without General Assembly approval during that year’s legislative review.

Delaware’s property tax debate continued with House Bill 462 awaiting executive action, and Senate Bill 350 left without approval for broader classification rules after the session formally adjourned.

Want to read more about the latest developments? Check out how California’s $321 billion budget became final as residents kept looking for relief from daily costs this year.

What stands out more, the county and school district opposition to Delaware’s property tax classification bill, or the concerns about its impact on local tax revenue? Share your thoughts.

This slideshow was made with AI assistance and human editing.

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