Delaware Chancery Court ruled that the property tax assessment system in the state’s three counties does not meet the standards of state statutes.
The decision was made in response to a lawsuit filed by a coalition that included the ACLU and the NAACP.
The group argued that the lack of regular reassessments of property in the state led to inequities in school funding that left poorer districts with fewer resources.
The formula has contributed to low property taxes, especially in Sussex County, which has attracted a large population of retirees, who are playing a fraction of their former property tax bills in states like New Jersey.
Sussex County, Kent County, and New Castle County use assessment methodologies that violate the True Value Statute and the Uniformity Clause, Vice President J. Travis Laster ruled.
New Castle County’s assessment methodology also violates the Assessment Roll Statutes while New Castle County’s assessment methodology does not violate the Same Rate Statute, Laser ruled.
The governmental units can appeal the case to the state Supreme Court.
The decision had been widely expected. However, counties stood firm and did not agree to negotiations in modifying their practices.
Reassessments are not designed to raise taxes. However, reassessments generally can raise taxes on a third of all properties, lower taxes on a third and leave the remainder unchanged.
See opinion below:
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