"Residents grumble over excessive tax bills: Delaware legislators mull potential tax relief measures"
In New Castle County, Delaware, a heated debate surrounds the property reassessment process carried out by Tyler Technologies. The controversy stems from widespread public outcry and misinformation about who benefits from the reassessment process, with false claims circulating that elected officials and Democratic leaders received tax breaks [3]. However, detailed reviews reveal that most officials have experienced tax increases or only modest cuts despite significant increases in assessed property values.
The first comprehensive reassessment in decades has understandably raised concerns about potential increases in property taxes and assessment fairness. To alleviate these concerns, New Castle County Executive Marcus Henry and County officials have taken several measures.
An ordinance extending the deadline for property owners to appeal their reassessment values with the Board of Assessment Review has been signed, acknowledging the high volume of over 5,200 appeals and the lengthy process involved in reviewing them [1][5]. The County has also committed to keeping total taxes collected in fiscal year 2026 revenue-neutral compared to 2025, excluding new construction, to prevent overall tax increases due to reassessment [1].
To increase transparency and provide residents with clearer guidance on the reassessment and appeal process, public townhall events and an FAQ document have been launched by New Castle County and Tyler Technologies [5]. Separate tax rates for residential and non-residential properties have been implemented, and communication with school districts and municipalities about assessment data has been ensured [1].
Despite these efforts, some county and state officials are concerned about Tyler Technologies' methodology for evaluating commercial properties, including whether it violated Delaware law [6]. New Castle County's chief financial officer, Jill Floore, stated that residents' share of the tax burden has swollen from 67% to about 76% [7].
Another proposal under consideration is changing the requirement for property assessments from every five years to every ten years [8]. House and Senate Democratic leadership will consider other policies during the special session, including allowing eligible residents to enter into payment plans for school taxes, decreasing New Castle County's late payment fees, and requiring refunds for residents who successfully appeal their property values [9].
Frustrated residents have voiced their anger over new valuations that may have risen hundreds of dollars or more. The high vacancy rate in downtown Wilmington is due in part to the continued popularity of working remotely [10]. Notably, M&T Bank and Amazon have seen significant tax decreases in the city of Wilmington. M&T Bank's bill decreased by about 50%, from $997,304 in 2024 to $444,927 this year. Amazon's overall tax bill plummeted from about $3.5 million last year to about $1 million this year, a $2.5 million decrease [11].
The New Castle County Councilmembers David Tackett and Brandon Toole have requested an independent audit of Tyler Technologies' property valuation methods [12]. The finance committee meeting discussed the property tax assessments, with Michael McFarlane defending the income method used for commercial and non-residential properties [13].
State Rep. Kim Williams is crafting legislation to allow school districts to split tax rates, providing better equity among residential and non-residential properties [14]. State Rep. Mike Smith is reintroducing legislation to remove school districts' ability to raise additional revenue after property assessments [15].
Residential property owners in New Castle County have seen an increase in their property values, while many commercial properties have seen decreases [16]. Wilmington City Councilmember Christian Willauer is echoing the call for an audit by New Castle County Councilmembers Tackett and Toole [17]. Gov. Matt Meyer supports a special session to address "outrageous tax bills" [18].
Tyler Technologies has not addressed whether its method for non-residential properties complies with state law, but claims to use industry best practices [19]. Some New Castle County Council members argue the commercial vacancy rate in the city of Wilmington is to blame for the disparities, not Tyler Technologies' methodology [20].
Several school districts, including Red Clay, Christina, Appoquinimik, and Indian River, took advantage of state law to increase revenue after property reassessments, causing blowback from elected leaders [21]. The review and appeal process is ongoing, with formal hearings scheduled and county officials actively engaging with the public to address concerns [1][5].
- The debate in New Castle County, Delaware, regarding the property reassessment process by Tyler Technologies extends beyond the reassessment itself, involving discussions about finance, business, and politics, as residents, officials, and state representatives voice concerns about potential tax impacts, fairness, and compliance with state law.
- In an attempt to increase transparency and build trust within the business community, New Castle County has launched public townhall events and an FAQ document, implemented separate tax rates for residential and non-residential properties, and ensured communication with school districts and municipalities about assessment data, all aimed at addressing general-news issues related to the property reassessment process.
