Christina School District residents will see a split tax rate between residential and non-residential property taxes.
Christina School Board also maintained the 10% post-reassessment tax rate increase at Thursday’s special meeting.
The district’s chief financial officer Bob Vacca explained the move to keep the tax rate hike, quoting Board president Monica Moriak.
“Ms. Moriak loves to explain this as we need to have the money to give back to the taxpayer if they win their appeals,” Vacca said. “If we don't do that and we don't tax appropriately when appeals are sought and won in favor of the taxpayer, we need to have the funds to be able to do that.”
Vacca said the original numbers estimated 3% appeal approval, but he thinks it will be closer to 5 or 7%.
New Castle County homeowners saw a hefty shift in their tax burden after the property reassessment process led by Tyler Technologies.
“I'm very glad to hear that this is being addressed in terms of the difference between the taxation of commercial properties versus residential because this is really going to be a burden on folks who have residential properties,” New Castle County resident Maureen Tucker said. “Between the two properties I own, I get a senior discount on one, but between the two of them, it's gone up $1,629.”
The unbalanced burden prompted state lawmakers this month to give New Castle County school districts the ability to tax residential and non-residential properties at different rates.
Christina used that power after seeing commercial property values drop by $15 million while residential values rose to $39 million, according to Vacca.
“Why would we do 10%?” Vacca said. “There's a lot of misinformation in the public regarding 10%. Some say it's gouging the taxpayer, we're taking money in lieu of a referendum. The reality is, when you raise property values 2, 3, 4, 500%, you're provoking appeal. That's just simply a fact.”
Vacca added the district also needs to account for inflation and economic turmoil. And that’s on top of the fact that the district usually seeks referendums every three years and is now on year six. He noted overall, Christina is fiscally viable and not facing any serious risk.
“We are sound,” Vacca continued. “There is no crisis. We are not at any serious risk. We are just ahead of the pack saying these things are coming, and they are coming to fruition.”
Board member Shannon Troncoso agreed residents need some relief.
“However, as prices keep escalating – even Mr. Vacca acknowledged the inflation – there's only so much that farmers and small business owners can withstand before the weight becomes too heavy for them and for the communities that depend on them,” Troncoso said.
Troncoso added Vacca committed to advocate for small business owners by pressing legislators for protective policies.
Vacca said appeals create revenue uncertainty. Last year, Christina saw 150 appeals. Post-reassessment, it has a thousand. Vacca says the district needs to be prepared for its revenue to drop once some property owners’ appeals are approved.
