Split property tax rates created in New Council County to address post-reassessment concerns will move forward after a decision by Delaware’s Supreme Court.
Delaware’s highest court delivered its expedited decision Wednesday – affirming a Court of Chancery ruling last month that rejected all arguments made by a coalition of landlords and property associations.
Chief Justice Collins Seitz Jr., writing for the three-judge panel hearing the case, said they agreed with the lower court’s ruling that state lawmakers have the power to allow classification of property for rate-setting purposes once a uniform assessment methodology is in place.
The state Supreme Court also rejected the plantiffs’ argument that because implementation is not revenue neutral as required it is illegal.Seitz noted by basing revenue neutrality on estimates, lawmakers anticipated the possibility of changes based on events like the error corrections the county is working on.
New Castle County plans to send out property tax bills using the split rates Nov. 18 or 20.
The State Senate already passed a bill extending the due date for payments to Dec. 31.The House takes up that bill Thursday.
New Castle County officials asked lawmakers to approve that extension to accommodate the Chancery Court order that it include a notice of any reclassification and a description of its new policy for disputing reclassifications in its bills.
And with the case settled, lawmakers’ Special Committee on reassessment will resume its work with 3 additional hearing starting Nov. 19th with updates from New Castle County .
