Lawmakers in New Castle County are still grappling with challenges that resulted from a once in decades property reassessment, that left a substantial gap between assessment of commercial and residential properties in the northern county.
One of the solutions implemented for 2025-2026 allowed New Castle County school districts to apply a different tax rate to businesses and commercial property, two times higher than residential property.
That 'split rate,' created by HB 242 during a special legislative session, only applied for 2025-2026. State Rep. Kim Williams (D-Stanton) is sponsoring legislation that makes the split rate permanent.
If New Castle County goes back to the split rate, "it shifts the tax burden from commercial to residential by $31 million for the Christina School District, that's just one example," she said.
For the average Christina resident, Williams said that breaks down to a tax rate of "almost $600 per year."
The bill does lowers the commercial property rate cap from twice the residential rate to 1.85 times the residential rate.
It passed in the house, but not without objection.
State Rep. Madinah Wilson-Anton (D-Newark) said she’s a “no” vote on the measure because it lumps property owners of small and large businesses together. She said businesses and commercial property owners in her district, "confided to me that they're going to sell the properties."
Wilson-Anton added, "when small business owners sell their properties to the highest bidder, as they should rationally, it drives property prices up in communities."
The House vote was 33 to 6, it heads to the senate for consideration.
Williams's other bill on tax relief for specific to New Castle County residents got unilateral support in the house, with no "no" votes.
The measure expands who qualifies for school tax exemptions in New Castle County, highlighting seniors. She said the county raised its income limits for property tax exemptions in 2025. And her bill requires that New Castle County school districts apply those same exemptions to its tax rate.
Prior to the most recent reassessment, the elderly New Castle County property exemption income limit was $32 thousand New Castle County increased that $173 thousand. That income does not include Social Security income.
New Castle County also raised its income limits from $15 thousand for a single person to $19 thousand.
Williams said the school districts are still using lower income amounts that she calls outdated.
"New Castle County School Districts are still using the outdated $15 thousand for a single person, and $19 thousand for a married couple's income limits," she said. "The proposed bill would bring district income limits up to $65 thousand to match the county."
"The elderly New Castle County property program has been in place for decades," she said. "The only change being proposed is to update to income eligibility limits, so they align with those adopted by New Castle County."
The bill says New Castle County districts would have to start applying the new income thresholds in 2027.
She adds lawmakers passed laws in response to issues created from long overdue property reassessments and should also update income expectations for related programs.
The bill still needs State Senate approval before heading to Gov. Matt Meyer.
