Why Should Delaware Care?
New Castle County property owners – who have been waiting for months to receive their tax bills – could be waiting even longer. As a coalition of landlords and hotel owners continue their legal battle to step the county from implementing a split tax rate, residents are left in limbo.
New Castle County property owners could see their tax bills delayed even further, as a coalition of landlords and hotel owners continues a legal fight to overturn a property tax system that imposes higher tax rates on commercial than on residences.
In late September, homeowners were waiting to receive a revised county tax bill issued following a split of residential and commercial rates for school taxes when a coalition of commercial landlords and hotel owners sued the state, New Castle County and its six school districts, claiming a recently enacted state law allowing northern Delaware school districts to tax business properties more than residential ones “is unlawful many times over.”
A Chancery Court judge dismissed that case last week, clearing the way for revised tax bills to go forward. But the landlord coalition is not giving up its fight.
According to court documents, the landlords have appealed their loss to the Delaware Supreme Court. Oral arguments in that appeal are scheduled for Nov. 10.
The ongoing lawsuit had already created a months-long delay in issuing New Castle County tax bills even before this latest wrinkle. Bills currently are due by Nov. 30, but residents have yet to receive them. County leaders said bills will not be sent out until at least Nov. 18, according to court documents.
It is unclear how the recently filed appeal will impact that date.
In response to the ongoing delay, the Senate will consider legislation to extend New Castle’s tax payment deadline until Dec. 31. If passed, the extension would still need to be approved by the House of Representatives.
The Delaware Senate is scheduled to convene a special session on Thursday to consider legislation that would extend the deadline for property tax payments.
A spokesperson for New Castle County did not immediately respond to requests for comment on Wednesday morning.
Gov. Matt Meyer’s office declined to comment, citing the ongoing litigation.
