Delaware Court Upholds Higher Tax Rates for Multifamily and Commercial Property

The 2025-2030 reassessment in New Castle County reset property values for the first time since 1983. In August 2025, the State Legislature passed several property tax related bills, including House Bill 242 (HB242). This bill allowed the school districts located entirely in New Castle County to impose split commercial/residential property tax rates.

A group of commercial property owners, mobile home association, and apartment association filed suit against the state and county, arguing specifically that HB242 was unconstitutional on uniformity grounds. The reassessment already caused significant increases to commercial property owners, particularly in the multifamily sector.

On October 30, 2025, the suit was struck down, with the vice chancellor ruling that HB242’s split tax rate provisions did not violate the Delaware Constitution, the United States Constitution, nor Delaware state statutes. New tax bills will be issued in the coming weeks to replace existing tax bills mailed in July 2025. Current state law extended the payment due date for 2025 bills only to November 30, 2025.

For property owners, the 2025 appeal deadline has passed, as the appeal window closed months before the county and school districts finalized their tax rates. Property owners should contact the local Ryan property tax professionals proactively for a review of their assessments with the established tax rates for a target valuation discussion. The next appeal opportunity for the remainder of the five-year reassessment cycle is March 13, 2026.

TECHNICAL INFORMATION CONTACTS:

Kurt Lieberman
Principal
Ryan
215.405.0410
kurt.lieberman@ryan.com

Jeff Iannuzzi
Senior Manager
Ryan
571.481.9430
jeff.iannuzzi@ryan.com

The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at info@ryan.com.