Spring 2017:

Project Problem/Question/Issue:

Nearly 2/3 of New Castle County’s revenue is from property taxes based on 1983 property values. Property values are also the basis for school taxes. Changes in property values since 1983 mean that some high value properties presently pay substantially less than they might if their taxes were based on a more recent assessment value, leading to concerns about fairness to tax payers. This raises critical policy questions for New Castle County Council including: 1) Is the continued use of 1983 property values causing inequities in how we fund county operations and services?; 2) Should New Castle County’s conduct a property tax reassessment to update the property valuations used to calculate tax bills? 3) What approaches have been used in surrounding counties and states related to property value reassessment and are there any lessons to be learned that might inform New Castle County Government on this public policy issue?

Requested Deliverable:

A report and oral briefing to an appropriate council committee describing the following:

• A clear description of the problem, analysis of its magnitude and potential impact on county tax payers, county revenues, and school tax revenues.
• A summary of the existing laws and that form the framework for a property tax reassessment at the state and county level in Delaware.
• A review and summary of how other states and counties have addressed the problem of property tax reassessment and lessons learned from their experience.
• Conclusions and recommended options for New Castle County Government to consider.

Client:

• Councilwoman Janet Kilpatrick

Faculty Supervisor:

• David Carter

Final Deliverables:

• Report
• Presentation
• Draft public handout