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Judge rejects new attempt to stall upstate school tax bills pending Supreme Court debate

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Judge rejects new attempt to stall upstate school tax bills pending Supreme Court debate


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A judge has rejected another motion to stall school tax bills in New Castle County tied to the recent property values reassessment.

The ruling issued Nov. 4 rejects the request by a coalition of local landlords and lodging businesses to further delay the issuance of new tax bills while they appeal a court ruling from the final week of October.

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That ruling upheld school districts’ plans to charge different tax rates to residential versus non-residential properties for this taxing year. That coalition of business interests had sued the state, county and school districts, arguing so-called split rates are unconstitutional and that it would harm their businesses and by extension, their rent-paying tenants.

Last week, after expedited litigation ahead of the pending due date for taxes, Vice Chancellor Lori Will rejected the business coalitions’ legal claims. That set the county back on track to issue new, split-rate tax bills on behalf of school districts.

The ruling: Why a judge upheld lawmakers’ property tax reassessment relief law for homeowners

After the ruling, the coalition asked Will to again delay those bills while they appeal her ruling to the Delaware Supreme Court. Will’s latest ruling rejects that requested stay and leaves the county on track to issue new bills in the coming weeks.

Why the judge rejected the request

Will weighed four legal factors in assessing the plaintiffs’ request: the likelihood that their appeal would be successful, the potential of irreparable injury to the plaintiffs if they stay isn’t granted, whether other parties would be harmed absent a stay and whether the public interest would be harmed if they stay is granted.

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The plaintiffs argued the new, split rates that shift greater tax burden on businesses would cause irreparable harm to their businesses, triggering accelerated loan repayments, diverting money from their operations and leading to the loss of business opportunities and potential foreclosures.

Will rejected this. She noted the Supreme Court is set to hear the appeal of the decision on a similarly expedited manner next week and that would be before the earliest possible issuance of new tax bills on Nov. 18.

She added that the potential harm cited is speculative.

Behind the upset: Why is Delaware’s angst over reassessment, tax changes so centered on New Castle County?

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She did agree that the legal matters at hand are novel and present substantial legal questions, which she found favors a stay.

But regarding the harm to public interest and others if the stay was granted, Will noted a stay would just cause further confusion among taxpayers, and delayed bills are depriving the county and school districts of $549 million in revenue that translates into $8 million in investment income over a 60-day period.

“The public interest lies in resolving this uncertainty, not extending it,” Will wrote.

How Delaware got here and what’s next

This tax season is the first since a court-ordered reassessment of the property values that are married with local school, county and municipality taxing rates to calculate individuals’ bills.

In New Castle County, the reassessment of these property values − the first that’s been done for decades − shifted a greater portion of the overall tax burden onto residential properties, leading to higher-than-expected bills for those taxpayers.

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Following outcry, state lawmakers convened a special session in August and passed a law to allow school districts to charge different, higher tax rates to non-residential properties to shift the overall tax burden back closer to the share of residential versus non-residential before the assessment. This would give homeowners a break on the tax bills that went out earlier this summer.

The issuance of those split-rate bills was delayed by the lodging-businesses’ lawsuit.

The rejection of the stay means that the county will move forward issuing split-rate tax bills, which Will’s order states will come no earlier than Nov. 18, and the Delaware Supreme Court will hear oral arguments on the plaintiffs’ appeal of her initial ruling on Nov. 10.

Recent: Senate lawmakers set to reconvene for special session on Nov. 6 after property tax ruling

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Meanwhile, the Delaware General Assembly has called a special session for Nov. 6 in which they will consider extending the deadline for payment of taxes given this year’s chaotic tax season.” 

Contact Xerxes Wilson at (302) 324-2787 or xwilson@delawareonline.com.



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Delaware

DMV in Minquadale, Delaware reopening months after trooper’s death

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DMV in Minquadale, Delaware reopening months after trooper’s death


Tuesday, March 10, 2026 9:34AM

Minquadale DMV reopening Tuesday

MINQUADALE, Del. (WPVI) — The DMV in Wilmington, Delaware is reopening at 8a.m. Tuesday.

This comes after the deadly shooting of State Trooper Matthew “Ty” Snook, 34, in December 2025.

A man walked into the facility and shot and killed Snook.

The DMV said service at the Wilmington location will be by appointment only for now. The Delaware City, Dover, and Georgetown DMV locations will continue to offer walk-in service to customers.

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Copyright © 2026 WPVI-TV. All Rights Reserved.



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Pistol Whipped, Robberies, Carjacking At Delaware Park Casino

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Pistol Whipped, Robberies, Carjacking At Delaware Park Casino


About First State Update News Room

First State Update’s Delaware editorial team delivers dynamic, around-the-clock coverage of breaking news, politics, and major developments across Delaware and the surrounding region. We’re are on the ground bringing readers fast, accurate updates on the stories shaping Delaware. Have news to share or a tip to pass along? Email us at [email protected] or send us a message on Facebook.


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Spike in utility bills after cold snap forces Delaware customers to make tough choices

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Spike in utility bills after cold snap forces Delaware customers to make tough choices


Delaware elected officials push back on rising prices

Gov. Matt Meyer called out Delmarva for “overcharging Delaware families” in his January State of the State speech. He has also urged the Public Service Commission to reject the utility’s rate requests.

“Rate increases far beyond inflation are unacceptable,” he said. “Delmarva’s out-of-state shareholders should not take advantage of Delaware’s families working to make ends meet. We must hold monopolies accountable.”

Democratic members of the Delaware General Assembly also sent a letter in February to the commission, calling for Delmarva to resubmit its December rate increase request so it falls under a law that took effect in January that gives the commission greater scrutiny over rate increase requests.

The state lawmakers also noted that Delmarva has sought three electric base rate adjustments over the past five years and asked the commission to reject the current rate case so the company would have to resubmit the request.

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“We cannot reward Delmarva investors with such high returns on the backs of our constituents,” the letter stated.

Beal said they appreciate the governors in the states that use the PJM grid focusing on the supply costs and the need for more generation, which he said was the true driver of these significant increases for customers. He argued that they work on the delivery side to keep costs down.

“Our company’s been around since 1909,” he said. “Not all of our equipment is that old, but we certainly have some aging equipment. Over 50-year-old transformers that are really at the end of their life, and you want to make sure that you’re replacing this equipment in a planned manner, versus a catastrophic failure of equipment.”

Assistance programs to help low- and moderate-income households

Wilmington resident Alan Shores said he has tried to apply for help as his average monthly bill has gone from around $200 a month to about $500. Shores depends on monthly disability payments and said he’s struggling to afford his prescription medication because of the rising cost.

“I’m tap dancing as fast as I can, trying to pay this stuff, and I just can’t,” he said. “It’s because of this electric bill. Once that electric bill went through the roof, I’m like, ‘What do I do?’”

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Beal said they are adding $500,000 to the $6.5 million customer relief fund created last year. Past-due gas and electric customers who have a household income between 60% of the state median income and 350% of the federal poverty level could be eligible for a $500 credit.

The utility also offers payment arrangements and budget billing, and it directs customers to financial assistance offered by charitable organizations.



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