Delaware Court of Chancery Upholds HB242, Validates Split-Rate Property Tax for 2025-2026

The Delaware Court of Chancery ruled in favor of Taxpayers, upholding the constitutionality and implementation of House Bill 242 (HB242), which allowed New Castle County school districts to create a temporary split-rate property tax system for the 2025-2026 tax year. The case arose from a challenge by associations representing non-residential property owners, who objected to the higher tax rates imposed on their properties compared to residential properties following a court-ordered reassessment. The court found that HB242 did not violate the Uniformity Clause of the Delaware Constitution, did not constitute a retroactive personal income tax, and did not deprive property owners ...