Delaware Supreme Court Upholds Ruling on HB242’s Split-Rate Property Tax System

The Delaware Supreme Court affirmed the Court of Chancery’s decision upholding the constitutionality of House Bill 242 (HB242), which allows New Castle County school districts to implement a split-rate property tax system. The case arose from a challenge by property associations to the state and school districts, arguing that the new law violated Delaware’s Uniformity Clause and exceeded the revenue-neutrality requirements. The court ruled that the General Assembly has the power to create reasonable property classifications for tax purposes, finding that HB242’s residential and non-residential property distinctions were constitutional. Additionally, the court determined that the statute’s revenue projections provided some ...