Written by: Renee’ Foley — Director, Property Tax | Northeast US
A significant transformation is underway in Delaware’s property tax landscape. House Bill 62 (HB-62) has ushered in a new era of property tax assessments, mandating revaluations on a five-year cycle. In this article, we explore the implications of HB-62 and it’s potential impact on property taxes for businesses across the state. We’ll also highlight strategies property owners should consider to reduce their tax burden, preserve net operating income, and preserve value.
HB-62: What Is Changing?
Historically, Delaware’s property tax assessments followed a pattern of infrequent updates, spanning several decades. However, as a direct response to a lawsuit addressing school funding disparities, assessments are now being conducted in every county for the first time in many years.
With the enactment of HB-62, Delaware now operates on a five-year revaluation cycle. This new law requires each county to perform reappraisals at regular intervals. This paradigm shift from sporadic assessments to a more consistent cycle is poised to have a profound effect on property valuations across the state.
Navigating the Changes: What Delaware Businesses Need to Know
For Delaware businesses, it’s imperative to understand the potential impact of HB-62, and to take proactive action to get ahead of the changes:
- Budgetary Adjustments: Prepare for potential fluctuations in property tax liabilities. Update your financial forecasts and budgets to accommodate potential changes in property tax expenses.
- Thorough Assessment Reviews: Scrutinize the new assessments. Given the significant shift in property tax assessments, a meticulous review is essential to ensure accuracy and fairness.
- Seek Expert Guidance: Engage tax professionals specializing in Delaware tax. Their expertise is invaluable in navigating the complexities of HB-62 and making informed decisions for your business.
House Bill 62 signals a major shift in Delaware’s property tax landscape. For businesses operating in the state, proactively assessing the implications of this legislation on property tax liabilities is a critical step. By staying informed, carefully reviewing new assessments, and engaging with experts, you can position your organization to navigate these changes effectively.
To review your assessment notice with a Delaware business property tax specialist, contact us today.