School board approves split tax rate to restore residential tax share; vote 4-1 with one abstention

The Colonial School Board voted to adopt a split tax rate for fiscal year 2025–26 that restores the residential share of the district’s tax burden to last year’s level, a move board finance staff said will reduce the average residential tax increase caused by New Castle County’s reassessment.

The board acted after a presentation from Emily Falcon, the district’s finance lead, who recommended the change to reverse a shift in assessed value that moved roughly $1.6 billion in taxable value onto the residential roll earlier this year. The motion — moved by Ms. Smith and seconded by Ms. Breeding — passed on a roll call tally of four in favor, one opposed and one abstention.

Why it matters: The county reassessment produced a large, districtwide change in assessed values that staff said left residential taxpayers bearing about $8.7 million of additional revenue burden under the previously approved rates. State lawmakers convened an emergency session and passed bills that authorized split rates and other temporary taxpayer relief; under House Bill 242 the district could adopt separate residential and nonresidential rates for the year, Falcon said.

What the board approved and the expected effect: Falcon presented a calculation that restored residential taxpayers to roughly 52.6% of the district’s revenue burden — the proportion in place before the reassessment — and produced a residential rate (total tax rate components combined) of about 0.4532. According to the presentation, that rate would lower the districtwide average residential tax bill from the July projection of about $1,800 to roughly $1,519–$1,520, a savings of about $334 on average compared with the July notice. Board members noted those figures represent averages and individual parcel impacts vary widely depending on assessed value and appeals.

Risk and appeals: Finance staff cautioned that approximately 10% of the district’s tax base — roughly $1.5 billion in assessed value — remained under appeal to New Castle County, and that about 80% of the appealed value was commercial property. Staff estimated that the appeals could erode between roughly $7 million and $11.5 million in potential revenue depending on final appeal outcomes and the rate split chosen, meaning the district still faces material revenue risk even after the split.

Board discussion and vote: Board members urged transparency and asked staff to publish a parcel-level calculator on the district website so residents could estimate their bills under the split. Mr. Laws raised concerns about the risk of shifting more burden to commercial taxpayers while appeals are pending; other members said restoring the prior burden balance was the fairest immediate remedy. The motion to approve the recommended split tax rate was moved by Ms. Smith, seconded by Ms. Breeding, and passed on roll call: Mr. Handy — aye; Ms. Smith — aye; Mr. Laws — no; Dr. Dorsey — abstain; (presiding officer) — aye. The board authorized the president, vice president and executive secretary to issue the tax warrant to New Castle County.

Next steps: Staff said they will post explanatory materials and a calculator to the district website and work with New Castle County on implementation and on informing taxpayers about payment-plan options and other relief created by state legislation. The district also extended the usual calendar for collection consistent with state action; staff noted taxpayers with large increases may be eligible for county payment plans or refunds under the new temporary state rules.

Ending: Board members asked staff to continue close monitoring of appeals and to report back with any material changes to projected revenue so the board can adjust plans if needed.