Wilmington council splits residential and nonresidential mill rates as members press county on reassessment accuracy

The Wilmington City Council's Finance and Economic Development Committee on Monday voted to send a substitute ordinance to the full council that sets separate property tax rates for residential and nonresidential property for the 2025-26 fiscal year, while members pressed Newcastle County and contractor Tyler Technologies to address apparent inaccuracies in the recent reassessment.

Council Chair Michelle Harley said the committee would consider a substitute to ordinance 25-006 that splits the mill rate after the county assessment indicated possible systematic overpricing of lower-value residential properties.

The bifurcated rates in the substitute are 3.7413 mills for residential property and 5.8276 mills for nonresidential property. The administration told the committee the change is expected to leave overall citywide property tax billings unchanged compared with the prior projection, keeping total revenue at about $45,400,000 for fiscal year 2026.

Deputy Chief of Staff Stephanie Merkler told the committee staff asked the law department whether the city could adopt different rates by class after Newcastle County bifurcated its own rate; the department concluded it was legally permissible and the administration proposed separate rates to blunt disproportionate increases for homeowners.

Committee members described the bifurcation as a mitigation step, not a complete fix. The administration estimated the new residential rate would be "overall neutral" compared with last year: some individual homeowners will pay more and some less, but in the aggregate residential category remains roughly flat. Officials said roughly 60% of residents may still see an increase (averaging about $453 per year), while about 40% would see a decrease (averaging about $353 per year).

Members also debated a resolution that would urge the local board of assessment to withdraw its certification of the assessment roll for fiscal year 2026 and to address the assessment methodology. Council member Willard, who sponsored the resolution, said Tyler Technologies' final report acknowledged too much variability between its assessment values and actual sale prices to meet industry standards, and the city must ask for corrections before assessments are used to levy taxes.

Several council members described ongoing meetings with the mayor's office, Newcastle County and Tyler Technologies to examine the data and to create avenues for residents to appeal their assessments. The council encouraged residents to file appeals with the county and asked the administration to provide clearer public guidance on the appeals process.

Council members raised practical concerns about the appeals process: one member noted that homeowners often need an appraisal (and sometimes legal help) to make a successful appeal and urged the council to consider ways to help residents navigate or access that process. Members proposed holding a public assistance session in the City-County Building lobby to walk residents through filing appeals and distributing information.

No changes to the certification were recorded during the committee meeting; the substitute ordinance to set bifurcated rates was moved out of committee for a full council vote on the floor. The resolution urging withdrawal of the assessment certification was presented and discussed; committee members expressed support and sought co-sponsors but no formal committee vote on the resolution was recorded in the transcript.

The committee emphasized the bifurcated rate is an interim administrative step that reduces the immediate impact on many homeowners but does not resolve underlying assessment uniformity issues. Officials said the city will continue to work with Newcastle County and Tyler Technologies on data and methodology for future reassessments.

Clarifying details from the meeting include the proposed mill rates, the $45,400,000 projected revenue figure, and the administration's estimate of the distribution of increases and decreases among residential taxpayers. Council members reiterated that appeals should be filed through county channels and asked the administration to provide public-facing guidance and potential in-person assistance sessions before tax bills are issued.