Delaware’s Tax and Economic Policy: Why Transparency and Reform Matter
By: Jane Brady, Chair, A Better Delaware
Delaware’s fiscal landscape is rapidly changing, and recent headlines highlight why transparency, reform, and meaningful policy solutions are more important than ever. From property tax reassessments to new consumer fees and economic outlook warnings, the need for open government and innovative approaches is clear.
The requirement to conduct the recent property tax assessment did not, or at least should not, have come as a surprise. There had been many discussions over many years about the delay in conducting an assessment, and the unfairness and inequities many claimed resulted from that delay. Yet, it seems that, from selection of an assessor to reporting the results, our government failed us.
This is particularly true in New Castle County. While tax bills are usually due on September 30, 2025, they have yet to be mailed in New Castle County. There is a lawsuit pending that challenges the methodology used and property classifications. That lawsuit will delay the determination of proper tax due. Recently, in that litigation, the County admitted there have been thousands of properties that are not correctly designated commercial or residential. How a property is classified makes a huge difference in the amount a taxpayer will owe. And, of course, there are multitudes of citizens who are outraged at the increase they are facing. In fact, there are allegations that the former County Executive, Matt Meyer, who is our current Governor, delayed sending taxpayers notice of the change in their assessed values last November to avoid that outrage when asking for their vote. The uncertainty continues as it appears the objective of getting tax bills to the taxpayers by November is unlikely.
Tax burdens are an important component of a state’s ability to be competitive – for jobs and business as well as the quality of life – health care, education and recreation. Delaware is ranked 38th overall among the states for economic outlook – where we are headed. One of the most significant reasons for the grim prediction? “ “personal and business income tax rates [are] some of the highest … in the country,” according to American Legislative Exchange Council President and Chief Economist Jonathan Williams. And, we are rated 48th among states for our state tax burden by Freedom in the States, which calculates tax revenues as a percentage of adjusted personal income.
Equally important is how our government chooses to spend our tax dollars. You have read in our missives previously about the way government prompts behavior with incentives – such as the subsidies for purchasers of EVs. Now, the government has determined that those “darling” cars aren’t using gas, a fact they could have anticipated, and so the tax revenues from the sale of gasoline is down. The solution? All EV and hybrid car owners must pay a fee for the use of the roads to make up for the tax they are not paying because they are not buying gas. EV owners will pay double what hybrid owners pay. If you are thinking, “I thought they wanted me to get an EV”, you are not alone.
Delaware is at a crossroads. The choices made today regarding property taxes, economic policy, and consumer fees will shape our state for years to come. It’s time for informed public debate, bold reforms, and a commitment to transparency—so every Delawarean can enjoy a prosperous tomorrow.
Jane Brady serves as Chair of A Better Delaware. She previously served as Attorney General of Delaware and as a Judge of the Delaware Superior Court.