Mighty 38th October Meeting: Education, Taxes, and Election Readiness
- Michelle Parsons
- Sep 30
- 5 min read
Mark your calendars for Monday, October 6th, for our Mighty 38th Southern Delaware Republican Club meeting 6:30pm at the South Coastal Library. Much has occurred in the past month, and we have plenty to discuss, including the passing of Charlie Kirk, Constitution Day, the latest education testing results, and ongoing property tax issues. Below, you’ll find an insightful analysis by Caesar Rodney Institute policy analyst Charlie Copeland, explaining the root causes of the unexpected property tax changes. As we prepare for November 2026, we will also cover the status of cleaning up the voter rolls and who is eligible to vote by permanent absentee. If you would like to join this team, please email info@38thdrcp.com.
A big thank you to our Fundraising Committee and to MaGee Farms for assisting with our first Mighty 38th Mums sale. You can still go to MaGee Farms to get your beautiful fall mums and support a local Sussex County business! 38317 Marlyn Lane, Selbyville. Remember to water your mums frequently for best blooming. Enjoy!
Delaware Policy Choices Caused the Property Tax Problem
Center for Economic & Fiscal Policy
September 24, 2025
The recent property tax reassessment in New Castle County (NCC) has stirred public debate, with homeowners facing higher tax bills while many commercial properties saw their assessments fall. On the surface, this might seem like a quirk of appraisal methodology. However, a deeper examination reveals a more fundamental truth: Delaware and NCC's economic and fiscal policies, including restrictive land-use frameworks, have influenced the relative fortunes of residential and commercial property, thereby shaping the distribution of the tax burden.
The reassessment result was a direct consequence of deliberate policy choices made at the State and County levels.
Reassessment Findings: A Shift to Households
The reassessment, conducted in 2025, updated property values for the first time since the early 1980s. The results were stark:
Residential properties: Average assessed values rose by 433% according to the Brandywine School District's reassessment FAQ. Published reports indicate that reassessment shifted roughly 10 percentage-points of the tax base from commercial to residential properties.
Commercial properties: Many prominent commercial properties - including office towers and R&D campuses - actually saw declines in their tax bills, even as homeowners shouldered a larger share.
The outcome was predictable public anger, but this was not simply a flaw in the appraisal process. It reflected deeper economic currents.
Policy Choices Created New Castle County's Stagnant Economy
From 2001 to 2023, New Castle County's real gross domestic product grew at a compound annual rate of just 0.34%. In practical terms, the economy was stagnant. In contrast, the U.S. grew at 2.03% during the same period, over seven times faster. NCC experienced a relative economic decline, falling far behind regional peers.
One important, often overlooked factor contributing to this stagnation is the Unified Development Code (UDC), adopted on Dec. 31, 1997. Aimed at reducing sprawl, conserving open space, and "rationalizing" development, the UDC resulted in:
Lengthened approvals: Large-scale projects faced protracted permitting processes requiring environmental and traffic studies, discouraging timely investment.
Reduced flexibility: By codifying detailed design standards and limiting variances, the UDC substituted bureaucratic discretion for market responsiveness.
Barrier to entry: Smaller developers, unable to shoulder years of regulatory delay, were effectively sidelined.
While well-intentioned, the UDC created structural friction in the development process. Projects that might have added to NCC's tax base either took years to realize or were abandoned altogether. While not the only factor, the UDC reinforced a set of broader policy choices:
1.) Outdated tax and assessment practices allowed distortions to accumulate until the 2025 reassessment exposed them.
2.) Delaware's reliance on incorporations, with a heavy reliance on "easy" franchise fees and escheat revenues, weakened incentives to develop a robust local business ecosystem.
3.) Slow permitting and rigid codes, epitomized by the UDC, directly deterred investment.
4.) Economic concentration in the credit card industry left NCC vulnerable to structural decline.
Together, these policies tilted the playing field in favor of residential housing becoming the primary repository of value, while commercial assets struggled.
Conclusion
The key takeaway is that the property tax burden shift was not accidental-it was the predictable result of economic and regulatory choices. For Delaware's policymakers and business community, several lessons emerge:
Regular reassessments are critical to prevent distortions from compounding.
Permitting reform must go beyond initiatives like Delaware's "Ready in 6." While aiming at cutting approval times to six months, it has not offset the decades-long drag created by UDC.
Commercial competitiveness requires a regulatory framework that empowers, not constrains, entrepreneurial discovery.
Diversification and growth are essential. Without a dynamic business base, homeowners will continue to bear the tax burden.
Growth and diversification require freer markets, faster approvals, and policies that reward rather than deter investment. Otherwise, homeowners will continue to bear the rising tax burden of a county whose commercial economy has lost its footing.
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Upcoming Meetings
38th Club Meeting, Monday, October 6th, 6:30pm, South Coastal Library, Bethany Beach
Sussex GOP Region Meeting, October 13th, 6:30pm, Millsboro Fire Hall
IRSD Committee Meetings, Monday, October 13th, Millsboro Middle, 4pm-7pm
IRSD School Board Meetings, Monday, October 27th, 6:30pm, Millsboro Middle
38th Club Meeting, Monday, November, 6:30pm, South Coastal Library, Bethany Beach
Delaware Day Celebration, December date TBD
We welcome your support as we support conservative values and responsible government.
This newsletter is intended for informational purposes only. The content provided is for general information and entertainment purposes, and should not be construed as professional advice. The views and opinions expressed in this newsletter are those of the authors and do not necessarily reflect the official policy or position of the Club. Readers are encouraged to seek professional guidance or conduct their own research when making decisions based on the information provided in this newsletter. The Club does not guarantee the accuracy, completeness, or usefulness of any information presented in this newsletter and will not be held liable for any errors or omissions. Website paid for by the 38th District Republican Club PAC and not authorized by any candidate or candidate’s committee.
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