In reading the letters to the editor in this and recent weeks’ Cape Gazettes about how the prospect of a property value reassessment may negatively impact the long-standing senior property school tax credit by increasing the basis for that tax and one author’s parting comment about visiting local government officials should that occur, I would like to add some other observations.
First, the current Delaware governor in his first budget for 2018 reduced the senior school tax credit by 20 percent, reducing it by $100 from the prior $500 maximum to meet what he termed budget shortfalls. In 2018 the Cape Henlopen school district property tax rate increased by 14 percent from the 2017 rate. And as one prior letter writer noted, effectively reduced his credit another $100. The Cape Henlopen School District tax assessment rate for 2019 was increased more than 8 percent from 2018, further reducing the already diminished senior credit. There are currently discussions and debates about allowing county school boards to set school tax rates without having referendums where affected taxpayers can vote on such increases. This is because several communities voted against increasing school taxes where referendums were held. What this says to me is that the senior citizens of Delaware have been targeted as a ripe revenue plum ready for the picking. Let’s put this in perspective.
For the past decade Delaware, and eastern Sussex County in particular, has increasingly become a magnet area for senior citizens - retired and pending retirement - due in great part to the favorable property tax structure including the resident senior school tax credit. At the same time, property and related development has surged to meet this wave of seniors - without minor school-age children - increasing the property and transfer tax pools, local business revenue and added jobs and related services needed to accommodate them. Those seniors have brought wealth and tax revenue to Sussex County and will continue to do so without adding to the school population. A population that has swelled with added students and increasing additional requirements for special language teachers and staff, ESL and other special ed programs and similar related costs. Resident seniors have paid a fair share of those costs but now see their tax credit being steadily eroded.
If the reassessment of property values is implemented, there should be a concerted effort on the part of growing resident senior citizens eligible for the school tax credit to demand that the county and state legislators restore the $100 removed in 2018 and proportionally increase the amount eligible for the school credit to the amount of any increase in the property value reassessment. Should they not do so, seniors may wish to think about continuing to vote for those who do not share their financial concerns and view them as just another revenue source for exploitation.
Review your tax bills for 2017-19 and put them on notice now before they seek your vote again.
Matt Maher
Lewes
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