Explaining county’s reassessment process

The Court of Chancery-mandated reassessment process for Delaware’s three counties has begun. The issue has been years in the making, garnering extensive media coverage and countless questions, particularly among the people it will affect the most: property owners.

For the next two-and-a-half years, Sussex County and its contracted vendor, Tyler Technologies, will be undertaking an incredibly arduous and complex process to evaluate more than 180,000 parcels in southern Delaware to determine their market value. As the result of an education funding lawsuit brought against the counties and the state, the court ruled that property assessments used by local governments are constitutionally required to reflect the true value in money. The lawsuit and decision left the counties with no option but to reassess, and we are moving forward.

But now the debate as to the mechanics of how a general reassessment will work, and what exactly is entailed in a process that hasn’t occurred in Sussex County in nearly 50 years, has begun.

Which brings me to the point of this letter. Some questions have come up recently, following a series of public presentations put on by Tyler in September, as to how the county will treat residential versus commercial properties. There is no doubt, the residential market in Sussex County is red hot. Some worry, though, that commercial properties may bear a lower financial burden given that the calculus for businesses will consider revenue streams as a factor.

To assist us with these questions, we looked to Tyler Technologies to provide some additional context in the hope that would help set the record straight and assuage any fears. Tyler is an expert in this field, one with vast experience spanning several decades across multiple states.

First, it’s important to note that appraisers in Delaware are licensed and required to meet stringent guidelines and standards set by the International Association of Assessing Officers. Our vendor, Tyler Technologies, depends on a highly qualified team using a proven mass appraisal process that has been utilized in more than 2,500 similar projects nationwide. Delaware law requires appraisals reflect the market value of the property at the time of the appraisal. The date of value for Sussex will be July 1, 2023. Values must reflect current market value supported by data and analysis conducted during a prescribed time leading up to that date.

For commercial properties, appraisers will reach a valuation under these same standards by considering a host of factors – not just income. Some of the factors that will be studied are local construction cost, land values, sales data, income and expense data, and countless other elements that could affect the values. As prescribed by the IAAO, Tyler will consider all three approaches to value (cost, market and income), selecting the one that best predicts the current market value of the property. While some commercial properties may have been affected by the COVID-19 pandemic, it would not be accurate to say that this situation applies to all commercial properties, and it will not prevent Tyler from being able to arrive at an accurate market value.

I know there is tremendous interest in this process. It touches every property, and every property owner’s pockets. But it’s important to keep in mind that Sussex County is moving forward in accordance with the law, and the county is confident that the team it has hired – and selected by Delaware’s other two counties – will follow a fair, accurate and proven standard that has been used across this nation to value millions of pieces of property.

I thank the public for its interest in this process, and going forward, we welcome the continued dialogue. Only through the public’s involvement can we make this as equitable and seamless a process as possible for all concerned. For more information on the reassessment project, go to the county’s website at www.sussexcountyde.gov/assessment.