Wilmington council adopts one‑time tax‑rate adjustment amid contested county reassessment

Wilmington City Council on Thursday approved a substitute ordinance that applies a one‑time tax‑rate adjustment intended to offset anomalies from Newcastle County’s 2024 property reassessment and keep the city’s fiscal 2026 revenues effectively unchanged.

The vote on substitute ordinance 25‑006 passed 8 yeas to 5 nays after more than an hour of debate and extensive public comment on the reassessment process. Councilwoman Harley, sponsor of the substitute, described it as “revenue neutral” and said the two‑rate structure is “a one time adjustment intended to facilitate more equitable taxes across sectors.”

The ordinance moves from last year’s single 21.15 mil rate to new mill figures stated on the record by the sponsor; the council presentation described the rate change as “from the 21.15 mils in fiscal year 20 25 to a 1 time 3.7413 mills for the residential property class and a 5.827 mills for the non residential property classes in fiscal year 20 26.” Harley and administration officials said the substitute is designed so “all residents will not see an increase” while correcting anomalies created by the county’s mass appraisal.

Why it matters: The county‑wide reassessment carried out by contractor Tyler Technologies produced values for many Wilmington parcels that residents and several council members said do not reflect recent sales or on‑the‑ground conditions. City leaders said the substitute rate structure was necessary to pass a balanced budget and to blunt sudden tax shocks while the city and county continue to review assessment methodology.

Debate and dissent: Opponents said the substitute validates a flawed assessment process. Councilman Owens said he “oppose[s] this resolution … based upon a deeply flawed premise and unjust assessments,” arguing the city would be “validating a flawed system” by adopting the rates. Councilwoman Willower warned the change would shift burdens to small businesses and said she “won’t be supporting these new tax rates.” President Congo and two other members also voted no.

Public pressure and review: Dozens of residents, appraisal professionals and community groups addressed council in recent public comments, describing wide disparities between neighborhood sales prices and Tyler Technologies’ assessed values. Council members and the mayor’s office said they have met repeatedly with Newcastle County and Tyler Technologies to press for corrections and more disclosure. The council also adopted a separate resolution directing continued scrutiny of the reassessment data and urging remedies for Wilmington‑specific disparities.

Next steps: Council members said the substitute rate is a stopgap measure to allow passage of the annual budget; they pledged to continue pursuing corrections through appeals, meetings with the county and, if necessary, legal options. The council’s action does not itself change assessment values — it changes the city’s mill rates used to compute tax bills for fiscal 2026.

Ending note: Council leaders emphasized the decision was driven in part by the charter duty to adopt a balanced budget and by near‑term service needs. Several council members said they support continued oversight and possible long‑term changes to how reassessments and appeals are conducted.