
Thomas P. Deenis
Associate
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01.15.2026
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Delaware Supreme Court Affirms Lower Court Ruling Denying Commercial Property Owners’ Split Tax Rate Challenge
Late last year, the Delaware Supreme Court affirmed the Delaware Court of Chancery’s ruling in Newark Property Association et. al. v. State of Delaware et. al, 2025 WL 3041907 (Del. Ch. Oct. 30, 2025), where the Chancery Court rejected commercial taxpayers’ challenges to House Bill 242 (“HB 242”). HB 242, which passed following a special session of the state General Assembly in August, allowed school boards to reset their tax rates for the 2025-2026 fiscal year to permit commercial and residential taxpayers to be taxed at different tax rates.