By Tony E Windsor
In response to the recent county-wide property reassessment completed by Sussex County, the town of Laurel is taking steps to protect residents from a dramatic spike in property taxes. During a recent meeting, the Mayor and Council were briefed by town officials on the significant disparities discovered in the newly assessed values and their potential impact on local taxpayers.
“Each July we adopt the Sussex County assessment list for our municipal tax calculations,” explained Town Manager Jamie Smith. “This year, however, with the reassessment completed, we discovered that residential property assessments have gone up significantly, anywhere from 50 to almost 100 percent. Meanwhile, commercial and multifamily properties, in some cases, we’re seeing substantial decreases.”
Faced with these discrepancies, Laurel officials consulted with other municipalities and state legislators. However, no immediate state relief was available due to ongoing litigation that prompted the reassessment in the first place. Considering this, Laurel moved forward with a temporary solution.
“Our budget was adopted in June based on the existing assessments from 1974,” Smith said. “Sussex County doesn’t certify the new assessment list until June 30, so we used last year’s figures and kept our tax rate the same. But we need Council to formally vote to continue with this process.”
The town plans to hold a Court of Appeals meeting next month, during which further discussions will take place. In the meantime, a long-term legislative solution is in the works.
“To address this going forward, we are pursuing a charter change,” Smith added. “It would allow us to establish two separate tax rates—one for residential properties and one for commercial. This would help us offset the extreme shifts we’ve seen.”
Council members raised questions about the initial understanding that tax rates would be adjusted to maintain consistency in tax bills despite reassessment.
“Our intent was to keep the total amount we billed—the overall tax levy—the same,” Smith clarified. “But once we applied a lowered tax rate to those inflated residential values, it was clear the burden would still shift heavily onto homeowners. Other towns encountered the same issue.”
She emphasized that lowering the tax rate to accommodate reassessment would not only impact residential equity but also reduce the town’s budgeted revenue, putting municipal operations at risk.
“This is a catch-22,” Smith said. “The route we’re taking by using old assessments this year and seeking a charter change for next year, offers the best path forward to protect our citizens without increasing their tax burden.”
If approved by the state legislature, the proposed charter amendment will take effect next year, coinciding with the mandatory use of Sussex County’s updated assessment values.
