Commissioners approve increase to residential rental tax in Rehoboth Beach
Rehoboth Beach commissioners approved an ordinance to raise the residential rental tax, on Friday.
According to town officials, commissioners agreed to increase the city's home rental tax from three percent to six percent, at their regular meeting on November 16.
The new tax rate will apply to any rental contracts signed after January 1. The Commissioners say that this will be fair to renters that have already signed contracts under the old three percent rate. The rental tax has not risen in over 22 years, when the rate was set at three percent.
The additional revenue from the tax increase will reportedly be used for capital improvement projects like upgrades to the Wilmington Avenue storm drains and to drainage systems on Bayard Avenue.