After tax increases, homeowners claim they are “tapped out”

REHOBOTH BEACH, Del. – Property owners in Rehoboth Beach had their say shortly before commissioners voted yes on the city’s 2019-2020 fiscal year budget. Commissioners stood their ground during lines of questions, saying a number of rate and tax increases proves necessary.

One of the tax increases is on the city’s property tax, rising by 50 percent, netting the city over $667,000 this upcoming year. Commissioner Stan Mills says even with the increase, the tax rate remains low.

But that’s not all.

Add to that a raise on trash collection, a 30 percent mark up for water and 60 percent for wastewater bills.

“But now add trash, and now property taxes of fifty percent. I think what you’re hearing from the property owners, were kind of tapped out,” said Judy Hayes, a Rehoboth Beach resident. “People haven’t complained about the property tax, but I think you need to see other taxes go to before you put taxes on the homeowners.”

Some residents raised red flags that the city might take revenue from water and wastewater increases and use it for the general fund. Something a number of folks took a stand against.

“It’s not fair in my opinion, what I’ve heard from other people, to have Dewey Beach paying the operations of Rehoboth Beach government,” said Rehoboth resident Gary Glass.

A number of projects will be funded through some of these increases, including eight additional seasonal police officers, a $100,000 contribution to the fire department, as well as fund stormwater upgrades, water main replacements, street paving, and boardwalk restroom renovations.

The city at one point wanted to institute a 3 percent accommodation tax, but because of stalled legislation in Dover, the city could not institute it.

These increases won’t take effect immediately. The real estate tax will jump on July 1 and the overall increase of 30 perfect for water and 60 percent for sewer will take effect April 1.