REHOBOTH BEACH, Del - The increasing of the city's real estate tax was approved by the mayor and commissioners in a 5-2 vote June 21.
When the fiscal year 2025 budget was approved in March, there was the intention of increasing the tax on July 1 from $0.06 per $100 of assessed value to $0.0775 per $100. The real estate tax rate beginning July 1 and ending June 30, 2025 will be at $0.0775 per $100.00 of assessed value.
While this is the first real estate tax increase since fiscal year 2020, the last increase was up 50 percent. Commissioners voted in favor of increases in property taxes, parking rates, rental taxes and wastewater meter fees instead of reducing expenses. There’s also a proposed 20 percent increase in mercantile license fees, but that measure hasn’t been voted on yet.
"This has been an extremely challenging budget year," Mills said when the budget was approved in March. "We’ve had to make some really tough decisions. The increases adopted impact a range of city stakeholders, including our residents, businesses and our visitors. These increases are necessary to ensure that we have a highly functioning, appropriately resourced government that provides the outstanding level of service our residents and visitors have come to expect. "
City officials claim the increase will go towards the $10 million capital improvement budget. According to Friday's agenda, the money goes towards:
- Construction of the new beach patrol headquarters/comfort station at Baltimore Avenue.
- Completion of phase 3B of critical upgrades at the wastewater treatment plant.
- Resurfacing of the first two blocks of Rehoboth Avenue (in coordination with a DelDOT project to resurface the rest of Rehoboth Avenue).
- Annual citywide paving project (on Maryland Avenue and 1st Street in FY25).
- Water main replacement on Maryland Avenue.