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Dewey committee recommends town charter changes

Commissioner eligibility, accommodations tax top discussions
May 31, 2018

A charter requirement that two town commissioners reside in Dewey Beach drew debate at the May 17 meeting of the town’s code review committee.

Dewey’s Charter and Code Review Ad Hoc Committee began meeting in January 2018 to discuss and vote on recommended changes to the town charter. 

Changes to Dewey’s charter require legislative approval. Many suggested changes were administrative, such as removing gender bias and clarifying definitions, and others required legal review.

Key discussions centered around Dewey’s town commissioner eligibility and residential rental accommodations tax.

Committee member Steve Montgomery said the difference between resident and nonresident commissioners confuses many people; he suggested clarifying lease requirements for both.

Candidates for commissioner must file as resident or nonresident, and at least two commissioners must be bona fide residents who meet property or leaseholder criteria. Nonresident commissioners must own property within city limits, be a settlor/creator and trustee of a valid trust to real property in town or meet leaseholder criteria.

The committee suggested both resident and nonresident candidates have a valid lease for at least five years regardless of time remaining on the lease in addition to existing requirements. 

All commissioners serve two-year terms. The committee discussed how to fill a commissioner vacancy due to death or other circumstance, and what would happen if the required two resident candidates did not run for council.

Committee member Marcia Schieck said, “Just because you’re a resident doesn’t mean you govern better or you’re more committed than a nonresident. It’s important to have two resident commissioners on there, but I don’t think on the ballot you really say, ‘Would you rather have a nonresident?’” 

Schieck said the resident requirement should be waived rather than appointing a resident who didn’t run in the election.

Committee Chair David King asked, “Is it time to recommend eliminating the requirement for two residents?”

Committee member Elaine Bole said the resident requirement is important and suggested leaving the language as is. 

“Eliminating the requirement would take away the activism of residents who should be running the town,” she said. 

With no consensus, the committee flagged the section for council’s review.

The residential property rental accommodations tax, discussed at council’s May 12 meeting, is specified in the town charter, which also prevents Dewey from applying an accommodations tax on hotels and motels taxed by the state.

Schieck said Dewey’s accommodations tax only applies to a small group of visitors that uses all town services, and that neighboring beach towns assess an accommodations tax on top of the state-assessed tax. 

She recommended removing the charter’s language stating the town cannot impose an accommodations tax on state-assessed rental or leased properties.  

King said, “Right now the charter says Dewey can’t impose accommodations tax on hotels and motels. The town could preserve the status quo and protect its ability to tax residential rentals by taking the sentence out. That also lets them immediately, strictly by changing the code, tax hotels and motels, which I think might be a good thing.”

The committee agreed to recommend eliminating restrictions on taxing hotels and motels.

The ad hoc committee will meet a last time at 3 p.m., Friday, June 8, at Dewey Beach Lifesaving Station, 1 Dagsworthy Ave., to review final suggested changes before presenting to town council. Council will review the document and make its own changes before submitting to the Legislature for a vote.

 

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