Share: 

Gross receipts tax makes sense in Dewey

July 19, 2013

I moved to Dewey Beach as a full-time resident because I just love this town. I originally vacationed here with my parents in the '60s and '70s.

I am also strongly in favor of a modest gross receipts tax on town businesses.

The town needs a regular source of revenue from all of its stakeholders. The homeowners already pay a three percent accomodations tax. The businesses currently pay so little - about $60,000 a year in total in a $2.5 million budget!

We have many unaddressed needs demanding attention, including major infrastructure improvements, upgrading and updating Town Hall and government, a reserve to protect against the next economic downturn, funds to help in case of a major storm, etc. And let's not forget the endless and frivolous lawsuits that need defending.

I like the gross receipts tax because it is designed to protect the small businesses with an exemption (that applies to all businesses so it is fair) of $200,000 (it could be more) and is simple. The tax would be due three months after the end of the calendar year and paid just once a year. No complex enforcement, no extensive daily recordkeeping as would be required if we had a license fee based on the number of patrons. And the pending proposal would include a referendum so the people would decideit would enable the town businesses to pay their fair share.

I urge the town council to pass this proposal at its next meeting, Friday, July 19, so we can move on and focus on needed town improvements.

Karen Jacoby
Dewey Beach

  • A letter to the editor expresses a reader's opinion and, as such, is not reflective of the editorial opinions of this newspaper.

    To submit a letter to the editor for publishing, send an email to newsroom@capegazette.com. Letters must be signed and include a telephone number for verification. Please keep letters to 650 words or fewer.  We reserve the right to edit for content and length.

Welcome to The Cape Gazette Archive.
This content is provided free of charge
thanks to our sponsor:

Close ad in...

Close Ad