Share: 

Business license fees raised in Dewey

Structure last revised in 2012; business partnership leader voices support
March 21, 2023

For the first time in 12 years, business license fees will go up in Dewey Beach.

At the March 10 commissioners meeting, Town Manager Bill Zolper said the budget and finance committee recommended the increase. The cost of services has risen, he said, so the committee evaluated changing the fees, which was last done in the 2012 fiscal year.

In reviewing a comparison of fees among local towns, Commissioner Elisabeth Gibbings said the proposed percentage increase seems high, but the actual dollar amount is not. 

Lewes will actually send people to jail, she said, referencing a penalty for convicted violations of the business license procedure, as stated in the town’s code.

Commissioner Paul Bauer said people are focused on the percentages, and the town does not want to hurt small businesses. Raising a fee from $109 to $139 after 12 years is not unreasonable, he said; this number refers to the fee for a small out-of-town business with up to four employees.

During public comment, Steve “Monty” Montgomery, owner of The Starboard and president of Dewey Business Partnership, spoke in favor of the increases. Prices are up everywhere, he said, and the town has real expenses that need to be addressed, including ensuring public safety and retaining employees.

“The money that’s being asked for right now is being used the right way,” he said. “It’s being used to put officers on the streets and lifeguards in the stands.”

Commissioner Gary Persinger said less than 10% of the burden will fall on the smallest restaurants and eateries.

“The burden really is, and we just heard from one of the people facing that burden, that about two-thirds of both the fee right now as well as the increase in fees, are being borne by the largest eateries and restaurants here in town,” he said. “So, it’s good to hear there is some support for us being able to fund the town appropriately and move forward with a number of things that really need to be done.”

Persinger said the ordinance has been revised to add language regarding fire marshal-determined capacities and seated dining capacity.

The one-day business license fee has been lowered from $50 to $25, based on Commissioner David Jasinski’s suggestion.

Accounting/Human Resources Manager Sheena Hall said the cumulative effect of the increase is about $100,000.

Commissioners voted unanimously to pass the ordinance, which includes raising the residential property rental license base fee from $142 to $182 and the fee for each bedroom over two from $11 to $14. The motel and hotel base fee was raised from $382 to $488, and the per-room rate went from $22 to $28. 

The base fee for food and beverage establishments has been raised from $273 to $349, and the per-person fee went from $6 to $8, based on fire marshal occupancy and seated dining capacity.

For small establishments without occupancy established by the fire marshal, typically those under 35 persons, the per-person multiplier was raised from $6 to $8, based upon seating capacity approved by the town.

The fee for small in-town businesses with up to four employees was raised from $273 to $349. The fee for both large in-town and out-of-town businesses with five or more employees was raised from $382 to $488. 

The conference center fee was raised from $2,180 to $2,788, and fees for real estate brokers, vending machines and taxis were eliminated.

Read the full ordinance at townofdeweybeach.com.

 

Subscribe to the CapeGazette.com Daily Newsletter