City of Rehoboth Beach to raise residential rental tax

The Rehoboth Commissioners approved an increase of the city's residential rental tax from three percent to six percent at their regular meeting November 17

The new tax rate would apply to any rental contracts signed after January 1. The Commissioners felt this would be fair to renters that have already signed contracts under the old three percent rate. The rental tax has not increased since 1995, when the rate was set at three percent. The additional revenue from the tax increase will be used for capital improvement projects such as upgrades to the Wilmington Avenue storm drains and to drainage systems on Bayard Avenue.