Cape Gazette

Gross receipts tax makes sense in Dewey

By Karen Jacoby | Jul 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

Comments (3)
Posted by: Barry Wayne Price | Jul 20, 2013 07:18

Looks like a barage of support for the proposed Dewey Beach gross sales tax. What Dewey Beach needs is an administration that does not waste taxpayer money, and not to burden it's business community. Fishing for dollars is typical of Washingtonian thought, so that they can spend without responsibility. That is all.

Posted by: Dave Davis | Jul 20, 2013 14:23

Barry:  Please provide examples of how the administration wastes taxpayer money.  Let's see facts vs. vacuous opinion here.

Posted by: Barry Wayne Price | Jul 21, 2013 07:25

Maybe I should have said it appears to be an organized barrage of support for the proposed gross receipts tax on town business by virtue of the number of letters to the editor in favor thereof. An example of waste are the sums of money going out to attorneys to defend administrators, and another would be the addition of expensive surveillance cameras. I will say no more on the subject. The power struggle for control in Dewey is tiresome. There should not be a who's right and who's wrong in any municipality. Everyone should work together to build a future in which there is a level playing field, and the idea of fair share. That is all.

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