FENWICK ISLAND – Officials in Fenwick Island agreed to increase gross rental receipts last week, despite opposition from the business community.
Last Friday, the Fenwick Island Town Council approved the second reading of an ordinance amendment that would increase taxes for rentals in both the residential and commercial zones.
The ordinance change includes a .5 percent tax increase, from 3 percent to 3.5 percent, for the rental of rooms or suites in any motel or hotel in the commercial zone, a .5 percent tax increase, from 7.5 percent to 8 percent for the rental of single-family dwelling units and nonconforming dwellings in the commercial and residential zones, and a 1 percent tax increase, from 3 percent to 4 percent, for the rental of any other property in the commercial zone.
In a town council meeting last month, Tim Collins, chair of the Fenwick Island Business Development Committee, noted that many business owners were blindsided by the proposed ordinance. While he argued the tax increase would hurt local businesses, the council contended the new fees – which haven’t increased since 2002 – would benefit business owners in the form of public works and public safety services.
Last Friday, Collins returned to the council to further clarify his position on the ordinance amendment.
While he noted tax rates were lower for rental properties in the commercial zone, Collins said business owners also paid business license and state fees.
“I would say that the commercial sector is paying more,” he said.
Collins explained that the committee’s role is to improve dialogue among business owners, residents and town officials, and he asked that the town consult the business community on changes that impact businesses.
“I appreciate what the council is trying to do,” he said. “I’m just trying to make sure there is input on all sides of the issue.”
With no further discussion, the council voted 7-0 to approve the second reading.
