The Rehoboth Commissioners approved an increase of the city's residential rental tax from 3 percent to six percent at their regular meeting Nov. 17.
The new tax rate will apply to any rental contracts signed after Jan. 1, 2018.
Each residential property owner will receive a notification about the residential rental tax for the period of Jan. 1 through Dec. 31, 2017, at the 3 percent rate.
The next billing cycle of Jan. 1 to Dec. 31, 2018, will be at the 6 percent rate. Any contracts signed before Jan. 1, 2018, will be calculated at the 3 percent rate.
The rental tax had not increased since 1995 when that rate was set at 3 percent. The additional revenue from the tax increase will be used for infrastructure improvements including storm drains.
For more, call 227-6181, ext. 110.