peel back effect
OPINION

Lee: Is councilman’s two-tier tax system fair?

Posted

After Sussex County Councilman Matt Lloyd initiated discussion about a two-tier tax system, in which permanent residents of Sussex County would get a tax break, I could hear the owners of second homes crying foul, saying they pay for the infrastructure but do not use it yearlong. I understand their argument. Here are my perspectives:

  • The infrastructure improvement/expansion cost may grow by a steady, gradual pace — until it hits the saturation point, nearing the maximum capacity of the current infrastructure. For example, when it becomes necessary to add a power substation or power plant, construct a waste treatment facility, widen an environmentally sensitive bridge to accommodate additional travel lanes, build a fire/emergency medical services station or find drinking water sources, etc., the improvement costs skyrocket, and the burden of the expansion becomes unfairly high for the current residents.
  • Nonpermanent residents do not contribute to the local economy on a regular basis, as permanent residents do.
  • Their vacant, underutilized homes aggravate the affordable housing crisis by taking up the housing stock, which possibly drives up housing prices.
  • This point is a considerable one, though it applies to all nonpermanent residents of the state, not only of Sussex County. Permanent residents of the state are counted in the decennial census, which is used to allocate U.S. House of Representatives seats. If owners of second homes had been registered as permanent residents of Delaware in 2020, we could have very well ended up with another House seat by now, which is a huge step for Delaware — from one seat to two! So, nonpermanent residents do not help or participate in Delaware’s representation to the federal government. This may affect federal grants and other programs.

It was intriguing that the young (30-year-old) Councilman Lloyd, who I think may have some higher political aspirations, made a bold and risky motion for a moratorium on large-scale subdivisions soon after getting on council in January. So, I am watching and listening to what is on his mind and where he is inspired to take us in the future.

Eul Lee

Lewes

Reader reactions, pro or con, are welcomed at civiltalk@iniusa.org.

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