Dover Council Rejects Tax Hikes - WBOC-TV 16, Delmarvas News Leader, FOX 21 -

Dover Council Rejects Tax Hikes

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(Photo: WBOC) (Photo: WBOC)

DOVER, Del. (AP)- The Dover City Council has rejected three proposals to raise property taxes to address projected shortfalls.

The proposals were voted down at a budget hearing Wednesday. 4 of the six council members present voted for the tax hike, but the measure requires a five-vote majority of the nine-member council to pass.

A city staff proposal would have added 3 cents to the property tax rate of 33.78 cents per $100 of assessed value. A budget submitted by staff is balanced without a tax hike, but relies on moving unspent money from the current year to account for a projected revenue shortfall and deferring infrastructure improvements.

The city's general fund relies heavily on real estate transfer tax and building permit fee revenue and has suffered since the housing market collapse.

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