Some Wary State Budget Woes Could Affect Delaware Property Taxes - WBOC-TV 16, Delmarvas News Leader, FOX 21 -

Some Wary State Budget Woes Could Affect Delaware Property Taxes

Posted: Updated:

DOVER, Del. -- Although Delaware itself does not have a statewide property tax, some residents are concerned efforts to address a projected $350 million budget shortfall may result in higher tax rates from counties and municipalities.

Gov. John Carney has said he is open to various revenue options amid spending cuts but has said he would prefer to not burden county and local governments through measures to balance the state budget. He is expected to make a formal budget proposal later this month.

Among the budget proposals made in January by outgoing Gov. Jack Markell (D) was giving the state a larger share of the realty transfer tax, which stands at 3 percent and is applied to many property transactions. Under that proposal, the tax rate would be increased to 4 percent, with the state receiving 2.75 percent instead of the 1.5 percent it currently receives.

The proposal also called for major changes like placing the entire financial responsibility for paramedic services on counties and increasing how much they would need to contribute to school bussing services. In turn, some worry the cost of maintaining those services may require counties, towns, and cities to bring in more revenue through taxes.

Carney has not committed to any particular tax proposals or spending cuts during town hall meetings around the state but uncertainty following Markell's proposal has caused some people to worry actions at the state level might have financial effects that trickle down to local governments. Additionally, he has pointed out that Delaware remains very competitive when it comes to other states in terms of property taxes.

Wyoming resident Lucinda Davis hopes the state considers cutting costs before placing a higher burden on towns and counties, which she believes could lead to local tax increases.

"I'd just tell them to cut back on something else," she said.

Hank Wells of Camden said he isn't too concerned about the issue of taxes going up because he said the cost of living is rising in many places. He said when relatives have visited from other states they are surprised to find Delaware's rates are lower than their local ones.

"They're up way, way high compared to what Delaware is," he said.

Delaware Association of Realtors President Bruce Plummer said he doesn't believe minor property tax increases will affect home sales, because the state enjoys natural advantages like beaches, modern hospitals, and no sales tax.

However, he said major changes could affect perception of prospective residents.

"We want to be careful that we don't do anything that would make Delaware less desirable and curtail home sales because home sales drive the economy," he said.

  • Most Popular StoriesMost Popular StoriesMore>>

  • Sussex County Drug Unit Arrests 14 in Drug Investigation

    Sussex County Drug Unit Arrests 14 in Drug Investigation

    08/23/2017 13:29:00 -04:002017-08-23 17:29:00 GMT
    Wednesday, August 23 2017 1:41 PM EDT2017-08-23 17:41:30 GMT
    Janie Handy, Jayquan Bland, Delane Jacobs; DSPDJanie Handy, Jayquan Bland, Delane Jacobs; DSPD
    SELBYVILLE AND FRANKFORD, Del.-- The Delaware State Police Sussex County Drug Unit has charged fourteen people following a three-month long drug investigation in the Pollybranch area of Selbyville.On Tuesday, DSP along with investigators from seven otherMore
    SELBYVILLE AND FRANKFORD, Del.-- The Delaware State Police Sussex County Drug Unit has charged fourteen people following a three-month long drug investigation in the Pollybranch area of Selbyville.More
  • Trial Nears for Alleged Leader of Delaware Criminal Network

    Trial Nears for Alleged Leader of Delaware Criminal Network

    Wednesday, August 23 2017 4:48 AM EDT2017-08-23 08:48:13 GMT
    Wednesday, August 23 2017 4:48 AM EDT2017-08-23 08:48:13 GMT
    Steven Kellam (Photo: Delaware State Police)Steven Kellam (Photo: Delaware State Police)
    A judge is holding a final case review in the prosecution of the alleged ringleader of an organized crime gang that operated in central and southern Delaware.More
    A judge is holding a final case review in the prosecution of the alleged ringleader of an organized crime gang that operated in central and southern Delaware.More
  • Following Lawsuit & Financial Turmoil, 2017 Punkin Chunkin Canceled

    Following Lawsuit & Financial Turmoil, 2017 Punkin Chunkin Canceled

    08/23/2017 11:33:00 -04:002017-08-23 15:33:00 GMT
    Wednesday, August 23 2017 11:33 AM EDT2017-08-23 15:33:27 GMT
    With less than 74 days until its annual event, The World Punkin Chunkin Association announced the 2017 Punkin Chunkin has been canceled following a series of financial turmoil and a lawsuit filed against the organization.More
    With less than 74 days until its annual event, The World Punkin Chunkin Association announced the 2017 Punkin Chunkin has been canceled following a series of financial turmoil and a lawsuit filed against the organization.More
  • Most Popular VideosMost Popular VideosMore>>

  • Neighbors React to Easton Recovery Home

    Neighbors React to Easton Recovery Home

    The Humble House has some neighbors like Michael Engels more than just worried.

    "The last thing I want to do is to find out there's a halfway house within walking distance from where my children will be playing and living," Engels said.

    Upset with what's just down the street, Engels says he's considering moving.

    More

    The Humble House has some neighbors like Michael Engels more than just worried.

    "The last thing I want to do is to find out there's a halfway house within walking distance from where my children will be playing and living," Engels said.

    Upset with what's just down the street, Engels says he's considering moving.

    More
  • Scheduled Jet to Land at Salisbury Airport Tuesday, Part 3

    Scheduled Jet to Land at Salisbury Airport Tuesday, Part 3

    It took more than two decades to get to the Salisbury Wicomico Airport to where it is. WBOC's Chris Weimer spoke with former airport manager Bob Bryant about the history of the airport's expansion.

    More

    It took more than two decades to get to the Salisbury Wicomico Airport to where it is. WBOC's Chris Weimer spoke with former airport manager Bob Bryant about the history of the airport's expansion.

    More
  • Following Lawsuit & Financial Turmoil, 2017 Punkin Chunkin Canceled

    Following Lawsuit & Financial Turmoil, 2017 Punkin Chunkin Canceled

    With less than 74 days until its annual event, The World Punkin Chunkin Association announced the 2017 Punkin Chunkin has been canceled following a series of financial issues and a lawsuit filed against the organization.

    More

    With less than 74 days until its annual event, The World Punkin Chunkin Association announced the 2017 Punkin Chunkin has been canceled following a series of financial issues and a lawsuit filed against the organization.

    More
Powered by Frankly

All content © Copyright 2000 - 2017 WBOC. All Rights Reserved. For more information on this site, please read our Privacy Policy, and Terms of Service, and Ad Choices