Low property taxes reduce cost of living
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Thanks to its low property taxes, Sussex is one of the most affordable places to live in the country. |
Sussex County's gorgeous scenery - from sunsets on the beach to beautiful views of the Nanticoke River - is easy on the eyes, as well as the wallet.
Thanks to tax-free shopping at the Rehoboth Beach outlets and other stores, consumers do not see sales taxes added on to their purchases.
Businesses, whether momand-pop markets or large retailers, also do not have to pay additional county taxes.
The property tax also is low. In fact, it is based on a 1974 assessment of a home's value.
Robert L. Stickels, the county administrator, said that means homeowners are only taxed on about 15 percent of their property's current-market value.
Homeowners pay 44.5 cents for each $100 of assessed value.
"We feel we are as affordable as any place in the nation," Mr. Stickels said.
He said the county has been able to keep the property tax low because of large revenues from the realty transfer tax, which is assessed on property sales.
The booming real-estate market in Sussex County has generated enough realty transfer tax proceeds that the county does not rely on the property tax revenue to pay for large building projects.
Construction projects, Mr. Stickels said, are financed using realty transfer tax revenue to keep the county's debt burden low. Having little debt protects the county and its taxpayers in case the economy stalls and the realestate transfer tax revenue stream dries up.
"We have been using the realestate transfer tax for capital projects to help reduce costs and reduce debt, so if the economy does slow, we do not have debt hanging over our heads," Mr. Stickels said.
"I don't think there is any other place in the country our size that can say that," he said.
The county can keep residents' property tax rates low because it does not use revenue from that tax to fund services.
"We adjust all our fees for services every year," Mr. Stickels said.
"We make sure they are paying for themselves. We do not want to take money from someone on a fixed income to subsidize a service for someone else."
In case the economy turns bad, Sussex Countians should not expect to see their property tax bills go through the roof.
Mr. Stickels said he and other county officials would look at tightening the government's belt and cutting spending instead of asking the residents to pay higher taxes.
"We feel there is funding in our budget that we could reduce before we would raise taxes," Mr. Stickels said.
"If you have a slowing economy and you start raising taxes, that could be detrimental to businesses. It could slow the recovery of the economy."
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