Smyrna times., 1958-07-03
Letter to the Editor
Editor
Smyrna Times
Smyrna, Delaware


Smyrna, Delaware
Dear Editor:
When the assessed value of
real estate for town taxation
was changed from forty percent
to one hundred percent of its
sales value, this caused an in
crease of one hundred and fifty
percent in the taxable value of
property. The Town Council can
change the tax rate at will. Last
year the rate was reduced from
one dollar per hundred to forty
cents per hundred, so the effect
of the increased tax base was
not apparent. However, a state
restriction was Impressed setting
a limit of fifty cents per hun
dred. This year, because of the
Towns heavy bond debt, the
Town Council increased the tax
rate to fifty cents per hundred.
The big jump in the money
value of the tax caused by the
increased tax base is now ap-
parent to all owning real estate.
1t is to be noted that the capita
ton tax was not increased, so
those who do not own real pro-
perty are not Immediately af-
fected.
Let me summarize an extract
from Section IA of the charter
of the Town of Smyrna:
The Town Council is author
lied to levy and collect such
sum of money as is deemed me-
cessary and proper for the gen
eral municipal needs, which
sum in no year shall exceed f1f-
teen thousand dollars net. Pro-
vided that the Council may levy
and collect such additional tax
es in any year as may be neces-
Sary to pay the interest due on
outstanding bonds or to retire
said bonds, or to create an ade-
quate sinking fund reserve for
the retiring of bonds.
1t is my understanding that
none of the money derived from
taxes is expended for general
town purposes, but that all of it
is applied against the bond ac-
count.
1t is my further understand
ing that the General Municipal
Needs are paid mainly from
what are termed profits obtain
ed from the resales of electric
current purchased from Della
ware Power and Light II is not
clear that the Electric Depart
ment is a selfsupporting bust
ness. Funds for the purchase of
certain equipment and supplies
may have been provided for in
bond issues and not charged to
operating expenses. This matter
of profits should be clarified.
/ would like to know, and |
am sure many citizens of Smyr-
ma would like to know, what
the restriction limiting taxation
for General Municipal Needs to
fifteen thousand dollars is in
tended to mean. Is the billing of
electric current at rates to Gre
ate a profit sufficient to sup
plant direct taxation, a hidden
tax which gets around this linn
iting clause in the Charter?
1t is likely that new hous-
ing developments have influenc-
ed the increase in the Smyrna
Real Estate Tax. The increase is
attributed to the need of meet
ing the cost of Smyrna's large
bonded debt. Costly municipal
facilities such as sewers, water
electricity, drainage, and roads
must be provided for new hous
ing developments. Many of the
bonds in the current bond deb
account contain provisions fol
funding extensions to sewer
water, road, and electrical sys
TENS. Also, the housing addi
tions have increased service.
furnished for garbage collec
tions, fire protection, police pro
lection, and office administra
ton. None of the additional ia
cilities and services provided
benefit the property owners al
ready established in Smyrna
yet these established owner.
must pay by far the larges
share of the increase in take:
imposed by the Town Council tt
finance future revenues above 6
deficit level threatened by the