Sussex County And Municipalities Weigh Hotel Tax - WBOC-TV 16, Delmarvas News Leader, FOX 21 -

Sussex County And Municipalities Weigh Hotel Tax

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SUSSEX COUNTY, Del.- Staying at a hotel or motel in Delaware's coastal towns and cities could soon be a little more expensive.           

Recently, Delaware's General Assembly approved separate bills allowing Sussex County, Rehoboth Beach, Georgetown, Seaford, Millville, and others to impose a lodging tax of up to 3% for renting a room in a hotel or motel. 

The local tax would be on top of the 8% state occupancy tax.                 

Many cities and towns say the tax could result in increased revenue, and it will be used for local improvements.

The Town of Georgetown is set to implement the tax by November 1.

Town Manager Gene Dvornick said, "The money will go into the general fund and then we will use it to do things like street projects, downtown beautification," he said.

The City of Rehoboth Beach plans to discuss the tax on Monday and already has a draft ordinance in place. The City of Seaford also introduced the tax proposal and it is set for a second reading come August 13.

But the Town of Millsboro says they will not be implementing the tax because it may deter business.

Assistant Town Manager Jamie Burk said, "Well we actually have several hotels in the pipeline and we have one that is in site plan approval right now, and there are several other ones on the sidelines, and we wouldn't want to do anything that would discourage them from coming to our town."

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