Rehoboth Moves Forward with Hotel Tax - WBOC-TV 16, Delmarvas News Leader, FOX 21 -

Rehoboth Moves Forward with Hotel Tax

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REHOBOTH, Del. -- The board of commissioners decided to move forward with a three percent lodging tax on hotels, motels and tourists homes in Rehoboth on Monday. 

The tax will be applied to hotels, motels and tourist homes (rental homes with five or more rooms). This tax is in addition to the already existing eight percent state tax on hotels. Guests will be charged the tax if their stay is scheduled after the tax is implemented. 

The tax is set to go in effect January 1, 2020 and will be collected on a monthly basis. 

The city manager said the tax will create an estimated $886,000 a year in revenue. Rehoboth Mayor Paul Kuhns said the additional revenue will benefit the city. 

"Right now, it will just go directly into the general fund for the general services around the city like street paving, water and sewer repairs, police and whatnot," said Kuhns. 

Janice Vandenberg and her family have spent a week of the summer at Rehoboth Beach for eight years. After she found out about the tax, she's reconsidering her plans for next summer. 

"We would definitely have to think twice. Especially if we stay or going away for a week at a time, we would probably have to shorten that," said Vandenberg. 

 City officials also said that the hotel tax could level the playing field for hotels outside of Rehoboth that are farther away from the beach. But owner of the Summer Place Hotel, Dan Miller disagrees. 

"Well, I think less people will be coming in town. We've had less occupancy in town since they raised everything. The first two weeks of August used to be packed," said Miller. 

The commissioners will formalize the tax on August 16th at the next public hearing. 


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