If Delaware state representative, Deborah Hudson, and state senator Gary Simpson have their way, people who rent campground spaces, and people who own short-term rental homes will soon have to pay an eight percent tax on every guest.
They will be introducing it in a legislative bill. The tax would apply to short-term vacation rentals which are 120 days or less.
Delaware speaker of the house, democrat, Peter Schwartzkopf believes the beach area is a direct target of the proposed bill.
He said, "It solely goes after the beach area and the tourism industry. We have a thriving tourism industry around here, and this will hurt it. Taking eight percent out of the pockets for people who provide housing come here and spend money."
Jack Lingo Realtor Jo-Ann Bacher thinks this would most certainly hurt business in the beach area.
"It would affect business for us dramatically I feel. There are already a lot of owners that rent their homes individually and do not pay any city tax. They certainly would not pay this lodging tax. So I think that would negatively impact real estate agents," said Bacher.
Even though Schwartzkopf does not like the proposed bill, he's happy republicans are trying to do something to stop the state's deficit.
"The thing I think is really interesting is we have two republicans who are sponsoring a bill trying to raise taxes, which makes me feel very good because we have a huge deficit coming up and we will be having to raise revenue," said Schwartzkopf.
He just believes there are other ways to go about doing it. Bacher agrees because she does not want to lose clients because of a lodging tax.
She said, "At some point are just going to start going elsewhere and that would have a dramatic financial impact on the whole area."
The proposed legislation calls for most of the eight percent tax to go to the general state fund.