DELAWARE-Â Â A new bill would make the lodging tax that applies to hotels and motels, apply to short term rentals. It would also require short-term rental owners to apply for an occupational license and pay a $25 fee.
According to realtor Sharon Palmer-Stauffer, rentals outside of town and city limits currently do not have to pay a lodging tax, while rentals within town limits do. Palmer-Stauffer thinks the bill is a bit much, but every property owner should pay their share.
"In so many of these municipalities, there has been so much growth on the exterior that those folks aren't paying anything to help take care of the traffic issues, the lifeguards, trash and all the other things that comes with short term rentals," she said.
But short-term rental owner David Weidner how some concerns that this bill would keep people from coming to Delaware's coast for vacation.Â
"It would affect short term rentals," he said. "You know, people wanting to spend more money... where they had not to spent that much money before. So now that's an additional expense for them. And it might affect their decision to to return every year."
The bill states it authorizes Sussex County to impose a tax of no more than 3 percent. We asked and county government says it currently has no stance on the bill.Â
House Bill 168 was released from the Revenue and Finance Committee on Tuesday and awaits a hearing in the House.