SUSSEX COUNTY, Del. - On Tuesday, October 29, Sussex County Council will discuss a proposed ordinance to implement a 3% tax on short-term rentals in unincorporated areas of the county. While a countywide lodging tax is under consideration, many parts of Sussex County already have similar taxes in place.
A similar ordinance was introduced in 2019 but was suspended due to the COVID-19 pandemic.
Adriene Gallagher, an agent at Berkshire Hathaway, explained to CoastTV how this tax could impact local businesses.
“It invariably is going to hurt the economy. The fewer people you have coming to the area to vacation, the less money you have flowing through the economy. Restaurants, retail shops, and other services will all suffer if there are fewer tourists in the area,” she said.
During the period the lodging tax was suspended, Sussex County collected about $1 million annually from hotels and motels in unincorporated areas. Revenue from these taxes is used to fund affordable housing and beach replenishment projects.
The Sussex County Council meeting is scheduled for 12:30 p.m.
