LEWES, Del — City officials in Lewes are continuing the process of creating a 2 percent lodging tax that would apply to hotels, motels and tourist homes. The next step is a public hearing scheduled for 5:30 p.m. on Monday. The ordinance was reviewed by the Lewes city council in February.
If adopted, the tax would not apply to reservations made before Jan. 1, 2026, giving the hospitality industry and travelers time to adjust.
Under the proposal, the 2 percent tax would be assessed on the rent for any occupancy in hotels, motels or tourist homes in the city, as defined under Delaware Code. The revenue generated would be paid directly to the City Manager’s office each month, due by the fifteenth day of the month following rent collection.Â
Hotel operators or their agents would be required to file monthly rental tax reports, using forms issued by the City Manager’s office. The report contents would remain confidential under applicable law.
Failure to file or remit the tax on time could result in penalties, including:
Interest at 1.5 percent per month on any unpaid tax
Fines ranging from $50 to $500 per day
Denial of rental license renewal for noncompliant properties
Responsibility for the city’s legal costs, including attorney's fees
CoastTV spoke with a Lewes local who believes the new tax wouldn't change much. "I don't think it's going to make a difference. It's a very desirable place to come and visit. It's a great community. There's a lot of history here," said Joanne Meloro.
No decision was made during the public hearing on Monday, April 7. The city says the write-in comment period is open until May 2 at 4 p.m. It is not clear when the council will next discuss the lodging tax.
