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.
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The Lewes City Council is presenting two ordinances Feb. 27 to look at amending the city’s taxation policies, implementing a 2 percent lodging tax and modifying the gross receipts tax rate for rental properties.
Lewes is preparing its fiscal year 2026 budget. Proposed changes under consideration are a 20% increase in the real estate tax, expanded revenue collection from rental receipts tax, and the introduction of a lodging tax.
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.
Beyond the tax discussions, the council is also set to explore the regulation of marijuana-related businesses within Lewes
Two ordinances that would raise the cost of operation for Lewes hotels and short-term rentals have public hearings scheduled for this July.
Millsboro and Millville could be given the authority to implement a hotel tax if two bills introduced in the Delaware State Senate becomes law.
Lewes is considering increasing its Gross Receipts Rental Tax on short-term rentals from 5 to 6 percent and adding a 3 percent lodging tax for hotels.