House to vote on bill allowing county lodging tax

(AP) — The state House is set to vote on legislation allowing Delaware’s most populous county to impose a new lodging tax.

The bill to be voted on Tuesday allows the imposition of a lodging tax of up to three percent for rental of a room in a hotel, motel or tourist home in unincorporated areas of New Castle County. If you’ve traveled on Del. 1 from Milford to Lewes, you’ve undoubtedly noticed the building under construction just off the highway. For months, the towering crane was hard to miss. This is the new Bayhealth Hospital, Sussex Campus, and its six-story presence is imposing for more reasons than one. The new fee would be in addition to the state lodging tax, which is currently 8 percent.

County executive Matt Meyer has called for the new taxing authority and for increases in property taxes and sewer fees to address what he calls a structural budget deficit.

The proposal has prompted state lawmakers to introduce separate legislation allowing any municipal government in Delaware to impose and collect a similar 3 percent lodging tax.

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