LEWES, Del. – City officials in Lewes are advancing the creation of a 2 percent lodging tax on hotels, motels, and tourist homes, with the next step being a public hearing scheduled for 5:30 p.m. on Monday. The proposed ordinance was reviewed by the Lewes city council in February. If passed, the tax would not apply to reservations made before January 1, 2026, allowing both the hospitality industry and travelers time to adjust. The tax would be levied on the rent for any occupancy in qualifying lodging facilities in the city, as defined under Delaware law.
The revenue generated from the tax would be submitted monthly to the City Manager’s office, due by the fifteenth day of the month following the rent collection. Hotel operators would be required to submit monthly rental tax reports using forms provided by the City Manager’s office. These reports would be kept confidential under applicable laws. Failure to file reports or remit the tax on time could lead to penalties, including interest on unpaid taxes at a rate of 1.5 percent per month, fines ranging from $50 to $500 per day, denial of rental license renewal for noncompliant properties, and responsibility for the city’s legal costs, including attorney’s fees.
Check out the taxes in places like Florida. We just rented a place that included a 12% tax on the rental price and the cleaning fees. And, remember, even if the room costs $500 a night, 2% is only $10. I doubt that would discourage somebody from renting the room. PLIUS – in Florida not only do you pay that 12% you pay a sales tax on every thing.