Lawmakers propose bill allowing county lodging tax

DOVER, Del. – Democratic lawmakers have introduced a bill allowing Delaware’s most populous county to impose a new lodging tax on hotel and motel rooms.

The bill introduced Thursday would allow the imposition of a lodging tax of up to three per cent for rental of a room in a hotel, motel or tourist home in unincorporated areas of New Castle County.

The new fee would be in addition to the state lodging tax, which is currently eight per cent.

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.

Officials estimate the new lodging tax would generate about $3 million in additional revenue annually.