House to vote on bill allowing county lodging tax

DOVER, Del. – 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 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 8 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.

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