New Castle County Approves Lodging Tax

by Super User

The New Castle County Council approved a lodging tax that would apply to unincorporated sections of the county. The council approved the measure at their Tuesday, July 12 meeting. The county’s lodging tax was authorized by House Bill 377 which was recently passed and signed into law by Delaware Governor John Carney and it allows the county as well as municipal governments to enact their own lodging tax.  The tax is expected to add $2.4 million of revenue to New Castle County in Fiscal Year 2019 and then $3.1 million and $3.2 million in 2020 and 2021.  

The lodging tax comes on the heels of the county raising property tax rates by %15 to be phased in during the next two years. The Delaware Hotel Lodging Association fought against the tax hike claiming that the increase in the price of hotel rooms would lead to fewer people staying in New Castle County hotels. They also claim that the tax would leave a sour impression on tourists who stay in Delaware and lured in by the state’s claim of no sales tax.

The lodging tax is expected to go into effect for the county on August 1. The Town of Middletown tabled a vote on their lodging tax in July, but is expected to pass their own lodging tax in August.

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