Rehoboth Beach considers new lodging tax
REHOBOTH BEACH, Del. – A possible new lodging tax may be coming to Rehoboth Beach.
Currently, the state has an 8% tax on hotels, motels, and tourist homes. But the city’s mayor, Paul Kuhns, is proposing a local lodging tax of up to 3%. We’re told the current lodging tax does not go back to Rehoboth Beach.
Breakdown of where that 8% goes to:
- 5% goes to the General Fund
- 1% goes to tourism
- 1% goes to local chamber of commerce
- 1% goes to beach replenishment
If this tax were to be put in place, the city could generate $500,000 to $1 million dollars, which would go straight to city services.
Mayor Kuhns tells 47 ABC, “The costs of the services that we provide the city and our visitors, as well as our residents, go up every year. People love to come to here and we get more and more crowds and we’re trying to spread the expense to maintain the city.”
The state has suggested that if municipalities want to add an accommodations tax, they could ask to change their specific local charter to do it. And that’s what Mayor Kuhns is proposing, to change their charter to allow the city to impose a tax at some point in the future. The council will be voting on that charter September 21st.
