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Lewes City Council Proposes New Lodging Tax Increase

LEWES, DE — In a recent meeting, the Lewes City Council made a proposal to implement a new 3% local hotel lodging tax. Additionally, they suggested raising the current Gross Receipts Rental Tax for short-term rentals from 5% to 6%.

Rick Quill, owner of the Blue Water House Hotel for over 20 years, voiced his opposition to the proposed tax hike. He expressed concerns about continuously burdening guests with additional costs and the impact it would have on his business.

Scott DeKuyper, owner of Hotel Blue, shared Quill’s sentiments and highlighted how increasing costs were putting pressure on profit margins. He emphasized that higher taxes ultimately eat into the bottom line of businesses.

Rehoboth Beach, for comparison, charges hotels, motels, and tourist homes a 3% local lodging tax, with a 7% gross receipts rental tax rate.

Quill and DeKuyper suggested exploring alternative revenue-generating options for the city, such as adjusting property taxes. Quill emphasized the importance of considering a more equitable distribution of taxes across the board to address revenue shortfalls.

Lewes City officials have announced plans to hold public hearings before making a final decision on the proposed tax increases.

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