The Delaware Hotel & Lodging Association has issued strong objections to a proposal that would add a New Castle County room tax.
County Executive Matthew has proposed a lodging tax of up to three percent for hotels in New Castle County. The City of Wilmington already levies a two percent tax.
Meyer said the tax is needed to plug a budget gap in the county. Meyer has also proposed a 15 percent increase in property taxes to plug a $20 million budget deficit that would eliminate budget reserves.
State Sen. Margaret Rose Henry, D-Wilmington and state Rep. Byron Short, D-north Wilmington co-sponsored legislation that if passed would allow the county to levy the tax. Both Henry and Short are not seeking re-election:
According to the association:
- The 38 percent increase in the lodging will impact the competitiveness of the hotel industry and cost us business, as will be higher than surrounding areas
- Loss of business will impact our ability to create and maintain jobs, many at entry level positions.
- New hotel development will slow down, resulting in fewer new jobs and property taxes for the County
- New Castle Executive and Council are pushing for a maximum tax increase with no mention of any allocation for tourism marketing, many counties allocate all or most of the lodging tax to add marketing dollars to tourism, New Castle County is taking all the money.
- There is no mention of addressing AirBnb, the operator of illegal hotels in Delaware that unlike hotels does not pay a lodging tax.
- Ignores the fact the legislators proposed taking all the tourism marketing dollars for the three counties, despite existing law. The lodging industry needs assurance that will never happen again. Only at the last minute was that funding restored.
- The lodging industry also noted the Wilmington 2 percent tax that was supposed to be for “two years and expire” and now is the law for ten-plus years.
- An overall lack of trust in the word of government has hurt the industry’s relations in the state, and now the New Castle County Executive and Council.
