The Newark City Council unanimously approved a resolution to impose a room tax of up to three percent.
The resolution came as legislation was introduced that would allow municipalities to impose a room tax of up to three percent.
The legislation came after New Castle County proposed a three percent tax.
If the full three percent tax is imposed, hotel guests would pay an 11 percent room tax.
Supporters argued that the tax would be comparable to the amount levied in the region.
The lodging industry argued that the tax would hurt a key industry that provides needed jobs to the area and put hotel owners at a disadvantage in comparison to hotels in the state’s other two counties.
The lodging tax is already a surprise to many visitors who have long been told about the state’s sales tax-free status
It is possible that Kent and Sussex counties might impose their own taxes at some point.
The county and municipality tax plans are now before the General Assembly.
Click here for the Newark resolution.
Also see Delaware Business Now’s view of the tax in the opinion piece below:
