Delaware General Assembly

Passed 6/27/24

Ready for Governor for action

HB 168

6/24/24

K. Williams

Sen. Mantzavinos

AN ACT TO AMEND TITLES 9 AND 30 OF THE DELAWARE CODE RELATING TO LODGING TAX.

House Bill No. 168 creates a short-term rental lodging tax at the rate of 8% of the rent upon every occupancy of a short-term rental within the State. For purposes of collecting the lodging tax on short-term rentals, HB 168 creates an occupational license for a short-term rental listing service. It also authorizes New Castle and Sussex Counties to impose a lodging tax of no more than 3 percent on short-term rentals. House Substitute 2 to House Bill No. 168 is primarily different from House Bill No. 168 in that it decreases the tax rate on short-term rentals and uses different terms and definitions to identify the individuals responsible for collecting short-term rental taxes. Specifically, House Substitute 2 to House Bill No. 168 makes the following changes: (1) Requires accommodations intermediaries to obtain an occupational license and pay an annual licensing fee of $25.00; (2) Ensures that accommodations intermediaries are responsible for the collection and remittance of taxes under this Act and clarifies responsibilities for the collection and remittance of the tax; (3) Defines an accommodations intermediary; (4) Decreases the short-term rental tax rate from 8% to 4.5%; (5) Establishes the short-term rental tax in a new chapter within Title 30; (6) Clarifies that short-term rental taxes will be distributed as follows: 62.5% to the State General Fund; 12.5% to the Beach Preservation Fund of the Department of Natural Resources and Environmental Control; 12.5% to be designated in the proportion in which collected, to the duly established convention and visitors bureau in each county; and 12.5% to the Delaware Tourism Office; (7) Adds the Georgetown, Millsboro, Milton, Milford, and Western Sussex Chambers of Commerce to those organizations that determine the Sussex County Convention & Visitors Bureau; and (8) Updates effective dates for licensing, tax levy, and related obligations.

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Takes effect upon being signed into law

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