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Rehoboth Beach

The City of Rehoboth Beach has passed a 3% lodging tax. 

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REHOBOTH BEACH, DE (August 19, 2019) - In accordance with 22 Del. C. 811, during the September 21, 2018, regular meeting, the Mayor and Commissioners authorized a Bill to amend the City Charter to allow the City to impose a lodging tax of no more than 3 percent of the rent on hotel, motel and tourist home rentals in the City of Rehoboth Beach. The lodging tax provides a more equitable means to recover the cost of services from tourism and not pass along these costs to residents.

On May 8, 2019, the Delaware General Assembly introduced Senate Bill No. 86 which authorized the City of Rehoboth Beach to impose up to a 3 percent tax on public accommodations. On July 17, 2019, Governor Carney signed the bill into law and on August 16, 2019, the Board of Commissioners amended an ordinance, which creates the local lodging tax of 3 percent. The tax is effective January 1, 2020, and is applied to any reservation made in which lodging occurs on or after January 1. In the Fiscal Year 2020, which ends March 31, the City anticipates $113,000 in revenue. The City of Rehoboth Beach’s lodging tax aligns with the State of Delaware’s Public Accommodations Tax. As such, Rehoboth Beach’s lodging tax incorporates the State Public Accommodations Tax’s definitions and exemptions. For information about the State of Delaware’s Public Accommodations Tax, please visit revenuefiles.delaware.gov/docs/hotmot.pdf which provides background on key provisions. The City will provide lodging operators with information related to the tax that is specific to the hotel and motel industry to help understand the new sales tax responsibilities. For more information, please contact the Communications Department at 302-227-6181 ext. 522 or communications@cityofrehoboth.com.