Sussex County Short-Term Rental Tax Information

Posted by Leslie Kopp & Christi Arndt on Tuesday, December 10th, 2024 at 11:32am

Most Recent Update:

The proposed 3% tax on short-term rentals in unincorporated areas of Sussex County was defeated during the County Council public hearing and meeting on Tuesday, December 10th 2024.  This win reflects the collective effort of the Sussex County Association of Realtors and its members, who worked diligently to highlight the potential negative impacts of the ordinance on homeowners, renters, and the local economy.

 

A short-term rental tax has been proposed in Sussex County, Delaware. Please take a look at the information below if this might affect your beach property or to learn more.  

Sussex County has entered an ordinance that will add a 3% rental tax to any short-term rental that is in an unincorporated area. This includes any area outside of city limits (North Bethany, Selbyville ext.)  Nearly 50% of short-term rentals in Sussex County lie in unincorporated areas.

On December 10th, 2024, at 10 AM at The Sussex County Council Chamber on the Circle in Georgetown there will be a meeting to discuss this ordinance. We encourage homeowners and agents to speak up on how this will affect Sussex Counties economy in a negative way.

Currently there is still no link to purchase an Accommodations Intermediary License. This will be updated at tax.delaware.gov and revenue.delaware.gov. Though no date was given, it is suggested to check over the next few weeks. As we have more information we will share it with you.

Credit to: Coast TV

"As the old saying goes, nothing is certain but death and taxes, and now Sussex County is considering a new method to collect more of the latter. The county is considering a 3 percent tax on short-term rentals on Tuesday.

If the council moves forward with this idea it would place a 3 percent tax on short-term rentals in unincorporated areas, in other words, areas that are not within city or town limits throughout Sussex County. 

According to the state a short-term rental counts as any rental with a stay of 31 nights or less. Sussex County already has a 3% lodging tax for hotels and motels. So far that has been a profitable program, generating around $3.4 million dollars since its inception in 2020.

As is the case with any suggestion of a tax increase, some people are unhappy about it. Adriane Gallagher, the president of the Sussex County Association of Realtors thinks that the additional 3 percent charge will hurt the local economy.

“Any type of short-term rental is not only bringing in people to stay in a vacation home but they’re also going out to restaurants, they’re using our local services,” she said. “There’s a cumulative impact when you take people away from our area, and having extra taxes could potentially do that.”

These short-term rentals are already taxed by the state at a rate of 4.5 percent and this additional county charge would bump that number up higher. 

Tuesday the Sussex County Counsel will consider this new proposal and then they will decide whether to advance to the next step or to scuttle it all together."

 

Additionally, below we have included a letter from the Sussex County Association of Realtors President, Adriane Gallagher:

 

If you are considering the possibility of a sale or purchase in the Bethany Beach area, please contact our office to discuss your options: (302) 541-5207

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