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Hospitality & Entertainment News

Dover City Council approves 0.5 percent lodging tax

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Dover City Council has approved a 0.5 percent lodging tax on hotels and motels within the city. The initial rate will become effective in 2020 and then increase incrementally to 1.5 percent by 2022.

The ordinance to impose the tax was debated amid a larger debate over the lodging tax burden in Kent County.

The Kent County Levy Court is still considering an additional 3 percent tax on hotels that would funnel revenue directly to the DE Turf Sports Complex. In addition to the existing state-wide lodging tax of 8 percent, Dover visitors could pay up to 14 percent extra on their hotel bills.

Some hotel operators within Dover have expressed concerns that the combined tax burden would hurt the hospitality industry in the state capital.

State legislation passed in June enabled the county and municipality to raise their lodging tax rates.

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