Legislation would tax short-term vacation rental units

DOVER — Lawmakers on Thursday introduced a bill to place a tax on short-term vacation rental units, including campgrounds and bed and breakfasts.

House Bill 130 would expand the already-existing 8 percent public accommodation tax placed on hotels. The state estimates adding it to other dwellings would bring in between $8-$11 million on an annual basis.

The tax would be allocated in the same way as funds collected from hotels: 5 percent would go to the Delaware General Fund, 1 percent would fund the Delaware Tourism Office, 1 percent would cover beach preservation and 1 percent would go to convention and visitors’ bureaus in each county.

A short-term rental unit is defined as a place used for no more than 120 days.

“I am typically the last person to want to impose any kind of tax in Delaware,” main sponsor Rep. Deborah Hudson, R-Hockessin, said in a statement. “However, in this case, I think the circumstances are different. This is a tax that is not being collected equally.

Read more: http://delawarestatenews.net/government/legislation-tax-short-term-vacation-rental-units/