HB 51 – Accommodation Tax for Dewey Beach
Sunset in Dewey Beach by Ruth Noguerón, World Resources Institute, 2008.
Rep. Hocker (R-Ocean View) has introduced legislation to allow Dewey Beach to add a 3% accommodation tax on short term rentals. Sen. Bunting (D – Bethany Beach) is an additional sponsor.
Dewey Beach, like many communities, is finding that its budget is out of whack — approximately a $500,000 budget shortfall, but even worse, spending $200,000 more than expected. Back in September 2008, Commissioner Cook believed that the 3% accommodation tax could bring in up to $300,000 in revenue.
The Town Council of Dewey Beach is being very thorough with the proposed accommodation tax as they were making plans in October 2008 about how to collect and enforce the tax. Preparation is a good thing, but reading through the recent minutes, I didn’t find any mention of what plans Dewey Beach would put it in place if accommodation tax doesn’t get passed.
Dewey Beach will say that Rehoboth and Bethany both have the accomodation tax, but this arguement doesn’t work for my eleven-year old when he wants something that “everyone else has,” nor should it work for Dewey Beach. And I find it humorous that many full-time beach residents dislike us seasonal tourists, they do love to figure out inventive ways to take our money.
Tags: General Assembly
Wait a sec — you’re against this particular tax because it sets a bad example for your kids?
Look, I think the better tax would be on alcohol sold by the drink, in other words, a bar tax, since the town police dept. exists mainly to keep control of the drunks. But before I vote against this, I’d have to be shown how an extra $60 for your $2,000/week beach house is going to wreck your life — or, more to the point, your landlord’s.
Who goes to Dewey Beach anyway?
Great point Geeze.
So Geezer, by your logic, as long as the tax is small enough, it’s okay.
Why do the towns have to go begging to the legislature every time they want to do something new?
I’m sure El Somnambulo could shed some more light on this.
Nobody goes there anymore, it’s too crowded.
The reason that they don’t tax drinks is because it would affect the people that live there. An accomodation tax will only affect people that visit.
I am generally against this sort of tax, because it varies so much that towns (or counties) are incentivized the wrong way. This will encourage the town to promote rentals over owner occupied housing. This is just like NCC encourages development, since they make coin on the transfer tax.
Special tourist taxes are very popular in places that get alot of business or leisure visitors. Taxes on hotels, services in hotels, rental cars it is incredible how much in taxes traveling people are asked to pay. And they are asked to pay because they won’t stick around to complain and are a constituency only to get money from.
Taxes on transients is the kind of tax increase that lots of typically tax-hostile types can get behind, because no one will complain.
Unlike other taxes, it is also an avoidable tax.
It’s always easier to raise taxes on other people. That’s why these kind of taxes are popular.
It is avoidable if you can stay home all of the time. Those traveling for business certainly can’t avoid them.
“So Geezer, by your logic, as long as the tax is small enough, it’s okay.”
Well, in a word, yes. Frankly, taxes are OK as long as they’re fair and aren’t funding wasteful spending. If I’m going to fight taxes, I’ll stick to the largest, least fair ones, thanks very much.
Meanwhile, I’m lef to ponder what the “progressive” solution to the town’s budget shortfall would be — or, to be honest, whether Dave Burris has begun posting under your moniker.
Who, exactly, should pay the tax if not renters or drinkers or someone else using services for which the town government must pay?
“Those traveling for business certainly can’t avoid them.”
But, unlike us, they can write them off as business expenses — or their business can do the responsible thing and conduct the business over teh internets.
But, unlike us, they can write them off as business expenses
True, which is how they also get to be taxes that even the tax haters don’t give a damn about.
And there is lots of business that can’t be done entirely over the internet.
And there is lots of business that can’t be done entirely over the internet.
Especially in Dewey.
Seriously, is it a slow news day? The snow affecting your brain?
This is so not news.
What’s the alternative? A hotel type tax is a widely accepted resort type tax. It is fully avoidable, by staying in a hotel in a town nearby that doesn’t tax.
Will that happen? No.
Did i stay in New jersey when traveling NYC because the NYC hotel taxes were higher? No. The overall costs were cheaper.
The costs are built into the vacation, and, we are literally talking about $30 per family. That’s one T-shirt on the boardwalk.
Big fat whoop.
I live full time in Dewey and grew up here, and the real problem is that the town of Dewey Beach looks to Rehoboth and Bethany for example sof how to do things. The problem is, Dewey Beach is not Rehoboth and Bethany. Until they think outside of the box, the people who run this town will continue to run a deficit.
“Frankly, taxes are OK as long as they’re fair and aren’t funding wasteful spending.”
You mean, such wasteful spending as FIVE full time police officers on duty, mid-week and dead of winter? Or wasteful spending such as bonuses to town employees during a $700,000 budget shortfall? Or wasteful spending such as dealing with lawsuits because you have a “Town Manager,” “Building Official,” and “Town Attorney” who can all contradict each others approvals?
Gee, I hate wasteful spending of my tax dollars too.
couldn’t you cut the rent-a-cop / summer intern program for the Delaware police force just a smidge?
seems to me you could find some money there. OR you could put parking meters up
or you could raise property taxes
or you could get rid of the “land lease” thing and let people buy the land and the home all at once
nah
lets make a tax.
go figure a Republican too
If there was a tax on each bar drink, Bill Lee would be bankrupt within months.