By Glenn Rolfe

GEORGETOWN — A move to potentially rescind Sussex County’s lodging tax — a topic that has spawned recent division in County Council ranks — failed Tuesday.

And County Attorney J. Everett Moore Jr.’s legal interpretation — in response to the wave of debate sparked by Councilman Mark Schaeffer’s contention that the tax reinstatement was done in the “darkness of night” — was that the restoration of the fee was done so in accordance with previous council directives.

The tax was reinstated in July, with Gov. John Carney’s lifting of the COVID-19 state of emergency. Councilman Schaeffer’s remarks questioning the move were made during council’s meeting Oct. 26.

“It is clear to me from the transcript that the action that was being discussed was early reinstatement of the collection of the tax. It was not to abolish the tax, nor to extend the stay beyond the lifting of the state of emergency,” Mr. Moore said Tuesday.

On April 28, 2020, council voted to suspend the lodging tax collection until the state of emergency declared by Gov. Carney the previous month was lifted.

The tax was reinstated this summer, more than a month after a May 25 council meeting during which Councilman Schaeffer motioned to defer action to reinstate the tax before the state of emergency was officially ended.

Mr. Moore based his conclusion after reviewing transcripts of council’s action on the lodging tax.

“The only issue that was being discussed was whether or not to lift that early,” he said. “It wasn’t to do away totally. It was just lifting it early before the state of emergency was lifted.”

Councilman Schaeffer said he has a different view.

“The motion was made to defer the tax in my mind. It’s a very confusing issue. My perception — and if my perception is incorrect, I will apologize — but I can tell you that, again, it is my opinion that no reasonable person would agree that this reinstatement of the tax could not have been handled in a better fashion,” he said.

Councilwoman Cindy Green sided with Councilman Schaeffer.

“I do understand the tax. I clearly understand what a tax is. It is taking money from hundreds of people and giving it to another group of people. I clearly understood what was being mentioned,” she said.

Councilman John Rieley fired back.

“This whole two-week period of time has been unfortunate, in that this whole thing could have been discussed on dais openly in the light of day to begin with. Nothing was done in the dark of night, but rather, it had to go to the media, to be litigated in the media, rather than face to face,” he said.

“Councilman Schaeffer has been on the job for nearly a year and still shows a lack of understanding how the county budget operates. He has created a whirlwind of confusion by his own making because he chose to undertake a media blitz armed with misinformation to create unrealistic expectations … and smearing the integrity of this council in the eyes of the public.”

Councilman Doug Hudson, too, was bothered by the accusation that the tax was reinstated in the “darkness of night,” saying it was clear to him that the motion to defer was not on getting rid of the tax but about considering reinstating it ahead of the state of emergency lifting.

“It has just gotten ugly from there. I’m quite disgusted,” said Councilman Hudson, adding that in his 27 years with the Delaware State Police and since, his integrity has never been questioned. “I really detest being accused of doing that.”

Unanimously approved by Delaware’s General Assembly as House Bill 228,  Gov. Carney signed the bill on July 17, 2019, enabling Sussex County to enact the accommodations tax.

Sussex County Council approved it in November 2019 and it went into effect Jan. 1, 2020, authorizing the county to impose a local lodging tax of up to 3% of rent on rooms in a hotel, motel or tourist home in unincorporated areas of the county.

As spelled out in the bill, funds collected may only be used in Sussex County for the capital and operating costs of beach nourishment, waterway dredging, economic development, tourism programs, recreational activities and water-quality and flood-control projects.

At Tuesday’s council meeting, Councilman Schaeffer proposed a move to rescind the lodging tax entirely. That proposal, through a canvassing of colleagues, failed to gain a majority.

“I supported the tax when it was originally introduced,” said Councilman Rieley. “I favor pushing the tax burden of the citizens of Sussex County off to visitors who come here to take advantage of the amenities. They should help bear the cost.”

Councilman Hudson added, “I would say that that tax is for people that come here and use our infrastructure. I would not support rescinding.”

Council President Michael Vincent also said he would not support a move to rescind the lodging tax. The rescinding was supported by Councilman Schaeffer and Councilwoman Green.

“We heard a lot from people who have hotels, motels, in towns or cities and had the (local) tax. They thought they were being treated unfairly by the county because it didn’t have a tax, and it wasn’t a level playing field,” said Councilman Vincent.

With that, Councilman Schaeffer said he would not pursue the matter any further.

“I don’t want to cost the taxpayers any money by burning the attorney’s time. It is what it is,” he said. “I will leave it at that. I accept the consensus. Like I said, I am not here to waste anybody’s time.”

Councilwoman Green said the lodging tax thus far in 2021 has generated about a half-million dollars, money she said “could have, would have, should have been spent at the local restaurants that are suffering.”