By Glenn Rolfe

GEORGETOWN — About 14 months ago, Sussex County discontinued accommodations tax collection with the arrival of the COVID-19 pandemic.

It remains suspended until further notice.

Sussex County Council by a 4-1 vote at its May 25 meeting deferred reinstating the accommodations tax – a local lodging tax of up to 3% of rent on rooms in hotels, motels or tourist homes in unincorporated areas of the county.

District 3 County Councilman Mark Schaeffer’s motion to defer drew support from council colleagues Cindy Green, Doug Hudson and John Rieley. County Council President Michael Vincent voted against the motion to defer.

At its April 7, 2020 meeting, council suspended the accommodations tax collection.

“At that time, the council voted to suspend the accommodations tax until the governor’s declaration was lifted,” said Sussex County Administrator Todd Lawson. “As restrictions are currently being modified and lifted, the council could consider reinstating the tax collection since it’s unclear when the governor will end his state of emergency declaration.”

The Centers for Disease Control and Prevention’s relaxed guidelines regarding facial coverings and social distancing requirements and Delaware’s vaccination efforts warranted the lifting of some recent restrictions in Gov. Carney’s state of emergency.

“I don’t think the timing is appropriate to even discuss a possible tax increase,” Mr. Schaeffer stated in calling for the motion to defer.

The accommodations tax came into being in July 2019 when the Delaware General Assembly enacted House Bill No. 228, which Gov. Carney signed into law July 17, 2019.

Sussex County in turn enacted the ordinance on Nov. 12, 2019 for the 3% lodging tax to be effective on Jan. 1, 2020.

With council’s action to suspend collections, funds that would have been collected on April 15 would have been for March, according to Sussex County Finance Director Gina Jennings. Therefore, the county collected only January and February for a total of $49,957.86, Ms. Jennings said.

In Sussex County, accommodations tax funds may only be used for the capital and operating costs of beach nourishment, waterway dredging, economic development, tourism programs, recreational activities, and water quality and flood control projects.