By Benjamin Rothstein

DOVER — Hoteliers erupted during a Kent County Levy Court meeting last month, after commissioners adopted a resolution that asks the state for a county lodging tax that would stack on top of municipal lodging taxes, without a public hearing.

The shouting attendees were told by Levy Court members that a public comment period was reserved at the end of the meeting; however, none of the opponents stayed, presumably because the resolution had already passed. Levy Court has since noted that though no public hearing was required for the resolution, the public comment section was supposed to take place at the beginning of the meeting and forgotten and moved to the end due to an oversight.

Though he did not speak out during that March 26 gathering, Hilton Garden Inn Dover general manager Cliff Weber was in attendance. He’s now explaining why hotel administrators are against the proposal.

“I think it was kind of done without a lot of public comment. And it was done because Dover has a deficit on its budget, (and) it’s going to the general fund, which is my understanding,” said Mr. Weber, referring to the capital city’s recent lodging tax increase from 1.5% to 3%, taking effect July 1. That move spurred discussions by Levy Court to implement a lodging tax of its own.

Dover’s and Kent County’s lodging taxes would be in addition to an already established 8% state fee. In addition, Delaware law requires that the first 1.5% of any city’s or county’s lodging tax be put toward state infrastructure.

Dover’s increase happened because, at the previous 1.5% tax rate, the city claimed it had no recourse to collect if a hotel simply decided not to pay. Setting it to 3% allows the state to collect it. Mr. Weber, however, said that problem is overblown.

“I’ve never felt that (the tax was optional). And we have paid the one-and-a-half percent since the day it was enacted,” he noted. “This may be oversimplifying it, but (there should be) a spreadsheet that lists all 23 hotels in town, and you mark off which hotels sent you their tax each month and those that didn’t. You know, we have city licenses, ... (so) put a penalty on them, not (allowing them) to renew.”

The 3% from Dover, the potential 3% more from the county and the state’s 8% would create a total lodging tax of 14% in city limits. Mr. Weber said this would damage his bottom line.

“If you take a $239 rate, and you pull out your 7%-10% commission or a possible rebate — which most groups (staying in conjunction with sports events at DE Turf) have a rebate of some sort — and then tack on a 14% (tax), that takes our $239 rate to the upper $160s. That’s a big chunk,” he said, adding that teams participating in games at DE Turf bring in a large bit of his hotel’s revenue.

He also said the tax has a major blind spot.

“We feel that it could push more people to VRBO and AirBnB, of which there are dozens and dozens in Kent County. And I’ve never personally understood why those are not subject to a lodging tax,” Mr. Weber said.

“If (Kent County) wants to try to get some additional revenue, try to go after a point or two on (the home rental) side. Don’t keep hitting the hotels because you can’t balance your budget."

He also believes an additional county lodging tax could drive people away from Dover for less expensive accommodations.

“I feel like there definitely should be a consideration back to the hospitality industry. We’re going to be taxed and collected. You’re taxing our people or guests that are coming to the market. I think there should be something that helps drive back tourism to our market.”

Levy Court members say they hope state legislation will address their proposed lodging tax soon.