First State Times

Further cementing its "go-slow" approach to a proposed lodging tax, the head of the local tourism group called on Kent County officials to authorize the lowest possible rate increase to keep the county competitive.

"We are hopeful that Kent County government will fully vet this important issue by listening to all the appropriate stakeholders, quantifying the need for DE Turf and, if decided, authorizing the lowest possible lodging tax rate to meet that need," said Pete Bradley, president of the Kent County Tourism Corp.

The Dover City Council is scheduled to vote on an ordinance approving the proposed 3 percent tax increase Sept. 23. 

In Kent County, separate legislation would also take another 3 percent from hotels, motels and tourist homes in unincorporated Kent, as well as within the Dover city limits. The state sales tax is 8 percent. If both measures pass, visitors will find themselves paying 14 cents on every dollar they spend to sleep in commercial Dover lodgings. This 14 percent tax rate would be the highest in Delaware.

"One of our strengths as a county has been it’s an affordable destination with a good cost-to-value ratio and relatively low taxes. We want to maintain this strength, while at the same time ensuring the DE Turf and all our attractions grow and remain competitive," Bradley said. "We support any effort that will work to bring more people to Kent County."

This tax proposal is estimated to draw $950,000 into Kent County Regional Sports Complex Corp. coffers and its DE Turf project. 

"The DE Turf is a vital attraction for Kent County that we want to continue to be successful and grow," Bradley said. "Our organization’s mission and passion is to drive overnight stays by supporting the DE Turf, along with all the other great and diverse attractions that Kent County has to offer."

Bradley and his board of directors at the Kent County Tourism have advised city and county government officials to slow down implementation of the tax hikes.

"The city is doing a good job by having public hearings and listening to all of the appropriate stakeholders to vet this important issue," he said. "Like the county we are recommending the city, if decided, authorize the lowest possible lodging tax rate to meet their need. 

KCTC has recommended implementing no more than a 1 percent increase for the next two years. 

“This conservative approach will allow time for hoteliers to collect data to determine the effect the additional tax will have on the industry," Bradley said. "All the parties should be sensitive to the potential impact on overall hotel business in Kent County, especially groups and conventions in the Dover market."