Sussex County Council voted against an ordinance Tuesday to add an additional tax on short-term rentals.
The proposed lodging tax was 3% for Sussex County homeowners who rent out their property. This would be on top of the 4.5% lodging tax the state will impose starting January 1.
During public comment, one constituent argued the tax could encourage property owners to sell and leave Sussex County due to the financial burden.
One council member made a motion to defer action on the tax, which failed to attract a second councilmember.
The tax ordinance then failed with 2 voting for it and 3, including council member Cynthia Green, against.
“It’s my opinion the tax increase would have a negative impact on the short term rentals. And I'm a no,” Green said.
Council Vice President John Rieley was also among the 3 “no” votes, arguing there are better ways to raise county revenue. He also believes the state needs to continue to do its part to support the county, rather than saddle it with addtional costs.
“The state seems to have begun a process of trying to push responsibility for maintenance of inland waterways and dredging, as well as there's talk about potential for beach replenishment falling back to the towns, which it is not in any towns budget to undertake,” Rieley said.
