Several bills passed in the 152nd General Assembly or awaiting Governor John Carney’s signature have a direct impact on Sussex County government.
During the Sussex County Council meeting on July 30, County Administrator Todd Lawson and Finance Director Gina Jennings discussed the legislation.
Tax for short-term rentals
House Bill 168 gives the county the authority to impose a lodging tax on short-term rentals such as Airbnb and Vrbo. Lawson said the county’s lodging tax ordinance needs to be changed. Collections will begin in 2025.
Short-term rentals in unincorporated areas of Sussex County cannot be charged more than 3%.
Sussex County collects about $1 million annually in lodging taxes from hotels and motels in the unincorporated areas of the county.
In addition, the number of chambers of commerce eligible to access the fund has been increased and now includes the Greater Millsboro, Greater Milford, Georgetown, Milton and Western Sussex chambers.
The list of eligible expenditures for the fund has been expanded to include workforce and affordable housing programs. Other expenditures include beach replenishment, dredging, economic development, tourism programs, recreational activities, and water quality improvement and flood control projects.
Assessment process
HB 403, drafted by all three counties, updates the code to make changes to the appraisal process. Lawson said that for the first time, the county council will be able to select the members of the appraisal review committee, increasing the number of members from the five regular members to three alternates. The council will also be responsible for setting the parameters for committee members.
The Council will make this selection before the end of the year.
In addition, the timetable for appeals has been changed. Instead of just in March, all appeals will now be heard. The appeal process will begin on February 15, 2025.
The law also allows the county to appoint an arbitrator to hear appeals.
The primary sponsor was Representative Pete Schwartzkopf (D-Rehoboth Beach) and one of the bill’s sponsors was Senator Russ Huxtable (D-Lewes).
Fire protection fee
HB 127 gives the county the authority to impose a fire prevention fee. Lawson said an ordinance would have to be passed if the council voted to impose the fee. Funds collected from property owners would have to be kept in a separate account. County officials will establish criteria by which the money is distributed to fire departments. Huxtable was one of the bill sponsors.
Bond calculation
Jennings reviewed the funds provided in the bond bill for the county. She said that in addition to the 30% state reimbursement for paramedics, $1 million was added. There is funding for three additional Delaware State Police patrol officers in the county, $200,000 for the incubator project, $1 million for the municipal building in Dewey that will house a county paramedic unit, $1 million for the Delaware Coastal Airport runway extension, $50,000 for the flight school at the airport, $26 million for a new Delaware State Police Troop 4 in Georgetown and additional funding for fire departments.
