Delaware Senate Bill SB51

Delaware 2025-2026 Regular Session

• Introduced: 1/23/25
• Introduced: 5/15/25
• Refer: 1/23/25
• Engrossed: 5/15/25
• Failed: 5/8/25
• Refer: 5/20/25
• Enrolled: 6/17/25
• Passed: 7/30/25

Caption

An Act To Amend The Charter Of The City Of Harrington Relating To The Power To Impose And Collect A Lodging Tax.

Summary

SB 51 amends the City of Harrington’s municipal charter to expressly authorize the city council to impose and collect a lodging tax of up to 3% of the rent charged for occupancy of a hotel, motel, or tourist home within city limits. The tax is in addition to the state lodging tax already imposed under Chapter 61 of Title 30 of the Delaware Code, and it applies only to lodging facilities defined under state law. The bill is a substitute version of the original measure and removes a retroactive effective date that had been included in the prior draft. In practical terms, the bill gives Harrington a clearer, specific source of local revenue tied to tourism and short-term lodging activity. Because it amends a municipal charter, it requires approval by a two-thirds vote of each house of the General Assembly under the Delaware Constitution. The measure is narrowly focused on the city’s taxing authority and does not create a new statewide tax program; instead, it expands local fiscal powers for one municipality.

Impact

The bill changes the City of Harrington charter by adding an explicit power for the city council to levy and collect a local lodging tax capped at 3% on hotel, motel, and tourist home rentals. It affects lodging operators and guests within Harrington, and it operates on top of the existing state lodging tax framework in Title 30. The amendment clarifies municipal taxing authority and may increase local revenue available for city purposes, while leaving the underlying state tax provisions intact.

Sentiment

The voting history suggests strong support for the bill. It passed the Senate on third reading with 12 yeas and 1 nay, then passed the Senate again on a later third reading with 19 yeas and 0 nays, and it cleared the House unanimously with 40 yeas and 0 nays. No committee transcripts are available, but the broad margins indicate little visible opposition by the time of final passage.

Contention

The main substantive issue is the scope of local taxing authority: the bill specifically authorizes Harrington to add a lodging tax, which could affect hotels, motels, tourist homes, and visitors paying for rooms. The only noted drafting change in the substitute was the removal of a retroactive effective date, suggesting concern about applying the tax backward rather than prospectively. Because the bill amends a municipal charter, the constitutional two-thirds vote requirement is also a procedural point of significance, though the recorded votes show the measure ultimately met that threshold comfortably.