September 15, 2022

Dear Property Owner,

We hope that you’ve had a successful summer renting your property here in Dewey Beach. This letter is a reminder that accommodations tax for the rental period of April 1^st - September 30^th is due by October 15th. We welcomed many new property owners to Dewey Beach over the summer season, and understand that many may not be aware of the Accommodations Tax, or how to submit a payment. We hope this letter answers any questions you may have. You are also encouraged to contact us via email at kate@townofdeweybeach.com, or by phone at (302)227-6363. We are happy to assist you.

What is the accommodations tax?

The accommodations tax, or “rental tax,” was enacted in 2009 by Ordinance 661, and is referenced in Chapter 167 of the Town Code. The ordinance established a 3% tax on the gross proceeds derived from the rental, or charges for accommodations.

Who is responsible for paying the tax?

It is the responsibility of the owner of the rental property to submit payment of the tax. In some instances, your property management company/realty will collect and submit this tax on your behalf. It is your responsibility to arrange this with your property manager. We do not send accommodations tax reminders to anyone except property owners.

When is the tax due?

There are two billing cycles for the accommodations tax:

• Accommodations tax due on accommodations provided between October 1 and March 31 of the year shall be remitted to the town by April 15, or on the next business day if the 15^th is not on a business day.
• Accommodations tax due on accommodations provided between April 1 and September 30 of the year shall be remitted to the town by October 15, or on the next business day if the 15^th is not on a business day.

Why didn’t I receive an invoice?

It is your responsibility to compute the tax for each billing cycle based on your gross proceeds and submit the form and payment to the town. We send out reminder emails approximately 30 days prior to the due date of the tax. The amount of the tax due is 3% of your gross proceeds. The tax computation is as follows:

Amount of Gross Proceeds Derived from Rental x 0.03 = Accommodations Tax Due

How can I pay the tax?

Visit our website at www.townofdeweybeach.com, select “Property Owners” and then “Pay Accommodations Tax.” You can complete the form and submit payment directly on our website. There is also a printable version of the tax form on that webpage if you prefer to pay by check. Payments can be mailed to Dewey Beach Town Hall, 105 Rodney Ave, Dewey Beach DE 19971. Checks should be made payable to Town of Dewey Beach.

Is there a penalty for non-payment of this tax?

Under §167-16 of the Municipal Code of the Town of Dewey Beach, payment of the Accommodations Tax is the responsibility of the provider of the Accommodations. Failure to pay the appropriate Accommodation Tax is a civil offense. Penalties for late payment include a fine of ten percent (10%) per month, charged on the original amount of the Accommodations Tax due. Taxes unpaid after 90 days from the date the taxes are due shall constitute a first lien against all real estate of the taxpayer situated within the Town limits.

Again, we hope you’ve had a great summer season in Dewey Beach. If you have any questions or concerns, we are happy to help you.

Sincerely,

Kate Banaszak

Administrative Supervisor

Dewey Beach Town Hall