As used in this article, the following terms shall have the
meanings indicated:
An area contained within a residential rental, heated or
cooled by any equipment, which is used, occupied, listed or labeled
for human habitation and designated as a sleeping room or area.
A building or structure located on a commercially used property;
vacant lots are excluded.
The rate, expressed as a percentage, by which the gross rental
receipts are multiplied to determine the tax due.
A self-propelled device licensed as a motor vehicle used
for transportation of people or goods over roads.
The use or possession or the right to use or possess any
property subject to this article.
A vehicle that is built on a single chassis, 400 square feet
or less when measured at the largest horizontal projection, designed
to be self-propelled or permanently towable by a light-duty truck,
and designed primarily not for use as a permanent dwelling but as
temporary living quarters for recreational, camping, travel or seasonal
use.
The consideration received for occupancy valued in money,
whether received in money or otherwise, including all receipts, cash
credits and property or services of any kind or nature.
Dwellings designed to serve as either single-family, two-family
or multiple-family dwellings and constructed to provide complete housekeeping
facilities for one or more individuals.
Single-family, two-family or multiple-family dwellings used
for rental purposes on a daily, weekly, monthly, seasonal, or annual
basis.
A.
There is hereby imposed and assessed a gross rental receipts tax
of a minimum of 2% and a maximum of 5% of the rent for occupancy of
any private and public lodging facilities and housing accommodations,
including rooms, rooming homes, boardinghouses, bed-and-breakfast
inns, cottages, cabins, houses, apartments (whether in condominiums
or not), stores, garages, warehouses, or any commercial buildings
or structures which rent or lease space or other facilities, except
such properties that are subject to the lodging tax under Title 30,
Part V (governing public accommodations taxes), Chapter 61, Lodging
Tax, of the Delaware Code. Notwithstanding any of the foregoing, the
percentage shall not be more than the percentage charged for gross
rental receipts or for lodging by the State of Delaware.
B.
The Council shall establish the rate each year based upon factors,
including but not limited to the status of the Town's actual versus
budgeted expenditures and any actual or anticipated state gross rental
receipts tax.
A.
The payment of the rental tax shall be the responsibility of the
owner of the residential and commercial property; provided, however,
that any such owner may designate an agent to collect and pay the
tax to the Town.
B.
Every property owner offering property for rent or receiving any
rent on which the tax is imposed under this section shall be obligated
to file, or have filed by a designated agent, a gross rental receipts
tax form with the Town Manager and to pay the Town the amount of tax
due the Town as follows: The tax on rent received in any year for
occupancy which occurs during the period from October 1 through April
30, tax shall be due and payable on or before the following June 1;
the tax on rent received from May 1 through September 30, tax shall
be due and payable on or before the following November 1.
Every year the Town will send a copy of the rental tax form
to all currently licensed landlords or their designated agents. This
form is to be filled out for each rental property owned and shall
be returned to the Town office, along with a check for the current
tax due. The tax due shall be calculated by multiplying the current
rate by the gross receipts.
A.
Any person obligated to pay the tax imposed by this article who fails or refuses to file the required rental tax form and to remit the tax required to be paid within the time and in the amount specified in § 90-16A hereof, unless it is shown that such failure is due to reasonable cause, shall be charged, in addition to the amount of tax owed the Town, interest thereon at the rate of 1 1/2% per month until such debt is fully paid. If such debt remains unpaid by the time of expiration of the license to rent the property concerning which the rental tax has not been paid, a renewal rental license shall not be issued with regard to such property. The Town shall impose an 18% collection charge on the delinquent tax and interest thereon.
B.
Any person owning a residential property who violates this article
shall be subject to the immediate suspension of the rental license
if ordered by the Town Council, such action to remain in effect until
a hearing and decision by the Town Council on the possible restoration
of the rental license.
A.
The property owner shall use reasonable business practices to ensure
that the occupants and guests of a residential rental comply with
all applicable codes concerning fire, building, health and safety,
zoning, and all other relevant laws.
B.
The overnight occupancy of a residential rental shall not exceed
the sum of two persons per bedroom plus an additional two persons.
Children under the age of six years shall not be counted towards the
overall number of occupants.
C.
The property owner shall use reasonable business practices to ensure
that the occupants and guests of the residential rental do not create
unreasonable noise disturbances, engage in disorderly conduct, or
violate provisions of the Code or any applicable law of the State
of Delaware.
D.
The property owner shall limit their rental occupants to one motor
vehicle parking space (not to include a recreational vehicle), unless
the community's homeowners' association allows for residents and property
owners to park on their community streets, for each bedroom as shown
in the property records of the Town, with all off-street parking available
to the rental property. The property owner shall include the parking
limitations set forth in this subsection in any rental agreement and
all other communications with tenants. However, this subsection shall
not apply to any residential rental that directly abuts a portion
of a street where parking is permitted by the Town and any homeowners'
association.
[Amended 3-14-2023 by Ord. No. 23-06]
E.
The property owner shall provide adequate waste and recycle services.
