The Mayor and City Council find and determine as follows:
A. 
Residential dwellings have long been used for short-term and long-term rental purposes and are an important part of the local tourism economy; however, short-term rental uses may have adverse impacts that can best be addressed through appropriate regulations.
B. 
The regulation of residential rentals, including the differentiation between short-term and long-term rentals, will help preserve and protect the City's neighborhoods, provide standards and procedures for residential rentals, educate prospective short-term renters on City regulations and expected behaviors, and support the City's core values established in City Code § 197-3.
C. 
The purpose of this chapter is to establish licensing requirement and regulations for use of residential rentals thereby enabling the City to preserve the public health, safety, and welfare.
D. 
This chapter does not regulate hotels, motels, inns, and bed-and-breakfasts, as defined herein and in City Code Chapter 197, Zoning.
For purposes of this chapter, the following words and phrases shall have the meanings respectively ascribed to them by this section:
BEDROOM
A room or space designed to be used for sleeping purposes with two means of egress (one of which may be a window that meets egress requirements of the currently enforced edition of the International Residential Code). Spaces used for eating or cooking, bathrooms, toilet rooms, closets, halls, storage or utility rooms and similar uses are not considered bedrooms.
COMMERCIAL/FUNDRAISING ACTIVITY
An activity or occurrence primarily for the exchange of goods or services for financial gain or for seeking financial support for a charity, cause, or organization, including, but not limited to, the sale of merchandise, food or beverages, parties, weddings, paid performances, and any other similar activity.
DWELLING UNIT
A group of rooms located within a building and forming a single independent habitable unit with facilities which are used or intended to be used for and having permanent provisions for living, sleeping, sanitation, cooking, and eating purposes. A dwelling unit, however, shall not include a bed-and-breakfast, cabin court, hotel or motel, and lodging house as those terms are defined and regulated under the City Code, Chapter 197, Zoning Ordinance.
GOOD NEIGHBOR BROCHURE
A document prepared by the City that summarizes the general rules of conduct, consideration, and respect, including without limitation, provisions of the Municipal Code of the City of Lewes, Delaware, applicable to renters and residents of the City.
GROSS RECEIPTS RENTAL TAX
As found in City Code, Chapter 172, Article II, Taxation, Gross Receipts Rental Tax.
LICENSE HOLDER
The person who applies for and receives a short-term or long-term rental license from the City of Lewes. A license holder is the owner of the dwelling unit where the rental is located.
LOCAL CONTACT
The individual designated by the license holder to meet or satisfy obligations under this chapter and to serve as the contact person for issues relating to a rental. The designated contact must be available 24 hours a day to accept telephone calls from the City and, if requested by the City, respond physically to the rental within a reasonable time period, not to exceed two hours when the rental is rented and occupied.
LONG-TERM RENTAL
All or any portion thereof of a residential dwelling unit used as a place regularly rented for dwelling, lodging, or sleeping purposes to one party with a duration of occupancy of greater than 30 consecutive days. Hotels, motels, and other land uses explicitly defined and regulated in this chapter separately from long-term rentals are not considered to be long-term rentals.
MAXIMUM OCCUPANCY
The maximum number of allowable overnight occupants for a rental, as established in § 150-5, Short-term rental standards, of this chapter.
NEIGHBORS
The owners and occupants of property that are contiguous to the premises on which the rental is located and the property that is separated from the premises on which the rental is located by a public or private road. For the purpose of this definition, a property is separated from the premises on which the rental is located by a public or private road if any portion of the property, as measured between the property's side lot lines as extended to the center of the road, is contiguous with the premises on which the rental is located, as measured between the premises' side lot lines as extended to the center of the road.
OCCUPANCY LIMIT
The overnight occupancy of a residential rental shall not exceed the sum of two persons per bedroom plus an additional two persons. Children 12 years of age and younger shall not be counted towards the overall number of occupants.
OCCUPANT
An individual living in, sleeping in, or otherwise having possession of a rental.
OWNER
Any person holding legal or equitable title to a property or to real improvements upon a property solely, jointly, by the entireties, in common, or as a land contract vendee.
PERSON
An individual, firm, corporation, association, partnership, limited-liability company, or other legal entity.
PREMISES
A lot, parcel, tract, or plot of land together with the buildings and structures on them.
PROPERTY
Land, firmly attached structures, and integrated equipment (such as light fixtures or a well pump), and anything growing on the land.
SHORT-TERM RENTAL
All or any portion thereof of a residential dwelling unit which is advertised or held out to the public as a place regularly rented for dwelling, lodging or sleeping purposes to one party with a duration of occupancy of 30 consecutive days or less. Hotels, motels, and other land uses explicitly defined and regulated in this chapter separately from short-term rentals are not considered to be short-term rentals.
VIOLATION
A written notice issued by the Planning and Building Department advising the license holder and/or the local agent of a violation of this chapter.
A. 
The owner of any long-term or short-term rental shall obtain the appropriate rental license from the City of Lewes prior to engaging in rental of the property, in accordance with the license application procedure and criteria set forth in this chapter.
B. 
Any license issued pursuant to this chapter is nontransferable.
C. 
The license year shall begin with January 1 and end with December 31 of each calendar year. License fees shall be due and payable to the City of Lewes no later than February 1 of the current license year. The owner, firm or corporation which has not previously rented the property but commences to do so partway through a license year shall pay the following license fees pursuant to the following schedule:
(1) 
For any period of three or more months in a license year: 100% of the applicable annual license fee.
(2) 
For any period shorter than three months of the license year: 50% of the applicable annual license fee.
D. 
In the first year of implementation of this chapter, calendar year 2023, the following shall be completed by the property owner:
(1) 
A completed rental license application.
(2) 
Payment of gross receipts rental tax on revenues collected in calendar year 2022.
E. 
License renewals shall be obtained in a substantially similar form and manner as the initial license, and shall also require:
(1) 
A new attestation of all information as outlined in § 150-7, Short-term rental license application, or § 150-14, Long-term rental license application;
(2) 
An attestation that the applicant has not had a rental license revoked in the last year; and
(3) 
Proof of payment of all applicable taxes for the previous year.
(a) 
The gross receipts rental tax, a rate established by Mayor and City Council, shall be remitted on or before the following February 1.
F. 
The rental license fees shall be as approved by the Mayor and City Council and indicated in the fee schedules maintained by the City of Lewes.
G. 
The license holder shall remit in a timely manner all applicable city, state, and federal taxes and City fees owed in connection with the rental.