Lodging Tax

In accordance with 22 Del. C. 811, on June 11, 2018, the City of Milford adopted Ordinance 2018-02, which respectfully requested the Delaware General Assembly to amend the municipal Charter of the City of Milford to implement an accommodation tax for hotel, motel, and tourist homes. The Lodging Tax provides a more equitable means to recover the cost of services from tourism and not pass along these costs to local residents.

On June 21, 2018, the Delaware General Assembly enacted Senate Bill No. 264, which authorized the City of Milford to adopt a 3% tax on public accommodations. On August 4, 2018, Governor Carney signed the bill into law and on October 22, 2018, City Council enacted Ordinance 2018-23 which created the local lodging tax of 3%. The tax is effective for reservations or contracts paid in full on or after January 1, 2019.

The City of Milford’s Lodging Tax “piggybacks” on the State of Delaware’s Public Accommodations Tax. As such, Milford’s Lodging Tax incorporates the State Public Accommodations Tax’s definitions and exemptions.

The Lodging Tax Payment Voucher must be completed monthly and mailed to the Finance Department whose address is on the form.  Should you have any questions, please contact the Finance Department at 302.424.5140.