• Short-term rentals serve a unique and growing role in our local economies, yet we have little data on their economic impacts. Delaware is unique amongst other states in that the majority of STRs in Delaware are not managed by Airbnb or VRBO, but by local brokerages and property owners. We cannot rely on Airbnb data because they do not have enough data on the majority of STRs in Delaware.
•  We need an independent study of the STRs in the state of Delaware in order to draft appropriate and effective legislation.
• A short-term rental should be defined as a lease that is less than 14 days. 150 days is not short-term, and this broad definition implies that Delawareans living in month-to-month rental apartments or workforce housing leases under 5 months would have to pay this tax.

• Reservations, deposits, and cancellations needs to be considered when choosing a time to collect the tax. It is common for a STR to be reserved weeks or months in advance. Is the whole tax owed if only the deposit has been received? What happens if the customer cancels the reservation after the tax has been collected?
  • We would suggest that the timing of collection for the tax should be changed to when the lease is complete.

TRANSFER TAX

The Delaware Realty Transfer Tax is the highest in the nation. We need your help to roll it back! 

• The underlying cause for the current crisis of housing affordability & availability is a fundamental lack of housing supply. A recent NAR study estimates that the U.S. has developed an “underbuilding gap” of at least 5.5 million housing units over the last 20 years. The only way to LOWER the market cost of housing is to build more housing.
• Rent control and rent stabilization are infringements upon private property rights. Property owners have theright to rent their properties at a rate the free marketdetermines. Both the Delaware & National Association of REALTORS® opposes current and future rent control and rent stabilization laws on both residential and commercial properties.