Rehoboth Beach, Del., doubles residential rental tax

Associated Press

A popular Delaware beach town has voted to double its tax on residential rentals.

The City of Rehoboth Beach announced Saturday that its commissioners approved an increase on the rental tax from 3 percent to 6 percent. The tax applies to places like bed and breakfasts, condos, cabins and rentals through the Airbnb website.

The new rate will apply to any rental contracts after January 1. Commissioners did not want to change the rate on contracts that have already been signed.

The town plans to use the money for infrastructure improvements, including storm drains.

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