BUSINESS AND OCCUPATIONAL LICENSE AND GROSS RECEIPTS TAX
79
STATUTORY PROVISION: Title 30, Delaware Code, Chapters 20-29, and 43.
COLLECTION/ADMINISTRATIVE AGENCY: The Department of Finance, Division of Revenue administers
and collects the business and occupational license and gross receipts tax.
GENERAL LIABILITY: Delaware imposes a tax on the gross receipts of most businesses. Business and
occupational license tax rates range from 0.0945% to 1.9914%, depending upon the category of business activity.
Unless specified otherwise by statute, the term "gross receipts" comprises the total receipts of a business; no
deductions for the cost of goods or property sold, labor costs, interest expense, discount paid, delivery costs, state
or federal taxes, or any other expenses are allowed. In instances where a taxpayer derives income from more than
one type of activity, separate licenses and gross receipts taxes are required for each activity.
TAX RATES (In effect 1/1/2014):
TITLE 30,
DELAWARE
CODE; SECTION:
TAX TYPE
ANNUAL FEE
TAX RATE
EXCLUSION
2703
Automobile
Manufacturer
$75 for each place of
business
0.0945%
$1,250,000/
month
2702
Clean Energy
Technology Device
Manufacturer
$75 for each place of
business
0.0945%
$1,250,000/
month
2502
Contractors
$75
0.6472%
$100,000/month
2907
Farm Machinery
Retailers
$75 for each place of
business
0.0996%
$100,000/month
2903
Food Processors
$75 for each place of
business
0.1991%
$100,000/month
2301(b) & (d)
General Services
$75 + $25 for each extra
establishment
0.3983%
$100,000/month
2904
Commercial Feed
Dealers
$75 for each place of
business
0.0996%
$100,000/month
4305
Lessors
$75 + $25 for each extra
establishment
0.2987%
$300,000/ quarter
4302
Lessees
N/A
1.9914%
None
4305
Motor Vehicle Lessors
$75 + $25 for each extra
establishment
0.2987%
$300,000/ quarter
4302
Motor Vehicle Lessees
N/A
1.9914%
None
2702
Manufacturers
$75 for each place of
business
0.1260%
$1,250,000/
month
2301(a) & (d)
Occupations
$75 + $25 for each extra
establishment
0.3983%
$100,000/month
BUSINESS AND OCCUPATIONAL LICENSE AND GROSS RECEIPTS TAX
80
TITLE 30,
DELAWARE
CODE; SECTION:
TAX TYPE
ANNUAL FEE
TAX RATE
EXCLUSION
2906
Restaurant Retailers
$75 + $25 for each extra
establishment
0.6472%
$100,000/month
2908
Grocery Supermarket
Retailers
$75 + $15 retail crime unit
fee + $25 for each extra
establishment
0.3267%
$100,000/month
2905
Retailers
$75 + $15 retail crime unit
fee + $25 for each extra
establishment
0.7468%
$100,000/month
2910
Tire Retailers
None.
$2 per tire
None
2905 (f) –(g) & 6 Del.
Code, Chapter 47
Transient Retailers
(defined under 6 Del.
Code, Chap 47)
$75 + $15 retail crime unit
fee + $25 for each extra
establishment
0.7468%
$100,000/month
2905(f)-(g)
Transient Retailers
(defined under Title 30)
$25
0.7468%
$3,000
2905 (i)
Transient Nursery
Retailers
$75 for each location the
applicant seeks to do
business + $15 retail crime
unit fee
0.7468%
$3,000
2902 (b)-(c)(2)
Wholesalers
$75 for each place of
business
0.3983%
$100,000/month
2902 (b)-(c)(4) and 7
Del. Code, § 9114
Petroleum Wholesalers
$75 for each place of
business
1.5472%
$100,000/month
2905 (a)-(b), (h)
Petroleum Retailers
$75 + $15 retail crime unit
fee + $25 for each extra
establishment
1.6468% 
$100,000/month
The maximum length of license is 10 days.
The maximum length of license is 30 days.
Composite rate includes the General Fund tax of 0.3983%, Hazardous Substance tax of 0.9% and the Petroleum Surtax of 0.2489%
(Effective July 1, 2007, the imposition of the Hazardous Substance tax is limited to the first transaction that is taxable under the
general wholesale tax)
(a) Composite rate includes the General Fund tax of 0.7468%, Hazardous Substance tax of 0.9%.
Tax applies only in the event the petroleum product was not taxed at the wholesale level.
BUSINESS AND OCCUPATIONAL LICENSE AND GROSS RECEIPTS TAX
81
TAX RECEIPTS
TAX BASE: Business and occupational licenses and gross receipts taxes are categorized as follows:
Contractor: Firms in the business of furnishing labor--or both labor and materials--as part of the following
services: construction, alteration, repair, disassembly, or demolition of buildings, roads, bridges, viaducts, sewers,
water and gas mains, or any other type of structure. This includes firms that improve, alter, or develop any real
property.
Each resident and/or nonresident contractor is required to pay tax on the gross receipts from any services and/or
material supplied in connection with any real property located in Delaware. Total taxable gross receipts may be
reduced by the amount of payments made to licensed subcontractors. To qualify for a deduction, the contractor
must complete Form 1280 and attach it to each monthly return. For purposes of this tax, all branches or entities
comprising an enterprise with common ownership or common direction and control are considered one business,
which is entitled to a single $100,000 monthly exclusion. For tax periods beginning after 12/31/2013, contractor
gross receipts are taxed at the rate of 0.6472%.
Retailer: Any person engaged as the owner or agent in the business of selling or exchanging goods for cash or
barter or any other consideration on the assumption that the purchaser of such goods has acquired the goods for
ultimate consumption and not resale. This definition includes automatic merchandising machine operators,
regardless of the product dispensed or vended; retail plant nurserymen and florists; hucksters; peddlers; trading
stamp redemption stores; catalog stores; and branch stores.
Gross receipts include total consideration received by a retailer for all goods sold or services rendered within the
BUSINESS AND OCCUPATIONAL LICENSE AND GROSS RECEIPTS TAX
82
State. Gross receipts do not include the amount of tobacco product or motor fuel taxes paid or payable to the State.
The first $100,000 of a retailer's monthly gross receipts is not subject to tax. All branches or entities comprising
an enterprise with common ownership, or common direction and control, are considered one business and entitled
to a single monthly exclusion. Retailers of petroleum products are not required to pay a tax on retail sales of
petroleum products as long as the appropriate wholesale-level tax has been paid. For tax periods beginning after
12/31/2013, retailer gross receipts are taxed at the rate of 0.7468%.
Farm Machinery Retailer: Any person engaged in the business of selling farm machinery, supplies, or materials
that are to be directly consumed or used by the purchaser in the conduct of any business. Every farm machinery
retailer owes gross receipts tax on the total gross receipts attributable to all goods sold within the State. An
exclusion of $100,000 is allowed against gross receipts for each month. For tax periods beginning after
12/31/2013, farm machinery retailer gross receipts are taxed at the rate of 0.0996%.
Restaurant Retailer: Any person who operates a restaurant, snack bar, soda fountain, take-out food service,
catering service, private eating or drinking club, or other eating establishment must pay gross receipts tax on
monthly receipts exceeding $100,000. For tax periods beginning after 12/31/2013, restaurant retailers are taxed at
the rate of 0.6472%.
Tire Retailer: In addition to the retailer license requirements, any person in this state who engages in the retail
sale of tires must also obtain a tire retailer’s license at no additional cost. Tire retailers shall pay a $2 fee for every
tire sold.
Transient Retailer: As defined in Title 6, Delaware Code, Chapter 47, retailers who transact business in
Delaware from any temporary structure or motor vehicle for less than four (4) months must obtain a transient
retailer's license. Such retailers pay the same license fees and tax rate, and receive the same monthly exclusion as
year-round retailers. The license fee is $75 and $25 for each separate location. For tax periods beginning after
12/31/2013, the monthly exclusion is $100,000, and the tax rate is 0.7468%.
A transient retailer must register with the Division of Revenue, describing its merchandise to be sold and the name
and address of its registered agent within Delaware. Additionally, transient retailers must obtain a bond of $1,000.
Retailers falling within the exemption categories enumerated in Title 6, Delaware Code, Chapter 47, but who
wish to conduct business for ten days or less during any year and who do not intend to become a permanent
retailer are not treated like year-round retailers. In such cases, the transient retailer license fee is $25. These
transient retailers pay tax at a rate of 0.7468% on all receipts received in excess of $3,000.
Grocery Retailer: Retailers with more than 6,000 square feet of retail floor space, more than 12,000 individual
food stock items, and which derive more than 90% percent of their total gross receipts from the sale of food items
that are not immediately consumable, are subject to reduced tax rates on a portion of their gross receipts. As with
other retailers, the first $100,000 in monthly gross receipts is excluded from tax. For tax periods beginning after
12/31/2013, the rate is 0.3267%.
Wholesaler: Any owner or agent in the business of selling to, or exchanging with, another person goods for cash,
barter, or any consideration for the purpose of resale by the person who acquires the goods sold or exchanged. The
definition of "goods" includes (without limitation) goods sold or exchanged through outlets and warehouses of
persons whose principal place of business is located inside or outside this State. Every wholesaler must pay the
gross receipts tax based on the total consideration received for sales of tangible personal property physically
delivered within the state to the purchaser or his agent.
1
Not included are receipts from sales of goods delivered
1
Sales to the State or the federal government are considered wholesale sales.
BUSINESS AND OCCUPATIONAL LICENSE AND GROSS RECEIPTS TAX
83
by United States mail, or common or contract carrier to a place outside the State. Tobacco product and motor fuel
taxes paid or payable to the State are excluded as well. (Wholesale sales of petroleum products fall under a
separate tax category, described below.) In computing the taxes due on such gross receipts, an exclusion of
$100,000 is allowed each month. All branches or entities under common ownership, or common direction and
control, are considered one business for tax purposes, entitling them to a single monthly exclusion. For tax periods
beginning after 12/31/2013, monthly receipts in excess of the exclusion are taxed at the rate of 0.3983%.
Food Processor: All firms engaged in the processing of food or foodstuffs that are to be resold by the person
acquiring the product. This definition includes each firm engaged in baking, poultry processing, or canning. Every
food processor shall pay a gross receipts tax on the total gross receipts attributable to all goods sold within the
state. In computing the taxable gross receipts for each month, an exclusion of $80,000 is allowed. For tax periods
beginning after 12/31/2013, Amounts in excess of this deduction are taxed at a rate of 0.1991%.
Petroleum Products: Any person engaged in the business of buying and selling petroleum products. For purposes
of the gross receipts tax, "petroleum product" means crude oil, or any portion thereof that is liquid at 70 degrees
Fahrenheit and standard atmospheric pressures, including motor fuel, gasohol, other blended fuels, diesel fuel,
aviation fuel, jet fuel, heating oil, motor oil, and other petroleum based lubricants.
The tax consists of three components. (All rates provided below are for tax periods beginning after 12/31/2013.)
First, sales of petroleum products are subject to the rate generally applied to other businesses: 0.3983% for
wholesalers and 0.7468% for retailers. Second, wholesale sales of petroleum products are subject to an additional
tax of 0.2489%. Lastly, a 0.90% Hazardous Substance tax is imposed. The Hazardous Substance tax is scheduled
to sunset on December 31, 2021. When imposed on the wholesaler, the Hazardous Substance tax may be passed
along to the buyer as a separate line item on the invoice. Effective July 1, 2007, the imposition of the Hazardous
Substance tax is limited to the first transaction that is taxable under the general wholesale tax.
Generally speaking, retail sales of petroleum products are taxable only if no tax has been paid at the wholesale
level. Retail sales of home heating oil are not taxed under any circumstance. Petroleum wholesalers are entitled to
a $100,000 monthly exclusion. Retailers receive a monthly exclusion of $100,000.
The following table summarizes the tax treatment of petroleum products:
PRODUCT
PRODUCT SOLD TO A
WHOLESALER OR RETAILER
PRODUCT SOLD TO ULTIMATE
CONSUMER
Products not used for heating ambient
space -- e.g., gasoline, motor oil, jet
fuel, lubricants, etc.
(Note: Crude oil is not subject to the
Hazardous Substance Tax.)
Component
General 0.3983%
Additional 0.2489%
Hazardous Substance* 0.9000%
Total 1.5472%
* Applies to first transaction only. (Rates
in effect beginning after 12/31/2013.)
Component
General 0.7468%
Hazardous Substance 0.9000%
Total 1.6468%
Applies only if tax not paid at wholesale level.
(Rates in effect beginning after 12/31/2013.)
Products used to heat ambient space --
e.g., home heating oil
Component
General 0.3983%
Additional 0.2489%
Hazardous Substance* 0.9000%
Total 1.5472%
* Applies to first transaction only. (Rates
in effect beginning after 12/31/2013.)
Not Taxable
BUSINESS AND OCCUPATIONAL LICENSE AND GROSS RECEIPTS TAX
84
Commercial Feed Dealers: Any person engaged in the business of buying, selling, or shipping commercial feeds.
Every commercial feed dealer must pay a gross receipts tax of 0.0996% for tax periods beginning after
12/31/2013 on the total gross receipts attributable to all goods sold within the State. In computing the taxable
gross receipts for each month, an exclusion of $100,000 is allowed.
Manufacturers: Any firm or person engaged in the business of manufacturing products in whole or in part within
Delaware. "Manufacturing" includes any processing, working, development, alteration, conditioning, or
reconditioning of raw materials or products into products of a different character, either finished or unfinished.
The term "product" includes goods, materials, wares, merchandise, machinery, vehicles, solids, liquids, or gases
which are produced as a part of a manufacturing process. With the exception of automobile manufacturers and
clean energy technology device manufacturers, which are taxed at 0.0945%, the manufacturer's gross receipts tax
rate is 0.1260%. (both rates are for tax periods beginning after 12/31/2013). The tax is based on the total gross
receipts multiplied by the percentage of manufacturing costs in Delaware to the total costs of manufacturing. In
computing the tax due on such gross receipts, total gross receipts are reduced by a monthly exclusion of
$1,250,000. For purposes of this tax, all branches or entities comprising an enterprise with common ownership or
common direction and control are considered one business, and are entitled to a single monthly exclusion.
Manufacturers are also subject to licensing as wholesalers or retailers and to the respective gross receipts tax.
Lessee/Lessor: A lessor of tangible personal property is a person who grants to a lessee the right to use property
for a specified period. The lessor's gross receipts tax is based on the rental payments received under the lease. The
lessee's gross receipts tax is imposed on the use of the tangible personal property within the State. The lessor is
required to collect and remit the taxes imposed on both parties.
Lessor: Lessors may take an exclusion of $300,000 against their gross receipts from leases for each quarter. Gross
receipts in excess of the quarterly exclusion are taxed at the rate of 0.2987% for tax periods beginning after
12/31/2013.
Lessee: For tax periods beginning after 12/31/2013, lessees pay a 1.9914% tax rate on the value of rental
payments they make to a lessor.
Motor Vehicle Lessee/Lessor: A lessor of a motor vehicle is a person who grants a lessee the right to use the
motor vehicle for a specified period. The lessor's gross receipts tax is based on the rental payments received under
the lease. The lessee's gross receipts tax is imposed on the use of the motor vehicle within the State. The lessor is
required to collect and remit the taxes imposed on both parties.
Motor Vehicle Lessor: Lessors are entitled to an exclusion of $300,000 against their gross receipts from lease for
each quarter. Gross receipts in excess of than the quarterly exclusion are taxed at the rate of 0.2987% for tax
periods beginning after 12/31/2013.
Motor Vehicle Lessee: For tax periods from 1/1/2012 to 12/31/13, lessees pay a 1.9914% tax rate on the value of
rental payments they make to a lessor.
Occupational, Professional and General Service: Twenty-five occupations and any business engaged in what is
commonly referred to as a service industry must obtain an annual business license. All holders of professional,
occupational, and service licenses will pay tax at the rate of 0.3983% for tax periods beginning after 12/31/2013
on taxable gross receipts. Taxable gross receipts include total consideration received by a licensee for goods sold,
services rendered or other income producing transaction within the state, less an exclusion of $100,000 per month.
BUSINESS AND OCCUPATIONAL LICENSE AND GROSS RECEIPTS TAX
85
Certain occupations are exempt from the tax, although an annual license is still required. The following
occupations are not required to pay gross receipts taxes:
Circus Exhibitor
Drayperson (or Mover)*
Sales Representative
Finance or Small Loan Agency
Showperson
Tourist Home**
Taxicab or Bus Operator
Hotel**
Transportation Agent
Motel**
Outdoor Musical Festival Promoter
Non-Resident Junk Dealer
Travel Agency
Trailer Park
* Intrastate receipts are taxable; interstate receipts are exempt
** Subject to the Public Accommodations Tax
For the occupations listed below, taxable gross receipts are based on commissions and fees earned:
Advertising Agency
Manufacturer's Agent or Representative
Auctioneer
Mercantile Agency or Collection Agency
Broker
Real Estate Broker
LEGISLATIVE HISTORY
Approved
Date
Effective
Date
Description of Changes
3/27/75
4/1/75
Set the annual license fee for most businesses at $50. Changed the retailer tax base to
aggregate gross receipts from the purchase price of goods bought for sale. Required
contractors, retailers, manufacturers, etc. to pay tax on monthly basis instead of quarterly.
Changed the monthly exclusion for retailers to $10,000/month, from $20,000 per quarter.
Gave restaurateurs a $5,000 monthly exemption in place of $50,000 annual exclusion.
Subjected services to gross receipts tax (60 Del. Laws c 24; HB 222).
7/6/77
7/6/77
Raised license taxes in 9 categories. Increased the occupational license fee on gross receipts
to 0.4%, from 0.3% (61 Del. Laws c 117; HB 590).
8/12/77
7/6/77
Increased the license tax for retailers to 0.75% from 0.55% (technical correction for
oversight in HB 590) (61 Del. Laws c 184; HB 594).
6/6/78
6/6/78
Reduced the gross receipts tax rates wholesalers and retailers for persons who are 65 years
of age or older and whose annual gross receipts are less than $5,000: the fee is 25% of the
usual license fee payment (61 Del. Laws 312; HB 811).
7/14/79
7/14/79
Established a sliding-scale license fee reduction for manufacturers and wholesalers who
build or expand a facility by at least 25 employees and $1.0 million. License fees are
reduced by 90% in the first year and 5% in the tenth (62 Del. Laws c 155; HB 402).
4/27/81
4/27/81
Excluded from gross receipts tax the amounts derived from interstate transport operations;
intrastate transactions remain subject to tax (63 Del. Laws c 12; HB 92).
2/18/81
5/1/81
Provided for the licensure and taxation of affiliated finance companies (63 Del. Laws c 2;
HB 28).
BUSINESS AND OCCUPATIONAL LICENSE AND GROSS RECEIPTS TAX
86
Approved
Date
Effective
Date
Description of Changes
6/29/82
7/1/82
Reduced to 50% of tax liability the maximum penalty for late filing of license tax returns.
Imposed a negligence penalty of 10% of the amount of deficiency and a fraud penalty of
100% where any part of the deficiency is due to fraud. If imposed, the fraud penalty
supplants the late filing and negligence penalties (63 Del. Laws c 297, 298; HB 638, 639,
respectively).
10/15/82
1/1/83
Allowed quarterly rather than monthly filing if taxable gross receipts are less than $2,000
month. Required only annual filing for occupational licensees whose quarterly taxable
receipts are less than $6,000 (63 Del. Laws c 314; HB 760).
7/17/84
1/1/85
Applied a "destination" test in determining whether sales of tangible personal property are
to be included in taxable gross receipts. Taxable gross receipts to include amounts received
from sales of tangible personal property physically delivered in Delaware (64 Del. Laws
c 374; HB 686).
8/13/84
1/1/85
Created new gross receipts tax credits for qualified businesses locating or expanding in
"targeted" low-income areas. Offered an exemption from gross receipts tax for 5 years and
sliding-scale reductions for the succeeding 10 years (64 Del. Laws c 460; HB 698).
7/3/85
4/30/85
Changed the gross receipts tax definition for harness racing operators to "commissions,"
from "total contributions" (65 Del. Laws c 121; HB 269).
7/12/85
7/1/85
Eliminated the exemption of local manufacturers from the wholesalers' tax. Reduced the
manufacturers' rate to 0.3% from 0.4%, and allowed a monthly exclusion of $500,000.
Allowed a $10,000 monthly exclusion in the computation of the wholesaler's tax (65 Del.
Laws c 184; HB 373).
7/12/85
7/1/85
Provided a limited tax exemption for products that a manufacturer uses or consumes in the
production, or which are integral parts of the manufacturer's ultimate product (65 Del. Laws
c 169; HB 307).
7/12/85
1/1/85
Exempted Foreign Sales Corporations from gross receipts tax (65 Del. Laws c 155; SB
162).
7/12/85
7/1/85
Exempted export trading companies from license tax. (65 Del. Laws c 160; SB 238).
7/2/86
1/1/87
Decreased the manufacturer's gross receipts tax rate to 0.25%, from 0.3% (65 Del. Laws c
388; SB 458).
7/2/86
1/1/87
Removed federal excise taxes on gasoline and special fuel from the definition of gross
receipts for retailers and wholesalers (65 Del. Laws c 389; SB 469).
7/2/86
1/1/87
Increased the monthly exclusions for retailers to $25,000, from $10,000; and for restaurant
retailers to $25,000, from $5,000 (65 Del. Laws c 390; SB 576).
7/2/86
1/1/87
Created a $6,000 monthly exclusion ($18,000 per quarter) for business and occupational
licensees, contractors, food processors, commercial feed dealers, and farm machinery
retailers, and personal property lessors (65 Del. Laws c 392; HB 559).
BUSINESS AND OCCUPATIONAL LICENSE AND GROSS RECEIPTS TAX
87
Approved
Date
Effective
Date
Description of Changes
7/3/86
1/1/87
Increased filing thresholds, allowing taxpayers to file quarterly or annually rather than
monthly or quarterly. Increased threshold amounts as follows: withholding to $600, from
$200; occupational to $15,000, from $6,000; contractors to $7,500, from $2,000;
manufacturers to $7,500, from $2,000; retailers to $7,500, from $2,000; wholesalers to
$7,500, from $2,000 (65 Del. Laws c 402; SB 457).
7/3/86
1/1/87
Eliminated gross receipts tax on sales of grain, if the grain is purchased from a Delaware
farmer (65 Del. Laws c 406; SB 488).
-
1/1/87
Increased the bonding requirements for non-resident contractors to 6% of the contract
amount and required registration with the Department of Labor and Industrial Accident
Board prior to the issuance of a license. Eliminated the requirement for a contractor to
obtain a separate business license for each construction site (65 Del. Laws c 476; HB 558).
7/8/86
7/8/86
Required taxation of mail order distributors as if they were wholesalers rather than as
retailers as long as they do not operate a retail outlet in Delaware (65 Del. Laws c 478; HB
617).
7/2/86
1/1/87
Required certain transient retailers to obtain a bond of up to $1,000 and to register its
Delaware resident agent and a description of the goods it intends to sell (65 Del. Laws c
391; HB 427).
7/3/86
1/1/87
Excluded sales of goods to be included in a product subsequently to be manufactured in
Delaware from the manufacturer's gross receipts tax (65 Del. Laws c 481; HB 644).
7/8/87
7/8/87
Granted authority to the taxpayer and the Division of Revenue to extend statutes of
limitation by mutual agreement (66 Del. Laws c 103; HB 267).
7/8/87
7/8/87
Eliminated news carriers under age 18 from the definition of retailer (66 Del. Laws c 104;
HB 268).
7/9/87
7/9/87
Extended the definition of manufacturer to firms that offer manufacturing services on
components to be included in the product of another manufacturer (66 Del. Laws c 149; SB
207).
6/15/88
6/15/88
Clarified the exemption of REMIC's from license and gross receipts taxes (66 Del. Laws c
267; HB 465).
7/14/88
1/1/89
Increased exclusions from the gross receipts tax as follows: professional and occupational
(including general service) licensees to $45,000 per quarter; contractors to $12,000 per
month; retailers and restaurant retailers to $35,000 per month; food processors to $13,000
per month; farm machinery retailers to $13,000 per month; lessors of personal property to
$39,000 per quarter; wholesalers to $20,000 per month; and manufacturers to $600,000 per
month. Changed occupational and service gross receipts tax payments to monthly
(previously quarterly) for firms with taxable gross receipts in excess of $30,000 (66 Del.
Laws c 381; HB 691).
BUSINESS AND OCCUPATIONAL LICENSE AND GROSS RECEIPTS TAX
88
Approved
Date
Effective
Date
Description of Changes
6/27/89
6/27/89
Allowed the Director of Revenue to waive the bonding requirement for non-resident
contractors in whole or in part or to accept cash bonds in any amount; and to accept bank
letters of credit in lieu of surety bonds. Liberalized the definition of "resident contractor."
Allowed prorating of initial license fees for certain businesses. Required security
businesses to be licensed annually. Created criminal penalties for non-disclosure of vending
machine locations. Reduced record retention requirements for personal property lessors to
three years from six years (67 Del. Laws c 40; SB 55).
7/1/89
7/1/89
Allowed for revocation of business licenses for businesses with tax, penalty, and interest
delinquencies exceeding $2,500 and 180 days. Made responsible persons liable for license
tax penalties (67 Del. Laws c 40; SB 55).
7/17/89
7/17/89
Extended "Blue Collar" credits to January 1, 1991 (67 Del. Laws c 120; SB 294).
-
1/1/90
Raised the annual license fee for transient retailers to $75 per year for the first site and $25
for each additional site (67 Del. Laws; HB 728).
7/2/90
7/2/90
Exempted crabbers from having to obtain a wholesaler's license and removed the proceeds
of crabbing from the definition of wholesale gross receipts (67 Del. Laws c 287; SB 396).
7/2/90
1/1/91
Eliminated the retail tax on most sales of petroleum products. Increased the wholesale tax
on such products to 1.25%, and dedicated 0.6% to the Hazardous Substances Cleanup Fund
(67 Del. Laws c and 290; HB 708 and 710).
7/5/90
-
Exempted from license taxes any business trusts that qualify as investment companies.
Exempted any receipts received by investment advisors, transfer agents, and principal
underwriters from investment companies (67 Del. Laws c 296; HB 761).
7/2/90
1/1/91
Limited licensing requirements generally to persons who hold themselves out to the public
(excludes those who serve as employees or working as partners or contractors on behalf of
a larger business). Reduced the number of service categories to 27. Increased most annual
license fees by approximately 50%. Increased second location licenses fees to $25 (67 Del.
Laws c 261; HB 728).
6/29/90
9/1/90
Exempted alcoholic beverages from the wholesale gross receipts tax (67 Del. Laws c 258;
HB 774).
2/8/91
1/1/91
Extended "Blue Collar" tax credits through 1991 (68 Del. Laws c 6; HB 96).
7/1/91
7/1/91
Imposed a 10% surtax on all gross receipts taxes, reduced by a non-refundable credit.
Clarified application of the wholesalers' tax to common carriers and sales to the United
States Government (68 Del. Laws c 80; HB 347).
7/11/91
7/11/91
Required bidders on contracts in excess of $50,000 to initiate the license application
procedure prior to bid (68 Del. Laws c 151; HB 165).
7/17/91
7/17/91
Removed crude oil from the 0.6% Hazardous Substance tax imposed on wholesalers of
petroleum products, for the period 7/7/91 to 3/30/92 (68 Del. Laws c 183; HB 378).
BUSINESS AND OCCUPATIONAL LICENSE AND GROSS RECEIPTS TAX
89
Approved
Date
Effective
Date
Description of Changes
8/1/91
1/1/92
Repealed various procedural provisions in light of enactment of Title 30, Chapter 5 (68
Del. Laws c 187; HB 281).
2/6/92
1/1/92
Extended existing "Blue Collar" job credits to 1997. Expanded the scope of activities
eligible for blue collar credits to include computer processing, engineering services, and
consumer credit reporting services. Allowed taxpayers qualifying for the alternative
investment tax credit to claim the license fee reduction and "targeted area" provisions equal
to 75% of the amount otherwise allowed (68 Del. Laws c 202; HB 415).
7/16/92
7/16/92
Extended to 3/30/93 the exclusion of crude oil from the 0.6% tax on petroleum products'
wholesalers (68 Del. Laws c 393; HB 455).
7/6/93
7/6/93
Exempted horse racing, wagering, or betting from occupational license requirements and
license fees, to the extent these activities are related to the conduct of horse racing meets
(69 Del. Laws c 83; HB 310).
7/12/93
6/30/93
Increased the Hazardous Substance Cleanup tax on petroleum products to 0.9% from 0.6%.
Extended the exemption for crude oil sales through 3/31/94 (69 Del. Laws c 135; HB 235).
7/1/94
1/1/95
Repealed the 10% surtax on gross receipts taxes effective 1/1/95, versus an original
expiration date of July 1, 1995. Changed filing frequencies for most gross receipts
taxpayers and instituted an annual "look back period" for determining filing frequencies.
Eliminated crude oil from the definition of "petroleum products" for purposes of the
Hazardous Substance tax (69 Del. Laws c 289; HB 627).
6/27/96
7/1/93
Made real estate developers subject to the tax imposed on contractors, effective
retroactively for receipts received after June 30, 1993 (70 Del Laws c 401; HB 453).
7/5/96
1/5/97
Provided that individuals delinquent in child support payments will be denied licenses
otherwise issued by the Division of Revenue or Division of Professional Regulation to
practice a profession, business, or occupation (70 Del. Laws c 452; HB 496).
7/11/96
1/1/97
Reduced tax rates by 4% across-the-board. Created a category for license and gross receipts
tax purposes for "grocery supermarket retailers" with a two-tiered rate structure for these
businesses. The rates are 0.384% on the first $2 million of monthly taxable gross receipts,
and 0.720% on those in excess of $2 million. Grocery supermarket retailers are defined as
firms that occupy an area of more than 6,000 square feet, offer at least 12,000 different
food items for retail sale, and derive no more than 10% of their gross receipts from food
intended for immediate consumption (70 Del. Laws c 484; SB 481).
7/11/96
1/1/97
Relieved small, closely-held related businesses from paying gross receipts or use taxes on
transactions among themselves. Clarified that sales between all other related firms are
taxable. Required that qualifying firms be owned by the same five or fewer individuals or
by members of a family (70 Del. Laws c 489; HB 678).
7/11/96
7/1/96
Extended "Blue Collar Jobs" credits through 2001. Expanded scope of activities eligible to
include aviation services, non-custom computer software, and telecommunications services
(70 Del. Laws c 487; SB 484).
BUSINESS AND OCCUPATIONAL LICENSE AND GROSS RECEIPTS TAX
90
Approved
Date
Effective
Date
Description of Changes
5/22/97
12/31/96
Clarified the tax treatment of fungible commodities (71 Del. Laws c 39; SB 38).
7/23/97
7/23/97
Repealed the requirement that, in order to qualify for “Blue Collar” Tax Credit, the
taxpayer must make the qualified investment and employ the requisite number of
employees during the same taxable year and instead requires that the two events occur
during the same consecutive 12 months (71 Del. Laws c 217; HB 257).
7/9/97
12/31/97
Created a separate license category for motor vehicle lessors/lessees and earmarked
revenues collected hereunder to the Transportation Trust Fund (71 Del. Laws c 150; HB
400).
6/25/98
6/25/98
Clarified that all licenses issued by the Division of Revenue expire on December 31 of each
year and created a $15 fee for the replacement of a lost or stolen license. Increased the
threshold, from $3,000 to $8,500, to obtain a retailer license for their incidental sales of
goods for holders of personal and professional services licenses; effective 1/1/99 (71 Del.
Laws c 314; HB 605).
7/1/98
1/1/99
Increased the monthly exclusion and standardized it at $50,000 for all business activities,
except manufacturers which was increased to $1,000,000. Increased the threshold for filing
monthly tax returns for wholesalers, manufacturers and various agribusinesses. Changed
the due date for quarterly tax returns from the 20
th
day of the month following the close of
the quarter to the last day of that month (71 Del. Laws c 351; SB 387).
7/14/98
7/14/98
Created a limited exemption to the Wholesalers' Gross Receipts Tax for a non-U.S.
corporation that sells active ingredients to a Delaware corporation producing
pharmaceutical products that is controlled by the taxpayer corporation (71 Del. Laws c 440;
HB 694).
7/14/98
1/1/99
Exempted rents on leases of agricultural equipment (71 Del. Laws c 439; HB 487).
7/1/99
7/1/99
Clarified that public utilities are not exempt from obtaining occupational licenses and
paying gross receipts taxes on activities that are exempt from the public utility tax.
7/1/99
1/1/00
Exempted grocery stores and supermarkets from obtaining a restaurant license when less
than 10% of their gross receipts from the sale of food for human consumption is
“immediately consumable” (72 Del. Laws c 176 HB 216).
7/16/99
1/1/00
Provided that persons contracting for hauling construction-related property (but not actually
engaged in the hauling) shall be licensed as contractors and allowed a deduction for
amounts paid to dray persons in computation of sales for gross receipts tax purposes (72
Del. Laws c 166; HB 335).
7/20/99
7/20/99
Amended Travelink program by adding Welfare-to-Work provisions, updating eligibility
requirements, and establishing a $100,000 annual tax credit cap (72 Del. Laws c 188; HB
292).
BUSINESS AND OCCUPATIONAL LICENSE AND GROSS RECEIPTS TAX
91
Approved
Date
Effective
Date
Description of Changes
7/20/99
1/1/00
Changed licensing requirements to permit Delaware businesses that process raw materials
owned by out-of-state customers to be licensed manufacturers (72 Del. Laws c 202; SB
128).
7/23/99
8/23/99
Established a $200 penalty for businesses that, because of willful neglect, fail to renew
their business license (72 Del. Laws c 220; HB 231).
8/3/99
1/1/00
Reduced manufacturers' tax rate by 25%, from 0.24% to 0.18% (72 Del. Laws c 245; SS 1
to SB 90).
6/28/00
6/28/00
Reauthorized the Hazardous Cleanup Act and Hazardous Substance Cleanup Fund through
December 31, 2011 (72 Del. Laws c 353; SB 356, w/SA1).
7/18/00
1/1/00
Clarified that the exclusion from taxable wholesaler gross receipts for unfinished
pharmaceutical products (71 Del Laws, c 440) is available to all businesses regardless of
the form of entity under which a business may operate. Extended the exclusion to cover
finished ethical pharmaceutical products that have been formulated or packed within the
state (72 Del. Laws, c 464; HB 614).
7/18/00
1/1/00
Extended the “Blue Collar Jobs” credit program for an additional five years, through 2006
(72 Del. Laws c 442; SB 304).
7/12/01
10/1/01
Updated definition of "Brownfields" (73 Del. Laws c 183; SB 183).
7/9/02
1/1/02
Clarified that the use tax does not apply to reusable pallets and containers rented by poultry
processors and others (73 Del. Laws c 390; HB 286).
1/31/03
2/1/03
Exempted from the wholesalers' and retailers' license and gross receipts tax the sale of
aircraft weighing 12,500 pounds or more (74 Del. Laws c 3; SB 3).
6/30/03
1/1/04
Allowed the procurement of occupational and business licenses for terms up to three years
(74 Del. Laws c 108; HB 241).
7/19/04
7/19/04
Required transient nursery retailers to obtain 30-day business licenses and meet registration
requirements established by the Department of Agriculture (74 Del. Laws c 375; SB 341).
7/12/05
1/1/05
Broadened the business license categories which are eligible for a reduction in license fees
when the applicant is age 65 or older. This legislation also increased, from $5,000 to
$10,000, the annual gross receipts cap that must not be exceeded if one is to qualify for the
license fee reduction (75 Del. Laws c 171; SB 108).
7/19/05
1/1/06
Reduced gross receipts tax rates by 20% for all categories of taxpayers except automobile
manufacturers, for which rates are reduced 25%. Further, the Act increased the monthly
exclusion amount by $30,000 for all categories except manufacturing (75 Del. Laws c 199;
HB 303).
BUSINESS AND OCCUPATIONAL LICENSE AND GROSS RECEIPTS TAX
92
Approved
Date
Effective
Date
Description of Changes
6/27/06
1/1/03
Established an exemption from business license and gross receipts taxes for individuals
providing instructional services to the Delaware State Fire School on a contractual basis for
periods beginning after 12/31/02 and ending on or before 12/31/05 (75 Del. Laws c311; HB
382).
6/30/06
1/1/07
Created a $2 fee for tires sold at retail establishments (75 Del. Laws c346; HB 455).
7/1/06
7/1/06
Extended “Blue Collar” provisions, for one month, through January 31, 2007 (75 Del. Laws
c352; SB 400).
7/10/06
1/1/02
Repealed Foreign Sales Corporation and Export Trading Company exemptions and
conformed Delaware law to amendments of the Internal Revenue Code and rulings by the
World Trade Organization (75 Del. Laws c 412; HB 398).
7/10/06
7/10/06
Required the Division of Revenue to publish, on its website, the top 100 delinquent
taxpayers owing (i) personal income tax and (ii) business tax liabilities under Title 30 of the
Delaware Code. Overdue liabilities subject to posting are limited to those taxes
administered by the Department of Finance (75 Del. Laws c 406; HS 1 for HB 118).
7/10/06
1/1/07
Decreased the rate of interest assessed on overdue tax liabilities and paid on outstanding tax
refunds from 1% to 0.5% and increased the penalties assessed on overdue liabilities from
0.5% to 1% (75 Del. Laws c 411; HB 397).
6/30/07
6/30/07
Extended the Blue Collar Jobs Credit program through June 20, 2009, and implemented the
New Economy Jobs Credit Program (76 Del. Laws c 78; SB 149).
7/12/07
7/1/07
Ensured the Hazardous Substance Cleanup surcharge on the wholesale sale of petroleum
products is levied only upon the initial transaction within the State (76 Del. Laws c 135;
HB 234).
7/24/07
7/24/07
Transferred the administration of the Neighborhood Assistance Tax Credit program to the
Delaware Housing Authority and expanded eligibility requirements to all entities paying
personal and corporate income tax (76 Del. Laws c 172; SB 169).
6/30/08
7/1/08
Repealed the earmark of the lessees’ use tax and the lessors’ license taxes to the
Transportation Trust Fund, resulting in the deposit of such taxes into the General Fund (76
Del. Laws c 278; SB 336).
7/1/08
1/1/09
Increased by 25% most General Fund business and occupational gross receipts tax rates and
also established a sunset provision that automatically repeals said gross receipts tax rate
increases for taxable periods beginning after March 31, 2012 (76 Del. Laws c 282; HB
513).
7/17/08
9/15/08
Established an additional annual $15 fee on all general retail and grocery store licenses to
fund the ‘Retail Crime Unit’ within the Department of Justice (76 Del. Laws c 390; HB
458).
BUSINESS AND OCCUPATIONAL LICENSE AND GROSS RECEIPTS TAX
93
Approved
Date
Effective
Date
Description of Changes
7/01/09
1/1/10
Established a business license for firms engaged in the business activity of crude oil
lightering of $100,000. Exempts crude oil lightering operators from the gross receipts tax
on services. Directs that all such license fees are deposited into the Hazardous Substance
Cleanup Fund. (77 Del. Laws c 81; HB 287).
7/01/09
1/1/10
Increased by 8% most General Fund business and occupational gross receipts tax rates and
also established a sunset provision that automatically repeals said gross receipts tax rate
increases for taxable periods beginning after December 31, 2013 (77 Del. Laws c 83; HB
289 with HA 2).
7/1/09
7/1/09
Extended the “Blue Collar Job” program’s tax incentives through June 30, 2011 (77 Del.
Laws, c. 86, § 30; HB 295).
7/19/10
7/19/10
Clarified that a pharmaceutical wholesaler located inside or outside of the state that ships
pharmaceutical drugs to a pharmaceutical distribution wholesaler in this state is exempt
from the gross receipts tax (77 Del. Laws c 412; HB 477).
6/16/10
10/1/10
Established a business finder’s fee which creates a tax credit program that would award
each Sponsor Firm and each New Business Firm with a $500 annual tax credit per
Delaware job created by the new business, with the tax credit available for three years. The
program would require that the new business be brought to Delaware as a result of the
efforts of the sponsor, and would specifically exclude those business, such as real estate
agents, banks and commercial landlords, that already have an incentive to bring out-of-state
business to Delaware. (77 Del. Laws c 300; HB 380).
7/19/10
7/1/10
Provided a 10-year extension to the Historic Preservation Tax Credit Act which was
scheduled to expire in June 2010. (77 Del. Laws c 413; SB 209).
7/1/11
1/1/12
Cut rates across-the-board by 3% and increased by 25% the monthly and quarterly
exclusion levels for all business categories. Clarified the rate reduction scheduled to take
effect in 2014 and restored full funding for the Hazardous Substance Clean-up program
two-years earlier than originally planned (78 Del. Laws c 73; HB 127 w/HA1).
1/28/11
1/28/11
Exempted from the Wholesale Merchants’ Gross Receipts Tax and from the
Manufacturers’ Gross Receipts Tax the gross receipts realized in certain intermediate
transactions engaged in by petroleum product refiners with certain specialized trade parties
during the petroleum refining process. (78 Del. Laws c 1; HB 10 w/HA1).
6/22/11
7/1/11
Updated the State’s primary economic development tax incentive program (Blue Collar
Jobs). Specifically, the Act: 1) made the program permanent by eliminating a sunset
provision; 2) established a three-year application deadline; 3) increased the amount of the
corporate or personal income tax credits; and 4) included provisions designed to attract
manufacturers of advanced clean energy technology power generating devices and systems.
(78 Del. Laws c 47; SB 40).
BUSINESS AND OCCUPATIONAL LICENSE AND GROSS RECEIPTS TAX
94
Approved
Date
Effective
Date
Description of Changes
7/8/11
1/28/11
Defined a new class of occupational license tax licensee for direct care workers and provided
for the license fee of such direct care workers to be reduced if the gross receipts of such direct
care workers for the 12 months, beginning July 1 and ending June 30, preceding the year of
license application or renewal are less than $10,000. (78 Del. Laws c 104; HB 92).
7/7/11
1/31/11
Clarified 78 Del. Laws c 1 by establishing that the exemption established therein applies to the
sale of all feedstock petroleum products and not just to the sale of crude oil. (78 Del. Laws c
100; HB 142).
6/26/12
9/30/11
Expanded the exemption established by 78 Del. Laws c 1 and 78 Del. Laws c 100 by specifying
that, in addition to sales to petroleum refiners, sales of crude oil or petroleum feedstock between
feedstock wholesalers are also exempt from tax.. (78 Del. Laws c 275; HB 369).
7/5/12
12/31/12
Exempted from the Delaware Tax on the lease of motion picture films a broad number of not-
for profit organizations exempt from income tax under the Internal Revenue Code. (78 Del.
Laws c 298; HB 341).
3/29/12
3/29/12
Eliminated the $100,000 business license fee for firms engaged in crude oil lightering. (78 Del.
Laws c 218; HB 251).
8/13/12
6/30/12
Expanded the New Economy Jobs Program by creating another means by which employers
relocating jobs to Delaware may qualify for the tax credit. Under this Act, employers that
relocate at least 200 jobs with average salaries of $70,000 or greater to Delaware will be entitled
to a tax credit equal to 25% of the withholding paid by the employer on behalf of the relocated
employees. If employers relocate more than 200 jobs, the size of the tax credit increases and can
reach 40% if the employer relocates 500 or more employees. The Act also maintains incentives
for relocating jobs into municipalities, targeted growth areas and counties, and on to
redeveloped brownfields. Altogether, the maximum tax credit can reach 65% of the withholding
paid on behalf of the relocated employees. (78 Del. Laws c 396; SB 271).
6/19/12
8/6/12
Provided the Director of Revenue in conjunction with the Division of Professional Regulation
with the authority to deny or suspend professional license for taxpayers with a judgment on
debts in excess of $1,000. (78 Del. Laws c 265; HB 257).
3/28/13
1/1/14
Beginning 2014, established rates on all gross receipts business categories other than
manufacturers’ tax rates that are one percent below the rates in effect in 2013. Established rates
on manufacturers 30% below the rates in effect in 2013. (79 Del. Laws c. 13; HB 53).
1/27/2016
1/1/17
Adjusted the thresholds which trigger monthly (instead of quarterly) gross receipts filings.
Raised the thresholds to $1,500,000 for most businesses (and $3,000,000 for farm machinery
and commercial feed businesses). Subjected these thresholds to annual inflation adjustments.
(80 Del. Laws c. 195; HB 235).
6/28/16
6/28/16
Extended the business licensing and gross receipts taxation exemption for non-commercial
generation of solar electricity to include rural electric cooperatives. (80 Del. Laws c.285; HB 93
w HA1)
5/18/17
5/18/17
Set the start of the statute of limitations period for a substantial underpayment of a license
fee or gross receipts tax to commence at the end of the period for which the license is
issued. (81 Del. Laws c 19; HB 66 w/ HA1 and SA 1).
BUSINESS AND OCCUPATIONAL LICENSE AND GROSS RECEIPTS TAX
95
Approved
Date
Effective
Date
Description of Changes
7/26/17
8/25/17
Authorized interactive fantasy sports. Established a $50,000 annual license fee and a
quarterly gross receipts tax on interactive sports gross revenue. Required the quarterly gross
receipts tax rate be the greater of 15.5% or the highest rate adopted by another state, which
shall be determined on an annual basis. Sets a sunset date of July 1
st
, 2019. (81 Del. Laws c
05; HB 249 w/ HA1, HA1 to HA1, HA2, and SA 1).
FILING PROCEDURES AND PAYMENT DATES: Every company or person conducting any business
activity in Delaware must complete a "Combined Registration Application for State of Delaware Business License
and/or Withholding Agent." The information from this form is entered in the state's business master file, which
houses records of all transactions subject to the business and occupational license taxes, withholding taxes, and
corporation income taxes.
Businesses may register online using the One Stop Business Registration and Licensing System. With it, a
business can register with Delaware’s Division of Revenue, Division of Unemployment Insurance and Office of
Workers Compensation. Links are also provided to the State’s incorporation forms as provided by the Delaware
Division of Corporations and the Internal Revenue Service where the business may obtain a Federal Employer
Identification Number (FEIN).
Although the One Stop System addresses basic registration requirements, businesses must independently comply
with local zoning laws, the Division of Professional Regulations, the Departments of Agriculture, Health, Natural
Resources & Environmental Control, State and Transportation as necessary.
Businesses must pay the gross receipts tax on or before the 20
th
day of the month with respect to aggregate taxable
receipts for the preceding month or quarter. Larger taxpayers file on a monthly basis; smaller taxpayers file on a
quarterly basis. Filing frequencies are updated annually and are determined by reviewing each taxpayer’s historic
records during a “look-back” period. The threshold which delineates between quarterly and monthly filers is
annually adjusted for inflation. Certain occupations and professions referred to previously are exempt.
PENALTIES AND INTEREST: Failure to timely file required returns for monthly or quarterly gross receipts
taxes will result in late filing penalties of 5% per month, up to a maximum of 50% of the amount of tax due, plus
interest of 1/2% per month from the due date until the date of payment.
Failure to pay the amount of tax shown to be due on any gross receipts tax return will result in a failure to pay
penalty of 1% per month, up to a maximum of 25% of the amount of tax unpaid.
If such deficiency is due to negligence, a penalty of 20% of the amount is due. If a substantial understatement of
the tax is made, a penalty of 40% is due. Where any part of the deficiency is due to fraud, a fraud penalty of 75%
may also be imposed. If imposed, the fraud penalty is in lieu of the late filing and negligence penalties.