Sales Tax Updates In Delaware

Tax Professionals' Resource
January 22, 2013 — 1,202 views  
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Delaware is one of several states, along with Alaska, Montana, New Hampshire, and Oregon, that do not have a general statewide sales tax. The state has instead levied a tax known as the manufacturers' and merchants' license tax. Much like a sales tax, this tax is also levied on gross sales; however, it only applies to manufacturers, contractors, wholesalers, retailers, restaurants, food processors, grocery markets, and farm machinery and commercial feed dealers.

Each of these businesses are given a different tax rate. Therefore it is important that any business in the state of Delaware is classified correctly. This tax has no provision written into law that mandates it be shifted to the purchaser or consumer. So anyone operating these kinds of businesses in Delaware needs to understand how to determine this tax amount. Rates are also amended from time to time, so it is important to have current relevant rate data.

Here are the rates effective January of 2010:

  • The license fee for Delaware occupations that require any type of state license is 0.4147% of the total gross receipts.
  • The license fee for Delaware Manufacturers is 0.1944% of total gross receipts.
  • The license fee for Delaware contractors' is 0.6739% of total gross receipts.
  • The license fee for Delaware food processors is 0.2074% of total gross receipts.
  • The license fee for Delaware wholesalers' is 0.4147% of total gross receipts.
  • The license fee of Delaware retailers' is 0.7776% of aggregate gross receipts.
  • The license fee of Delaware transient retailers' is 0.7776% of total gross receipts.
  • The license fee for Delaware Petroleum product wholesalers is 0.2592% of all taxable gross receipts from sold petroleum or petroleum products.
  • The license fee of Delaware farm machinery retailers' is 0.1037% of total gross receipts.
  • The license fee of Delaware commercial feed dealer wholesalers' is 0.1037% of total gross receipts.
  • The license fee of grocery stores is 0.3402% of the first $2 million per month to 0.6372% of the total gross receipts following.
  • The license fee of Delaware restaurants is 0.6739% of total gross receipts.
  • The license fee for Delaware leasing is 2.0736% of the rent paid under the leasing agreement of any tangible personal property.
  • The license fee for Delaware lessors' is 0.3110% of the received lease rental payments.


Most Delaware businesses are typically entitled to monthly or quarterly exclusions.

 

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