TAX TIPS FOR LICENSEES REQUESTING THE SENIOR CITIZEN DISCOUNT
Title 30 of the Delaware Code provides for a 75% discount of the amount of the annual license fee for an individual conducting selected activities. The business must meet all of the following requirements to be eligible to receive the discount.
The business must be operated as a sole proprietorship. This means only one individual owns the business. For purposes of this requirement, a Single Member Limited Liability Company (SMLLC) whose sole member is an individual who has elected to be tax as a sole proprietorship meets this requirement.
Age of Licensee
The individual must be 65 years of age or older on or before January 1st of the current license year. A person whose 65th birthday occurs after January 1st of the current license is not eligible for the discount until the next license year. A license year starts on January 1st and ends on December 31st. The licensee must supply a copy of their driverís license or other acceptable documentation as proof of age.
Eligible senior citizens can now pay one-fourth the annual occupational or business license fee for the following business types:
Lessors of Tangible Personal Property (Motor Vehicle Lessors Excluded)
Gross Receipts Less Than $10,000
The total receipts from the sale of goods and/or services must be less than $10,000 for the license year in which the discount is requested. A licensee whose gross receipts exceed $9,999.99 during the year must pay the full amount of the license fee at the time such receipts exceed $9,999.99. A licensee who has paid the full license fee and who otherwise qualifies for the discount may request a refund provided the gross receipts for the calendar year are less than $10,000. The refund may be requested after the end of the calendar year. For purpose of determining gross receipts, returns and allowances shall be excluded from the calculation of total gross receipts.