Dewey’s Audit Expected to Generate Thousands in Business License Revenue

January 4, 2012

A recent audit conducted in the Town of Dewey Beach has revealed a large gap in the amount of rooms rented by residents and the actual number of licensed home rentals. With the town’s budget in a tight fix, town finance director and acting town manager Bill Brown has warned residents of the intentions of the town in pursuing the collection of business license fees from unlicensed home rentals.

As Jon Bleiweis reports in DelmarvaNow, “A recent audit of 51 rental properties showed that the town should be receiving an additional $35,000 in revenue from rental property owners who neglected to pay business license fees or accommodations taxes on their properties.”

Town officials, in the meantime, are working on finding the unlicensed home rentals and obliging them to apply for a Dewey Beach, DE business license. Those who don’t come into compliance on their own will be slapped with a $500 fine plus a penalty of 10% of their business license fees

Rental business license fees were increased last month from $129 each year to an annual $142. Residents renting more than two bedrooms must pay an additional $11 for each bedroom.

Business license compliance is mandatory on national, federal and local levels. Operating without proper state, county and city business licenses can cost business owners thousands in fines and penalties. Business owners are urged to take advantage of Business Licenses’ "Business License Compliance Package™" which tells you exactly which licenses, permits, and tax registrations are required for your business, ensuring license compliance on every level.

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