The Delaware Division of Revenue would like to remind businesses subject to the Hazardous Substance Cleanup Act (HSCA) that a new tax rate will being going into effect on January 1, 2019. The new adjustable rate for 2019 will be 1.5244%, and will apply to the taxable gross receipts from the sale of petroleum or petroleum products. The Division of Revenue will be updating this rate in their online system before the effective date of January 1, 2019.

The tax rate through December 31, 2018 is 0.9%, but recent legislation has adjusted the rate so that it will be based on a lookback period starting January 1, 2019. The new adjustable rates cannot be lower than 0.675% or greater than 1.675%, and are calculated by multiplying 0.9% (the original rate) by a fraction – the numerator of which is $15,000,000 and the denominator of which is the total collections in the fund during the lookback period (July 1 to June 30 of the prior year).

The HSCA was passed by the Delaware General Assembly in July of 1990 to ensure funding for the cleanup of facilities with a release or imminent threat of release of hazardous substances. The Department of Natural Resources and Environmental Control has identified over 700 sites in Delaware as potential hazardous substances release sites.

If you have questions about the new adjustable tax rate, please contact the Delaware Division of Revenue at (302) 577-8205.

The Delaware Division of Revenue online business license system is now open for 2019 renewals. Any business whose license expires on December 31, 2018 may visit de.gov/renew to renew using a credit card, debit card, or by direct debit from your bank account. This convenient online service is available 24 hours a day, seven days a week – and it’s fast, easy, and secure.

More than half of Delaware’s licensed businesses use the online renewal service, which is convenient, and allows you to print a temporary license directly from your computer – a benefit for any business that requires immediate proof of current licensing, such as contractors and businesses receiving government payments. Additionally, you may elect to renew your license for one year or for three years.

To complete the online renewal, you will need your Tax ID Number as well as your Business License Number. You’ll find your Business License Number on your current license or on the annual License Renewal Notices that will be sent to businesses later in November.

For more information, please contact the business license office at (302) 577-8778 or BusTax@delaware.gov.

In an effort to reduce ongoing outstanding tax balances, Delaware Division of Revenue Director Jennifer R. Hudson has announced publication of the Top 100 Delinquent Individual and Business Taxpayers lists to the State’s Delinquent Taxpayers website. By statute, the Division is required to post the names of the individuals and businesses who owe the most unpaid taxes to the state.

The published lists include the top business and personal taxpayers, each of whom owes a tax balance of more than $1,000, who were not on the last list that was published, and against whom the Division has filed a judgment. Collectively, the taxpayers included on the lists owe more than $3.6 million to the State.

Taxpayers who have entered into payment agreements with the Division of Revenue, who have filed for bankruptcy protection or who have a pending appeal of a proposed liability are excluded from the published lists.

“The Division of Revenue is committed to collecting all amounts that are owed to the State, and using all tools that are available to us to do so.” Hudson says. “While a large percentage of taxpayers resolve their liabilities to avoid having their names posted online, many others will wait until their names are actually published to resolve their accounts.”

If you have questions regarding the delinquent taxpayer lists, please contact the Delaware Division of Revenue’s Account Management Department at (302) 577-8785.

Delaware Division of Revenue Director Jennifer R. Hudson today announced the publication of the lists of the top 100 delinquent individual and business taxpayers to the State’s Delinquent Taxpayers website.

By statute, the Division of Revenue is required to post the names of the people and businesses who owe the most unpaid taxes to the state. The list includes the top 100 business taxpayers and 100 personal taxpayers who owe tax balances of more than $1,000, who were not on the last list that was published, and against whom the Division of Revenue has filed a judgment. Collectively, the businesses and individuals included on the lists owe more than $3.6 million to the State. Taxpayers who have entered into payment agreements with the Division of Revenue, who have filed for bankruptcy protection or who have a pending appeal of a proposed liability are excluded from the published lists.

“The Division of Revenue is committed to collecting all amounts that are owed to the State, and using all tools that are available to us to do so.” Hudson says. “While a large percentage of taxpayers resolve their liabilities to avoid having their names posted online, many others will wait until their names are actually posted online to resolve their accounts.”

Delaware is among the more than 20 states and the District of Columbia that publish delinquent taxpayers’ names online. If you have questions regarding the delinquent taxpayer lists, please contact the Delaware Division of Revenue’s Account Management Department at (302) 577-8785.

The Delaware Division of Revenue would like to alert taxpayers to a new and growing scam involving fraudulent tax refunds being deposited into real taxpayer bank accounts. After the money is deposited, the crooks use various tactics to con taxpayers into turning over those funds.

How does it work? Thieves are using schemes, including phishing, to steal client data from tax professionals. They then use that data to file fraudulent tax returns, and use the taxpayers’ real bank accounts to deposit those tax refunds. Finally, the thieves pose as the IRS or other law enforcement representatives, call attention to the error, and ask taxpayers to return the money to them.

If you ever receive a refund that you are not expecting, call the Division of Revenue for more information. You can also check out the Taxpayer Guide to Identity Theft at IRS.gov to learn how to protect yourself from tax scams, where you can also find help with returning an erroneous refund.

The IRS warns that versions of this new scam may continue to evolve. If you think you’re being scammed, call the Delaware Division of Revenue’s Fraud Team at (302) 856-5358 for assistance.