Ocean View Business License: $200 a Year, the Rental License and the Town Rental Tax

If you operate any business in Ocean View, Delaware, you need a town business license. The upfront cost is straightforward: $200 for a full calendar year. But if you're renting property in town, there's a second license ($150 per unit) and a twice-yearly tax filing that many new landlords overlook. This guide walks you through exactly what you need to file, how to do it, and what happens if you miss a deadline.

What You Need to Get Your Ocean View Business License

Before you sit down to file, gather these materials:

• Your Social Security Number or Federal Employer Identification Number (EIN)
• Business name and physical address (or home address if you're working from home)
• Type of business (what job or service you perform)
• Payment for the $200 fee (confirm accepted payment methods with the town)
• If you're renting property: the number of rental units, property address, and details about your rental operations
• For rental operators: records of gross rental receipts for the prior period (needed for tax returns)

You do not need to have formed a Delaware LLC or corporation first. A business license from Ocean View is separate from state entity formation through Delaware's Division of Corporations. Even sole proprietors operating as themselves can get an Ocean View business license.

Step 1: Determine Whether You Need a Business License

Ocean View requires a business license for anyone performing a job or operating a business in the town. This includes contractors, service providers, retail shops, restaurants, rental operators, and property managers. If you're based outside Ocean View but do work inside town limits, you still need an Ocean View license for that work.

The Delaware state business license (issued by the Division of Revenue through Delaware One Stop) does not replace the town license. Businesses need both, the state license and the Ocean View license, because they apply at different layers of government and fund different services.

Step 2: Gather Your Gross Receipts Information (Rental Owners)

The Ocean View business license is a flat $200 for a full year, so it does not depend on your gross receipts. Rental owners do need rental receipt records for the town's tax return (see Step 6).

For rental operators specifically, gross receipts means the total dollar amount of all rental payments you receive for units in town, before any expenses. If you rent out two properties at $1,500 per month each, your annual gross receipts are $36,000.

Step 3: Apply for Your Ocean View Business License

Contact the Town of Ocean View to apply. Here's how to reach them:

• Phone: (302) 539-9797
• Website: oceanviewde.gov/BusinessRentalLicenses
• Mailing address: Confirm with the town, municipal offices are in Ocean View

Complete the business license application form. You'll provide your name, business name (or DBA if you're operating under a trade name), business address, phone number, and type of business. Pay the $200 fee by check, card, or cash as the town accepts.

Licenses run on the calendar year: January 1 to December 31. The town's page lists a full-year license at $200; ask the town whether a partial-year license is available. Your license must be renewed by January 1 each year, and the fee is due by that date. If you miss the deadline, the town may assess a late fee (amounts vary; confirm the current schedule with the town).

Ask the town how long processing takes. You'll receive a license certificate or confirmation that your license is active. Some businesses post the certificate visibly; others keep it on file. Ask the town what's required for your business type.

Step 4: If You're Renting Property, Apply for a Rental License

If you own or manage rental property in Ocean View (residential or otherwise), you need a separate rental license. The cost is $150 per unit per calendar year. So if you rent three units, you'll pay $450 for the year.

Apply for the rental license using the same process as the business license, or through a combined application if the town offers one. Typical information to have ready (confirm with the town):

• The number of rental units you operate in town
• The street address of each property or unit
• The type of rental (long-term residential, short-term vacation, etc.)
• Your estimated annual gross rental receipts

The rental license also runs on the calendar year (January to December). The fee is due by January 1. Here's a key point: Ocean View will not issue a rental license to you until you've paid all prior-year rental license fees and all prior-year gross receipts taxes. If you owed $300 in taxes from last year and didn't pay, you can't renew this year's rental license until you settle that debt. This rule enforces compliance with the tax-filing requirement.

Step 5: Understand the 6 Percent Gross Rental Receipts Tax

Once you have a rental license, you owe a town tax on your rental income. Ocean View imposes a 6 percent tax on gross rental receipts. This is in addition to any Delaware state short-term rental tax (which is 4.5% and applies separately if your rentals qualify). Confirm with the town which types of rentals the tax covers.

Gross receipts means the total rent you collect, not your profit after expenses. If you rent a property for $1,500 a month for 12 months, that's $18,000 in gross receipts, and you owe $1,080 in Ocean View rental tax (6% of $18,000).

Confirm with the town who must calculate, collect and pay the tax.

Step 6: File Gross Rental Receipts Tax Returns Twice per Year

Ocean View requires rental operators to file a Gross Rental Receipts Tax return twice per year. The town's page says the return is due twice a year; confirm the due dates with the town when you get your rental license.

Here's what the filing process looks like:

1. Track your rental receipts for each reporting period.
2. Add up all gross rent received. Do not deduct expenses, vacancy losses, or damage claims.
3. Calculate 6 percent of that total. This is what you owe.
4. Complete the town's Gross Rental Receipts Tax return form. You'll list each property, the gross receipts per property, and the total tax due.
5. Submit the return and payment to the town by the deadline. Late filings may incur penalties.

Example: You rent out one house for 6 months at $2,000 per month. Gross receipts are $12,000. Your tax is 6% × $12,000 = $720. You submit a return showing $12,000 in receipts and a $720 tax payment.

If you don't pay the tax or file on time, the town may assess penalties. You also cannot renew your license next year until all prior taxes are paid.

Important: The State Short-Term Rental Tax Is Separate

If you rent your property on a short-term basis (stays of no more than 31 consecutive nights), Delaware also requires a 4.5% state short-term rental tax. This is separate from Ocean View's 6% town tax. You would owe both. Keep these filings distinct; they go to different agencies and have different rules. Consult with the Delaware Division of Revenue or a tax professional to understand your obligations if you offer short-term rentals.

Tips to Avoid Common Mistakes

• Don't confuse the business license with the rental license. If you rent property, you need both. The business license is $200; the rental license is $150 per unit. They are not the same thing.
• Mark your tax filing deadlines on a calendar. Missing a rental tax filing deadline can result in penalties and the loss of your renewal license. Set reminders at least one month before each due date.
• Track gross receipts, not net income. Many landlords naturally think of what they earn after expenses. The tax is on gross, so don't deduct maintenance, property taxes, or mortgage interest from the calculation.
• Renew before January 1. If you operate in Ocean View, file your renewal and pay the fee by January 1 each year. If you're late, you may be operating illegally and subject to fines.
• Keep receipts and records. If the town audits your rental tax return, you'll need to show proof of the gross receipts you reported. Keep lease agreements, rent payment receipts, and bank statements.
• Don't assume the state business license is enough. Many business owners get a Delaware Division of Revenue business license and assume they're covered everywhere in the state. Ocean View requires its own town license in addition.
• Contact the town early if you're unsure. The town staff can clarify whether you need a business license, a rental license, or both. It's better to ask before you file than to discover a requirement after the deadline passes.

What to Expect After You File

Once you submit your application and fee, ask the town how long issuance takes. You'll receive confirmation that your business license is active. If you applied for a rental license as well, that will be issued once you've completed both steps and any prior debts are settled.

Your license is valid for the calendar year. You can start operations once the license is active. Display the certificate if required by the town, and keep a copy for your records.

For rental tax filings, you'll submit returns twice per year. After the town processes your return and payment, you'll receive confirmation. Keep a record of these confirmations for your tax records and to prove compliance if needed.

Contact Information and Resources

For questions about Ocean View business and rental licenses:

• Town of Ocean View: (302) 539-9797
• Website: oceanviewde.gov/BusinessRentalLicenses (includes links to the rental license ordinance and fee schedule)
• Reference: Ocean View Town Code Chapter 93 (business and rental license requirements)

If you're unsure whether you need a state business license in addition to the town license, contact the Delaware Division of Revenue through Delaware One Stop at onestop.delaware.gov or call to ask whether your business category requires licensing.

Disclaimer

This article is informational only and is not legal or tax advice. Business licensing rules, fees, and tax rates are subject to change. Ocean View has updated its fee schedules in 2025 and 2026, and town code provisions may be amended. Before you apply or file, contact the Town of Ocean View directly at (302) 539-9797 or visit oceanviewde.gov to confirm current fees, deadlines, and requirements. If you are uncertain about your specific situation or tax obligations, consult a qualified accountant or attorney licensed in Delaware.