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03/04/2013

News / Delaware businesses file lawsuit over excessive license fees

A group of businesses in the Delaware town of Dewey Beach have filed a lawsuit, claiming that the fees one has to pay to obtain a business license exceed the actual and reasonable cost of administering and enforcing the license.

The six businesses are owned or managed by Alex Pires and filed the class action lawsuit last week. The businesses include Rusty Rudder, Jimmy’s Grille and Bottle & Cork.

Mayor Diane Hanson responded by saying that the lawsuit was concerning, but stressed that the fees levied by the town were fair. Business license fees account for $300,000, a large share of the town’s budget, The News Journal reports.

Although Dewey Beach does not have a property tax, it still collects revenue from transfer and hotel taxes, parking fines and business fees.

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