Delaware Code
Chapter 21. GENERAL PROVISIONS CONCERNING LICENSES
§ 2124. Revocation, denial, or nonrenewal of licenses for nonpayment of taxes.

(a) Revocation, denial or nonrenewal of licenses. — Whenever there has remained unpaid by a person for a period in excess of 180 days any final assessment of tax and/or penalty or interest due under this title (other than Chapters 51 and 52 and Chapter 30 of this title with the exception of §§ 3004 and 3005 of said chapter) exceeding $2,500, the Director may issue a notice of intent to revoke any license issued to such person (provided such license shall be the license for the business or occupation from which the liability arose and also provided that, in case of delinquent withholding or corporate income taxes, any license issued to such person) or, in the case of an application for a new license or renewal of an existing license, a notice of intent, respectively, to deny or withhold the license.
(b) Other persons affected. — The Director may revoke, deny or withhold a license under the preceding subsection when he finds that:

(1) The license is sought by or was issued to a person who is related, as defined in § 2125 of this title, to a revokee;
(2) The chapter of this title under which the previous license was revoked, denied or withheld is the same as the chapter under which the subsequent license is sought or was issued; and
(3) The business being or to be conducted is substantially the same as the revokee's business.
(c) Notice. — Notice of proceedings pursuant to subsection (a) or (b) of this section shall set forth the reasons for its issuance (including the amount of such unpaid liability) and shall be sent by certified mail to the last known address of the licensee or applicant.
(d) Finality of revocation, denial or nonrenewal; right to protest. —
(1) Thirty days after the issuance of the notice of intent, the revocation, denial or nonrenewal shall become final, unless within that time the taxpayer has done 1 of the following:

a. Paid the debt in full.
b. Entered into a written agreement with the Director of Revenue or the Director's designee for payment of the debt with terms as the Director may require.
c. Filed a written protest with the Director under § 523 of this title.
(2) The sole grounds for protest under subsection (a) of this section are:

a. The absence of any unpaid liability as of the date of the protest.
b. The absence of an unpaid liability exceeding $2,500 as of the date of the notice under subsection (a) of this section.
c. That the assessment creating the liability was contrary to law and the person did not have opportunity to protest the assessment.
(3) In the case of revocation, denial, or withholding of licenses under subsection (b) of this section, a protest may be made on the grounds set forth for instances arising under paragraph (d)(2) of this section and, in addition, on the grounds that:

a. The conditions required under subsection (b) of this section do not exist; or
b. Notwithstanding the conditions required under subsection (b) of this section, the other affected person acquired the business or its assets in an arms' length transaction and neither the revokee nor any owner of 25% or more of the revokee has any interest in the acquired business.
(4) The decision of the Director under this subsection shall be final and shall not be reviewed under § 544 of this title. However, in any matter where the State shall place in issue the nonlicensure of a business, including any action under subsection (e) of this section, any person may raise any defense that may be or may have been raised under this subsection.
(e) Injunctions. — The Court of Chancery shall have jurisdiction to enjoin any person who has not first obtained a license under this part, or whose license has been revoked, denied or withheld under subsection (a) or (b) of this section, from transacting any occupation or business in this State. The Director of Revenue may proceed for this purpose by complaint in any county in which such person is doing business.
(f) Relief from this section. — The Director may issue, renew or reissue any license which has been revoked, denied or withheld under this section upon full payment of the amount stated in the Notice described in this section plus interest to the date of payment; or upon agreement for full payment plus interest and current tax obligations under such terms and conditions as the Director may deem suitable to preserve the revenues of the State.
(g) Remedies not exclusive. — Nothing in this section shall prevent the Director from:

(1) Seeking to enjoin the conduct of business by a subsequent licensee in the case of a business whose license was revoked on the ground that change of identities between the revoked licensee and the subsequent licensee is substantially without substance or a sham.
(2) Invoking remedies related to fraudulent conveyances under Title 6; or
(3) Invoking remedies related to transferee liability under this title.