Opening a Convenience Store in Delaware: Licenses & Permits

Delaware is one of the few states where a convenience store can't sell any alcohol: state law limits alcohol to package stores whose principal business it is. It also has no sales tax, and no reimbursement fund for operating tank owners. Below is who issues what, and how each rule shapes the store you design.

Licenses and permits at a glance

Fuel tanks: DNREC

The Department of Natural Resources and Environmental Control (DNREC) Tanks Compliance Branch regulates tanks under 7 DE Admin. Code 1351 and inspects every three years:

• Construction: tanks installed after January 11, 2008 need secondary containment: double-walled tanks and piping, with sumps at the tank top and under each dispenser, checked monthly.
• Fees: $150 per tank a year, due February 1. Vapor recovery adds a $500 construction permit and $275 a year.
• Operators: Class A, B and C operators are required. Class A and B operators take an approved course.
• No reimbursement fund: the Storage Tank Assistance Fund covers only orphaned sites or owners shown unable to pay. Operating owners need their own financial responsibility, usually insurance.

Talk to DNREC before you finalize the site plan; its rules govern installation approval and setbacks.

Alcohol: package stores only

Delaware's Office of Alcoholic Beverage Control Commissioner (OABCC) licenses package stores, and state law defines a package store as one whose principal business is alcohol, excluding convenience and grocery stores (4 Del. C. §101). So a convenience store or gas station can't sell beer, wine or spirits.

If you want to run a package store as a separate business:

• Fees: a $1,000 processing fee plus $1,000 every two years, and $500 more for Sunday sales.
• Spacing: no new store within half a mile by road of another in a town, or three miles in rural areas. The Commissioner may refuse sites near a church or school.
• Cap: one owner may hold no more than two stores.
• Hours: 9 a.m. to 1 a.m. Monday to Saturday and 10 a.m. to 8 p.m. Sunday, closed Thanksgiving, Easter and Christmas.

Tobacco and vapes

The Division of Revenue issues a retail tobacco license for each location. The rules for the sales floor:

• Age 21, with ID checks for anyone under 30 and notices at each register.
• Controlled displays: tobacco and vapes can't be in displays customers can reach unless an employee controls them. Locked cases count as controlled.
• Vending machines must be at least 25 feet from the entrance.

Food service: the Office of Food Protection

The Division of Public Health's Office of Food Protection permits food establishments statewide, under the 2022 FDA Food Code since October 11, 2025. Plans must be approved before construction, with a review fee of $50 to $250 by square footage and up to 60 working days for review. The annual permit for a retail food store is $100, issued after a pre-operational inspection.

Taxes, fuel pumps and lottery

• No sales tax: Delaware businesses get a business license from the Division of Revenue and pay a gross receipts tax instead. Petroleum retailers pay an additional hazardous substance tax on top of the retailer rate.
• Fuel pumps: the Department of Agriculture's Weights and Measures section inspects pumps every year, and devices must be legal for trade. Stations must help drivers with disabilities refuel.
• Lottery: the Delaware Lottery pays a 7% commission on over-the-counter sales and 5% on self-service terminals, with weekly minimum sales of $2,500 for online games and $600 for instant tickets. An ADA pre-inspection is part of the process.

What this means for your store design

• Leave alcohol out of the layout. The cooler wall is for soft drinks, water, dairy and grab-and-go food.
• Plan a package store as a separate business, if at all. It must pass the half-mile or three-mile spacing rule and be primarily an alcohol store. See choosing a location.
• Design tobacco displays that staff control, such as a back-bar or locked cases.
• Allow up to 60 working days for food plan review. See food service build-outs and the kitchen floor plan.
• Price tank insurance into the budget. There's no fund for operating owners.

Local approvals

Your county or town also controls zoning, building permits, fire inspections and signs. Our construction checklist covers the local steps.

For Delaware store design, see convenience store design in Delaware and walk-in cooler services in Delaware.

Sources

• DNREC, underground storage tanks, UST fees, financing options and UST compliance assistance manual; 7 Del. C. chapter 74.
• 4 Del. C. §§101, 543, 554 and 709; OABCC fee schedule and FAQ.
• 30 Del. C. chapter 53; 11 Del. C. §§1117 and 1119; Division of Revenue, vapor products FAQs.
• Division of Public Health, food establishment plan review; 2022 FDA Food Code adoption (29 DE Reg. 313).
• Division of Revenue, gross receipts tax rates; Department of Agriculture, weights and measures; 6 Del. C. §2912.
• Delaware Lottery, retailer incentives and new applicant packet (August 2026).

This page summarizes official sources as of October 2026. It is not legal advice. Fees and rules change, so confirm each one with the agency before you apply.