Business Privilege Tax and Licensing Information
IMPORTANT: Payment of the Business Privilege Tax and License Fee is due on April 30th of each year. Failure to file a return and/or pay the required tax amount due and/or license fee of $35.00 could result in fines up to $600.00 per offense, recoverable with costs.
Who is required to obtain a business privilege license and file a business privilege tax return?
All businesses are required to file and pay tax on their gross receipts annually on a calendar year basis by filing a Business Privilege Tax Return. Receipts are taxed at two different rates based on the following:
A. Receipts from selling goods, wares, and merchandise to dealers for resale should use the wholesale rate of one mil (.001) of Gross Receipts ($1.00 per $1,000 of Gross Receipts).
B. Receipts from retail businesses and/or businesses providing services, anyone receiving commissions, self-employed, statuary employees should use the retail rate of one and one-half mils (.00150) of Gross Receipts ($1.50 per $1,000 of Gross Receipts).
C. Rental Income within South Whitehall Township is subject to the Business Privilege Tax, at a rate of one and one-half mils (.00150) of Gross Receipts ($1.50 per $1,000 of Gross Receipts).
PERSONS FILING FOR AN EXTENSION:
Those persons who file an extension with the Internal Revenue Service must remit a copy of the appropriate form, #7004 for corporations, and #4868 for individuals by April 30th. The extension does not provide for exoneration of penalty and interest until paid. You may file an estimated return by April 30th; then file an amended return when actual gross receipts are determined.
Please follow the instructions below:
1. If your business is located in South Whitehall Township, include a copy (first page only) of the appropriate Federal Income Tax Schedule for 2016 that indicates gross volume of business. The South Whitehall Township Business Privilege Tax is calculated on the actual gross receipts for the period from January 1, 2016 through December 31, 2016.
Federal Income Tax Forms
Individual, aka Sole-proprietorship – Form 1040 – Schedule C
Partnership – Form 1065 – Schedule K-1 to each partner
Corporation, aka Regular Corporation or “C” Corp. Form 1120
Subchapter S Corporation Form 1120S – Shareholders each get Schedule K-1
Single-Member Limited Liability Co. Form 1040 – Schedule C
Limited Liability Co. with more than one member Form 1120 or Form 1065 – Schedule K-1
Limited Partnership or Limited Liability Partnership Form 1065
Rental real estate owned by an individual Form 1040 – Schedule E
Rental real estate owned by a Corporation Form 8825
2. Multiply gross receipts, shown on your Federal Income Tax Schedule, times (x) the appropriate tax rate. Retail businesses and/or businesses providing a service, anyone receiving commissions and persons receiving rental income from properties located in the Township, should calculate tax based on 1-1/2 mils or .00150. Persons who sell goods, wares and merchandise to dealers for resale should use the wholesale rate of one mil or .00100.
3. If your final return for 2016 is filed after the due date of April 30, 2017, you are required to include a penalty of 5 per cent (5 %) times (x) the tax amount due and interest of one percent (1%) per month times (x) the tax amount due until paid. Example for calculating interest: one percent (1%) if paid after April 30, 2017 and on or before May 31, 2017; two percent (2%) if paid on or before June 30, 2017 and so on.
4. Remember to add your Business Privilege License Renewal Fee of $35.00 for 2017.
5. Checks should be made payable to “South Whitehall Township”.
6. Make address corrections/changes, if applicable, on the tax return along with your zip and four-digit code. Keep the “Worksheet – Taxpayer Copy” of the form for your records and detach the bottom portion marked “Final Return – Township Copy” for mailing, along with your check to:
SOUTH WHITEHALL TOWNSHIP
4444 WALBERT AVENUE
ALLENTOWN PA 18104-1699
Payment may also be made at the South Whitehall Township Municipal Building between the hours of 8:00 A.M. and 4:00 P.M.
Directions on how to complete the Business Privilege Tax Return can be found in the Instruction Section of the Return.
To download the Business Privilege Application, click HERE
To download the Business Privilege Tax Return, click HERE
Should you have any additional questions that are not answered on the Return, please contact the Business Privilege Coordinator at 610-398-0401 or e-mail us at firstname.lastname@example.org