Business Privilege and Mercantile Tax

Business Privilege and Mercantile Taxes are levied by the district and currently shared with Warminster Township, the Borough of Ivyland and Upper Southampton Township. The tax is levied on all business which operate within the boundaries of the district. The tax is based upon the gross receipts generated by the business operating within the district.

 

What constitutes doing business in the school district and/or its municipalities?

Whether or not a person carries on a taxable activity within the meaning of the Business Privilege and/or Mercantile Tax Act is essentially a question of fact. In general, taxable activity includes any trade, business, profession, vocation or commercial activity that is carried on in the Taxing District. The tax is imposed on any person who exercises the privilege of carrying on certain activities in the Taxing District and on any wholesale or retail vendor in goods, wares or merchandise, and is measured by receipts received or allocable to the Taxing District.

 

Business Privilege Apply to operation of a business which offers professional services and rental of Real Property within the district. 

 

Mercantile Tax – Apply to the operation of a business which transacts Retail or Wholesale sales of tangible products with the district.

 

Tax returns reporting the taxes due are due on or before April 15th of each year and are made up of a final and estimated return, as well as an annual license fee. The license fees and tax rates levied in each of the municipalities are as follows:

 

Centennial School District/ Warminster Township

Retail/Wholesale – $5.00

Retail Tax rate – 1.5 mills

Wholesale Tax Rate – 1.0 mill

Services/Rentals – 2.5 Mills

Rental/Services - $10.00

 

Centennial School District/Upper Southampton  Township

Retail /Wholesale – $45.00

Retail Tax rate – 1.5 mills

Wholesale Tax Rate – 1.0 mill

Services/Rentals – 1.5 Mills

Rental/Services - $45.00

 

Centennial School District/Ivyland Borough 

Retail /Wholesale – $10.00

Retail Tax rate – 1.5 mills

Wholesale Tax Rate – 1.0 mill

Services/Rentals – 1.5 Mills

Rental/Services - $5.00

 

The tax is administered for the school district and its municipalities by Berkheimer Tax Administrators. Their contact information is as follows:

 

Berkheimer Tax Administrators

325A N. Pottstown Pike

Exton, PA 19341

Phone – 800-360-7214 or 610-363-7214

Fax – 610-524-2981 or 610-588-5765

E-mail- BPT@hab-inc.com

Website – www.hab-inc.com

 

The following information may be viewed and/or downloaded on their website at: www.hab-inc.com/content/bpt.htm

 

Business Privilege Rules and Regulations

Business Privilege/Mercantile Registration Form

Business Privilege/Mercantile Tax Return

Business Privilege/Mercantile Tax FAQs

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