Business Privilege Tax Form

2021 Business Privilege Tax Form

 

 

CITY AND SCHOOL DISTRICT OF READING
2021 BUSINESS PRIVILEGE TAX
ANNUAL RETURN
DUE DATE: JUNE 15, 2021

 

 

 

     Name:     _________________________________________________
     Address:  _________________________________________________
                     ________________________________________________
     :   ________________________________________________

 


ATTACH 2020 FEDERAL TAX FORMS FOR SUPPORTING DOCUMENTATION OF GROSS INCOME, GROSS SALES, OR GROSS RECEIPTS.


COMPUTATION OF GROSS RECEIPTS

If in business for entire year of 2020, enter total gross receipts for 2020.

$

If business commenced between January 1, 2020 and December 31, 2020, indicate starting date

( /_ /_ ), determine the average monthly gross receipts for 2020 ( ) and multiply by 12. If business was operational for fewer than 90 days in 2020, they shall be permitted to use sufficient days at the start of 2021 to equal 90 successive days after commencement to take a monthly average of gross receipts.


$

If business commenced in 2021, indicate starting date ( / /_ ), determine the average monthly gross receipts for the first 3 months of business (_ ) and multiply by the number of months remaining in the year (_ ) include fractional months, from starting date to the end of 2021.


$

If business commenced less than 3 months from the end of 2021, indicate starting date ( /_ /_ ), use the actual amount of gross receipts generated from time of commencement to end of 2021.

$

If temporary, itinerant, or seasonal, report actual gross volume within seven days of completion of business.

$


TYPE OF BUSINESS

GROSS RECEIPTS

RATE

TAX DUE

1

Commissions

0.00225

2

Rentals

0.00225

3

Retail

0.0015

4

Services

0.00225

5

Wholesale

0.001

6

Tax Due (add lines 1, 2, 3, 4, and 5)

7

2% Discount if paid by April 15 (multiply line 6 by 0.02)

8

10% Penalty if paid after June 15 (multiple line 6 by 0.1)

9

1% Interest per month if paid after June 15 (multiply line 6 by 0.01 by number of months delinquent)


10


TOTAL AMOUNT DUE

If paid by April 15 (subtract line 7 from line 6)

If paid between April 15 and June 15 (line 6)

If paid after June 15 (add lines 6, 8, and 9)



I declare under the penalty of perjury that this return (including any accompanying schedule(s) and statement(s)) is true and correct.

Authorized Signature: Date:

Federal Tax ID #: Owner(s) Name(s): Phone Number: Nature of Business: Date Operation began in Municipality: Physical Location of Business:

Please make check payable and remit to:

Keystone Collections Group

P.O. Box 489, Irwin, PA 15642


Phone: (724) 978-2867

Toll free: (888) 328-0561

Fax: (412) 927-3646


Continue to remit the business privilege license fee directly to the City of Reading.


Para recibir asistencia en espanol, por favor llame 724-978-2866.


NOTES:

Normal business expenses are not to be used as exemptions.


If the total gross receipts reported on your Business Privilege Tax return is not the same as the total gross receipts reported on your Federal Income Tax return, attach an explanation of the difference to this return.


If you have moved business from one municipality to another during the tax year, you may have incurred an additional tax liability to that municipality.


Itinerant Contractors (Job Site Business): If no work is performed during tax year, please file $0 tax form for the year.


Payment Deadlines:

  • Discount: Payment remitted by April 15, 2021 or between 100 and 160 days of business commencement if commenced after January 1, 2021

  • Face: Payment remitted between April 16, 2021 and June 15, 2021 or between 161 and 220 days of business commencement if commenced after January 1, 2021

  • Penalty: Payment remitted after June 15, 2021 or after 221 days of business commencement if commenced after January 1, 2021


    FAQS

    My locality imposes a Business Privilege/Mercantile Tax. What is this tax?

    • Your municipality or school district may impose a tax on each dollar of gross annual receipts for a business within the municipality or school district, whether for gain or profit including financial businesses, professions, vocations, services, construction, or other commercial activities.

    • Some municipalities or school districts have a flat rate Business Privilege Tax not based on gross receipts. The requirements for your municipality or school district are listed on the business privilege tax return.


      What is the meaning of Gross Receipts?

    • For purposes of computing the tax, Gross Receipts mean any cash, credits or property of any kind received in exchange for merchandise sold or services performed in business activity. Do not deduct costs of property or merchandise sold, materials, labor or services furnished or used, or interest or discount paid.


      What supporting documentation should I include when I file the Return?

    • Include a copy of any Federal documentation such as Schedule C, Form 1120 (S -Corp) or any like form used to file with the IRS. If your business does not have these forms, then provide other documentation used to determine gross receipts (such as your sales spreadsheet).