Form Bp - Business Privilege Tax - City Of Pittsburgh

If you have not previously registered with the City of Pittsburgh, form(s) can be downloaded at

or phone 412-255-2543 to request the New Business Registration form. Until you

receive an official City account number your return cannot be processed and payments made cannot be applied.

The tax is based on gross revenue, without deduction therefrom for the cost of property sold, materials used, labor,

service or other cost, interest or discount paid, or any other expense. Does not apply to wholesale vending of goods,

wares or merchandise, employment for wage or salary, activities of a non-profit organization. Persons subject to the

Mercantile Tax or Institution and Service Privilege Tax are not liable for the Business Privilege Tax on that part of the

business so taxable.

•

A business subject to the School Mercantile Tax but exempt from the City Mercantile Tax is required to file a City

of Pittsburgh Business Tax Return.

•

Dealers and Brokers in money credits, commercial paper, bonds, notes, securities, stocks and monetary metals,

Factors, Commission Merchants and holding companies are subject to the tax.

•

Persons engaged in a business, which is part taxable and part non-taxable, must file a return for the taxable part.

GENERAL INSTRUCTIONS

SECTION A - COMPUTATION OF TAX LIABILITY

LINES 1A-D Fill in Gross Revenue amounts per business type. Example: $500.00 for Services in 1A and $1,600.00

for Commissions in 1B. If reporting revenue in 1D, explain the other source of revenue.

LINES 2A-D Fill in Exemptions and Exclusions per business type. Example: $50.00 for Services in 2A and $100.00

for Commissions in 2B.

•

COMMON EXCLUSIONS: Receipts attributable to a bona fide out of City office; that portion of

receipts attributable to interstate commerce; taxes collected as agent for a governmental body, any

aspect of a business which is specifically exempted or excluded by law. Business engaged in

manufacturing may exclude from this tax that portion of their receipts attributable to the

manufacturing activity.

•

CITY ORDINANCE #6 OF 1996 DETAILING EXEMPTION ON GROSS ANNUAL RECEIPTS -

Who qualifies for the exemption? Individuals, married couples jointly in business, partnerships and

corporations are entitled to ONE exemption from gross receipts. If you file more than one Business

Privilege Tax return, you may take the exemption against ONLY ONE of those returns.

Enter the per ordinance exemption amount in the exemptions and exclusions column. Subtract this

amount from gross revenue to obtain the taxable revenue. If taxable revenue is less than zero,

then the tax due is zero.

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EXEMPTION OF $10,000.00 for the 1996 business privilege tax return due in 1996.

•

EXEMPTION OF $20,000.00 for the 1997 business privilege tax return and each return thereafter,

due in the current year.

YOU MUST FILE A BUSINESS PRIVILEGE TAX RETURN TO CLAIM THE EXEMPTION.

LINES 3A-D

Calculate net taxable revenue by subtracting Exemptions and Exclusions from Gross Revenue per

business type. Example: Net Taxable Revenue for Services is 1A ($500.00) minus 2A ($50.00), which

equals 3A ($450.00). Net Taxable Revenue for Commissions is 1B minus 2B, which equals 3B

($1,500.00). Follow the example and calculate (3C) and (3D) and use the same procedure for all

types of businesses for which you are responsible.

LINE 4

Add the sum of lines 3A through 3D. Example: Net Taxable Revenue equals $1,950.00. (In this

example both Rentals and Other Revenue equaled zero).

LINE 5

Calculate the tax due. Example: Line 4 equals $1,950.00 multiplied by 6 mills (0.006), which equals

tax due of $11.70 (no City ordinance exemption was taken). If the City ordinance exemption was

taken, the tax due would be zero.

LINE 6

If appropriate; deduct the occupation tax paid. The deduction for occupation tax paid is allowable for a

sole proprietor or members of a partnership only. Corporations cannot claim this deduction. For

reduction of tax due only. Line 6 cannot exceed line 5.

The tax paid for employees of a business cannot be claimed.

• If the occupation tax was paid under an account number different than the one shown on this return,

please list the name of the employer and include proof of payment (a copy of your occupation tax

receipt).

Form Bp - Business Privilege Tax - City Of Pittsburgh - 2002 Page 3

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