Business Privilege Tax Return And Business License Application Form

INSTRUCTIONS

BUSINESS PRIVILEGE TAX

The Business Privilege Tax of 3 mills ($3.00 per $1,000.00 of receipts) is to be paid on all gross receipts.

The term “gross receipts” includes the gross amount of cash, credits or property which is attributable to the

Township by reason of any service rendered or commercial or business transaction in connection with any business,

trade, occupation or profession. Generally, receipts are attributable to the Township when business activity is

managed, directed or controlled from a base of operations in the Township, even if the customer or a significant

portion of the business activity is outside the Township. “Gross receipts” includes, but is not limited to, all

commissions, fees, reimbursements, rents and any other compensation received, as well as interest, dividends,

capital gains and other income, whether considered “passive” or “active.”

It is the Taxpayer’s burden to claim and prove any exemption or exclusion. Taxpayer must disclose the

entire gross receipts prior to exclusion and provide worksheets, tax returns or other documents supporting the

claimed exclusion. “Gross receipts” does not include:

The first $25,000 of gross receipts. (One exclusion per taxpayer, not per location). This

exclusion may not be taken if taxpayer also files a mercantile tax return.

Any receipts which are already included in the calculation of the Mercantile Tax paid by the taxpayer.

In general, receipts generated by IRC 501(c)(3) nonprofit organizations meeting the criteria for

“institutions of purely public charity” as set forth in the Institutions of Purely Public Charity Act, 1997,

P.L. 508, No. 55; 10 P.S. § 371 et seq. are not included in gross receipts. However, gross receipts

derived by such nonprofit organizations from unrelated trade or business are included in gross

receipts.

Important Note: For complete information and specific guidance about exempt entities and receipts,

the exclusion of certain gross receipts, and how to determine gross receipts through attribution,

allocation, or apportionment, please refer to Radnor’s Business Privilege Tax Rules and Regulations.

The Regulations are available through the Township’s Business Tax Office or online at

Follow the links to Government/Finance/Forms & Applications.

PARTIAL YEAR: New businesses must file a tax return within forty (40) days from the date of commencing

business. The estimated gross receipts for such taxpayer shall be computed by multiplying the actual gross receipts

for the first month of business by the number of months remaining in the tax year. The $10.00 license fee is not

prorated.

TAXPAYERS WITH OTHER LOCATIONS: Taxpayers with places of business both within and outside of the

Township are required to obtain a license and pay the tax due resulting from business activity attributable to the

office in the Township; See Township Regulations.

TAXPAYERS SELLING GOODS AND PROVIDING SERVICES: Some businesses will be subject to both the

Business Privilege Tax and Mercantile Tax and should file a separate return for each tax. Such businesses need

obtain one license per location.

TAXPAYERS WITH MULTIPLE LOCATIONS IN THE TOWNSHIP: Taxpayers with multiple locations in the

Township must obtain a business license for each location, but should only file one tax return for all locations.

FILING REQUIREMENTS AND DEADLINE: You must attach copies of federal tax returns, schedules and

worksheets to support gross receipts reported and any claimed exclusions or exemptions. The tax return is not

considered complete unless such documents are attached.

The deadline to file all Business Privilege Tax Returns is May 15, 2009. Radnor Township will honor federal

extensions for returns not filed by May 15, 2009 PROVIDED THAT: a copy of the federal extension form is

submitted and the full amount of the tax and license fee is paid no later than May 15, 2009.

ASSISTANCE: All questions and requests for clarification or assistance should be directed to: William F. Martin,

Assistant Director of Finance, P.O. Box 155, Wayne, PA 19087-0155; Tel. 610-688-5600, ext. 152; Fax. 610-688-

1279; Email: .

Business Privilege Tax Return And Business License Application Form - Randor Township Page 2

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