Business Tax Office
The deadline for filing the Upper Moreland Township 2019 Final/ 2020 Estimated Mercantile and Business Privilege Tax return and payment has been extended from May 1, 2020 to July 15, 2020. A full copy of the Resolution authorizing the extension can be found here.
MontcoStrong Small Business Grant Program-Eligible small businesses in Montgomery County can apply for up to $25,000 to help with making rent or mortgage payments, meeting payroll expenses, and covering utility bills. The complete eligibility criteria, program information, program guidelines, program FAQ, and application instructions are all available at www.montcopa.org/MontcoStrongSBGP
All businesses are required to register annually with the Business Tax Office under the Upper Moreland Township Code, Title 2, Chapter 310, Article 1, Section 310-5, without regard as to whether any tax is due.
Organizations or Non-Profit Corporations
Any organization or non-Profit corporation which is or has been determined to be an organization described in Section 501(C)(3) of the Internal Revenue Code of 1986, as amended, and is exempt from Federal Income Taxes under Section 501(a) is still required to pay the $10 annual registration fee and is liable for payment of tax on any “unrelated business income”. This office should be provided with an annual verification indicating current good standing with IRS and noting any challenge from IRS since the ruling letter was issued. In addition, you are required to provide this office with a copy of IRS Form 990 and 990-T.
If your business is a manufacturer, please submit a letter which describes your manufacturing process. This description should be enclosed with the annual registration fee along with a copy of your most recent PA Capital Stock Tax Exemption form with schedules and page 1 of Form 1120.
Registration Form (License Application)
Please complete the registration form (license application) in its entirety and return it to this office by January 15th. Your $10 check should be made payable to “UMT-Collector of Business Taxes” and mailed to:
Upper Moreland Township
117 Park Avenue
Willow Grove, PA 19090-3215
You should include 10% penalty and 10% interest if the annual fee is paid after the January 15th due date. A new business is required to register prior to commencing business in Upper Moreland Township.
Business Privilege/Mercantile Tax returns and Occupational Privilege Tax forms will be sent early in the new year. The due dates for each are as follows:
- License Application - January 15th
- Business Privilege/Mercantile Tax - May 1st
- Occupational Privilege Tax - See Note Below
Penalty and interest will be assessed if payment is received after the due date.
Occupational Privilege Tax / Local Services Tax
Important Change for 2020: The Township has imposed a Local Services Tax of $52 that will be collected by H.A. Berkheimer. Please contact Berkheimer for filing and account setup information. For tax years ending 12/31/2019, the Occupational Privilege Tax of $10.00 should only be withheld from the wages of each owner or employee once a year. Payment of the Earned Income Tax does NOT excuse any taxpayer from remitting the Occupational Privilege Tax. If a new employee has had this tax withheld by a previous employer, the employee should be listed on the remittance form accompanied by a copy of the pay stub as evidence of the withholding by the previous employer.
Documentation & Extension of Time to File
A copy of the applicable page of your IRS return which reflects your gross receipts should accompany your Upper Moreland Tax Return. If you have applied for an extension of time to file with IRS, your Upper Moreland Tax Return is still due on May 1st. You are required to pay what you reasonably expect your tax liability to be in order to avoid penalty/interest charges. Your Upper Moreland Tax Return can be amended at the time your IRS form is finalized. If you elect to enter into an Installment Plan for payment of taxes on or before May 1st, interest charges may be assessed on the unpaid balance at the statutory rate of 6% per annum.
Failure to Obtain or Receive the Application or Tax Forms
Failure to Obtain or Receive the Application or Tax Forms Shall Not Excuse Any Person From the Obligation to File and Pay the Fee or Tax Due. You are entitled to receive a written explanation of your rights with regard to the audit, appeal, enforcement, refund and collection of local taxes by calling the Upper Moreland Business Tax Office at 215-659-3100, ext 1044 or 1045, during the hours 8:30 a.m. to 4:30 p.m.
Department of Code Enforcement
Any new business should contact the Code Enforcement Department at the Township Building to receive an application for a Use Registration Permit. The Code Enforcement Department will determine whether your business activity is a permitted use in that zoning district.
If a business is contemplating any expansion or remodeling, it is necessary that the contractor be registered and provide the Department of Code Enforcement with a current Certificate of Insurance. The applicable permit MUST be obtained in advance. Questions concerning the current fees or procedures may be directed to the Department of Code Enforcement at 215-659-3100.
Earned Income Tax / Net Profits Tax
Effective January 1, 1991, Upper Moreland Township levied a 1% Earned Income Tax ("EIT") on every resident as well as on every person working in the Township. It is the responsibility of every employer and/or every business owner (even a sole proprietorship or partnership with no employees) to contact the Earned Income Tax office and register as a business entity in the Township.
Every employer must deduct 1% from the gross salary, wage, commission or other compensation of each person working in the Township. Withheld taxes must be remitted quarterly on forms sent to you by the EIT Office. Employers are required to file an Annual Reconciliation with copies attached of all W-2’s and 1099’s issued to persons working in the Township. Business entities with no employees are required to file a copy of their IRS business schedules. Upon registration, all information necessary for the proper withholding of tax will be given to each company.
As of January 1st 2006, H.A. Berkheimer, Inc. has been appointed Earned Income Tax Collector. To register, ask questions, or obtain forms, contact:
H.A. Berkheimer, Inc.
P.O. Box 905
Bangor, PA 18013
or call toll free 866-701-7206. You may download forms from Berkheimer Tax Innovations or contact their Bridgeport Office at 610-279-7500.
You are entitled to receive a written explanation of your rights with regard to the audit, appeal, enforcement, refund and collection of Earned Income Taxes by calling H.A. Berkheimer, Inc or the Township.
Important Telephone Numbers:
- Business Tax Office, ext. 1044 or 1045
- Code Enforcement Department, ext. 1032
- Real Estate Tax Office, ext. 1046
- Alarms and Complaints 215-657-4700
- Emergency Calls (Police, Fire, Ambulance) 911
- H.A. Berkheimer, Inc. (EIT) 866-701-7206
- H.A. Berkheimer, Inc. (LST) 610-599-3142
- Police Department Records and Information 215-657-4700
- Upper Moreland Township Building 215-659-3100
This is intended as a guide to businesses in paying the mercantile and business privilege taxes. It is not intended to be an exclusive opinion on the taxable nature of gross receipts by the township. Each taxpayer is responsible for filing complete tax returns based on act 511 and the township ordinances.