Show All Answers

1. Have you changed the due date for the 2020 Final/2021 Estimated Business Tax Return due to the corona virus pandemic?

Yes. As a result of the Covid-19 outbreak, the Township has adopted Resolution 2021-10 that changes the due date of the 2020 Final/2021 Estimated Business Tax Return from May 1, 2021 to June 1, 2021. If you file and pay the return in full by the new June 1st due date, the Township will not impose any penalty or interest charges on the filing.

2. Are PPP Loans, Grants and other pandemic assistance taxable?

No. Effective with Resolution 2021-21 adopted July 14, 2021, PPP loans received in 2020 or 2021 that are subsequently forgiven in 2020 or 2021  will not be included in the computation of the gross receipts tax. All other cash, credits or property that are received, allocable or attributable to a business are considered gross receipts pursuant to Section 310-2(A) of the Code, which would include the grants and other pandemic assistance unless specifically excluded pursuant to another provision of the Township Code, Pennsylvania Act 511, or precedent case law.

3. How do I obtain a municipal lien payoff amount?

Send an email to the Finance Director that includes the parcel number and/or the address of the property in the Township along with the anticipated payoff date.

4. Are your Tax Codes available online?

Yes, you can review the Township's Business Privilege, Mercantile License, and Occupational Privilege Tax Codes using the link.

Upper Moreland Township Code

5. Who do I make checks payable to?

All accounts receivable and payments for Business Taxes should be made payable to Upper Moreland Township.

6. What gross receipts are subject to UM business taxes?

All business gross receipts not excluded as manufacturing Receipts including but not limited to:

• All product sales including catalog and Internet sales within Pennsylvania
• All real property rental income
• All receipts from services rendered
• Commissions on sales

For more information, please call the Business Tax Office at 215-659-3100, ext. 1045.

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.

7. What type of business is subject to gross receipts tax?

All businesses within Upper Moreland Township must pay either mercantile or business privilege (or a combination unless the business is recognized as a 501(c)(3) organization by the IRS subject to the limitation that such organization is liable to pay tax on unrelated business income. For more information, please call the Business Tax Office at 215-659-3100, ext. 1045.

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.

8. Who is a wholesale vendor?

Any business which sells to dealers for resale. The product must be sold in substantially the same form by the customer. The Mercantile tax rate for a wholesale vendor is 1 mill (.001). For more information, please call the Business Tax Office at 215-659-3100, ext. 1045.

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.

9. Who is a retail vendor?

Any other business which sells goods for use or consumption by the buyer. The Mercantile tax rate for a retail vendor is 1.5 mills (.0015). For more information, please call the Business Tax Office at 215-659-3100, ext. 1045.

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.

10. What is subject to the business privilege tax?

All gross receipts other than those specifically attributable to product sales. Examples include, but are not limited to, services provided by doctors, dentists, accountants, contractors, commissions, installation charges, and rental income. The Business Privilege Tax rate is 3.5 mills (.0035). For more information, please call the Business Tax Office at 215-659-3100, ext. 1045.

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.

11. What if my business has some activity out of pennsylvania?

At the present time, gross receipts generated by interstate activities may be subject to allocation, and those receipts which reflect the instate component of the out-of-state activity will be subject to Business Privilege Tax. Contact the Business Tax Office for a copy of the allocation formula and additional information. For more information, please call the Business Tax Office at 215-659-3100, ext. 1045.

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.

12. Can a business be subject to more than one tax rate?

Yes! A business’ gross receipts may be a combination of receipts taxable as Business Privilege, Wholesale or Retail. It is the responsibility of the business to provide adequate documentation supporting the breakdown by category. Examples: invoices, bills of lading, etc. Otherwise, all gross receipts are taxable at the highest applicable rate. For more information, please call the Business Tax Office at 215-659-3100, ext. 1045.

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.

13. What qualifies as manufacturing?

A manufacturer is one who through the use of technology, labor and skill changes original material into new, different, and useful products. For more information, please call the Business Tax Office at 215-659-3100, ext. 1045.

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.

14. Are all gross receipts of a manufacturer exempt from tax?

No! Any non-manufacturing sales such as service contracts, parts not manufactured by the seller, and installation charges are subject to Business Privilege or Mercantile tax depending upon the nature of the transaction. For more information, please call the Business Tax Office at 215-659-3100, ext. 1045.

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.

15. How do I get an LST (Local Service Tax) account number?

For tax years beginning 1/1/2020, you may contact H.A. Berkheimer to secure an LST account. For tax years ending 12/31/2019, the Township does not have a Local Services Tax (LST). For years 2019 and prior, the Township ’s Business Tax Office continues to collect the $10 Occupational Privilege Tax, which is a single withholding once, per person, per year. If the employer has a Business Privilege or Mercantile License from the Township, that license number would be used for the Occupational Privilege Tax. If the employer does not have a registration with the Township, please contact the Business Tax Office to discuss the licensing requirements and determine if an account number can be issued over the phone.

Occupational Privilege Tax Ordinance