BUSINESS PRIVILEGE AND MERCATILE TAX:
The City of Bethlehem levies a Business Privilege and Mercantile Tax for the general revenue purposes on the privilege of doing business
within the City of Bethlehem.
The rate of tax of the whole or gross volume of business transacted shall be calculated as follows:
On receipts attributable to the retail sales of merchandise the rate shall be one and one-half mills or one dollar and fifty
cents ($1.50) on every one thousand dollars ($1,000.00) of gross volume of business.
On receipts attributable to all other business, except wholesale sales, the rate shall be one and one-half mills or one
dollar and fifty cents ($1.50) on every thousand ($1,000.00) of gross volume of business.
On receipts attributable to wholesale sales of merchandise the rate shall be one mill or one dollar ($1.00) on every one thousand
dollars ($1,000.00) of gross volume of business.
Please attach a copy of your Schedule C, Schedule E, 1120, 1120S or 1065 form to the Business Privilege & Mercantile Tax Return.
FOR EXAMPLE The tax on retail sales would be computed as follows:
Gross Receipts = $ 1,000.00 Tax = $ 1.50
Gross Receipts = $ 5,000.00 Tax = $ 7.50
Gross Receipts = $ 10,000.00 Tax = $ 15.00
Gross Receipts = $ 100,000.00 Tax = $ 150.00
TAX PAID ON MUSIKFEST, CELTICFEST, CHRISTKINDLMARKT OR OTHER EVENTS:
If your business does not separate the gross receipts from festivals, fairs or “special events” from the gross receipts collected by
your principal place of business within the City of Bethlehem, please use this section to claim credit for tax paid at the conclusion of
the festivals, fairs or “special events” you have attended. NOTE: These amounts will be checked and verified – Please be
accurate when claiming credit for tax already paid.
Please itemize below the Business Privilege & Mercantile Tax from “special events” that you have already paid during the tax year
for which you are filing this return (DO NOT INCLUDE LICENSE FEES):
Total Musikfest Business Privilege/Mercantile Tax paid ___________________________
Total Celticfest Business Privilege/Mercantile Tax paid ___________________________
Total Christkindlmarkt Business Privilege/Mercantile Tax paid ___________________________
Other Events – Business Privilege / Mercantile Tax paid ___________________________
TOTAL TO BE ENTERED ON LINE 9 ON FRONT OF RETURN
EXEMPTIONS FROM THE TAX and/or LICENSE REQUIREMENT:
Pennsylvania Sales Tax may be excluded from the computation of gross receipts.
Organizations that meet the tests to qualify as a “purely public charity” are exempted from the tax. However, registrations must
be filed with the tax office for business registration purposes. The registration/annual return must be accompanied by the $25.00
administrative fee. Copies of the five-part test to qualify as a “purely public charity” are available from Tri-State Financial Group.
Contractors with a Current HIC License will be exempted from paying Bethlehem $25.00 administrative fee. Contractors must
still pay the gross receipts tax unless gross receipts tax.
PLEASE NOTE: Any business that is in default of payment of the tax due shall be refused a license until such tax is paid in full. Failure to
make payment may also result in the initiation of collection procedures and criminal prosecution.
If you should have any questions regarding the Business Privilege/Mercantile Tax or Business Privilege License, please do not hesitate
to contact Tri-State Financial Group. Our hours of operation are 8:30 am through 4:30 pm, Monday – Friday. Telephone number (610) 270-9520.
If you desire an “Administrators Ruling” on a specific issue regarding the Business Privilege Tax or Business Privilege License
please submit all of the facts in writing to:
Tri-State Financial Group
PO Box 38 or by fax 610-270-9522
Bridgeport, PA 19405
Tri-State Financial Group has a Disclosure Statement of the City’s and Taxpayer’s Rights and Obligations during audits, appeals,
refunds, complaints and enforcement. This disclosure statement is available upon request, free of charge.
