Upper Moreland Township

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Upper Moreland Township

Upper Moreland Township
117 Park Avenue
Willow Grove, PA19090-3215

Phone: (215) 659-3100
Email: Township Receptionist

Finance Department

Phone: (215) 659-3100 x1052
Email: Finance Officer

Business Tax Office

Phone: (215) 659-3100 x1045
Email: Business Tax Officer

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Business Tax Newsletter

ALL BUSINESSES ARE REQUIRED TO REGISTER ANNUALLY with the Business Tax Office under the Upper Moreland Township Code, Title 2, Chapter 7, Article 1, Section 1.05, without regard as to whether any tax is due.

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.

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:

PENALTY AND INTEREST WILL BE ASSESSED IF PAYMENT IS RECEIVED AFTER THE DUE DATE

Occupational Privilege Tax

Please note that the Occupational Privilege Tax of $10.00 should only be withheld from the wages of each owner or employee once a year. However, 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 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, extension 1044 or 1045, during the hours 8:30 AM to 4:30 PM.

Frequently Asked Questions

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

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.

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).

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).

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).

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.

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.

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.

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.

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.

Office Hours - Additional Forms

Business hours are 8:30 AM to 4:30 PM weekdays except holidays. The Business Tax Office is located on the first floor of the Township Building, 117 Park Avenue, which is across from the Library and adjacent to the Police Station. You may call (215) 659-3100, ext. 1044 or 1045, to request additional forms. A copy of the Township Code as it relates to the Mercantile and Business Privilege Taxes is also available upon request. Forms can also be downloaded from the website.

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 1/1/91, 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 www.hab-inc.com 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

Upper Moreland Township Building (215) 659-3100

H.A. Berkheimer, Inc. (EIT) (866) 701-7206
Police Department Records and Information (215) 657-4700
Alarms and Complaints (215) 657-4700

EMERGENCY CALLS (Police, Fire, Ambulance) 911

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