Business Privilege Tax 

Business Privilege / Mercantile Tax and License

Authority and Collector

Cranberry Township levies a 1 mill tax on gross receipts for product sales, services and rental income provided by companies based in the Township. 

This current tax is collected by our appointed tax collector Berkheimer Tax Administrator. All businesses must register with Cranberry Township through the contracted collector. 

To register online, visit the Berkheimer website (search for Business Privilege (BPT) Forms)

Taxing authority was granted to political subdivisions (municipalities and school districts) by the Commonwealth in 1965. Cranberry Township currently and in the past years contracted with Berkheimer Tax Administrator as the collector of this tax for current tax years and the Township’s Tax Administrator. Please contact the Finance Department for more information, Ph: 724-776-4806 x 1171.

Business Privilege Tax information - Frequently Asked Questions

General Information

  • License Fee: $5.00/ yr for the location in Cranberry Township
  • BP/M (Business Privilege/Mercantile) Tax: based on gross receipts of prior year
  • Tax Filing Date: May 15 of the current year for the privilege of doing business in Cranberry Township that year
  • Assessed Rate: 1 mill (or $1.00 on every thousand dollars generated in gross receipts) 
  • Opening a new account, visit the Berkheimer Tax Administrator website. 
  • Please note Online filing and payment is not available. Forms must be downloaded.

Definitions

  • Business: carrying on or exercising for gain or profit in the taxing district any trade, business, professional vocation or commercial activity, or making sales in the tax district. A profession or vocation or any rendering of personal services in the taxing district in any capacity, except as an employee of another is a business. 
  • Mercantile: retail and/or wholesale sales 
  • Business Privilege: services rendered or rental income. More information...
  • The rate for all categories of all types of gross receipts is the same ($1.00 per $1,000 Gross Receipts).

Ensuring Business Compliance

To be compliant with the Ordinance, on or before May 15 of each year, every business shall: 

  • Obtain an Annual License for each place of business and display such license at the business location. 
  • $5.00 fee, payable to the tax collector, is required for each license
  • The license is applied for at the time of the annual filing of the tax return. 
  • File a tax return on the form received from or available from the tax collector. The form requires a breakdown of gross receipts by type and class and are then multiplied by the assessed rate of one mill. (Example: $1 tax on $1,000 of receipts). 
  • Attach a copy of the front page of the business's federal or state tax return and each form or schedule showing gross receipts from each business enterprise.

Exemptions and Exclusions

Businesses exempt from taxation, just to name totally exempt are: 

  • Business that is 100% manufacturing 
  • Non-profit organizations or associations 
  • Religious, Charitable and Educational Institutions

Gross receipts exempt/excluded from gross receipts reported could be: 

  • Manufacturing costs 
  • Sales Tax 
  • Prepaid Freight

Fines

By ordinance, failure to file a return, filing a false return, or refusing to comply with audit request is subject to a fine of up to $100 plus court costs for each offense that the business is not in compliance. Failure to pay fines and cost may result in imprisonment of up to 30 days.  This is a summary of your responsibilities as a Cranberry Township business owner. New businesses should consult their accountants for assistance in reporting requirements. 

Contact Information - Current Accounts

Berkheimer Tax Administrator
P.O. Box 21810
Lehigh Valley, PA 18002
Ph: 1-866-701-7206
Website: Berkheimer Tax Administrator

Cranberry Township Finance Dept.
2525 Rochester Road, Suite 400
Cranberry Township, PA 16066
Ph: 724-776-4806 x 1171

Berkheimer Tax Administrator payment forms and mailing information

Visit Berkheimer Tax Administrator- Tax Forms

You are entitled to receive a written explanation of your rights to the audit, appeal, enforcement, refund and collection of local taxes. For CURRENT & DELINQUENT tax issues call Ph: 1-610-599-3140 as shown on your tax form or notice. 

Township Ordinance 94-231: Earned Income, Business Privilege and Mercantile Taxes 
Note: .pdf document will print on letter-sized paper