Radnor Township, Pennsylvania | Business Privilege Tax and Mercantile Tax

Finance Divisions

Board/Commission

Citizens Budget and Finance Advisory Committee

Assistant Township Manager:
William Martin

301 Iven Ave
Wayne, PA 19087

(610) 688-5600

(610) 688-1279

Staff Directory

8 a.m. - 4 p.m.

Business Privilege Tax and Mercantile Tax

Business Privilege Tax

The Business Privilege Tax (BPT) is a business gross receipts tax levied by Radnor Township for the Privilege of doing business in Radnor.

The BPT applies to the gross receipts of all businesses and persons engaged in business in Radnor Township except those of businesses subject to the Mercantile Tax or businesses that fall under the manufacturing or other allowable exclusions or that are subject to gross receipts taxes for services rendered under certain conditions in other municipalities.

For purposes of the BPT, business is defined as any activity carried on or exercised for gain or profit, including but not limited to the performance of services. All businesses, trades, and professions where any service is offered to the general public or other businesses are liable for payment of this tax, except as described above. Businesses subject to the BPT generally include professions such as insurance and other salespeople, real estate and stock brokers, doctors, lawyers, financial consultants, auto mechanics, etc.

Businesses subject to the BPT are required to pay a tax to Radnor Township each year equal to 3 mills, or $3.00 for every $1,000 in gross receipts (the first $25,000 in gross receipts are exempt). In addition, each business must pay an annual $10.00 business license fee. BPT returns are required to be filed with the Township's Finance Department by May 15 each year. Failure to file a BPT return or to pay any taxes due can lead to citations, fines, and suspension of the Privilege to do business in Radnor Township.

The BPT produced $5.8 million in general fund revenues for the Township in 2008.

Applications and Regulations

Mercantile Tax

The Mercantile Tax (MT) is a gross volume of business tax levied by the Radnor Township Board of Commissioners upon the privilege of doing certain types of business in Radnor.

The Mercantile Tax of 3 mills ($3.00 per $1,000 of receipts) is to be paid on the gross volume of business of wholesale and/or retail vendors in goods, wares, and merchandise of every kind, and all persons engaged in conducting restaurants or other places where food, drink, or refreshments are sold. "Gross volume of business" included all receipts whether cash, credit, or other property.

Businesses subject to the MT are required to pay a tax to Radnor Township each year equal to 3 mills, or $3.00 for every $1,000 in gross receipts (the first $25,000 in gross receipts are exempt). In addition, each business must pay an annual $10.00 business license fee. MT returns are required to be filed with the Township's Finance Department by August 31 each year. Failure to file a MT return or to pay any taxes due can lead to citations, fines, and suspension of the privilege to do business in Radnor Township.

The MT produced $1.3 million in general fund revenues for the Township in 2007.

Applications and Regulations

For more information on the Business Privilege or Mercantile Taxes, filing for a business license, and how to open a business in Radnor, please contact William Martin, Assistant Director of Finance, at 610-688-5600 or via e-mail.

Forms & Applications