Business Privilege and Mercantile Tax

The Pennsylvania Local Tax Enabling Act, Act 511 and the Local Tax Reform Act, 53 PA C.S.A. Section 8421 et. seq., Act 50 of 1998 Section 9 allows the imposition of a tax on each dollar of volume of the gross annual receipts for the privilege of carrying on or exercising within the City of Scranton or attributable thereto, whether for gain or profit or otherwise, any trade, business, including but not limited to financial business (as defined in the Business Privilege and Mercantile Tax FAQ), profession, vocation, service, construction, communication or commercial activity.

Tax is based on gross receipts, without deduction there from for the cost of property sold, materials used; labor service or other cost, interest or discount paid or any other expense.

Returns due annually on April 15 based on prior year gross volume of business transacted (section 201a).