The Business Privilege Tax
The Business Privilege Tax (BPT) is a business gross receipts tax levied by Plymouth Township for the privilege of doing certain types of business in Plymouth.
The BPT applies to the gross receipts of all businesses and persons engaged in business in Plymouth 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 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 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 agents, real estate and stock brokers, doctors, lawyers, financial consultants, auto mechanics, etc.
Businesses subject to the BPT are required to pay a tax to Plymouth Township each year equal to 1.5 mills, or $1.50 for every $1,000 in gross receipts. In addition each business must pay an annual $25.00 business license fee. BPT returns are required to be filed with the Township’s Tax Department by April 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 Plymouth Township.
The BPT produced $2,950,000 million in general fund revenues for the Township in 2009.
Click here to download the Business Privilege License Application.
Click here to download the Business Privilege Tax Ordinance.