What is a business?
A “business” is classified as the carrying on or exercising of any trade, business profession, enterprise or any other undertaking for gain or profit in a taxing jurisdiction.
What is a mercantile tax?
The Mercantile Tax is levied by the Municipality and/or School District on all persons or businesses who sell (either wholesale or retail) goods, wares, and merchandise. The tax is calculated using millage rates on each dollar of annual gross business.
What is a business privilege tax?
The Business Privilege Tax is a gross receipts tax levied for the privilege of doing certain types of business in a municipality and/or school district in which a business is located.
Is rental property subject to the Business Privilege Tax?
Yes, the lessor is required to pay on gross receipts of the rental income.
Is manufacturing subject to the Business Privilege and/or Mercantile Tax?
No. manufactured products sales made directly by the manufacturer are exempt from the tax. However, third party sales of manufactured products ARE NOT exempt. If all your gross receipts are for manufacturing, submit one of the following to Jordan Tax:
- Letter on company letterhead with nature of business description or
- Documentation that supports the business is a manufacturer
What documentation is required when filing the Business Privilege and/or Mercantile Tax Return?
Businesses must provide a copy of a Federal Schedule C, 1120 or appropriate Federal Form used to file with the Federal IRS. This form must accompany the local Business Privilege and/or Mercantile Return. If such form is not available, other documentation (such as a spreadsheet) used to determine gross receipts, must be included.
How do I obtain a Business Privilege/ Mercantile Tax registration form?
Business Privilege/Mercantile registration Forms are available
here.
How do I obtain a Business Privilege/ Mercantile Annual/Quarterly Tax Return form?
Business Privilege/Mercantile return forms are available
here.
BUSINESS PRIVILEGE TAX AND / OR MERCANTILE TAX
Business Privilege and/or Mercantile Taxes are imposed by the municipality and/or school district in which a business is located. This tax is based on the gross receipts of the business or rental property.
AMUSEMENT / ADMISSION TAX
This tax is imposed on the admission fee charged for attending any amusement in taxing jurisdiction. Amusements include any concerts, movies, athletic contests, night clubs, and convention shows for which admission is charged.
You are responsible for collecting and remitting the Amusement Tax if you:
- Operate or provide any amusement in a taxing jurisdiction that imposes this tax.
MECHANICAL TAX
The Mechanical Amusement Tax applies to any machine or device that is located in a taxing jurisdiction that imposes this tax.
You are responsible for collecting and remitting the Mechanical Tax for any machine or device:
- Used for amusement or entertainment;
- Operated by the insertion of a coin or a token; and
- Used, or permitted to be used, for profit.
Have questions on other topics?