Abington, PA Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Governing section
- Abington Township Code § 152-3
- Wholesale rate
- 1 mill per dollar of gross volume
- Retail rate
- 1.5 mills per dollar of gross volume
- Minimum annual tax
- $10 per place of business
- Small-business exemption
- First $2,500 of gross volume exempt
- Max penalty
- $25-$300 fine plus costs per offense
Summary
Abington Township taxes businesses under a Mercantile License Tax that splits vendors into three rate classes. Section 152-3 of the Township Code taxes wholesale dealers at 1 mill per dollar of gross wholesale volume, retail dealers and restaurants at 1.5 mills per dollar of gross volume, and combined wholesale-and-retail dealers at both rates applied to each portion of their business.
§ 152-3. Tax. A. A tax to provide revenue for general Township purposes is hereby levied, assessed and imposed upon every person engaging in any of the following occupations or businesses in the Township ... provided, however, that in no event shall the annual mercantile license tax herein imposed be less than $10 for each of the places of business of every such person: (1) Wholesale vendor or dealer in goods, wares and merchandise of every kind, at the rate of one mill on each dollar of the gross volume of business transacted by such person during the license year. (2) Retail vendor or dealer 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, at the rate of 1 1/2 mills on each dollar of the gross volume of business transacted by such person during the license year. ... (3) Wholesale and retail vendor or dealer in goods, wares and merchandise of every kind, at the rate of one mill on each dollar of the gross volume of wholesale business transacted and 1 1/2 mills on each dollar of the gross volume of retail business transacted by such person during the license year.
Full Breakdown
Abington Township's Mercantile License Tax, Article I of Chapter 152, was adopted November 13, 1969 by Ordinance No. 1266 and its rate section was last amended December 26, 1974 by Ordinance No. 1390. Section 152-2 requires every wholesale or retail vendor, and anyone running a restaurant or other place selling food, drink or refreshments in the Township, to apply for and hold a mercantile license for each place of business, issued by the Township Secretary for a $10 fee, before the 15th day of the license year or before starting business.
Section 152-3 then sets three tax classes on the license year's gross volume of business: wholesale vendors or dealers pay one mill on each dollar of gross wholesale volume; retail vendors or dealers, plus restaurants and other places selling food, drink or refreshments, pay one and a half mills on each dollar of gross volume; and a business that is both a wholesale and retail vendor pays one mill on its wholesale volume and one and a half mills on its retail volume, tracked separately.
No annual tax bill can fall below $10 per place of business, no matter how small the gross volume. The tax excludes any dollar volume from resale of goods a dealer took in as a trade-in, except to the extent the resale price exceeds the trade-in allowance, and Section 152-3D exempts the first $2,500 of gross volume each license year from the tax entirely, an exemption added in 1992. A wholesale dealer who also owes gross-receipts tax to another municipality on the same sales can deduct that amount from what is due Abington, up to the amount that would have been owed the Township on those receipts.
Violations & Fines
Failing to comply with the Mercantile License Tax article, including underpaying or not registering, is punishable under Section 152-15 by a fine of $25 to $300 plus prosecution costs for each offense before a District Justice; unpaid fines can bring up to five days in the Township lockup or 30 days in the Montgomery County jail. Separately, Section 152-11 charges 10% annual interest on unpaid tax and adds a flat 10% penalty for any taxpayer who fails to file a return or make payment.
Frequently Asked Questions
What tax rate does a retail business pay in Abington Township?
Is there a small-business exemption from the Mercantile License Tax?
What if my business sells both wholesale and retail in Abington Township?
What happens if I don't pay the mercantile license tax on time?
Sources & Official References
Other rules in Abington
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