Bethlehem, PA Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Wholesale rate
- 1 mill ($1 per $1,000 gross)
- Retail rate
- 1.5 mills ($1.50 per $1,000)
- Other business rate
- 1.5 mills ($1.50 per $1,000)
- Tax year
- Calendar year, since 1971
- License year
- May 1 to April 30
- Enforced by
- Tax Administrator and Treasurer
Summary
Bethlehem taxes the privilege of doing business inside city limits under its Business Privilege and Mercantile Tax, splitting gross receipts into three classes with different mill rates: wholesale sales, retail sales, and all other business. The tax has run continuously since tax year 1971 and is collected by the City's Tax Administrator and Treasurer.
The rate of tax on every dollar of the whole or gross volume of business transacted within the territorial limits of the City shall be calculated as follows: (1) On receipts attributable to wholesale sales of merchandise the rate shall be one mill or one dollar ($1.00) per one thousand dollars ($1,000) of gross volume of business. (2) On receipts attributable to all other business the rate shall be one and one-half mills or one dollar and fifty cents ($1.50) per one thousand dollars ($1,000) of gross volume of business. (3) On receipts attributable to retail sales of merchandise the rate shall be one and one-half mills or one dollar and fifty cents ($1.50) per one thousand dollars ($1,000) of gross volume of business.
Full Breakdown
Article 341 of the Codified Ordinances levies an annual tax on the privilege of doing business in the City of Bethlehem, calculated on gross volume of business transacted within city limits. 02(a) sets three separate rates: receipts from wholesale sales of merchandise are taxed at one mill (one dollar per one thousand dollars of gross volume); receipts from retail sales of merchandise are taxed at one and one-half mills (one dollar fifty cents per thousand); and receipts from all other business are also taxed at one and one-half mills.
02(b)(3)). 02(b)(4)). 02(c) carves out exemptions: wage or salary employment, nonprofit religious, charitable or educational organizations, federal and Commonwealth government agencies, political subdivisions and authorities created under an act of assembly are all exempt. Receipts already subject to a state tax or license fee that Pennsylvania courts have held to exempt the taxpayer from a municipal business privilege tax are also excluded, as are the gross receipts of PUC-regulated utilities and the privilege of employing tangible property already subject to a state tax (except admissions sales or property transfers).
The 'License year' for registration purposes runs May 1 through April 30, while the 'Tax year' for computing the levy is the calendar year, so businesses track two separate annual cycles under this article.
Violations & Fines
Article 341 requires a license under Section 341.06 and imposes penalties for late payment of the tax under Section 341.05, with a separate continuing-offense provision at Section 341.07 that treats each day of noncompliance as a distinct violation. General penalty exposure for violations of the article is set out at Section 341.99. The Tax Administrator and Treasurer enforce the article and administer collection.
Frequently Asked Questions
How does Bethlehem classify a business for its privilege tax?
Is anyone exempt from Bethlehem's business privilege tax?
What happens if I dispute the amount of tax the City claims I owe?
Sources & Official References
Other rules in Bethlehem
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