What is Mercantile & Business Privilege (MBP) Tax?

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Mercantile & Business Privilege taxes are often collectively referred to as "gross receipts tax". Mercantile taxes were first levied on retail trade from wholesale dealers, retail dealers, and restaurants under Section 311(2) of the Local Tax Enabling Act. Business Privilege taxes are levied on the privilege of doing business within a jurisdiction, covering all businesses where the jurisdiction has no separate mercantile tax. 

Business gross receipts taxes are imposed on the taxpayer, or the person engaged in business without regard to the number of establishments maintained. Your municipality's ordinance usually excludes political subdivisions, employment for a wage or salary, and business where power to tax is withheld by law.