Every month in 2022, the Municipal Association’s Local Revenue Services is hosting “Business Licensing Essentials,” a series of virtual training sessions on the specifics of the business licensing process. The session on the business licensing process for manufacturers will be Wednesday, February 9, from 10 to 11:30 a.m.
Under Act 176, which took effect in January 2022, manufacturers seeking a business license may choose one of several ways to report gross income for the license tax calculation, including
- ordinary gross income — revenue received in one calendar or fiscal year, with some additional rules;
- income allocated or apportioned to a manufacturer’s location within the municipality for state income tax purposes; and
- the amount of expenses attributable to a manufacturer’s location within the municipality as a cost center.
The city or town that licenses a manufacturer can require it to justify the option it chooses.
Learn more about Business License Tax Standardization.