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My locality imposes a business privilege mercantile tax. What is this tax?

Business privilege and mercantile taxes are levied by the municipality and/or school district in which a business is located and are either flat rate or more typically based on the gross receipts of such a business.

Your municipality or school district may impose a tax on each dollar of gross annual receipts for a business within the municipality or school district, whether for gain or profit including financial businesses, professions, vocations, services, construction, landlords or other commercial activities.


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