Gross Receipts Tax

Various gross receipts taxes are imposed upon private bankers; pipeline, conduit, steamboat, canal, slack water navigation and transportation companies; telephone, telegraph and mobile telecommunications companies; electric light, water power and hydroelectric companies; express companies; palace car and sleeping car companies; and freight and oil transportation companies. The categories are as follows:

Electric Companies: The tax is based on gross receipts from sales of electric energy within Pennsylvania at a rate of 59 mills. The gross receipts tax on electric energy is reported to the PA Department of Revenue on RCT-112, Gross Receipts Tax—Electric, Hydro-electric and Water Power Companies Report. Firms are required to file reports and remit tax payments annually by March 15 for taxable gross receipts in the prior year.

Telecommunications: The tax is based on gross receipts from telegraph and telephone messages transmitted within Pennsylvania, including gross receipts from mobile telecommunications services, interstate, and international landline calls originating or terminating in Pennsylvania and billed to a service address in Pennsylvania. The gross receipts tax on telecommunications services is 50 mills and is reported to the PA Department of Revenue on RCT-111, Gross Receipts Tax—Telegraph and Telephone Business Report. Firms are required to file reports and remit tax payments annually by March 15 for taxable gross receipts in the prior year.

Transportation: The tax rate is 50 mills and the tax is based on gross receipts from passengers, baggage and freight transported within Pennsylvania, and on intrastate shipment of freight and oil. This does not include transportation by motor vehicles or railroads. The gross receipts tax on transportation services is reported to the PA Department of Revenue on RCT-113a. Firms are required to file reports and remit tax payments annually by March 15 for taxable gross receipts in the prior year.

Private Bankers: The tax is imposed on private bankers doing business in Pennsylvania at a rate of 1 percent on gross receipts from commissions from loans; banking services; discounts on loans; charges or fees on depositor accounts; rents; rentals of safe deposit boxes; interest from bonds, mortgages, premiums and dividends; profits from the purchases and sales of securities; and many other related services. Form RCT-131 must be filed annually with payment by Feb. 15 following the close of the prior calendar year.

Managed Care Organizations: A tax of 59 mills is imposed on each dollar of gross receipts received by managed care organizations pursuant to a contract with the PA Department of Public Welfare. The gross receipts tax on managed care organizations is reported to the PA Department of Revenue on RCT-113b.

For detailed and historic Pennsylvania gross receipts tax information, please review the Tax Compendium.