Transaction Privilege Tax Law and Legal Definition
Transaction privilege tax refers to gross receipt tax imposed by a state on certain persons for the privilege of carrying on a business or an occupation in that state. Transactions on which privilege tax imposed include, amusement, commercial lease, job printing, membership camping, mining, owner builder sales, personal property rental, pipeline, prime contracting, private car line, publication, restaurant, retail, telecommunications, transient lodging, and transporting utilities. It is imposed on the total gross receipts of taxable businesses, with the exception of prime contractors, who are already taxed.
