As a result of a successful referendum question on the November 4, 2003 ballot, the City will repeal the Occupation Assessment Tax (OAT) effective January 1, 2004. The rate of the Earned Income Tax (EIT) will be increased from 1.00% to 1.10% to replace the revenue lost as a result of the repeal of OAT. The City of Lancaster will receive 0.60% of this 1.10% EIT, while the school district in which you live will continue to receive 0.50%.

If you are a self-employed City resident, and make quarterly estimated EIT payments to the Lancaster County Tax Collection Bureau, you should calculate your quarterly estimates based on the new rate of 1.10% for taxable earnings received after January 1, 2004.

If you are employed, and your employer withholds the EIT from your paycheck, request that your employer withhold at the higher 1.10% rate effective January 1, 2004. If your employer does not withhold at the higher rate, you will owe additional tax to the Lancaster County Tax Collection Bureau when you file your 2004 EIT return in 2005.

This change is effective January 1, 2004. You must pay any OAT that you owe for 2003 or prior years. Failure to pay 2003 and prior years' OAT will result in collection proceedings against you.

The change does not effect the $10 per capita / resident tax formerly included on the same billing as the annual OAT. City residents will continue to receive an annual bill for $10 for per capita / resident tax.