FINANCIAL DEPARTMENT
LOCAL SERVICES TAX
Lower
Swatara
Township
instituted the Local Services Tax (LST) as of the first of January 2008.
This tax replaces the Emergency Services/Occupation Privilege Tax (OPT).
The OPT had been in existence since at least the mid-sixties and had
remained unchanged during all of those years. It had been replaced with the EMS
Tax. The LST is quite similar to the Emergency Services tax.
The LST is levied on all those employees who work within the corporate
limits of
Lower
Swatara
Township
. The State had set the income
limits at $12,000.00 in earned income. This
limit is in keeping with what the Township had had in place for the EMST.
However, the definition of income has been more highly defined. The
employer is responsible for remitting this tax to the taxing body.
In the event that the tax has been withheld and the employee has not
earned $12,000.00, then that person may apply for a refund of the EMST.
Our collection agency, the Lancaster County Tax Collection Bureau (LCTCB),
will refund the tax upon proof of income—such as your State Tax return.
If you are self employed, it is your responsibility to self-report your
income on a quarterly basis to the LCTCB. One of the major changes in the
collection of this tax is the timing of the payments.
Your employer will withhold funds from each payroll check.
For example, if you are paid weekly, you will have $1.00 withheld.
Similarly, if you are paid biweekly, then you will have $2.00 withheld.
If you have more than one employer, you are only responsible for
paying the tax once per year.
The Lancaster Tax Collection
Bureau has a very informative website (www.lctcb.org).
They offer many forms which one may download for a variety of purposes.
The purpose of this tax is to
assist in the maintenance of roadways, to assist in the funding of police and
fire services and to assist in alleviating the immediate need to increase real
estate taxes.
If you have any questions,
please do not hesitate to call the Township or email us.