History
The Lebanon County Earned Income Tax Bureau (LCEITB or the “Bureau”) was formed in 1967 by the Business Managers of the six public school districts in Lebanon County. The original mission of the Bureau was to collect only earned income tax revenues for its member school districts. A board of six, one representative from each of the school district’s Board of Directors, made up the Executive Committee. Since its inception, the scope of the Bureau’s tax collection responsibilities expanded to benefit not only school districts but also municipalities and now includes, but is not limited to, Real Estate tax, Per Capita tax and Local Services Tax. This is in addition to Earned Income Tax collection.
In 2008, after heightened concern over the Bureau’s practices and operation methodologies, the Board was expanded to allow twelve members. In addition to the school district representatives, the Bureau’s bylaws now allow one municipal representative per geographic area that comprises the school district. Collection practices were also changed in 2008. Recognizing the need to change collection and distribution methodologies in a way that would keep pace with rapidly changing demographics and be compliant with Pennsylvania’s newly enacted Act 32 legislation; the Bureau launched an investigation of best practices. After a thorough analysis a recommendation was made on July 22, 2008 to outsource tax collection and close down the Bureau operations. In October of 2008, after ratification by all of the county’s 32 taxing jurisdictions, the outsourced collection of earned income tax began. Beginning in January of 2009, Operations of the Bureau ceased and all other collections were also turned over to an outsourced vendor.