We are charged with the administration and collection of the City's occupational and net profits taxes, as well as the minimum license fees for City businesses. They also issue the licenses to all businesses operating within the City of Elizabethtown are required to obtain. An annual fee of $25 is charged for this license and must be renewed at the beginning of each year. In addition, we impose a tax on net profits of 1.95% only earned within the City and employees are required to pay a 1.95% occupational tax for wages earned within the City limits.

IMPORTANT NOTICE - CHANGE IN TAX RATES EFFECTIVE JANUARY 1, 2024

The City Council passed Ordinance No 13-2023 on June 26, 2023. This ordinance sets new tax rates for Occupational withholding as well as annual Net Profit tax returns. The City’s Occupational License Tax has increased from 1.35% to 1.95%. The Occupational License Tax had not been changed since 2006.

The effective date for the change is January 1, 2024. Please adjust your withholding rates to take effect on January 1, 2024 and remit the new tax withholdings with your first quarter reporting. The new rate also applies to your Net Profits tax return. This change, however, will not be reported until you submit your 2024 Net Profits return which is due by April 15, 2025. Your 2023 Net Profits return will still be based on the 1.35% rate.