Nearly two months after a Commonwealth Court judge ordered the Harrisburg City Council to double the city's earned income tax — a decision later delayed to give officials more time to hash out differences with the state-appointed receiver — the council last week voted to increase the tax to 2 percent.
With the approval, the city school district will continue to receive 0.5 percent, while the city's share increases to 1.5 percent from 0.5 percent.
The temporary EIT increase, which is slated to last at least a year, could generate more than $5.1 million in the coming year for Harrisburg, according to projections from the state.
The EIT will be effective for withholding purposes Jan. 1, so the additional revenue won't have an impact on the city's projected year-end deficit of $14.8 million, which includes a carryover deficit from 2011.
Employers are required to remit to the tax officer for their tax collection district within 30 days of the end of the quarter, said Fred Reddig, executive director of the Governor's Center for Local Government Services.
The city will begin seeing revenue from the increase in April.