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House Co-Sponsorship Memoranda
House of Representatives
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | January 12, 2023 12:14 PM |
|---|---|
| From: | Representative Brian Munroe |
| To: | All House members |
| Subject: | Commuter Tax Reimbursement |
| The Sterling Act was enacted in 1932 to assist the City of Philadelphia following the Great Depression by granting it broad taxing authority. As you may know, the City of Philadelphia imposes a city Wage Tax on salaries, wages, commissions, and other compensation paid to employees commuting to a Philadelphia employer. All Philadelphia residents owe the Wage Tax regardless of where they work. However, non-residents who commute to work in Philadelphia must also pay the Wage Tax, which is why it is often referred to as a commuter tax. But, unlike the imposition of local taxes in other taxing jurisdictions, none of the non-resident Wage Tax is returned to the non-resident’s home municipality. As a result of this disparity in tax practice, many surrounding suburban areas are losing significant tax revenue to support their police, fire, EMS, and schools as a result of their residents who work in Philadelphia. Therefore, I am introducing legislation to require Philadelphia to reimburse the surrounding taxing jurisdictions that impose an earned income tax at a rate equivalent to that which would have been collected from commuting workers of their respective boroughs and townships. This legislation would ensure that Philadelphia’s tax collection practices mirror those of all other taxing jurisdictions in Pennsylvania and that surrounding taxing jurisdictions are receiving their fair share of tax revenue to serve their communities. I hope you will consider joining me in sponsoring this important piece of legislation to ensure that all Pennsylvanians are reaping the benefits of their hard work in the communities in which they live. |
Introduced as HB1134