The Sterling Act of 1932 grants Philadelphia unique taxing authority, allowing the city to impose a Wage Tax on all residents and non-residents working within its borders. However, unlike other taxing jurisdictions in Pennsylvania, none of the non-resident Wage Tax revenue is returned to the workers’ home municipalities. This disparity results in surrounding suburban communities losing significant tax revenue needed to support essential services like police, fire, EMS, and schools, leaving these municipalities to shoulder the burden of underfunding despite their residents’ contributions to Philadelphia’s economy.
 
My legislation would require Philadelphia to reimburse surrounding municipalities that impose an earned income tax, ensuring these jurisdictions receive tax revenue equivalent to what would have been collected from their residents working in Philadelphia. By aligning Philadelphia’s tax collection practices with those of other jurisdictions in Pennsylvania, this measure would provide critical resources to suburban communities to better serve their residents.
 
Supporting this legislation promotes equity in Pennsylvania’s tax structure and helps ensure all communities, not just Philadelphia, receive the resources they need to maintain public services and infrastructure. It balances the needs of the city with those of surrounding municipalities, fostering a more sustainable partnership across the region.
 
I encourage you to co-sponsor this legislation to create a more equitable tax structure and ensure that suburban communities receive their fair share of resources to support essential services. Your support will help address this long-standing disparity and provide meaningful relief to municipalities across the region.