Rep. Joe Hogan called on Apr. 15 for the Pennsylvania House Finance Committee to move Senate Bill 527 out of committee and allow a full House vote on the measure.
The bill, introduced by Sen. Frank Farry, seeks to address how wage taxes collected from residents living outside Philadelphia but working in the city are distributed. Under current law, these taxes remain with Philadelphia rather than being returned to the home municipalities of non-resident workers.
Hogan said, “On this Tax Day, I am calling on the Finance Committee to hold a vote on Sen. Farry’s legislation, Senate Bill 527.” He added that Bucks County loses more than $11.5 million in tax revenue each year due to this arrangement and described it as an unfair burden on suburban communities: “Everywhere else in our Commonwealth these taxes would be sent back to the home community for local investment. Instead, Philadelphia is imposing an unfair burden on all our suburban communities. This is unfair and is just another cost that hits local taxpayers.”
The Sterling Act was established in 1932 during the Great Depression to help Philadelphia raise revenue through a City Wage Tax applied both to residents and non-residents who work within city limits.
Senate Bill 527 passed the Pennsylvania Senate by a vote of 29-21 and now awaits consideration by the House Finance Committee.
