Rep. Joe Hogan called on Apr. 15 for the Pennsylvania House Finance Committee to advance Senate Bill 527, which would require Philadelphia to reimburse municipalities for wage taxes collected from their residents.
The proposed legislation, introduced by Sen. Frank Farry, seeks to address what Hogan described as an unfair burden placed on suburban communities by the current implementation of the Sterling Act. The act, established in 1932, allows Philadelphia to impose a City Wage Tax on all employees working within city limits and on all city residents regardless of work location. However, unlike other jurisdictions in Pennsylvania, non-resident wage taxes collected by Philadelphia are not returned to workers’ home municipalities.
“On this Tax Day, I am calling on the Finance Committee to hold a vote on Sen. Farry’s legislation, Senate Bill 527,” Hogan said. “Bucks County loses over $11.5 million in tax revenue annually to the Sterling Act. 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 bill passed the Pennsylvania Senate with a vote of 29-21 and awaits action in the House committee.
Hogan serves as state representative for Pennsylvania’s 142nd Legislative District according to the official website. He also chairs the subcommittee on Consumer Protection within the House Consumer Protection, Technology and Utilities Committee and serves on the board of directors for the Washington Crossing Council of the Boy Scouts of America according to his official biography.
Public service priorities outlined by Hogan include enhancing affordability across Pennsylvania, improving education opportunities and safeguarding communities according to his official website. He lives with his family and their rescue dog named Cady as reported by his office.
Broader implications of this legislative effort could impact how local governments receive funding from wage taxes collected outside their borders if similar measures are adopted elsewhere.
