Pennsylvania Senate backs bill to narrow Philadelphia commuter tax

PHILADELPHIA — Pennsylvania’s state Senate voted this week to pare again a Melancholy-era regulation that permits Philadelphia to impose a commuter tax on suburban residents.

The invoice handed, 28-21, on Wednesday, with each Republican and one Democrat backing it. Nonetheless, it doubtless faces a cold reception within the state Home of Representatives, the place Democrats have a one-seat majority.

Underneath the invoice, Philadelphia would lose the authority to impose a wage tax on individuals who make money working from home, even when they work for employers positioned within the metropolis. For individuals who carry out a few of their duties outdoors town, Philadelphia may solely tax their earnings proportionate to the quantity of labor they carried out within the metropolis.

The invoice’s sponsor, Sen. Frank Farry, R-Bucks, and different supporters stated the regulation is outdated as a result of it requires individuals who make money working from home to pay Philadelphia wage taxes simply because they work for an employer in Philadelphia.

These inequities had been highlighted by the COVID-19 pandemic when extra individuals began working from residence, Farry stated.

Democrats accused Republicans of fast-tracking the invoice, launched simply days in the past, and of abruptly making an attempt to take $200 million away from town. A greater strategy is to provide you with a bipartisan and considerate strategy, they stated.

Communities in Bucks County lose over $10 million per 12 months as a result of regulation, Farry stated. He additionally questioned town’s estimate that it reaps $190 million a 12 months from the commuter tax. He known as the estimate “speculative” and urged that it’s primarily based on inflated projections.

Philadelphia’s whole working funds is about $6 billion below Mayor Jim Kenney.