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Pennsylvania State and Local Tax Update—Fourth Quarter 2023

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Pennsylvania State and Local Tax Update—Fourth Quarter 2023


The last three months of 2023 offered some interesting developments of note for Pennsylvania taxpayers, particularly those who work in Delaware and New York, Philadelphia residents, and executors of trusts.

Philadelphia Wage Tax Credit Denied

In a 3-2 decision, the Pennsylvania Supreme Court upheld the Commonwealth Court and sided with the Philadelphia Department of Revenue in Zilka v. Tax Review Board, a case addressing whether a city resident was entitled to a credit for state-level taxes paid to Delaware.

During the tax years at issue, the taxpayer lived in Philadelphia but worked full-time in Wilmington, Del. Accordingly, she was subject to state and local tax in Delaware as well as to Pennsylvania personal income tax and city wage tax.

Under the Pennsylvania and Philadelphia laws, she was able to claim a credit for Delaware tax against her personal income tax liability. Likewise, she was able to claim a credit for Wilmington tax against her wage tax liability. The city, however, denied her claim for a credit against wage tax based on the tax paid to Delaware that she was unable to use against her Pennsylvania liability.

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The taxpayer appealed, arguing that denying the credit amounted to unconstitutional double taxation. The high court agreed that the city’s taxing system is constitutional and that the city is required by the state constitution to give a credit only for taxes paid to other local jurisdictions, not for state-level taxes.

The court reasoned that any increased tax burden was the result of rate disparities between the various jurisdictions and that, because of her living and work arrangements, the taxpayer was effectively subject to state tax at the Delaware rate and local tax at the city rate because those rates are higher than their counterparts.

This case is a blow to taxpayers who live in Pennsylvania (and particularly in Philadelphia) but who are subject to income tax in states with which Pennsylvania doesn’t have reciprocity (including Delaware and New York) because those taxpayers are essentially subject to two taxing systems and may not be able to fully use credits.

Property Tax Uniformity Challenges

In Downingtown Area School District v. Chester County Board of Assessment Appeals, the Commonwealth Court held that Downingtown’s policy of appealing any real property tax assessment that “may potentially result in total annual revenue of $10,000 or more” violated the uniformity clause of the Pennsylvania constitution.

The court reasoned that the purpose of the appeal process is to correct mistakes in the most recent countywide reassessment and not to function as a substitute for a countywide reassessment.

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It found that by targeting only assessment appeals that were likely to result in material revenue to the school district, the district was unfairly burdening owners of overassessed properties. It also found that the threshold therefore created a “systematic and disparate treatment” of property owners.

In School District of Philadelphia v. Board of Revision of Taxes, the Commonwealth Court addressed nearly identical facts and the Philadelphia school district’s policy of appealing any real property tax assessment where it was “reasonably likely that an appeal of [the] assessed value will yield a minimum of an additional $7,500.” The court again found that this policy violated the uniformity clause.

As shown by these cases, school districts likely will continue to target certain types of properties for real estate tax appeals and the Pennsylvania Supreme Court may need to weigh in again on the constitutional limits of such policies. Buyers should consider this possibility when determining the appropriate purchase price for a property.

Realty Transfer Tax Ruling

In a case involving realty transfer taxes, or RTT, the Commonwealth Court held in Ebersole v. Commonwealth that deleting a contingency clause with retroactive effect—which authorizes distributions to persons other than the grantor if one of the grantors became incapacitated—allowed a trust to qualify as a living trust.

Under the RTT law, transfers to living trusts may be exempt from RTT, but only if the distributions from the transferee trust can be made only to the settlor(s) prior to the death of the settlor(s). As originally drafted, the trust at issue would have allowed the trustee, in the case of incapacity, to make distributions to charitable organizations.

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That language would have rendered the transfer to the trust taxable. However, the Commonwealth Court overruled the Board of Finance and Revenue and held that an amendment to the trust, which was approved by the Orphans’ Court and retroactive to the formation date of the trust, reflected the intent of the grantor and meant that the transfer was exempt as a transfer to a living trust.

This article does not necessarily reflect the opinion of Bloomberg Industry Group, Inc., the publisher of Bloomberg Law and Bloomberg Tax, or its owners.

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Christopher A. Jones co-leads Ballard Spahr’s tax and real estate team, focused on a wide range of matters, including tax consequences of complex transactions and associated planning opportunities.

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Measles detected in two more counties in Pennsylvania as health department recommends early vaccination

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Measles detected in two more counties in Pennsylvania as health department recommends early vaccination


Pennsylvania health officials have now detected measles cases in York and Northumberland Counties as cases in Lancaster County, the center of an ongoing outbreak, continued to rise.

And the state health department is now recommending early measles vaccinations for infants beginning at 6 months in affected areas in an effort to protect them against the spread of the highly contagious disease, which is particularly risky for young children. The same precautions should be taken by families with infants traveling to these areas.

Six Pennsylvania counties have now seen measles cases since an outbreak was first confirmed in Lebanon County in April. In all, the state has reported 81 measles cases across eight counties in 2026, more than five times the cases reported in 2025.

State health officials said it was too early to tell how the latest cases in York and Northumberland Counties are connected to others in the region, but that contact tracing investigations are continuing. All cases were among people who had not received at least two doses of the measles, mumps, and rubella (MMR) or whose vaccination status was unclear.

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As of Wednesday, six cases had been confirmed in Northumberland County, to the north of Dauphin County, and one case had been detected in York County, along Lancaster’s western border.

Lebanon County has reported 20 cases and Dauphin and Berks Counties have reported two cases each.

Lancaster County has seen 38 cases of measles since late April, with health officials confirming seven cases in the last two weeks. The area was at the center of a prior measles outbreak in January, when state health officials confirmed eight cases in Lancaster County and an additional four between Chester and Montgomery Counties.

Vaccination rates among kindergarteners have decreased across Pennsylvania in recent years, and some counties affected in the current outbreak have particularly low rates, including Lancaster, where about 88.5% of kindergarten students are vaccinated. Health experts say that 95% of a community must be vaccinated to prevent the spread of the disease.

Health officials have been conducting contact tracing to detect as many cases as possible. In the current outbreak, they have twice warned Lancaster residents that they could have been exposed to measles.

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Shoppers and employees at a local Kohl’s were potentially exposed to the virus over four days after a staffer tested positive in late May, LancasterOnline reported. And a person with measles visited the Lancaster County Courthouse on June 3.

But doctors in Lancaster County say they fear some measles cases are going unreported, either because patients don’t understand the importance of tracking measles cases or because they fear repercussions.

No cases have been confirmed in the Philadelphia region during this outbreak. But Delaware County health officials said last week that they had detected measles in two wastewater samples, indicating that someone with measles had used a bathroom connected to the county’s public water supply. It was unclear if that person lived in the county or was passing through.

Early vaccination recommended

On Wednesday, a statewide health alert urged physicians to accelerate vaccination schedules to protect children against measles. Officials had said they were considering the measure earlier this month as cases continued to rise.

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Measles can infect nine in 10 unvaccinated people who are exposed to it, and can linger in the air for up to two hours and incubate in patients for three weeks. The disease typically presents with a fever and a rash but can cause brain inflammation and pneumonia in serious cases.

Typically, children receive the first of two MMR vaccines at 1 year old, then a second between 4 and 6 years old.

But children as young as 6 months can receive an additional “dose zero” to protect them from the disease amid an outbreak. In its alert, the state health department said parents should vaccinate infants between 6 and 11 months with the “dose zero” if they live in affected areas or if they’re planning to travel there.

Those children should then receive additional MMR doses at 12 to 15 months and 4 to 6 years.

This “dose zero” is less effective than doses given at 1 year old, officials cautioned. But it’s 58% effective against measles when given at 6 to 8 months, and 83% effective when administered at 9 to 11 months.

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“Early MMR vaccination is safe and provides modest protection when measles is spreading,” officials wrote in the alert.

Children older than 12 months who haven’t been vaccinated should get an MMR dose immediately, and a second 28 days later, health officials said. Unvaccinated adults, or those without evidence of immunity, should also get two MMR doses.

And anyone who has received one dose of the MMR vaccine in the past should get a second at least 28 days after their first, officials said.

Usually, children who received a first dose at around 12 months wait to get their second dose until they’re 4 to 6 years old. But in an outbreak situation, those children should get their second doses early — at least 28 days after their first shot.

Adults born before 1957 are typically considered immune, but healthcare workers in that age group who don’t have lab evidence of immunity or prior infection should consider getting vaccinated, state officials said.

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Adults who received an inactivated measles vaccine between 1963 and 1967 are considered unvaccinated during an outbreak, and should also get two doses of the current MMR vaccine.

Pregnant people, people with severely weakened immune systems, and people who have a history of experiencing severe allergic reactions, like anaphylaxis, to a vaccine ingredient or to a previous dose of MMR cannot receive the vaccine.



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The Dish: Caesar salad with a twist from Rivertown Taps in Phoenixville, Pa.

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The Dish: Caesar salad with a twist from Rivertown Taps in Phoenixville, Pa.


PHOENIXVILLE, Pa. (WPVI) — We are heading to Rivertown Taps in historic Phoenixville, Pennsylvania, to make a classic fan favorite, Caesar salad.

And when they say “taps,” they mean it.

There are dozens of drinks, beer and beyond, on tap at Phoenixville’s first self-serve drink tap wall.

“Phoenixville has always been a very beer-centric town, and we’re beer-centric people, so we wanted to have a really curated selection,” says Chef Owner Lewis Leiterman. “We have 36 drinks on tap.”

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Just grab a charge card, choose your glassware and choose your own adventure.

“You pay for whatever you pour by the ounce,” says Leiterman. “You can pour as much or as little as you like.”

The building dates back to the 1800s, and Leiterman made sure to preserve pieces of that history, while bringing something super fresh to the strip.

“We make pastas from scratch,” he says. “We extrude all of our own pastas in house. We do all of our fresh-filled pastas all by hand. We make all our own breads. Everything that’s in here is from scratch.”

The mission includes a commitment to locally sourced food.

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Today, we’re making a house favorite: the Caesar salad – with a twist.

“I hate chasing croutons around a salad, like, the fork never kind of sticks into it,” says Leiterman. “We still wanted that crunch factor, like the classic crouton, but different. What we did was we took some of our old bread and we kind of toasted it up and made a coarse panko texture.”

It’s becomes a universal crouton that makes its way throughout the salad.

“We like to feature seasonal vegetables in our Caesar salad, just for a little bit more flavor and nutrition,” says Leiterman.

He grills up some nice asparagus, and then adds some protein.

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“I love a soft boiled egg on a salad to add more sustenance to a salad and a little bit of heartiness to it,” he says.

The build starts with a mix of greens, like red romaine and red watercress.

The dressing gets a gourmet kick.

“We do a black garlic and truffle Caesar,” he says. “We don’t like to overdress it. My pet peeve is those thick Caesar dressings.”

Add the asparagus to gently warm the salad, shave on some Parmigiano Reggiano cheese, add the soft boiled egg and finally, the breadcrumbs.

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Pa. sees growth in over-65 residents, but overall population stagnates

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Pa. sees growth in over-65 residents, but overall population stagnates


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Pennsylvania’s over-65 population is growing faster than any other age group in the commonwealth, now making up more than one-fifth of the state’s residents, according to new U.S. Census Bureau data. 

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The federal agency estimates about 2.8 million Keystone State residents are 65 or older, an increase of about 13% since the last nationwide census was published in 2020. 

Overall, the state’s population has remained stagnant at about 13 million since the last census. And many age groups — including children and younger adults — have actually declined in number over the past five years, according to the estimates released June 25. 

The median age for a Pennsylvanian is now 41.4, compared to 41 in 2020.

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How does Pa. compare to the rest of the U.S.?

Pennsylvania’s increase in older adults matches national trends, as the number of people 65 and older grew by about 9 million across the U.S. since 2020, the estimates suggest. As in the Keystone State, the population of people younger than 18 has fallen over the past several years, as did the number of people in midlife.

Overall, the nation’s population has climbed by an estimated 3.1%, or about 10.3 million people, since 2020.

However, Southern states showed more rapid growth that spanned all age categories, according to the U.S. Census Bureau.

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“The South stands out because it is seeing population gains in age groups that in other regions saw little change or are declining, reflecting its strong positive migration patterns this decade,” Lauren Bowers, a Census Bureau official, said in a statement.

What does the aging trend mean for Pa.?

Policymakers are working to prepare for Pennsylvania’s continued graying and the needs that will come along with these demographic shifts. By 2030, one in three commonwealth residents are projected to be over age 60, according to state officials.

But advocates stress the need for more resources to support Keystone State residents as they age, pointing to caregiver shortages and barriers to healthcare access in rural areas.

Gov. Josh Shapiro’s administration in 2024 released a 10-year plan for getting the state ready, laying out strategies for supporting people who want to age at home, expanding transportation options and increasing the number of caregivers.

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Bethany Rodgers is a USA TODAY Network Pennsylvania investigative journalist focusing on health and education.



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