Yesterday, the Pennsylvania Supreme Court ruled in Borough of West Chester v. Pennsylvania State System of Higher Education that the borough’s stormwater management fee was a tax that Commonwealth agencies or entities do not need to pay. The Court held that if “a municipality is duty-bound to provide a service for the public benefit and in the absence of a voluntary, contractual relationship between itself and those receiving the service, the associated charge is a tax.” 

This decision will dramatically impact municipalities’ ability to raise sufficient revenue to comply with unfunded mandates from the federal and state governments regarding stormwater management and will shift a greater financial burden to non-Commonwealth property owners. 

Staff is analyzing the decision and will provide more information in Monday’s Morning News.