State Senate Backs Bill To Narrow Philly Commuter Tax

May 4, 2023 4:14 am

HARRISBURG, Pa. (AP) — Pennsylvania’s state Senate wants to pare back a Depression-era law that allows Philadelphia to impose a commuter tax on suburbanites. The bill passed Wednesday, 28-21, with every Republican and one Democrat backing it. However, it likely faces a chilly reception in the state House of Representatives, where Democrats have a one-seat slim majority. Under the bill, Philadelphia would lose the authority to impose a wage tax on people who work from home, even if they work for employers located in the city. For those who perform some of their duties outside the city, Philadelphia could only tax their earnings proportionate to the amount of work they performed in the city.