State Sen. Frank Farry is working to reform the commuter tax responsible for a $10 million annual loss in Bucks County, writes Dino Ciliberti for the Patch.
His bill to return local tax dollars from Philadelphia to suburban communities recently gained approval from the Senate Finance Committee and is now moving to the full Senate for consideration.
According to Farry, who represents 14 municipalities in the 6th Senate District, the Commuter Tax Fairness Act he authored, would make Philadelphia’s City Wage Tax more equitable for non-residents. It ensures that earned income tax dollars are directed to residents’ home communities rather than where they work.
Since first introducing the legislation in 2018 during his time in the Pennsylvania House, Farry has reintroduced it each legislative session since his election to the Senate.
The current law imposes the city wage tax of 3.44 percent on salaries, wages, commissions and other compensation paid to anybody working for a Philadelphia employer, including non-residents. The bill would align Philadelphia’s tax treatment with the rest of the Commonwealth.
“Communities should be able to keep the local tax dollars that belong to their residents,” said Farry.
Learn how the Commuter Tax Fairness Act could redirect millions back to Bucks County in the Patch.
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