Bensalem Backs Sterling Act Tax Amendment

BENSALEM TOWNSHIP, PA —The township wants its money back.

Bensalem Township —which borders Philadelphia —has 3,800 residents who work in the city and pay a city wage tax.

On Monday night, Bensalem Township Council passed a resolution requesting an amendment to the Sterling Act to require that up to 1 percent of the Philadelphia Wage Tax paid by township residents be returned to the municipality where the taxpayer resides.

That amount would be $2.4 million coming back to Bensalem, township officials said.

"This is very important to Bensalem," Mayor Joseph DiGirolamo said. "We are the largest ones of all the surrounding Philadelphia area municipalities. We're trying to get this changed. It's been a long-long time in the making."

DiGirolamo testified at a March hearing held by state Sen. Frank Farry —Bensalem's new Senate representative —that Bensalem wasn't "asking for anything unfair."

Farry's Commuter Tax Fairness Act was approved by the state Senate and is now in the state House of Representatives for consideration.

During the March public hearing, Farry revealed that Bucks County municipalities are shortchanged close to $10 million annually as a result of the act.

The city wage tax of 3.44 percent is imposed on salaries, wages, commissions, and other compensation paid to employees working for a Philadelphia employer. Non-residents —even those who work remotely —are forced to pay the full Philadelphia City Wage Tax if their employer is based in the city.

The Sterling Act, enacted in 1932 to assist Philadelphia following the depression, is Pennsylvania’s first local income tax enabling legislation and grants the City of Philadelphia broad taxing authority.

Bensalem Councilwoman Michelle Benitez said that there's a coordinated effort in Bucks County by several towns to back the legislation. She said that Bensalem makes up $2.4 million of the $9 million of all of Bucks County's municipalities paying the city wage tax.

Other Bucks County towns that have supported the measure include Warminster, Newtown Borough, and Newtown Township.

Township Solicitor Joseph Pizzo said that "all members of township government" have lobbied for the tax change for some time.

"It reached a dead end for a number of years," Pizzo said. "Fortunately, the Senate passed the bill. But it still needs to go through the House and governor. I encourage residents to reach out and express your support to have $2 million a year come back to Bensalem."