On Tax Day, Hogan Calls for Sterling Act Reform

April 15, 2026

HARRISBURG – For this year’s Tax Day, Rep. Joe Hogan (R-Bucks) is calling on the Pennsylvania House Finance Committee to pass Senate Bill 527 out of committee and allow the full House to vote on the legislation.

Senate Bill 527, proposed by Sen. Frank Farry (R-Bucks), would ensure that municipalities are reimbursed for wage taxes collected from their residents by the city of Philadelphia.

The Sterling Act was enacted in 1932 to assist Philadelphia following the depression. Philadelphia imposes a City Wage Tax on salaries, wages, commissions and other compensation paid to employees working in Philadelphia. All Philadelphia residents owe the City Wage Tax, regardless of where they work. Non-residents who work in Philadelphia must also pay the Wage Tax. However, unlike the imposition of local taxes in all other taxing jurisdictions, none of the non-resident City Wage Tax is returned to the non-resident’s home municipality.

“On this Tax Day, I am calling on the Finance Committee to hold a vote on Sen. Farry’s legislation, Senate Bill 527,” said Hogan. “Bucks County loses over $11.5 million in tax revenue annually to the Sterling Act. Everywhere else in our Commonwealth these taxes would be sent back to the home community for local investment. Instead, Philadelphia is imposing an unfair burden on all our suburban communities. This is unfair and is just another cost that hits local taxpayers.”

Senate Bill 527 passed the Pennsylvania Senate 29-21 and is currently awaiting action in the House Finance Committee.

Representative Joe Hogan
142nd Legislative District
Pennsylvania House of Representatives
Media Contact: Joe Szymanski
717-808-4961
jszymanski@pahousegop.com
RepHogan.com / Facebook.com/RepHogan/