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Court rules local stormwater fee is a tax

West Chester University and the Pennsylvania State System of Higher Education do not have to pay an annual six-figure stormwater fee imposed by West Chester Borough.

  • Why? Because Pennsylvania’s Commonwealth Court ruled yesterday that the fee is a tax — and state entities don’t have to pay taxes.
  • In a lawsuit filed in 2018, the borough argued that the assessments are a fee for a service, namely, the handling of stormwater running off from buildings, parking lots and other impervious surfaces on the roughly eight acres of college property tucked inside the borough.

Was the court convinced: No.

  • In a 21-page ruling, Judge Christine Fizzano Cannon concluded the fee pays for the kinds of things taxes typically support: projects that provide a common benefit shared by the entire community.
  • A spokesperson for the state system referred questions to the university, which would have had to pay fees of about $132,000 per year. 
  • “West Chester University, as a state-owned institution, is satisfied with the Commonwealth Court’s opinion,” a school spokesperson said in an emailed statement. “Further, WCU remains committed to continuing to responsibly manage its stormwater.”
  • The university maintains its own stormwater-control system and has taken steps to reduce runoff, such as planting trees and installing so-called “green roofs,” according to the ruling.
  • Michael Gill, an attorney for the borough, said the borough is reviewing the decision and declined to comment on its next steps.

Why does it matter: Cities and counties levy stormwater fees to improve how they handle runoff from storms and to comply with environmental regulations.

West Chester University and the Pennsylvania State System of Higher Education do not have to pay an annual six-figure stormwater fee imposed by West Chester Borough.

  • Why? Because Pennsylvania’s Commonwealth Court ruled yesterday that the fee is a tax — and state entities don’t have to pay taxes.
  • In a lawsuit filed in 2018, the borough argued that the assessments are a fee for a service, namely, the handling of stormwater running off from buildings, parking lots and other impervious surfaces on the roughly eight acres of college property tucked inside the borough.

Was the court convinced: No.

  • In a 21-page ruling, Judge Christine Fizzano Cannon concluded the fee pays for the kinds of things taxes typically support: projects that provide a common benefit shared by the entire community.
  • A spokesperson for the state system referred questions to the university, which would have had to pay fees of about $132,000 per year. 
  • “West Chester University, as a state-owned institution, is satisfied with the Commonwealth Court’s opinion,” a school spokesperson said in an emailed statement. “Further, WCU remains committed to continuing to responsibly manage its stormwater.”
  • The university maintains its own stormwater-control system and has taken steps to reduce runoff, such as planting trees and installing so-called “green roofs,” according to the ruling.
  • Michael Gill, an attorney for the borough, said the borough is reviewing the decision and declined to comment on its next steps.

Why does it matter: Cities and counties levy stormwater fees to improve how they handle runoff from storms and to comply with environmental regulations.

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