A group has proposed a change to the tax structure in Philadelphia by hoping to get a change to the uniformity clause of the state Constitution to allow commercial property to be taxed at a higher rate than all other property and use the money to reduce the City’s wage tax, which falls on residents and non-residents that work in the City at rates of 3.91 and 3.48 percent, respectively.
As we pointed out in 2011 Pennsylvania is the leading user of local taxes on earned income in the country.
Philadelphia is governed by a special law (the Sterling Act) so if you work in Philadelphia you pay the wage tax to Philadelphia, obviously at differing rates. This would be the desire of real estate tax reform that is proposed by the group.
