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Pennsylvania Bill Requires First-Class Cities to Remit Nonresident Wage Tax to Workers' Home Municipalities and School Districts

Original title: An Act amending the act of August 5, 1932 (Sp.Sess., P.L.45, No.45), referred to as the Sterling Act, further providing for remittance by a city of the first class to a nonresident's resident municipality and school district.

Last action · January 27, 2025: Referred to FINANCE, Jan. 27, 2025Sponsors: Kristin Marcell and 6 others

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Would Do

First-class cities that collect a must remit an amount equal to the tax imposed by the worker's home municipality and school district. The measure takes effect in 60 days.

Why it matters

Workers who commute from outside a first-class city will see their wage tax revenue redirected to support the municipal services and school districts where they actually reside, altering local government funding streams.

Who It Would Affect

Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.

Directly affected

A city of the first class

Must remit a portion of collected nonresident wage tax revenue to workers' home municipalities and school districts.

Directly affected

Nonresident's resident municipality and school district

Receive remitted tax amounts equal to their earned income and net profits tax from first-class cities.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

Which municipalities are affected by this requirement?
Cities of the first class that impose a are required to remit the specified amounts.
Where does the remitted tax money go?
The funds are remitted to the nonresident worker's resident municipality and school district.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

Currently in committee. The next step in the legislative lifecycle is Floor Vote.

Procedural history

1 action
  1. Jan 27, 2025HouseCommittee
    Referred to FINANCE, Jan. 27, 2025

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift95% confidence

Modification of the Sterling Act Tax Structure

The bill amends the historic Sterling Act of 1932 to mandate tax sharing between first-class cities and workers' home municipalities.

Connected Entities

House of Representatives, General Assembly of the Commonwealth of Pennsylvania, Committee on Finance
OrganizationHouse of Representatives“Chamber where the bill was introduced”Map →
OrganizationGeneral Assembly of the Commonwealth of Pennsylvania“Enacting body of the bill”Map →
OrganizationCommittee on Finance“Committee to which the bill was referred”Map →

Sources

Open source document

www.palegis.us

Analysis Score

0–100
  • Significance75
    How much this matters to a regular citizen
  • Controversy60
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz40
    Current news / social attention level

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