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Supreme Court ruling prompts borough review of stormwater fees and authority options
Summary
Staff told council that a recent Supreme Court decision characterized a university’s stormwater charge as a tax, raising questions about whether borough stormwater fees or authorities can lawfully charge tax‑exempt entities; staff will follow guidance from municipal associations.
A borough staff member briefed council on a recent high‑court decision that may change how municipal stormwater programs are structured. The staff presentation noted the Supreme Court described a contested university stormwater charge as a tax, which could undercut local stormwater fee programs that apply to tax‑exempt institutions.
“Actually, now officially from the Supreme Court, a stormwater tax,” the staff member said, describing the court’s treatment of a university’s charge and the uncertainty that creates for boroughs that had considered fees or stormwater authorities. The briefing explained that Pennsylvania charter communities and certain authorities have different powers, and that the court’s opinion focused on a tax‑immune university, leaving open questions about the legal status of stormwater charges for municipal authorities.
Staff recommended monitoring statewide associations (for example, ALOM) and guidance from the Commonwealth on how to proceed; councilors said they did not want to expend significant resources creating a stormwater authority until legal clarity is available.
