Pennsylvania Justices Side With Philadelphia in Wage Tax Case

The Pennsylvania Supreme Court on Wednesday rejected Philadelphia resident Diane Zilka’s argument that the city owes her a refund of some of the city and state income taxes she paid while working in Delaware.

Despite Zilka’s claim that the refund denial was unconstitutional, Chief Justice Debra Todd said state and local taxes don’t need to be aggregated when conducting a dormant commerce clause analysis and that “the City’s tax scheme does not discriminate against interstate commerce.” In a 3-2 decision, Todd examined whether the tax passes a test ...