Pennsylvania Supreme Court Affirms Stormwater Fee as Tax, Grants State Immunity

The Pennsylvania Supreme Court affirmed the Commonwealth Court’s decision that the Borough’s stormwater charge constitutes a tax from which state entities are immune. The Borough imposed a stream protection fee on developed properties, including the University’s campus, to fund stormwater management systems required by federal regulations. The Court applied a two-step framework and determined that the Borough acted in its public capacity when providing stormwater services, because the services benefit the general community welfare rather than individual property owners. [Borough of W. Chester v. Pa. State Sys. of Higher Educ., Pa., No. 9 MAP 2023, 04/30/26]

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