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Pennsylvania Supreme Court Declares Stormwater Charges Are Taxes Not Fees
After waiting nearly three years, on April 30, 2026, the Pennsylvania Supreme Court provided an answer to a long-awaited question: Are stormwater charges imposed by cities, municipalities, boroughs, townships, and municipal authorities throughout the Commonwealth fees or taxes? The Pennsylvania Supreme Court in Borough of West Chester v. Pa. State System of Higher Education and West Chester University, Dkt. No. 9 MAP 2023 [J-56-2024] (Mar. 30, 2026), held that stormwater charges are taxes, not fees, dramatically impacting the continued viability of stormwater charges that currently exist in 70 municipalities and municipal authorities throughout the Commonwealth.
The Pennsylvania Supreme Court held that stormwater “fees” are actually “taxes” because:
- Stormwater charges are imposed by local governments without the property owners’ consent, and there is no ability for a property owner to opt out from paying stormwater charges.
- Municipal stormwater management benefits everyone in a municipality – by promoting public health, safety, welfare, providing general environmental benefits to all, and by satisfying federal and state environmental mandates – rather than giving a discrete benefit to specific property owners in exchange for the payment of stormwater charges.
- Stormwater charges do not arise from a local government acting in a quasiprivate capacity, where the government enters an express or implied contract with property owners, as is the case with other traditional municipal services like trash, potable water, and sewer services.
- A property’s impervious surfaces do not necessarily relate to where the potential impact of that stormwater runoff will occur or equate to the burden the property may place on municipal stormwater infrastructure.
- The ability to apply for credits to lower a property’s stormwater charge does not mean that the charge is a voluntary fee for service.
For more information, read our comprehensive analysis and discussion of the Borough of West Chester case. For additional information regarding stormwater charges, or if you have questions about stormwater charges that you have been paying, please feel free to contact Diana Silva, Esq. or call 484-430-5700.
