A ‘rain tax’ spurs a storm of controversy in the Philly region, and a court case with broad implications
The Stormwater Authority of Chester says it is pouring the money into reducing runoff and water pollution, along with other projects, in the flood-prone riverfront city of 33,500. The agency says that since it was created in 2016, “Chester has seen a tremendous reduction in flooding and road closings.”Horace Strand, the authority’s chief, says the authority has added retention basins and upgraded pipes.
The fee, which is based on an estimate of a property’s hard surfaces or “impervious cover” — including parking areas, sidewalks, and roofs — had been lowered to $8.25 because of the blowback, including from Widener University, one of the city’s largest landowners. The university, which was paying more than $170,000 a year, sued and won a significant reduction.
In a ruling that could have profound implications across the state, and perhaps elsewhere, the court found that the stormwater fee the school is paying is in real life a tax; thus, tax-exempt entities shouldn’t have to pay it. The case now is before the state Supreme Court.Stormwater is the rain and melted snow and ice that pours out of gutters and off roofs and patios and anything that covers the ground.
Not surprisingly, the fees aren’t exactly welcome, and Yencha said the biggest resisters have been the nonprofits, such as churches, community centers, and universities, all of which tend to have extensive impervious cover.West Chester University, socked with a $130,000 bill by the borough’s “Stream Protection Fee,” enacted in 2016, won a ruling in Commonwealth Court in January 2023 that the fee actually was a tax; therefore, as a tax-exempt entity, it should not have to pay.