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Gov. Wolf To Propose Property Tax Relief Across Pennsylvania, Wage Tax Relief in Philadelphia

By Tony Romeo

HARRISBURG, Pa. (CBS) -- KYW Newsradio has learned that a significant reduction in the Philadelphia wage tax will be part of Governor Wolf's budget proposal that will be laid out tomorrow.

That word came this afternoon from Pennsylvania state senator Vincent Hughes, the ranking Democrat on the state Senate Appropriations Committee.

Gov. Wolf, when he makes his annual budget address tomorrow (11:30am), is expected to propose increases in the personal income tax and state sales tax, and an offsetting decrease in property tax rates statewide.  In Philadelphia, a decrease will be made in the city wage tax.  Hughes said the wage tax decrease in Philadelphia will be about one-half of one percent, from 3.93 percent to 3.48 percent, effective in the fiscal year that begins in July 2016.

"We'll be seeing probably a rollback that goes all the way back to about 1975," Hughes said.  "So that's about a 40-year rollback in terms of the reduction. Very dramatic –- very dramatic."

Over five years, the governor hopes to get the city wage tax -- paid both by Philadelphia residents and by those who work in the city but live elsewhere -- down to 3.31 percent.

It was not immediately clear whether the wage tax offset for Philadelphia was instead of the property tax decrease.


Stay tuned to KYW Newsradio 1060, CBS-3, and for updates on this story when they are received.

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