Pennsylvania Supreme Court ruling on stormwater fees raises funding concerns

A ruling by the Pennsylvania Supreme Court classifying a municipal stormwater charge as a tax rather than a fee is raising concerns about long-term funding for stormwater infrastructure and pollution control efforts across the state.

The decision affirms a lower court ruling that a stormwater charge applied by the West Chester Borough, Pennsylvania to West Chester University of Pennsylvania constitutes a tax, potentially exempting state-owned properties from paying similar charges. Stormwater utilities rely on these fees to fund projects that reduce runoff pollution and mitigate flooding.

Advocates warn the ruling could shift financial responsibility to private ratepayers while limiting resources for infrastructure upgrades. “This is a gut punch to everyone working for cleaner rivers and streams in Pennsylvania,” said Paul Smail, vice president for litigation and general counsel at the Chesapeake Bay Foundation, in a statement. “Every resident in the Commonwealth deserves clean streams and a clean environment, and thousands of Pennsylvanians pay stormwater utility fees to help manage polluted runoff.”