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PA Supreme Court rules on West Chester stormwater protection tax

Published Friday, May 8, 2026

The Pennsylvania Supreme Court issued a long-awaited decision on West Chester Borough’s stormwater program and it massively impacts how the borough collects income for that service. On April 30, the court issued a decision in the case of the Borough of West Chester v. Pennsylvania State System of Higher Education. The court ruled the borough’s stream protection fee, begun in 2017, is a tax and not a fee and that West Chester University — a nontaxable entity — was not obligated to pay the tax. As part of an ordinance, the borough assesses property owners $1.2 million per year for stormwater protection based upon impervious coverage, which is spent mostly on capital projects and maintenance of the borough’s separate storm sewer system. As a nonprofit, the university is charged $118,000 annually, which it has not paid since the inception of the program while the matter worked through the courts. With the decision, the university will not have to pay the stormwater fee. The university is obligated to pay fees, but not taxes, as a nonprofit. Almost one-third of the borough’s footprint is tax-exempt. Much of it is owned by Chester County government and religious organizations.
Source: Daily Local; 5/6/2026