Recent Pennsylvania Supreme Court Decision Provides Refund Opportunities for Tax Exempt Organization

The Pennsylvania Supreme Court recently ruled that a tax-exempt organization did not have to pay a Storm Water Management Fee because the charge was a tax and not a fee. This ruling provides a refund opportunity for any tax-exempt organization that is currently paying storm water management fee.

The case, The Borough of West Chester vs. Pennsylvania State System of Higher Education and West Chester University of the Pennsylvania State System of Higher Education (9 MAP 2023 4-30-26) held that West Chester State University did not have to pay a storm water management fee because it was a tax and not a fee.

The court held that the stormwater management charge was imposed to pay for something that the municipality was required by law to provide, and that the charge was a fee and not a tax. Since the University is exempt from taxes by law, it cannot be required to pay the charge.

Refund Opportunities

Any tax-exempt organization that is paying a stormwater management fee should provide us with the details as soon as possible. We can then evaluate your opportunity to obtain a refund. A taxpayer generally has three years from the date of payment to file a refund claim. If your tax-exempt organization is currently paying stormwater management fees, contact Charles Potter at cpotter@tuckerlaw.com or (412) 594-5514 to evaluate whether you may be entitled to a refund under the Pennsylvania Supreme Court’s recent decision.