Thomas A. Leonard v. Richard L. Thornburgh

This is an appeal from an order of the Commonwealth Court which declared unconstitutional Section 359(b) of the Tax Reform Code of 1971, 72 P.S. ? 7359(b) (Supp.1984), known as the Philadelphia Non-Resident Wage Tax Cap, and Philadelphia Ordinance No. 1716. Leonard v. Thornburgh, 83 Pa. Commw.Ct. 1, 477 A.2d 577 (1984). The Non-Resident Wage Tax Cap limits to 4 5/16% the rate at which non-residents can be taxed by the City of Philadelphia upon income earned in Philadelphia. Ordinance No. 1716, effective July 1, 1983, amended the Citys Wage and Net Profits Tax so as to levy the tax at the rates of 4 5/16% upon non-residents, and 4 96/100% upon residents. Commonwealth Court, in declaring these provisions unconstitutional, reasoned that the differing tax rates applicable to residents