Residents filed a lawsuit to block Upper Darby’s newly enacted earned income tax (EIT), saying the township did not follow its home rule charter in how it adopted the ordinance.
The lawsuit against Mayor Edward Brown, Upper Darby, and the Upper Darby Town Council, was filed Monday in Common Pleas Court.
It alleges the Democratic majority council and mayor violated the home rule charter when they passed the earned income tax ordinance 7 -4 on Feb. 19. That ordinance said it would take effect immediately. However, since that was the first time the township levied an earned income tax, the Home Rule Charter Local Tax Enabling Act says it must not go into effect for 30 days.
Upper Darby Township “did not strictly comply with statutory procedure,” the lawsuit said.
The residents ask the court to strike down the ordinance for the tax as “invalid from its inception.”
This is Upper Darby’s third attempt to enact a 1 percent earned income tax. The previous mayor, Barbarann Keffer, first proposed it in 2023. In December 2024, it was stopped by a judge as improperly voted on.
Resident John DeMasi was the lead plaintiff in both lawsuits. He says he’s outraged at what he sees as Upper Darby officials’ excessive spending, including adding positions and giving employees hefty raises.
The township spent $9 million more than it should have last year, DeMasi said, because the council members thought they would have money from the previous EIT ordinance. However, the court struck that ordinance down.
The council hired the township Chief Administrative Officer Crandall Jones for $191,000 last year. His salary is $196,730 for 2025. Several other management employees received 25 percent raises, he said. The previous CAO made $140,000.
“If they can pay him that much, they don’t need my 1 percent,” said DeMasi.
In one year, Crandall’s assistant went from $62,000 to $92,000, said DeMasi. Upper Darby officials hired a new public information officer for $82,000 and a risk management specialist for $72,000. The human resources director’s salary increased from $100,000 to $119,000.
“Planning and Zoning got three new positions for a total of about $175,000,” said DeMasi.
Upper Darby employees also have a cushy health plan, he noted. They get a zero deductible, $1,000 out-of-pocket maximum for an individual and $2,000 maximum for a family.
“Ten dollars to visit your primary care physician. Three dollars for a generic prescription, $5 for a brand, no matter what brand, preferred or not. Free surgery. There is no charge for surgery. Forty dollars to visit the emergency room. Twenty-eight dollars to visit an urgent care. What is the incentive to control costs?” asked DeMasi.
“I think it’s fair to say that the vast majority of the residents of Upper Darby – whom they are telling to pay 1 percent of their income – don’t have that kind of benefit or anything anywhere close,” he said.
Instead of a sudden 1 percent EIT, he’d prefer the township start with a .25 percent EIT.
A spokesman for the township sent a response on behalf of Brown and Upper Darby, saying they were disappointed by the new litigation against the EIT.
“This opposition stems from a small group focusing on technicalities rather than addressing the core sustainability issues facing the township. Over the past year, we have held approximately 11 public meetings to clearly explain the need for EIT and to be transparent with our community about the financial challenges facing the municipality. The proposed EIT is a crucial step to address the significant operational and capital shortfalls projected based on studies from a leading independent municipal finance advisor and a financial advisory firm specializing in serving the government.
“This proposal is neither extreme nor without precedent. According to the Pennsylvania Department of Community and Economic Development, as of 2013, 2,356 municipalities in the state have implemented an EIT, including all municipalities with a population similar to Upper Darby.
“Upper Darby, with more than 86,000 residents, depends on reliable municipal services such as fire protection, road maintenance, sanitation, and police protection. With the (possible) closure of Crozer Hospital, we now must add emergency medical services to that list of underfunded services.
“The costs of these essential services continue to rise due to inflation and increased labor expenses, while our revenue base remains stagnant. Currently, the township relies too heavily on local property taxes, placing an undue and growing burden on homeowners. The EIT offers a more sustainable and fair revenue stream that would reduce pressure on property taxpayers and also ensure that certain non-residents who work within the township contribute.
“Our administration and the majority of council are confident that all proper procedures were followed in adopting this tax. The EIT is set to take effect on July 1, 2025, giving the township sufficient time to prepare and allowing residents time to adjust. We are confident in the legality of our actions and will strongly defend the council’s right to implement the EIT as passed.
“We remain dedicated to fiscal responsibility, government transparency, and providing essential services to the people of Upper Darby. Our residents deserve nothing less,” they said.
DeMasi questioned the township officials’ justification for the tax hike.
“Increasing the licenses and inspections director (salary) from $103,000 to $154,000 is a lot of sustaining,” he said. “They are sustaining $34,000 health insurance subsidies.”
The plaintiffs– DeMasi, John Vizzarri, Rebecca Duggan, and Joanne Nammavong–also asked the court to award them the cost of the litigation.
