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First Posted: 7/19/2013 WILKES-BARRE &#8212; The city will not again challenge the state Department of Revenue in attempt to get a refund of more than $25,000 in taxes and penalties for undocumented fuel dispensed at the city&#8217;s pumps.
The department last month denied the city&#8217;s appeal that the assessment was excessive. The decision and order mailed by the department on June 7 said the documentation provided by the city was &#8220;not sufficient&#8221; to support its case that about 67,000 gallons of fuel was used for municipal purposes.
Department spokeswoman Elizabeth Brassell would not confirm the order, saying &#8220;decisions of the Department of Revenue Appeals Board are confidential under state law.&#8221;
Drew McLaughlin, the city&#8217;s municipal affairs manager, provided a copy of the order Friday and said that there would be no appeal, even though the city has that option.
The city appealed the department&#8217;s assessment last October after the department investigated the use of tax-free fuel from July 1, 2010 to June 30, 2012. The probe followed a Times Leader investigation that determined 37,272 gallons of gasoline and 29,894 gallons of diesel fuel could not be accounted for at the city&#8217;s pumps at the Department of Public Works yard on North Pennsylvania Avenue.
In its appeal, the city provided fuel logs identifying the date, vehicle number, gallons used and whether the vehicle was down at the time.
&#8220;(The city) explained that even though some of the vehicles disappear from the fuel consumption report for as many as 16 days, the vehicles were still in use during that period. (The city) does acknowledge their poor record keeping,&#8221; the department&#8217;s order said.
McLaughlin agreed that the city did not keep accurate and running logs for the fuel dispensed.
&#8220;We had lax oversight and enforcement,&#8221; he said. A new electronic system is set to go into use to prevent fuel being pumped and not being recorded, he said.
The city paid the state $25,919 in taxes, penalties and interest last fall with the intent of receiving a refund upon a successful appeal, McLaughlin said. &#8220;There was no value at not paying,&#8221; he said.
If it failed to pay at the time and lost the appeal, the cost would be higher due to the interest attached to the assessment, he explained.
Separate from the department&#8217;s probe, the Luzerne County District Attorney&#8217;s Office has been conducting a criminal investigation of the missing fuel.
District Attorney Stefanie Salavantis said all the interviews have been done and she plans to sit down with her staff to determine if there is enough to warrant filing charges.

State denies W-B appeal of fine for missing fuel