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<p>The need to go after voluntary payments from tax-exempt colleges, medical facilities and organizations came up at three Luzerne County government gatherings last week.</p><p>&#8220;It&#8217;s a difficult decision that this council has to make, but one that has to be made,&#8221; acting county Manager C. David Pedri said at the council&#8217;s work session.</p><p>Pedri made the same pitch at the council&#8217;s strategic initiatives meeting and in a speech before Hazleton area business and community leaders last week.</p><p>Harrisburg-based Public Financial Management, the county&#8217;s outside financial consultant, has recommended the push for such payments in lieu of taxes, known as &#8220;PILOTs,&#8221; in its proposed recovery plans for more than a decade, including one released in October.</p><p>Past county officials have acknowledged the merits of the proposal over the years, but a structured program never materialized.</p><p>Public Financial estimates the county could increase revenue $500,000 over five years by phasing in payments equal to 10 percent of current tax rates from the top tax-exempt colleges and medical-related facilities.</p><p>As of January, there were 8,446 tax-exempt parcels with a total assessed value of $2.7 billion in the county, the recovery plan said.</p><p>The county receives about $146,000 in voluntary payments from tax-exempt entities annually, the plan said.</p><p>The council last week agreed to Pedri&#8217;s proposal to hold a special work session, possibly in June, to discuss the matter with impacted tax-exempt entities.</p><p>The county would present information about the cost and value of services provided to institutions and organizations that don&#8217;t pay real estate taxes, including 911, emergency management, the criminal justice system and human services, Pedri said.</p><p>Pedri said he&#8217;s also collecting figures on voluntary payments made to other counties.</p><p>County officials must weigh whether to include religious organizations and entities that have no employees in the payment request, Pedri said.</p><p>Tax-exempts must be sold on the plan because they can&#8217;t be forced to pay, he said.</p><p>&#8220;We only get one chance at it to do it the right way,&#8221; Pedri said.</p><p>Wilkes University representatives, who recently attended council meetings on an unrelated request involving pass-through financing that has no impact on county funds, told the council the institution is open to discussing payments in lieu of taxes.</p><p>Pedri told the strategic initiative committee he also has received inquiries about whether some property should remain tax exempt, including the portion of the King&#8217;s College &#8220;King&#8217;s on the Square&#8221; property on Public Square in Wilkes-Barre, which is slated to soon house a Chick-fil-A eatery.</p><p>County Assessment Director Anthony Alu said county solicitors are researching that matter and have not made a determination.</p><p>Pedri told the Hazleton area leaders the county must explore the voluntary payments and other new revenue streams to get away from &#8220;the old tax-and-spend mentality.&#8221;</p><p>The county needs revenue to clear out a deficit pegged at $16.9 million the end of 2014 and cover rising expenses, such as a growing pension fund subsidy. The county&#8217;s 2016 budget also relied on $7 million in revenue that won&#8217;t be available again or is earmarked for other purposes.</p><p>Standard &amp; Poor&#8217;s also likely won&#8217;t consider boosting the county&#8217;s speculative credit rating until the county implements some of Public Financial&#8217;s recommendations, Pedri told council members last week.</p><style>
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<div class="neCaption">Pedri </div></div><div class="metaInfo"><photo0>https://www.timesleader.com/wp-content/uploads/2016/04/web1_Pedri-1.jpg</photo0><caption0>Pedri </caption0><photoCredit0></photoCredit0></div></div>
<div class="metaInfo"><bylineMeta><p>By Jennifer Learn-Andes</p><p>jandes@www.timesleader.com</p></bylineMeta></div><div class="metaInfo"><shirttailMeta><p>Reach Jennifer Learn-Andes at 570-991-6388 or on Twitter @TLJenLearnAndes.</p></shirttailMeta></div>

Luzerne County to push for voluntary payments from tax exempts