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Luzerne County wrapping up search for missed properties on tax rolls

<p>Luzerne County already spent most of its 2019 budget allocation for property assessment challenge refunds, in part due to a recent reduction for the Laurel Mall in Hazle Township, the administration recently told council.</p><p>About $327,000 of the $400,000 earmarked for refunds has been spent this year to date, county Manager C. David Pedri said during a budget update last week.</p><p>&#8220;So we&#8217;re starting to get tight,&#8221; Pedri said, noting he is reviewing potential budget transfer options with county Budget/Finance Division Head Brian Swetz in case more money is needed.</p><p>Refunds for assessment reductions date back to the year challenges were filed, which had resulted in past big-ticket, multiple-year surprises.</p><p>Concerned about the unknown financial liability, the administration worked with the court to issue inactivity notices in 2017 to numerous parties that had filed assessment challenges but failed to actively pursue their pending cases.</p><p>As a result, challenges of larger commercial property owners who opted to proceed are now &#8220;moving very quickly through the legal system&#8221; and leading to refunds, Pedri said.</p><p>&#8220;Hopefully we got through the big ones,&#8221; Pedri said.</p><p>Several council members said they agreed with the decision to jump-start stale cases so refunds don&#8217;t have to be paid over several years.</p><p>Councilman Harry Haas asked for the maximum exposure of outstanding appeal cases.</p><p>Pedri said that amount is $4 million to $5 million, but he stressed that is not a realistic number because it is based on the assessment amounts sought by property owners. A lower compromise is usually reached through settlements in court, he said.</p><p>&#8220;Most times in these matters, they don&#8217;t get the full ask,&#8221; Pedri said.</p><p><strong>Laurel Mall</strong></p><p>The county must refund more than $140,000 in taxes from 2015 through 2018 for the Laurel Mall property, which contains several parcels in Hazle and Sugarloaf townships, according to a review of the court order and county records.</p><p>That doesn&#8217;t include refunds that must be paid by the Hazleton Area School District and municipalities.</p><p>With all parcels combined, the assessment of the mall is now $18.5 million &#8212; a decrease of $8.7 million, records show.</p><p>Local attorney Ray Wendolowski, who represented the school district in the appeal filed by the Lakewood, New Jersey-based Laurel Mall Limited Partnership, said the reduction was warranted based on appraisals.</p><p>The value of the mall has decreased, largely because it lost an anchor tenant, Wendolowski said, referring to Kmart.</p><p>However, some malls have successfully bounced back after losing tenants, he said. If that happens at the Laurel Mall, the school district will have the option to file a &#8220;reverse&#8221; appeal arguing that the assessment should be increased, Wendolowski said.</p><p>Critics have been pushing state legislators to ban reverse appeals, arguing taxing bodies should not have the power to pick and choose properties for reconsideration outside a countywide reassessment.</p><p>Wendolowski has been fighting to preserve the right, saying taxing bodies should not be forced to live with under-assessed properties until counties decide to conduct a reassessment of all properties. Property owners can seek reductions annually if they believe their values are too high, he said.</p><p>&#8220;This highlights why it makes sense for reverse appeals to be available,&#8221; he said.</p><p>County officials have no plans for another reassessment, with most agreeing state comparisons of sales and assessments indicate the values are still accurate overall.</p><p>Pedri told council multiple-year refunds like the Laurel Mall one eventually will be cleared out, leaving more current cases dating back a year or two.</p><p>&#8220;We&#8217;ll get there,&#8221; he said.</p><p>For example, the county must pay a $5,856 refund for the Schott Glass Technologies Inc. property on York Avenue in Duryea due to a recent settlement, but only for 2018 because it is a newer case, records show.</p><p>That property&#8217;s assessment was reduced from $5 million to $4 million, data shows.</p><p>Among the other reductions settled in court this year, according to county records:</p><p>&#8226; The assessment of the 488-acre Huntsville Golf Club in Lehman Township, owned by Maplemoor Inc., was reduced from $6.06 million to $3.75 million, resulting in a total county tax refund of $40,125 from 2016 through 2018.</p><p>&#8226; The Walmart stores in Pittston and Hazle townships both obtained assessment reductions &#8212; from $14.6 million to $11.75 million for the Pittston Township one and from $16.6 million to $13.95 million for the Hazle Township property. The county had to refund a total $126,812 in taxes from 2015 through 2018 for both properties.</p><style>
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<div class="neCaption">Luzerne County Courthouse </div></div><div class="metaInfo"><photo0>https://www.timesleader.com/wp-content/uploads/2019/05/web1_luzcocourthouse01-2.jpg</photo0><caption0>Luzerne County Courthouse </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>

Assessment appeal refunds racking up in Luzerne County budget