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Perhaps the most maddening part of paying a tax is when the payer (which includes most, but apparently not all, of us) senses something about the setup smells rotten.
A great stench arose this week in Luzerne County.
Two separate revelations made clear that not everyone is contributing his or her fair share, which puts a greater burden on those who dutifully write their checks.
In the first instance, a prominent Wilkes-Barre property – the Stegmaier Building, a former brewery turned office place – was identified as being taxed by the city but not by two other government entities.
The county and Wilkes-Barre Area School District reportedly missed out on tax receipts during the past few years to the tune of hundreds of thousands of dollars. The mix-up stemmed largely from an unusual ownership agreement, in which the city owns the land but not the multi-story structure at the corner of Wilkes-Barre Boulevard and Market Street. Welles Street Associates II, a for-profit corporation, restored the brick building and acquired two adjoining lots. Neither current nor former city officials could immediately provide the reason why only one parcel was leased.
Based on inquiries from the Times Leader about the Stegmaier’s odd status, attorneys for Luzerne County and the school district indicated they will pursue real estate taxes on the building’s improvements. The Stegmaier Building houses multiple federal government operations, including offices of the Social Security Administration and the Internal Revenue Service.
Among other questions the situation raises: Why does Wilkes-Barre continue to be the only municipality in the county to handle its own assessments? It seems, for uniformity’s sake, the county should take responsibility for that task.
In a second blow to public confidence, a trio of individuals who serve, or did serve, in county government reportedly received a homestead tax break on multiple properties – when it should have applied only to a primary residence.
While making public comments at a county council meeting, ex-Luzerne County controller Walter Griffith inadvertently outed himself as a violator of the rule. Records released earlier this week showed he had been receiving the tax break on two homes and an auto repair business.
Griffith maintained he was unaware of the error. Attempting to demonstrate the problem was widespread, he subsequently scoured records and uncovered two county council members – Harry Haas and Eileen Sorokas – who also allegedly double-dipped on the exemption. Griffith claimed Wednesday to have identified many other questionable recipients.
Luzerne County’s debt-laden government can’t afford to miss out on any tax revenue, so steps need to be taken to ensure no taxable properties are overlooked and no individuals undeservedly get breaks.