Luzerne County’s tax base increased $369.7 million over the last year — evidence that new construction is outpacing losses from demolitions, assessment appeals and other reductions, according to analysis of assessment records.
Hazle Township Supervisor Chairman Jim Montone was not surprised his municipality had the highest taxable real estate increase — $120.1 million — because of all the new commercial development at the Humboldt Industrial Park off Interstate 81.
“We’re exploding,” Montone said.
The growth will continue in coming years because more projects are in the works beyond the industrial park, he said.
Mericle Commercial Real Estate purchased a massive tract of mine-scarred land along I-81 with plans to construct 31 buildings over the next decade or so, Montone said, noting work on the first two structures is already underway.
In another example, Fairfield, Connecticut-based Bluecup Ventures Wilkes-Barre LLC is completing a $120 million warehouse project on 360 acres along Route 309 in the township that will eliminate a towering culm bank motorists face as they enter the county.
Montone said similar development in Hazleton is altering the landscape and prompting questions about how the southern half will prepare.
“I don’t know where they’re going to get all the people to work there or where all these people will live,” Montone said.
The township has teamed up with Hazleton and West Hazleton to complete a comprehensive plan that will identify the impact of the commercial growth on housing, infrastructure, schools and other essential services to help with planning.
While much of the new development is currently linked to temporary tax breaks due to its reuse and transformation of mine land, other past breaks have expired and started generating additional tax revenue, Montone said.
As it stands, the township surpasses all county municipalities with a total tax base of $1.69 billion.
The township moved into the top spot in 2016, ending Wilkes-Barre’s historic reign.
Wilkes-Barre’s tax base declined slightly over the last year, with a loss of approximately $300,000 in assessed value, bringing the total to $1.397 billion.
Only one other municipality has reached the billion-mark — Hazleton. The city picked up $54 million in taxable property since January 2022, boosting its base from $958.8 million to $1.01 billion.
More top gains
Hanover Township was next in line for growth after Hazle Township, with $64.87 million in new construction that brought the tax base to $922.2 million.
“I’m happy to report that this year we gained growth in both commercial and residential properties,” said Hanover Township Manager Samuel T. Guesto Jr. “Our goal is to have a nice mix.”
The newest additions include two properties completed by Missouri-based NorthPoint Development on Tradeport Road housing Upward Farms and a2b Fulfillment, he said. Mericle Commercial Real Estate also expanded a structure on Hanover Street, and a Taco Bell was constructed on Carey Avenue, he said.
On the residential side, more townhomes have been built at the Sunny Hills development and The Villas at Hidden Acres, Guesto said. More single homes also have been added at Fairway Estates and Countrywood Estates, he said.
Based on other development in the works, Guesto said he expects the township will near or exceed the billion-dollar mark in coming years.
Pittston Township ranked third in new construction, with an additional $61.3 million in assessed property that elevated its total base to $635.6 million.
John Bonita, the township’s administrator and chief executive officer, said most of the new construction is at Mericle’s CenterPoint Commerce & Trade Park.
Overall, the development is a positive because the township benefits from the additional tax revenue, he said.
However, the influx of workers and traffic have forced the township to spend more on police, firefighters and road crews, he said.
The other municipalities with double-digit growth: Wilkes-Barre Township, which added $17.1 million for a new base of $569.6 million, and Butler Township, which picked up $15.7 million and raised its base to $882.6 million.
In all, 46 of the county’s 76 municipalities increased their tax bases this year.
The others with tax base increases: Avoca, Conyngham, Duryea, Dupont, Forty Fort, Hughestown, Laflin, Larksville, Laurel Run, Luzerne, Nuangola, Swoyersville, Sugar Notch, White Haven, Pittston, Harveys Lake, Penn Lake Park and the townships of Buck, Conyngham, Dallas, Dorrance, Dennison, Exeter, Fairmount, Fairview, Foster, Franklin, Hollenback, Jackson, Jenkins, Kingston, Lake, Lehman, Newport, Plains, Rice, Ross, Slocum, Union and Wright.
Bear Creek Village’s tax base remained exactly the same at $41.3 million.
Declines
In addition to Wilkes-Barre, 28 municipalities had decreasing bases.
Kingston topped the list with a $2.7 million reduction that lowered its base to $732.67 million.
Borough Administrator Paul Keating said this loss stems largely from demolition of the former Kingston Cake Co. (Blue Ribbon)/Comfort Designs property on West Hoyt Street and Schuyler Avenue.
Keating said he is confident the municipality is on track to make up for the assessment losses through both residential and commercial development.
“There’s a lot of activity. Real estate has never been in greater demand in Kingston,” Keating said. “I am not at all concerned about the tax base going forward.”
West Hazleton had the second highest loss — $1.4 million — followed by Plymouth, with a reduction of $1.28 million.
The others with tax base decreases: Ashley, Courtdale, Dallas, Exeter, Edwardsville, Freeland, Jeddo, Nanticoke, Nescopeck, New Columbus, Pringle, Shickshinny, Warrior Run, West Pittston, West Wyoming, Wyoming, Yatesville and the townships of Black Creek, Bear Creek, Hunlock, Huntington, Nescopeck, Plymouth, Salem and Sugarloaf.
Following past analysis, county officials have said many boroughs are expected to experience tax base declines because they are largely landlocked with little or no room for new construction and expansion. Some of the communities in flood-prone areas along the Susquehanna River also continue to wrestle with fallout from flood buyout demolitions.
Big picture
Countywide, the tax base is now $21.27 billion.
County Chief Assessor/Assessment Director Kristin Montgomery said her office has been working to increase communication with municipalities about building permits to ensure all new construction is promptly assessed.
BHW Construction Consultation Services Inc. is sending building permits to the assessment office on a monthly basis on behalf of all municipalities it represents, she said. Any municipality that has not connected with the county assessor’s office is encouraged to email building permit information to LCassessment@luzernecounty.org, Montgomery said.
The $369.7 million gain equates to $2.3 million in additional revenue for the county under its current tax rate, although a significant portion of those receipts won’t be realized currently due to tax breaks. The county conservatively estimated an increase of approximately $1 million due to tax base growth in the 2023 budget, officials said.
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Editor’s note: The chart showing each municipality’s tax base changes can be found in our Sunday, Feb. 25 print edition or by visiting our e-edition for that day at timesleader.com.