The tax base of Lucerne County is growing

Lucerne County’s tax base increased $369.7 million over the past year, showing new construction is outpacing losses from demolitions, appraisal appeals and other cuts, according to an analysis of appraisal reports.

Hazle Township Chairman Jim Montone was not surprised that his municipality saw the highest increase in taxable real estate—$120.1 million—due to all the new commercial development in the Humboldt Industrial Park off Interstate 81.

“We’re exploding,” Montone said.

Growth will continue in the coming years, he said, as more projects are in development outside of the industrial park.

Mericle Commercial Real Estate has acquired a massive mine-riddled tract of land along I-81 and plans to build 31 buildings over the next decade or so, Montone said, noting that work is underway on the first two buildings.

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 an elevated embankment that motorists encounter when entering the county.

Montone said a development like this at Hazleton is changing the landscape and raising questions about how the southern half will be prepared.

“I don’t know where they will take all the people to work or where all these people will live,” Montone said.

The Borough has partnered with Hazleton and West Hazleton to complete a comprehensive plan that will identify the impact of commercial growth on housing, infrastructure, schools and other essential services to help with planning.

While most new developments now come with temporary tax credits due to reuse and conversion of mine lands, other past exemptions have expired and have begun to generate additional tax revenue, Montone said.

In its current form, the borough surpasses all county municipalities with a total tax base of $1.69. billion.

The township came out on top in 2016, ending the historic reign of Wilkes-Barre.

Wilkes-Barre’s tax base has declined slightly over the past year, with the company’s valuation losing roughly $300,000, bringing the total to $1.397 billion.

Only one other municipality has reached the billion mark, Hazleton. Since January 2022, the city has received $54 million in taxable property, increasing its base from $958.8 million to $1.01 billion.

More achievements

The Township of Hanover was next in line for growth after the Township of Hazel with $64.87 million in new construction, bringing the tax base to $922.2 million.

“I’m happy to report that we’ve seen growth in both commercial and residential real estate this year,” said Hannover City Manager Samuel T. Gesto Jr. “Our goal is to achieve a good combination.”

The newest additions include two facilities built by NorthPoint Development on Missouri’s Tradeport Road that house Upward Farms and a2b Fulfillment, he said. Mericle Commercial Real Estate also expanded the structure on Hanover Street, and Taco Bell was built on Cary Avenue, he said.

In terms of residences, Gesto said more townhouses have been built in the Sunny Hills and The Villas at Hidden Acres complex. More individual homes have also been added to Fairway Estates and Countrywood Estates, he said.

Based on other developments, Gesto said he expects the township to approach or exceed the billion dollar mark in the coming years.

Pittston Township ranked third in new construction with an additional $61.3 million in valued property, pushing its total base to $635.6 million.

John Bonita, administrator and chief executive officer of the village, said most of the new development is in the CenterPoint Commerce & Trade Park.

Overall, the development is positive as the township receives additional tax revenue, he said.

However, the influx of workers and traffic has forced the town to spend more on police, fire and highway crews, he said.

Other municipalities with double-digit growth are Wilkes-Barre Township, which added $17.1 million to a new $569.6 million base, and Butler Township, which received $15.7 million and increased its base to $882.6 million.

In total, 46 of the 76 municipalities in the county have increased their tax base this year.

Others with increased tax base: Avoca, Coningham, Duria, DuPont, Forti Forti, Houstown, Laughlin, Larksville, Laurel Run, Lucerne, Nuangola, Swoyersville, Sugar Notch, White Haven, Pittston, Harveys Lake, Penn Lake Park and settlements. Buck, Coningham, Dallas, Dorrance, Dennison, Exeter, Fairmount, Fairview, Foster, Franklin, Hollenbuck, Jackson, Jenkins, Kingston, Lake, Lehman, Newport, Plains, Rice, Ross, Slocum, Union and Wright.

Bear Creek Village’s tax base remained the same at $41.3 million.

Rejects

In addition to Wilkes-Barre, 28 municipalities had declining bases.

Kingston topped the list with a $2.7 million cut, bringing its base down to $732.67 million.

District administrator Paul Keating said the loss was mainly due to the demolition of the former property of Kingston Cake Co. (Blue Ribbon) / Comfort Designs at West Hoyt Street and Schuyler Avenue.

Keating said he is confident the municipality is on track to make up for losses from the valuation with both residential and commercial development.

“There’s a lot of activity there. Real estate in Kingston has never been in high demand,” said Keating. “I’m not worried about the future tax base at all.”

West Hazleton suffered the second-biggest loss at $1.4 million, followed by Plymouth with a $1.28 million cut.

Others with a reduced tax base: Ashley, Courtdale, Dallas, Exeter, Edwardsville, Freeland, Jeddo, Nanticol, Neskopek, New Columbus, Pringle, Shikshinny, Warrior Run, West Pittston, West Wyoming, Wyoming, Yatesville, and the towns of Black Scream. , Bear Creek, Hunlock, Huntington, Neskopek, Plymouth, Salem and Sugar Loaf.

After the last review, county officials said many areas are expected to have a lower tax base as they are largely landlocked with little or no room for new construction and expansion. Some communities in flood-prone areas along the Susquehanna River also continue to grapple with the impact of flood-buying home demolitions.

The big picture

The county now has a tax base of $21.27 billion.

County Assessor/Director of Appraisals Christine Montgomery said her office is working to increase communication with municipalities about building permits to ensure all new construction is assessed in a timely manner.

According to her, BHW Construction Consultation Services Inc. sends building permits to the appraisal department on behalf of all the municipalities it represents on a monthly basis. Any municipality that hasn’t contacted the county assessor’s office is encouraged to email building permit information to [email protected], Montgomery said.

The $369.7 million profit equates to an additional $2.3 million in county revenue at the current tax rate, although a significant portion of that revenue will not be realized at this time due to tax credits. The county’s conservative estimate is that the increase in the tax base in the 2023 budget will be approximately $1 million, officials said.

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Editor’s note: A chart showing changes in each municipality’s tax base can be found in our print edition of Sunday, February 25, or in our online edition of that day at timesleader.com.