Outside study recommends restoration of Luzerne County $5 vehicle registration fee, reassessment planning

Restoration of a $5 vehicle registration fee and planning for a countywide reassessment are among the financial recommendations in a new proposed Luzerne County strategic plan prepared by the Pennsylvania Economy League.

County Council unanimously voted in April 2025 to retain PEL to complete the five-year plan focused on finances and operations. The plan cost $113,750, half of which is covered by a Pennsylvania Department of Community and Economic Development grant, officials had said.

Lynne Shedlock, operations director for the nonprofit and nonpartisan public policy organization, presented plan highlights during council’s Tuesday work session.

Council is not required to implement plan recommendations. If council adopts the plan at a future meeting, the county would be eligible for annual state funding over the next five years to help implement any recommendations it chooses to pursue.

The registration fee and reassessment were in a section about the need to diversify and modernize revenue sources.

Regarding the fee, Shedlock told council that maintaining roads and bridges falls under their requirement to protect public health, safety, and welfare.

While stressing she understands they feel bad for those who would be required to pay the fee, Shedlock said it is a way to help fund bridges that are expensive to fix.

“The money has to come from somewhere. You have to look at your resources and what’s available,” Shedlock said.

Council had approved the fee in May 2018 to generate more than $1 million annually and qualify for a one-time $2 million state match. It then voted in February 2020 to stop collecting the fee at the end of 2021.

The last countywide reassessment took effect in 2009 and was the first mass revaluation since 1965.

Prior county commissioners had pledged to reassess all properties every four years to keep the values fresh. However, county officials have subsequently argued another reassessment was not warranted because annual comparisons of sales and assessments indicate the values are holding up on the whole.

Shedlock said she understands reassessments are not popular, but county officials need to start thinking about it.

As the years go by, assessments get more “out of whack,” she said. Reassessments are the only way to ensure everyone is paying their fair share — not too little or too much — based on the market value of their property, she said.

“To have a healthy property tax system, you really need to have a healthy assessment system because the other side is your fairness issue,” Shedlock said.

A summary of the PEL presentation is posted in Tuesday’s work session agenda at luzernecounty.org.

County Manager Romilda Crocamo said the final draft, which is approximately 150 pages, will be posted online when the county receives it.

Another financial recommendation suggests modest real estate tax increases as needed to maintain balanced annual budgets and prevent residents from facing significant one-year hikes.

Shedlock said she understands government officials don’t like to raise taxes, but smaller, incremental increases are better for both the county and residents.

The plan also proposes reviewing the county hotel tax to determine if an increase is warranted to generate more funds for tourist promotion and related activities.

The county collects a 5% hotel tax. After the county Treasurer’s Office takes 2% off the top to administer the county portion, the split is 80% for the Mohegan Arena in Wilkes-Barre Township and 20% for the county visitors bureau.

State legislative action would be necessary if the county is interested in increasing the fee above 5%, she said, noting it is “not an easy process.”

County officials also would have to discuss the matter with hotels to “get them on board,” she added.

An increase would boost funds for tourism and marketing to attract more visitors to help hotels and the county’s tax base, she said.

Another recommendation suggests an independent impact study on county tax breaks to help guide future decisions on whether they should be granted.