Luzerne County Courthouse
                                 Joe Soprano | Times Leader

Luzerne County Courthouse

Joe Soprano | Times Leader

Luzerne County property owners must pay their county real estate taxes by Aug. 18 to avoid a 10% late fee because the penalty wasn’t cancelled for the rest of the year.

Council had extended the June 17 no-penalty deadline until Aug. 18 to help those struggling in the coronavirus pandemic, but county Councilman Walter Griffith proposed doing away with the penalty altogether this year, arguing some are still hurting financially.

While his ordinance introduction had passed by majority vote, the proposal failed in the final vote Tuesday because only three of Griffith’s council colleagues supported it — Stephen J. Urban, Harry Haas and Linda McClosky Houck.

Voting against the penalty elimination were Robert Schnee, Matthew Vough, Chris Perry, Sheila Saidman, Tim McGinley, Kendra Radle and LeeAnn McDermott.

Related Video

During a public hearing on the matter before the voting meeting, Saidman said the county is “not in any shape” financially to lose an estimated nearly $1 million in revenue from the penalty.

Saidman also said 84% of property owners already have paid their county taxes and noted the elimination of a penalty would mainly benefit larger businesses that have not yet paid, as opposed to “mom and pop” businesses or individuals.

Saying he looks at the “big picture,” Perry said the county has looming budget challenges to address in 2021 and can’t afford to lose $1 million. Eliminating an incentive to pay sooner also may delay the county’s receipt of $9.5 million in taxes owed, which could force layoffs, late vendor payments and an increase in the tax anticipation loan required in 2021, he said.

Concurring with their positions, Vough said council already provided a no-penalty extension and that it would be “fiscally irresponsible” to do more.

Saidman later stressed the county also has plans to provide some of its coronavirus funding to businesses with 25 or less employees, with information to be released soon.

Approximately 18% of properties still carry unpaid 2020 county real estate taxes, or 28,048 of 157,755, according to information supplied to council.

Based on figures from the last three years, about 15,600 properties are forwarded to tax claim annually due to unpaid real estate taxes. If that pattern continues, the county should expect payment on about 12,500 properties before the end of the year.

McClosky Houck said she’d prefer to “err on the side of caution” providing the relief because nobody knows “what’s around the corner” in the pandemic fallout. Cash flow should not be as concerning because the recent audit concluded the county ended 2019 with a $3.1 million surplus, she said.

Haas said he understands the penalty elimination could benefit some property owners who don’t need it, but the same thing happens with assistance packages at the federal level. Council’s primary goal should be helping struggling businesses and families, he said.

Griffith argued benefits to big business should not be a driving force in council’s decision on the penalty elimination, saying the county has historically provided tax breaks to attract large businesses.

Several citizens had urged council to eliminate the penalty during the virtual meeting.

Nanticoke resident Ronald Knapp said the 10% penalty is “punitive in nature” and a “money grab.” Brian Shiner, of Kingston, described the decision as “greed” and an “indifference to those struggling.”

In other business, council appointed Thomas Bindus to an unpaid seat on the Luzerne County Transportation Authority.

Reach Jennifer Learn-Andes at 570-991-6388 or on Twitter @TLJenLearnAndes.