URGENT UPDATE: Amazon has reportedly overpaid taxes to the City of Hazleton for the past three years, totaling approximately $900,000. The revelation comes from the city’s 2026 budget proposal, highlighting a significant financial misstep by the e-commerce giant.
The Amazon Fulfillment Center at 550 Oak Ridge Rd. in Hazle Township mistakenly paid around $300,000 annually in Payroll Prep Tax (PPT) to Hazleton, despite being located outside the city limits. This local tax is levied on employers based on their payroll accounts and replaced the Mercantile Tax several years ago. The city’s Solicitor Sean Logsdon confirmed that they promptly notified Amazon of the error, emphasizing that the distribution center was indeed situated in Hazle Township.
“After three years of quarterly payments, Amazon informed our tax collection agent that they were filing an amended return for those years and seeking a refund,” Logsdon stated. The ongoing discussions between Amazon and the city aim to resolve the situation, but the financial implications are already being factored into Hazleton’s budget.
The anticipated loss in tax revenue has led to a 22% tax increase passed on December 16, 2026. The municipal millage has risen from 9.13 to 11.14, meaning that homeowners with properties assessed at $100,000 will see an annual tax increase of approximately $201.
City Administrator Daniel Lynch addressed the issue at the November 13 Hazleton City Council meeting, stating, “Legally, they are entitled to have this funding returned to them.” Lynch indicated that negotiations are ongoing regarding how the repayment will be structured, expressing hope that a fair solution will be reached.
As the discussions continue, the impact on local residents is significant. The tax increase will affect many households, adding to the financial burden faced by families in the city.
Hazle Township supervisors have not commented on the situation, leaving residents and stakeholders anxious about the outcome. Residents are encouraged to stay informed about this developing story, which may have lasting effects on the local economy and community services.
Authorities and Amazon are expected to provide further updates on the resolution of this tax error soon. The situation underscores the importance of accurate tax assessments and the potential repercussions for local governments and businesses alike.
Stay tuned for more updates on this urgent issue as it unfolds.
