UPDATE: Amazon has overpaid approximately $900,000 in local taxes to the City of Hazleton over the past three years. The urgent revelation comes as officials scramble to address the tax misallocation, which has significant implications for the city’s budget and tax revenue.
Just announced in the 2026 Hazleton budget proposal, the e-commerce giant has been mistakenly remitting Payroll Prep Tax (PPT) payments, totaling about $300,000 annually, for its fulfillment center located at 550 Oak Ride Rd. in Hazle Township, not Hazleton. This error has raised immediate concerns about the city’s financial outlook as it faces a 22% tax increase to compensate for the unexpected drop in revenue.
City Solicitor Sean Logsdon confirmed that Hazleton officials alerted Amazon about the error, yet the company continued to submit payments. “The city assumed they were paying based off of other Amazon businesses or related businesses operating in the city,” Logsdon stated. He emphasized that the city’s tax collection agent also informed Amazon of the correct location of the distribution center.
This situation escalated when Amazon recently notified the city’s tax collection agency that it would be filing an amended return for the past three years, seeking a refund for the overpaid taxes. “We are currently in talks with Amazon on how this situation will be resolved,” Logsdon added, highlighting the urgency of the matter.
The ramifications of this tax misallocation are severe. The 2026 budget, which was passed on December 16, reflects an expected decrease in tax revenue due to the overpayments, leading to the significant tax hike. The municipal millage will increase from 9.13 to 11.14, resulting in an estimated annual tax increase of $201 for homeowners with properties assessed at $100,000.
City Administrator Daniel Lynch addressed the council on November 13, stating, “Legally, they are entitled to have this funding returned to them. Currently, the mayor is in negotiations and looking to see if we can structure a repayment.” The city hopes to settle the matter amicably, with Lynch adding, “I think at a minimum we’re hopeful that we will be able to repay at the same rate they paid.”
As negotiations continue, the Hazleton community faces rising tax burdens alongside the uncertainty of the city’s financial health. Local residents are encouraged to stay informed about the resolution of this urgent matter, which has direct implications for their wallets and the city’s fiscal stability.
Hazle Township supervisors have yet to comment on the situation, leaving residents anxious about the ongoing developments. With the stakes high and financial impacts looming, all eyes are on the discussions between Hazleton officials and Amazon, as the outcome will significantly affect the city’s future budgetary plans and tax structures.
Stay tuned for more updates as this situation develops.
