Councilman Jack Mundie Wants To Raise Hazleton's Tax Millage

In his ongoing effort to convince Luzerne County officials to conduct a reassessment of properties Councilman Jack Mundie would cause Hazleton's tax millage to increase to make up for lost revenue according to Director of Assessment Anthony Alu. 

In this Standard Speaker article written by Michael Buffer he reports that Alu stated  "A reassessment this year or next year would likely reduce assessment totals, and that could result in increases in property tax rates "to compensate for" losses in tax revenue for the county, municipalities and school districts".

Another reassessment would cost more than $2 million and take two years to complete, Alu said. A reassessment would require additional staff in the assessor's office, Alu said.

It also would to force the county to spend about $300,000 to pay a company to review three years of sales data and devise a mathematical formula to compute new assessed values, Alu explained.

Mr. Mundie's proposal would do nothing to lower property taxes for Hazleton residents.  In addition Mr. Mundie cites research of selling home prices in his presentation that are questionable.  The housing market has been quiet in Hazleton.  To make a broad comparison on the effect to Hazleton's market a sizeable representative sample of sold homes for such a study would be needed to draw an accurate conclusion.  More than likely the homes he is citing include "distressed sales" resulting from tax sales or foreclosures.  Those figures aren't accurate for comparison.

His position is pure theatrics for the upcoming City Council election.  In the end his proposal would cause the millage in Hazleton to increase.  Hazleton is Third Class City.  As such, by current law, it can only tax properties up to 25 mills without going to court. 

Hazleton reached 25 mills in 1972.  In 1977 it was forced to apply for an extra 5 mills to the Luzerne County Court.  That rate was in effect until 2008 which caused all kinds of financial problems for Hazleton, as well as many other third class cities.

His attack on reassessment can have a negative effect on persons interested in purchasing homes in Hazleton.  If they feel the value is going to be depressed, while an attractive buy, it can also deter sales because they may feel other markets have a much better chance for appreciation.

Frank Sorik has it correct.  Quote- "Frank Sorick, president of the Wilkes-Barre City Taxpayers Association, told council to hold off on another reassessment because he expects the state Legislature to outlaw property taxes."

Mr. Mundie's approach is designed to help himself, not the taxpayers.

More Property Assessment Values vs. Sales Price

In an article that appeared in yesterday's Times Leader a property owned by Robert Mericle and his wife, Kim went on the market for $399,000.00. He successfully argued to the Luzerne County Assessment Appeals Board that the house was only worth $235,200.

Today another article appears in the Times Leader written by Jennifer Learn-Andes discussing a different property that seemed to receive the same treatment.

Former Luzerne County commissioner Todd Vonderheid’s property was in the sample group, with a sales price 56.7 percent higher than the assessment.

Vonderheid and his wife sold their century-old restored brick home on West River Street in Wilkes-Barre last month for $520,000.

The assessment: $331,900.

21st Century originally valued the property at $427,500.

Vonderheid said the appeal board granted the reduction because his appraiser valued the property around $331,900 based on the assessments of similar-sized homes in the same neighborhood, the “riverside historic” district.

The mantra of the reassessment was that property values were supposed to be uniform with others in the same neighborhood, Vonderheid said. He estimated school, county and city taxes on the property will increase from $4,500 to about $7,600 with the $331,900 assessment.

More interesting stuff.

Mericles Trying To Sell Home in Wilkes-Barre

An article that appears in today's Times Leader by Jennifer Learn-Andes discusses the sale of a residence owned by Robert Mericle and his wife, Kim. It appears they placed the Wilkes-Barre property on the market for $399,000 only months after he successfully argued the value was $235,200.


21st Century representative Tim Barr reviewed records Friday and said the value was reduced 38 percent, in large part, because Mericle argued at a September informal review that the house was built in 1974 and had no remodeling since.

Barr checked old assessor’s office property cards on Friday and said they indicate that Ciavarella built the home in 1981 and expanded it in 1991.

Mericle also maintained during the informal review that the basement was unfinished, Barr said. The property sales listing says the house has a 783-square-foot finished basement.

Barr reviewed the property sale listing at www.75marjorie.com on Friday and said photographs clearly show the basement is finished.

Six to seven bedrooms are also noted in the sales listing, but the property owner only acknowledged five, Barr said. The sale listing says the property has five baths, but the owner indicated that there were three.

Some interesting discrepancies. No one is alleging any wrongdoings at this point.