UPDATE: Amazon has erroneously overpaid approximately $900,000 in taxes to the City of Hazleton over the past three years, triggering urgent negotiations for a refund. The Amazon Fulfillment Center, located at 550 Oak Ridge Rd., Hazle Township, has been remitting Payroll Prep Tax (PPT) to Hazleton, despite its actual business operations being outside city limits.
Officials revealed in the 2026 Hazleton budget proposal that a “large taxpayer” had been mistakenly submitting $300,000 per year in PPT, which replaced the Mercantile Tax in the city a few years ago. City Solicitor Sean Logsdon confirmed that the city had informed Amazon about the fulfillment center’s actual location in Hazle Township immediately, but the payments continued.
“The city assumed they were paying based off of other Amazon businesses or related businesses operating in the city,” Logsdon stated. He added that the city’s tax collection agent had also notified Amazon about the discrepancy. However, after three years of quarterly payments, Amazon finally alerted the tax collection agent that it would be filing an amended return and seeking a refund.
This unexpected tax overpayment has already impacted the city’s budget. The 2026 budget, passed on December 16, 2026, incorporates the expected loss in tax revenue due to the refund negotiations. The city has enacted a 22% tax increase, raising the municipal millage rate from 9.13 to 11.14. For a home assessed at $100,000, residents will see an annual tax increase of approximately $201.
City Administrator Daniel Lynch commented on the situation during the November 13 Hazleton City Council meeting, saying,
“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. I think at a minimum we’re hopeful that we will be able to repay at the same rate they paid.”
As negotiations continue, Hazle Township supervisors have not commented on the matter. The urgency of this situation is heightened as both the city and Amazon work to resolve the implications of this significant tax error, which could affect local budgets and taxpayer burdens.
Residents and local officials are watching closely as the outcome of these discussions could lead to further financial adjustments in Hazleton’s fiscal planning. Stay tuned for more updates on this developing story.
