Pocono News Section

Tax-Exempt Real Estate Woes in Williamsport

Tax-Exempt Real Estate Woes in Williamsport - Monday, April 7, 2008 at 4:48PM EST

Reported by: Jeremy Deebel
Monday, Apr 7, 2008 @04:48pm EST
Williamsport, Lycoming County- A new study reveals that nearly one-third of all properties in Williamsport are tax exempt, and that is hurting the city's bottom line. According to the report, the city could collect roughly four million dollars if non-profits’ property holdings weren't tax exempt. That represents about a quarter of Williamsport's current annual budget, which some have described as fragile at best. Now city officials hope those non-profit groups will step up to offer help.

The recently-released Pennsylvania Economy League study showed that Williamsport has the highest percentage of tax-exempt property in Lycoming County. Bill Nichols, the city’s Director of Administration, said, "The mayor's initiative is to ask all the non-profits, especially the larger ones, to see if there is a way they can contribute more toward city services."

Many of the city's non-profits already contribute by way of PILOTS, or payments in lieu of taxes. Mayor Gabe Campana hopes the groups can double those contributions, which totaled about $230, 000 last year. But most of the smaller non-profits don't have the extra money to give. And many of the larger ones, such as Penn College and Lycoming College, already offer in-kind services and financial contributions, in addition to their economic impact on the community.

Lycoming College Vice President and Treasurer Stephen Storck explained, "A dollar spent in any community is re-spent about 7 times, so the fact that our students are here, most of whom are residential students, they're consuming goods and services in the community, so that helps support the city as well."

Susquehanna Health officials say they've alreay provided over 8 million dollars in community support. Chief Financial Officer Charles Santangelo added, "Well, the Health System, going back to the early 80's, developed arrangements with the city of Williamsport where we would pay real estate taxes on properties that we acquired, taking them off the tax roll, but we continue to pay those taxes as if the properties were still existing there."

Still, Mayor Campana and city officials hope non-profits will team up with them to shore up the city's finances. "Right now the city budget is stressed out with rising health insurance costs, salaries, what have you. The city needs to generate additional revenue and the non-profits certainly could be a big help," Nichols said.

Besides appealing to the city's non-profit groups, there were other suggestions in the economy league study, such as; increasing fees for city-provided services, selling advertising on city vehicles, and outsourcing services that private companies might provide at a cheaper rate.