UPDATE: New reports confirm that the Amazon Fulfillment Center in Hazle Twp. has been overpaying local taxes to the City of Hazleton for the past three years, totaling approximately $900,000. This urgent situation is developing as officials from both sides engage in negotiations to resolve the issue.
According to the 2026 Hazleton budget proposal, Amazon mistakenly remitted Payroll Prep Tax (PPT) payments of about $300,000 annually, despite the fulfillment center operating outside the city’s jurisdiction. The center is located at 550 Oak Ridge Rd. in Hazle Twp., yet it has been erroneously classified under Hazleton’s tax collection system.
City Solicitor Sean Logsdon stated that the city notified Amazon about the location error shortly after the first payments began. However, Amazon continued to remit taxes, leading to the assumption that payments were linked to other Amazon operations in the region.
“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 said. “We are currently in talks with Amazon on how this situation will be resolved.”
This revelation has significant implications for Hazleton’s budget. It has prompted city officials to factor in a projected drop in tax revenue into the recently passed 2026 budget, which includes a 22% tax increase. The municipal millage is set to rise from 9.13 to 11.14, meaning homeowners with properties assessed at $100,000 will face an increase of approximately $201 annually.
City Administrator Daniel Lynch emphasized the legal obligation to return the overpaid funds. “Legally, they are entitled to have this funding returned to them,” Lynch said during the November 13 Hazleton City Council meeting. “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 the city grapples with this financial challenge, Hazle Twp. supervisors have not publicly commented on the matter. The urgency of this situation underscores the need for prompt resolution, as both Amazon and Hazleton officials work to clarify the tax obligations and impact on local residents.
Residents and local businesses are urged to stay informed as this story develops, with negotiations between Amazon and city officials expected to take center stage in the coming days. The outcome of these discussions will not only affect city finances but also the broader economic landscape in the region.
Stay tuned for updates on this unfolding story as authorities continue to address the ramifications of this significant tax error.
