UPDATE: Amazon has inadvertently overpaid taxes to Hazleton for the past three years, totaling approximately $900,000. This shocking revelation is prompting urgent discussions as the e-commerce giant seeks a refund from the city.
The Amazon Fulfillment Center, located at 550 Oak Ride Rd. in Hazle Twp., has been remitting Payroll Prep Tax (PPT) to Hazleton, despite being outside the city limits. The 2026 Hazleton budget proposal identified this “large taxpayer” error, revealing that Amazon overpaid an estimated $300,000 annually since 2023.
City Solicitor Sean Logsdon confirmed that city officials made Amazon aware of the distribution center’s location shortly after the overpayments began. “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 tax collection agent also informed Amazon of the error, yet payments continued.
In a crucial development, Amazon recently notified the city’s tax collection agent that they are filing an amended return for the overpaid taxes and are requesting a refund. This unexpected financial shift poses a significant impact on Hazleton’s budget as officials grapple with the impending loss of tax revenue.
The 2026 budget, which was approved on December 16, included a 22% tax increase to account for the anticipated shortfall. The municipal millage is set to rise from 9.13 to 11.14, meaning homeowners with properties assessed at $100,000 will face an annual tax increase of around $201.
City Administrator Daniel Lynch emphasized the legal obligation to return the funds to Amazon during a Hazleton City Council meeting on November 13. “Currently, the mayor is in negotiations and looking to see if we can structure a repayment,” Lynch stated. “I think at a minimum we’re hopeful that we will be able to repay at the same rate they paid.”
As talks between Amazon and Hazleton officials progress, residents are left in suspense over how the city will navigate this financial hiccup and what it means for future tax rates.
Hazle Twp. supervisors have yet to comment on the situation, adding another layer of uncertainty as this story develops. Stay tuned for further updates on this unfolding situation that could reshape the financial landscape of Hazleton and its residents.
