BREAKING: Amazon has mistakenly overpaid approximately $900,000 in taxes to the City of Hazleton for the past three years. The urgent revelation comes as the city prepares to address this substantial financial misstep in the 2026 budget proposal.
The Amazon Fulfillment Center, located at 550 Oak Ride Rd. in Hazle Township, has been remitting Payroll Prep Tax (PPT) payments to Hazleton, despite its actual location being outside the city’s jurisdiction. Reports indicate that the e-commerce giant has overpaid around $300,000 annually since 2023, leading to a significant budgetary shortfall for Hazleton.
City Solicitor Sean Logsdon confirmed that Hazleton had informed Amazon of the correct tax obligations earlier, stating, “The city assumed they were paying based off of other Amazon businesses or related operations in the city.” Despite these notifications, Amazon continued its payments, which are now under dispute.
In a move to rectify the situation, Amazon has filed an amended return, seeking a refund for the overpayments. “After three years of quarterly payments, we are currently in talks with Amazon on how this situation will be resolved,” Logsdon added.
This miscalculation is expected to impact the city’s finances significantly. The Hazleton City Council passed a 22% tax increase on December 16, 2026, adjusting the municipal millage from 9.13 to 11.14. For homeowners, this means a potential annual increase of approximately $201 for a property assessed at $100,000.
City Administrator Daniel Lynch emphasized the legal implications of the situation, noting, “Legally, they are entitled to have this funding returned to them.” Lynch confirmed that the mayor is negotiating with Amazon to arrange a structured repayment. The city hopes to repay the funds at the same rate they were originally paid.
As discussions with Amazon continue, the financial ramifications for Hazleton remain a hot topic among residents and officials. The Hazle Township supervisors have yet to comment on the unfolding situation, leaving many questions unanswered about the future of the local economy.
This developing story highlights the urgent need for clarity as both parties navigate the complexities of local taxation and corporate responsibility. Residents are advised to stay informed as further updates emerge regarding the resolution of this significant tax issue.
