Luzerne County Council Debates New Rules for Property Tax Breaks

The Luzerne County Council is set to discuss a proposal aimed at establishing standardized rules for developers seeking property tax breaks under the Local Economic Revitalization Tax Assistance Act (LERTA) during its work session on February 10. This discussion follows an initial review of the proposal, which seeks to create a consistent framework for evaluating tax break requests.

Under LERTA, counties, school districts, and municipalities can offer tax breaks lasting up to 10 years on the increased property value stemming from improvements made to deteriorated properties. Council Chairman Jimmy Sabatino emphasized the need for a structured approach, stating, “Until now, the County reviewed these requests case by case, without a standard process. This ordinance creates a consistent system that puts guardrails in place to protect taxpayers, make sure development is done the right way, and ensure projects deliver real benefits to local residents.”

Concerns have arisen from previous LERTA approvals, including a tax break granted in March 2025 for a proposed data center near Interstate 81 in Hazle Township. Council members expressed that they might have approached the decision differently had they been fully informed about how PPL Corp. planned to supply power to the data center.

The proposed ordinance stipulates that the county will engage in the review of a LERTA request once a municipality and school district approve the project. Additionally, the project must be situated in a priority development area as specified in county regional planning documents. Developers will be required to submit a comprehensive application that includes a breakdown of costs, anticipated changes in tax revenue, and estimates of job creation.

“This proposal adds real accountability,” Sabatino noted. He explained that developers who receive tax breaks will need to submit annual reports during the duration of the tax relief and for two years following its conclusion. These reports must detail the number of permanent jobs created, their pay levels, and how many of those positions are filled by residents of Luzerne County. Failure to comply with these requirements could impact the county’s willingness to approve future tax breaks for those developers or their associated businesses.

Before voting on any LERTA tax break, county staff will provide an analysis of how the project may influence the county budget. The proposed ordinance aims to ensure that all parties involved understand the expectations and responsibilities tied to receiving tax breaks.

“This ordinance sends a clear message: Luzerne County is open for investment — but we expect real results,” Sabatino asserted. He concluded by highlighting the county’s commitment to fostering growth that is responsible, equitable, and prioritizes local residents.

The upcoming discussion at the council meeting marks a significant step toward establishing a more structured approach to economic development in Luzerne County, aiming to balance the needs of developers with the interests of taxpayers and the community at large.