SMETHPORT — There are a lot of properties in McKean County that are tax exempt, and it’s time to take a look at whether qualifications are still being met.
At Tuesday’s meeting of the McKean County commissioners, Angela Tennies, director of tax assessment, explained.
“We have a lot of exempt properties that have been on the rolls for many years, since two assessments ago,” she said. “My department is in the process of preparing a survey (to uncover) all currently exempt properties that don’t fall under the immune status.”
Properties owned by schools, municipalities, hospitals, churches, universities and so on are exempt unless revenue is derived from activities on the property.
Tennies said, “There are properties that have structures that have been taken down that maybe don’t meet the certification of purely public land. We’re hoping to get a recertification on whether” the properties still qualify.
“This is going to be a full review of all exempt properties,” she said. “My own personal opinion is the exempt properties should be reviewed on a regular basis. We’re not necessarily looking at the usage.
“My plan is to have those recertification forms ready to go before the end of the month,” she said, the results of which will have to come back before the commissioners for action if the property should be moved back to the tax rolls.
At the meeting, the commissioners denied 14 requests for tax exemption, 12 in the City of Bradford and two in Corydon Township.
When asked if those denials were related to the recertification, Commissioner Chairman Tom Kreiner said no, and Tennies explained.
The first two exemptions requested were by Triangle Works Collaborative LLC, a company registered to Carolyn Newhouse. The properties were at 146 W. Washington St. with an assessed value of $18,790 and a parcel on North Bennett Street with a value of $13,400. The notation stated a non-profit organization planned for a McKean County incubator/accelerator.
“The Triangle Works is a corporate-owned property based on the information that was presented,” Tennies said. “There is going to be development. I don’t believe it is going to meet the charitable test. There are certain things that need to be met to be a purely public charity.
“Because they are an LLC, they may not be exempt,” she continued. “The plans that were presented do not substantiate that they will meet the definition.”
Two more were from the Willow Creek Sportsman’s Club, for two properties on West Washington Street, valued at $47,720 and $24,860. Both stated the club was a non-profit.
Tennies explained. “I’ve done an extensive review of these types of entities. There are many other clubs within McKean County, they are all currently paying taxes.
“They do not meet the definition of purely public charities,” she said. “Things are sold in those clubs. They don’t help the lower income (demographic). They are not immune to taxation as a taxing authority or a county- or state-owned property.”
The remaining 10 were all from the Downtown Bradford Revitalization Corp.
“We don’t know what the intent of the property is going to be,” Tennies said.
The properties are as follows: 211 W. Washington St., $24,860; 209 W. Washington St., $26,520; 205 W. Washington St., $18,140; 195 W. Washington St., $15,140; 193 W. Washington St., $25,190; 191 W. Washington St., $14,600; 189 W. Washington St., $12,760; 199 W. Washington St., $16,800; all as blighted vacant structures to be demolished, and 14 Interstate Parkway, $2,000, as vacant land for development.
“They are likely going to be torn down using grant money,” Tennies said. “We’re finding all of these blighted properties that there are liens and judgments filed after the fact, attaching back to the property.”
She said a property will end up in the county repository, where it is to be free and clear of all liens and encumbrances. Someone will buy a property from the repository, expecting it to be free and clear, but then they will learn a lien has been placed on it by the municipality that demolished it.
“The blighted procedure allows them to file a lien and judgment to recoup that money,” Tennies said. “I’m finding it to be a problem with properties in the repository.”
Of the DBRC, she added, “I don’t know what the purely public charity is here” unless it’s demolishing something to look better for the public.
“I do not feel that they meet the definition of a purely public charity,” Tennies said, adding that they may have had properties that qualified in the past. “Those are the ones that are going to come back before the board for recertification.”
Also at the meeting, Commissioner Carol Duffy reminded residents to sign up for a broadband connectivity program, which takes $30 off the monthly cost for eligible participants.
“We were also told we will be getting county-specific information on the public’s feedback, which will be very valuable,” she said.
Also at the meeting, the commissioners approved a $38,637 application from Lewis Run Borough for ARPA funds for blight remediation.
The next commissioners’ meeting will be held at 10 a.m. Dec. 29, on a Friday to account for the holiday.
