A much discussed amusement tax is expected to be listed on Lower Towamensing Township’s agenda next month. If approved, the tax would take effect at the start of the new year.

Ahead of that decision, the township’s board of supervisors heard feedback Tuesday from residents and representatives of Blue Mountain Resort.

Residents Connie and Rich Banko have pushed for the township to place an amusement tax on Blue Mountain Resort, citing its growth into a year-round venue.

Connie Banko said the township was looking for ways to raise revenue back in 2001, and one suggestion at the time was an amusement tax. Another option was raising the real estate millage.

She referenced a December 2001 Times News article in which the board asked residents for ideas on raising money to repair roads, address sewer needs and fund recreation.

Banko said that under Pennsylvania acts passed in 2002, the township could no longer levy amusement taxes on ski resorts. She said a real estate tax was considered instead, but the late Ray Tuthill, then owner of Blue Mountain Ski Area, believed an amusement tax would be unfair because the burden would primarily fall on the ski area.

Banko said Tuthill offered an alternative: Enact a small real estate millage and he would match the levy up to $50,000 because he believed businesses should support the township.

A 0.8-mill tax was included in the budget package at that time, Banko said, adding the township is now at 2.5 mills.

When asked how often Tuthill donated to the township, board Chairman Jay Mullikin said, “We don’t receive that amount of money every year.”

Connie Banko said that is why she and her husband suggested an amusement tax on events held outside of ski season. She pointed to traffic and garbage along roadways as examples of the impact.

“I feel it’s only fair that they contribute,” she said.

Rich Banko added, “I think we’re only asking for something that’s fair. This township needs money.”

He said he doesn’t believe it would be too much to ask.

I’m not talking about robbing these people,” he said. “I just want something that’s fair to you.”

Blue Mountain responds

Barb Green, retired Blue Mountain Resort chief executive officer and minority owner, defended the resort’s operations.

“The resort is using facilities that are already there,” Green said. “We’re just trying to use the assets that the ski area already has.”

Green said the resort is trying to keep employees working year-round, calling it full-time employment.

Resort General Manager Jim Dailey again pledged the resort’s commitment to the community.

Dailey said the resort wants to help and would like to see a resolution.

“Tell us what you need,” Dailey said. “We’ll do what we can.”

Dailey said the resort wants to be good neighbors and plans to continue being good neighbors.

Resident Steve Meining said he saw a public notice in Tuesday’s edition of the Times News stating the township is in the process of approving the ordinance.

According to the notice, the amusement tax would apply to the admission fee or privilege to attend or engage in any amusement within the township at a rate of 5% of the established price charged to the general public. The notice states the tax is intended to generate revenue for the health, safety and welfare of the township, and estimates it would bring in $65,000.

Meining said visitors come to the township and “see what a golden jewel we have here,” and he questioned how that growth could impact quality of life.

“I kind of like it (the township) the way it is,” Meining said.

Background

Last month, supervisors unanimously agreed to advertise an amusement tax ordinance that would take effect at the start of the new year.

Supervisor Michael Takerer said at the time he was concerned about putting a tax on anyone, noting it would not just affect Blue Mountain Resort, but also the golf course and others.

Supervisor Ian Farrell said the burden has been placed on the township and taxpayers are already paying the price.

At that meeting, Dailey said he was there to pledge the resort’s devotion to the community and asked the township to provide a list of three projects it would like the resort to consider.

The board’s decision to move forward came after continued public comments urging an amusement tax on Blue Mountain Resort.

In February, tax collector Maxine Scherer told supervisors that Blue Mountain Resort pays a small amount of taxes on land at the bottom of the mountain, but does not pay taxes on structures or buildings on those properties.

Scherer said one parcel has a land assessment of $37,800, for which Blue Mountain Resort pays $30 in county debt service tax, $631 in real estate tax, $95 in borough tax and $2,492 in school district tax, totaling $3,248.

Another parcel is assessed at $55,550, for which the resort pays $44 in county debt service tax, $928 in real estate tax, $139 in borough tax and $3,662 in school district tax, totaling $4,773.

Scherer said those parcels have not been assessed in roughly 25 years.

She said the parcel where Blue Mountain Resort is paying building assessment and taxes is assessed at $223,150, and the building amount is $2,409,715, for a total of $2,632,865.

Blue Mountain Resort LLC pays $2,109 in county debt service tax, $43,969 in real estate tax, $6,582 in borough tax and $173,545 in school district tax, totaling $226,203.

Scherer said the parcel was last assessed in 2022, when the resort requested the removal of a shed. She added all three parcels are scheduled to be reassessed.

Contacted after that meeting, Barb Green said, “The county assessors have been at the resort within the last three years.”

Green added, “The resort is paying taxes based upon the latest county review on building (square feet) and land (acres) per the county assessment.”

Green said the resort recently donated $5,000 to the Aquashicola Volunteer Fire Company for firefighter gear and often fulfills requests for local support.

She also noted the corporation does not pay an amusement tax anywhere else.