Several speakers urged Lower Towamensing Township supervisors Tuesday to delay action on a proposed amusement tax, with Blue Mountain Resort’s attorney warning the measure could spark an expensive legal fight and yield “zero dollars” from the ski area.

Attorney Jan Budman of Buchanan Ingersoll & Rooney, representing Blue Mountain Resort, asked the board to table the ordinance for at least 90 days.

“We would ask you table this for 90 days,” Budman said. “Fighting a legal battle of this magnitude, I’ve seen how it’s played out.”

The widely debated tax, which was listed on the supervisors’ agenda, was ultimately tabled in the absence of board Chairman Jay Mullikin. With only two supervisors present, Supervisor Michael Takerer said no vote would be taken.

Budman said Pennsylvania legislation enacted in 2002 prohibits municipalities and school districts from levying amusement taxes on ski facilities.

He said Blue Mountain’s position is that even if the township passes an amusement tax, it would not apply to the resort.

Budman told the board the township should vote no on the ordinance, and said if the tax is approved, the township will get zero dollars from Blue Mountain.

He added that during the proposed 90-day period, the resort would be willing to work with the township.

Blue Mountain General Manager Jim Dailey said the resort has tried to maintain a positive relationship with the community and called the proposed ordinance unfair.

“We do every bit of our part to be good neighbors,” Dailey said. “This amusement tax feels a lot like a Blue Mountain tax.”

“This tax is not right,” Dailey added. “This tax is unfair.”

Dailey said he was there to pledge the resort’s commitment to the township.

“This tax is unfair, and it’s not right,” he said. “I’m here to pledge our allegiance to the community.”

However, Connie Banko, who along with her husband, Rich Banko, has pushed for the township to consider an amusement tax, said the measure is about fairness as Blue Mountain has grown into a year-round destination.

“You guys need help,” Rich Banko said. “All we’re doing is looking out for your welfare.”

It was asked why the amusement tax proposal has resurfaced now. Township solicitor Jim Nanovic said the topic has been discussed for about a year.

Nanovic said the proposed tax would be 5% of admissions, and estimated it could generate roughly $65,000 annually.

According to a public notice published in the Times News last month, the 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.

Angela Farrell, a member of the township planning commission, questioned why the late Ray Tuthill, former owner of Blue Mountain Ski Area, stopped making contributions to the township.

Dailey said Blue Mountain remains committed to contributing to the community.

“This tax is totally unfair,” he said. “I really feel like we’re being singled out.”

Tax debate

Connie Banko noted the township previously sent an amusement tax ordinance to Berkheimer, and questioned why the township would be told it could collect revenue if the tax was illegal.

Resident Ralph Cortazzo asked how much Blue Mountain pays in taxes, and said the discussion dates back decades.

“This goes back to 1986 when I served on Palmerton Area School Board,” Cortazzo said. “And what have we gotten from Blue Mountain since 1986? Virtually nothing.”

Nanovic disputed that, saying Tuthill contributed $50,000 per year for many years before the amount declined.

Robert DeLuca, a board member of the Pennsylvania Outdoor Recreation Association, told supervisors, “There are many reasons this tax would be unfair.”

Joe Forte, director of outdoor recreation at Blue Mountain and a township resident for more than 40 years, said the resort provides jobs for local residents.

“Our community is in our best interests,” Forte said. “Let’s find a middle ground. Let’s work together.”

Tourism dollars

Chris Barrett, president and CEO of the Pocono Mountains Visitors Bureau, submitted a letter on behalf of the visitors bureau and the Pennsylvania Restaurant & Lodging Association, both of which opposed the tax and supported Blue Mountain. Barrett noted tourism is the No. 1 industry in the Pocono Mountains.

Resident Earl Paules said he did not believe the discussion was an attack on Blue Mountain, but said the resort continues to expand.

“So we’re just asking them to pay a little bit more,” Paules said. “You make a lot of money, you pay a little more.”

Connie Banko said raising the issue was worthwhile if it helped the township obtain additional support. “All we’re asking is for some fair revenue for the township,” she said.

Dailey countered that the resort has been contributing for some time and said it did not take the proposed amusement tax to prompt support.

Background

Banko said last month that in 2002 a small real estate tax was considered. She said Tuthill suggested the township enact a small millage increase and that he would match the levy up to $50,000, believing businesses should help support the township. A 0.8-mill tax was included in the budget package at that time, she said, and the township is now at 2.5 mills.

Retired Blue Mountain Resort CEO and minority owner Barb Green defended the resort’s operations and said the resort has worked to provide year-round employment.

Green said the corporation does not pay an amusement tax anywhere else.

Last month, Dailey asked the township to provide a list of three projects the resort could consider supporting.

In February, tax collector Maxine Scherer told supervisors Blue Mountain pays taxes on certain parcels, including one assessed at $37,800, totaling $3,248 annually, and another assessed at $55,550, totaling $4,773 annually. She said those parcels have not been assessed in roughly 25 years.

Scherer also said the parcel where the resort pays building assessment and taxes is assessed at $2,632,865, and Blue Mountain Resort LLC pays a total of $226,203 annually on that parcel. She said it was last assessed in 2022, and that all three parcels are scheduled to be reassessed.

“The resort is paying taxes based upon the latest county review on building (square feet) and land (acres) per the county assessment,” Green said. Green also said the resort recently donated $5,000 to the Aquashicola Volunteer Fire Company for firefighter gear and frequently fulfills requests for local support.