The City of Scranton and Scranton School District have successfully challenged the statuses of four non-profit entities in the city. The actions will return five of seven parcels that were part of a July 2026 legal challenge back to the tax rolls in 2027, and a settlement regarding two additional properties has been reached.
“We have been working for several years to evaluate tax exemptions across the city,” Scranton Mayor Paige G. Cognetti said. “Reclassifying and properly taxing these properties will not only get overdue revenue to the City and the School District — this is about fairness and making sure everyone pays their fair share for local government services.”
In July, the city and school district filed reverse exemption appeals against Scranton Liederkranz Co., 508 Lackawanna Ave.; Milk Saving Starving Children, with parcels at 801 N. Washington Ave. and 400 Gibson St.; Simrell Park Association, with parcels at 627 and 629-631 Madison Ave.; and 20th Ward Social and Athletic Club, with parcels at Birney Ave. and Gibbons St. and 2028 Pittston Ave. The challenges through the Lackawanna County Board of Assessment Appeals claimed that the entities do not qualify for tax exemptions.
Properties belonging to Scranton Liederkranz, Simrell Park Association, and 20th Ward Social and Athletic Club were reclassified as taxable, effective in the 2027 tax year. A settlement regarding parcels owned by Milk Saving Starving Children will also result in their properties being reclassified as taxable for the 2027 tax year.
For the past several years, Scranton has been reviewing the tax exemption status of city properties through what’s commonly called a HUP test. Since initiating the HUP test in late 2023, the county assessment board issued letters to all nonprofits in Scranton to verify their tax-exempt status, with some entities not responding to either letter, including those that were part of this challenge.
The challenges also follow the first county-wide reassessment in Lackawanna County since 1968. Based on revised 2026 assessments and city and school district millage rates of 6.35 and 9.56, respectively, the City estimates these actions will return more than $31,000 in tax revenue to the governing bodies. A mill is a $1 tax on every $1,000 of assessed property value.
This summer’s legal challenge marks the first tax exemption appeals made by the City of Scranton. Other challenges may follow in the future.
ABOUT THE CITY OF SCRANTON: Incorporated in 1866, the City of Scranton has a population of approximately 76,000 residents and is the sixth-largest municipality in the Commonwealth of Pennsylvania. Scranton City Hall is located at 340 N. Washington Ave., Scranton, PA 18503. Residents requiring services should visit www.scrantonpa.gov
ABOUT MAYOR PAIGE G. COGNETTI: Paige G. Cognetti was sworn in as the 36th Mayor of Scranton in January 2020 and took her third Oath of Office in January 2026. Her administration is focused on public safety, fiscal discipline, driving economic growth, upgrading infrastructure, government transparency and efficiency, and improving residents’ overall quality of life.
Last modified: August 31, 2026
