Mohegan Sun Pocono Disputes Tax Bill

Mohegan Sun Pocono's property tax bill recently rose from $2.9 million in 2007 to $3.71 million. Owners Downs Racing LP said that's too high. The local school district, which received $2 million in casino tax revenue, said it's too low, noting the casino added a hotel and convention center. The issue is headed to appeals court.

Following a reappraisal last June, the Mohegan Sun Pocono casino in Wilkes-Barre, Pennsylvania was assessed at a value of more than 2.5 million, resulting in a property tax bill of .71 million. Previously, a 2007 assessment placed the casino property’s value at nearly 4 million and the tax bill was .9 million. Although the casino added a new hotel and convention center since the last assessment, casino owners said the new tax amount is too high. Officials at the Wilkes-Barre Area School District, which received million, said it’s too low. Luzerne County and Plains Township also receive proceeds from casino tax revenue.

In the past, Downs Racing LP, owner of Mohegan Sun Pocono, arranged with tax regulators that the casino would pay an annual flat fee that had nothing to do with property improvements. But that ended last year.

Both the casino owners and the school district filed appeals against the new tax assessments. The Luzerne County Board of Tax Assessment Appeals heard the case in October. Casino owners and the school district asked the board to deny the appeals, which would lead to a court trial. Recent filings from both parties asked for a non-jury trial, where a judge would assess the property value. Typically these appeals are settled without a trial, a spokesman said. Mohegan Sun has hired an appraiser to prepare a market value study on the property. A district spokesperson said it will hire an appraiser soon.