Action News Investigates has learned that some of the most tax-delinquent properties in the city of Pittsburgh are owned by the city itself.This comes as city homeowners brace for a 20% property tax hike.Watch our investigative report in the video player aboveThe city’s Urban Redevelopment Authority owns five parking garages at Southside Works.Even though the URA is a city agency, the garages are assessed as taxable. That’s because the URA leases them to the private company that owns SouthSide Works.Records obtained by Action News Investigates show more than $800,000 in unpaid city taxes owed for the garages, and nearly $300,000 owed to Allegheny County.Four of the garages are delinquent on city taxes: $155,706 for the Ladle garage on Sidney Street $159,764 for the Furnace garage on South 28th Street $261,476 for the Hot Metal garage on Sidney $297,406 for the Ingot garage on Tunnel BoulevardA city spokesperson said in November that the city treasurer’s office sent delinquency notices to the URA office on Boulevard of the Allies.URA executive director Susheela Nemani-Stanger said the agency is not responsible for the unpaid taxes, even though it owns the garages.”What message does it send average citizens when one of the largest delinquent taxpayers in the city is a city agency?” investigative reporter Paul Van Osdol asked.”The taxes are not owed by the URA,” Nemani-Stanger said.”The URA is the property owner,” Van Osdol said.”The lease holder is who’s responsible for the taxes,” Nemani-Stanger said.The lease between the URA and a subsidiary of SouthSide Works owner SomeraRoad says the URA is to send tax bills to the subsidiary, which is then required to pay the taxes.”We’ve informed them that taxes are owed,” Nemani-Stanger said.A SomeraRoad spokesperson said the company “remains fully committed to its investment in SouthSide Works and is working collaboratively with the city and county to resolve this administrative matter.”Court records show there are also liens claiming $275,000 in unpaid Allegheny County taxes on the garages. Those liens were filed against the URA, not SomeraRoad.Action News Investigates asked Mayor Corey O’Connor about the unpaid taxes, which predate his administration.”What kind of message does that send?” Van Osdol asked.”It’s not a good one. We need to get answers for where that money’s gone and why people aren’t paying,” O’Connor said.Pittsburghers who are paying a 20% tax hike expressed similar sentiments.”I think that’s awful. They should pay their fair share,” said Kay Schweyer, of the South Side.”That’s ridiculous to me. At the end of the day, what’s fair is fair,” said George White, of the South Side.”If they’re not paying the taxes, absolutely, you all need to get to the bottom of that and we need to hold everybody accountable,” said Aaron Kirschner, of Sheraden.O’Connor said he was not aware of the unpaid garage taxes until Action News Investigates brought it to his attention. He said he will seek accountability.”This is something that has to be looked into. We want to get every tax dollar into our coffers. We need it,” O’Connor said.SomeraRoad said they have filed appeals with Allegheny County to make the garages tax-exempt. But a county spokesperson said the only pending appeals seek to lower the assessment on the garages, not make them tax-exempt. Court records show a hearing on the URA appeals is scheduled for next month.
PITTSBURGH —
Action News Investigates has learned that some of the most tax-delinquent properties in the city of Pittsburgh are owned by the city itself.
This comes as city homeowners brace for a 20% property tax hike.
Watch our investigative report in the video player above
The city’s Urban Redevelopment Authority owns five parking garages at Southside Works.
Even though the URA is a city agency, the garages are assessed as taxable. That’s because the URA leases them to the private company that owns SouthSide Works.
Records obtained by Action News Investigates show more than $800,000 in unpaid city taxes owed for the garages, and nearly $300,000 owed to Allegheny County.
Four of the garages are delinquent on city taxes:
$155,706 for the Ladle garage on Sidney Street $159,764 for the Furnace garage on South 28th Street $261,476 for the Hot Metal garage on Sidney $297,406 for the Ingot garage on Tunnel Boulevard
A city spokesperson said in November that the city treasurer’s office sent delinquency notices to the URA office on Boulevard of the Allies.
URA executive director Susheela Nemani-Stanger said the agency is not responsible for the unpaid taxes, even though it owns the garages.
“What message does it send average citizens when one of the largest delinquent taxpayers in the city is a city agency?” investigative reporter Paul Van Osdol asked.
“The taxes are not owed by the URA,” Nemani-Stanger said.
“The URA is the property owner,” Van Osdol said.
“The lease holder is who’s responsible for the taxes,” Nemani-Stanger said.
The lease between the URA and a subsidiary of SouthSide Works owner SomeraRoad says the URA is to send tax bills to the subsidiary, which is then required to pay the taxes.
“We’ve informed them that taxes are owed,” Nemani-Stanger said.
A SomeraRoad spokesperson said the company “remains fully committed to its investment in SouthSide Works and is working collaboratively with the city and county to resolve this administrative matter.”
Court records show there are also liens claiming $275,000 in unpaid Allegheny County taxes on the garages. Those liens were filed against the URA, not SomeraRoad.
Action News Investigates asked Mayor Corey O’Connor about the unpaid taxes, which predate his administration.
“What kind of message does that send?” Van Osdol asked.
“It’s not a good one. We need to get answers for where that money’s gone and why people aren’t paying,” O’Connor said.
Pittsburghers who are paying a 20% tax hike expressed similar sentiments.
“I think that’s awful. They should pay their fair share,” said Kay Schweyer, of the South Side.
“That’s ridiculous to me. At the end of the day, what’s fair is fair,” said George White, of the South Side.
“If they’re not paying the taxes, absolutely, you all need to get to the bottom of that and we need to hold everybody accountable,” said Aaron Kirschner, of Sheraden.
O’Connor said he was not aware of the unpaid garage taxes until Action News Investigates brought it to his attention. He said he will seek accountability.
“This is something that has to be looked into. We want to get every tax dollar into our coffers. We need it,” O’Connor said.
SomeraRoad said they have filed appeals with Allegheny County to make the garages tax-exempt. But a county spokesperson said the only pending appeals seek to lower the assessment on the garages, not make them tax-exempt. Court records show a hearing on the URA appeals is scheduled for next month.