Published August 23. 2012 12:00AM
The Whitehall-Coplay School Board approved a resolution terminating its NIZ litigation at its meeting Aug. 13.
Attorney James Preston explained the outcome of the litigation to the board.
"Collective participation with many boroughs caused a change in law, it reformed the NIZ [Neighborhood Improvement Zone] as something that can only be collected in the city," he said. "No earned income tax will be diverted from any borough outside of Allentown."
State legislation had allowed the City of Allentown to collect earned income taxes from residents of other municipalities – money usually returned to the home municipality – if the workers were employed within the NIZ. However, several municipalities banded together to file a lawsuit, resulting in the legislation being changed.
According to Preston, the money should be returned to the boroughs involved.
Superintendent John Corby asked how much the district would get back.
"Based on district earned income tax, the minimal impact would have been $1.8 million, had this legislation not been changed," said Business Manager Robert Strauss. "This is a successful resolution for all parties."