City files appeal for reevaluation on Bayfront Sheraton tax-exemption status

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City files appeal for reevaluation on Bayfront Sheraton tax_23098500-159532

The city of Erie is challenging the tax exemption of the Erie Bayfront Sheraton hotel.

The city of Erie has filed an appeal to the Erie County Tax Assessment Board for reevaluation of the Bayfront Sheraton.

The hotel and parking garage are assessed at $25 million, which would mean $750,000 in taxes for the city, county and the Erie School District — if it was put on the tax rolls.

“It’s creating a heavy burden for the taxpayers in the city and these higher-value properties are a big chunk of that,” Chief Tax Assessor Scott Mass said. “It’s a healthy thing in my opinion.”

The property is exempt because it is filed under the Convention Center Authority Act.

However, the city is disputing that.

The case will go before the Tax Assessment Board at the end of the year.

“This case will be heard by the board and they’ll make a decision based upon the facts that are presented to them at their level to determine whether or not the exemption should be withdrawn from them or if they will grant it and keep it exempt,” city of Erie Solicitor Gregory Karle said.

A recent case involving the Bay Harbor Marina, which is a property leased by the Erie-Western Pennsylvania Port Authority, determined that a public for-profit business can not be put under the umbrella of a nonprofit for tax exemption.

The new Courtyard Marriott will be assessed and put on the tax rolls soon. The authority may ask for a tax exemption.

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