Simrell Park Association Challenged Tax Status Changes

The association filed lawsuits to restore tax-exempt status for two properties in Scranton.

Updated on Sept. 29, 2026 in Philanthropy

Simrell Park Association Challenged Tax Status Changes

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The Simrell Park Association has filed two lawsuits against the Lackawanna County Board of Assessment Appeals. The litigation challenges the recent removal of tax-exempt status for properties located at 627 and 629-631 Madison Ave.

Why it matters

The lawsuit contends that the association did not receive proper notice of the hearings regarding their tax status. If successful, the legal action could reverse the city and school district's efforts to return these properties to the tax rolls.

The city and school district expect to generate $31,332 in combined annual tax revenue from four successful exemption challenges. These properties are part of a larger review of 1,622 tax-exempt properties that hold a total assessed value of $220 million.

The players

Simrell Park Association

This is a local entity that owns the disputed properties on Madison Avenue.

Lackawanna County Board of Assessment Appeals

This is the local body responsible for property tax assessments and evaluating exemption status.

Scranton School District

This is the local educational authority that joined the city in challenging tax-exempt statuses to boost annual revenue.

The details

The city and Scranton School District successfully challenged the exemption status, arguing the sites failed to meet the constitutional HUP test for charity status. The assessment board subsequently ruled the properties should be taxed starting in 2027.

December 2023: Scranton launched a tax-exemption-verification review.
July 2026: City and school district officials filed reverse exemption appeals.
August 27, 2026: The assessment board ruled the properties are taxable.
September 22, 2026: Simrell Park Association filed the tax-appeal lawsuits.
2027: The taxable status is scheduled to take effect.

Market Landscape

The city's move to challenge exemptions follows the criteria set by the HUP test to verify organizational eligibility. This case highlights a broader effort by local governments to expand their tax bases by auditing nonprofit holdings.

The transition of these properties to the tax rolls is intended to contribute to municipal and school district funding. Residents may see long-term impacts on local tax revenue depending on the outcome of the ongoing audits and legal challenges.

The takeaway

This case underscores the importance of administrative transparency when local governments audit private property statuses. Property owners should ensure they receive and respond to all formal notifications regarding assessment hearings to protect their institutional standing.