State Sen. Jarrett Coleman has introduced a resolution to compel Revenue Secretary Pat Browne to honor a subpoena and provide tax information on Allentown’s Neighborhood Improvement Zone.
It’s part of an effort spearheaded by Coleman, R-Lehigh, to audit the NIZ, the city’s one-of-a-kind tax subsidy zone that includes part of Hamilton Street and the Lehigh riverfront.
“In July, the Senate Intergovernmental Operations Committee issued a subpoena directing the Secretary of Revenue to provide tax records regarding the Allentown NIZ. Those records were to be provided to the Senate Majority Counsel by August 16th,” said a memo from Coleman’s office. “The Secretary of Revenue failed to comply with the subpoena and stated that legislative oversight was not an ‘official purpose.’ ”
Coleman and 10 co-sponsors on Wednesday introduced the Senate resolution, which outlines the official framework of contempt proceedings. It directs the sergeant-at-arms to bring Browne to the Senate chamber for the proceedings.
If Browne were convicted of contempt, he could be sent to Dauphin County jail until he produces the requested documents, according to the memo.
The resolution has been referred to the body’s Rules and Executive Nominations Committee. The chairperson, Sen. Joe Pittman, R-Indiana, is a co-sponsor.
The Senate unanimously approved the NIZ audit in December 2023.
Jeffrey A. Johnson, Department of Revenue communications director, said Browne responded to the subpoena Aug. 16 with a 34-page letter. It said that while the Department of Revenue acknowledges the committee’s authority to issue the subpoena for specific taxpayer information, the department remains precluded by law from disclosing such information.
“We will continue to monitor the resolution as it moves through the legislative process,” Johnson told The Morning Call.
According to Coleman’s office, if the resolution is voted out of committee, it would be voted on by the full Senate. If it passes, the sergeant-at-arms would bring Browne to the chamber within three days, and he could provide testimony under oath to address the resolution.
Afterward, a second resolution to hold him in contempt could be introduced in the Senate. It would need a simple majority to pass.
Coleman, who defeated Browne in the 16th Senate District Republican primary in 2022, has been trying to open the books on the NIZ since taking office. Browne helped craft legislation to create the NIZ as a state senator in 2011.
Coleman said this provision would bring to light specific sources of revenue for the NIZ. Specifically, it would repeal changes made to the Fiscal Code of 2021 by Browne that added words including “reports” on taxes to a section defining “confidential information.”
The Department of Revenue has declined to provide a more detailed breakdown of the NIZ because of those confidentiality concerns.
The Morning Call’s attempt to obtain that information was struck down by a Commonwealth Court judge, citing the language inserted into the fiscal code bill.
Morning Call reporter Evan Jones can be reached at ejones@mcall.com.
