JOHNSTOWN, PA -- Congressman Mark S. Critz (PA-12) announced today that an anticipated tax hit of over one million dollars for the East Dunkard Water Association has been avoided and that there may be future savings as the Association looks to transition into an authority.
"This was not about handing someone a big check, but rather about working within the system, knowing the key people and offices on the state and federal level, and finding a way to put money intended for water lines into the ground," commented Critz. "It's a good day for the people of East Dunkard, and I applaud the Association for its hard work."
The key issue centered on $6.1 million in grants and loans awarded to the Association for a desperately needed overhaul of its system. Because of the tax status of the East Dunkard Association, they would have been forced to pay taxes on these funds. Through the collaboration of Congressman Critz with local and state officials, the grants will be held until the Authority is formed and then awarded to the Authority which will have a tax exemption for the funds.
"We are certainly way ahead of the game now," said EDWA Solicitor Dennis Makel. "The effort put into this by everyone, especially Congressman Critz has made a big difference. He and his staff were in constant contact with us in looking for solutions to our problem."
East Dunkard will still face a tax concern when it transfers assets, namely its water system to the newly formed authority but Critz is hopeful that too can be worked out.
In July of this year, Critz met with the East Dunkard Water Association and other local leaders at the Mr. Pleasant Methodist Church to hear their concerns and formulate a plan to help the Association get the best use of those monies rather than paying federal taxes on state grants.
