North Penn School District Creates Fund for Disputed Merck Tax Payments

The North Penn School District has created a new fund to manage disputed tax payments from pharmaceutical company Merck, according to district officials. The move comes after Merck filed an appeal on the values of two parcels that generate over $16 million annually in tax revenue to the district.

According to Superintendent Dr. Brian Bauer, because the tax assessment appeal has not been resolved, Merck is paying its taxes under protest. To separate these disputed funds from the rest of the district's revenues, a new bank account was created with Univest Bank for 'Merck escrow funds'. The escrow fund will hold 25% of Merck's taxes until the matter is resolved.

The total balance in the escrow account will increase over the next several months due to revenue collected from real estate taxes. In July, the district received just under $29 million in tax revenue and spent just under $19 million, with a total of just under $128 million in total available funds as of the end of that month.