The realty transfer tax from the split of Arconic Inc. will result in a $922,000 windfall for the coffers of Upper Burrell, the Burrell School District and the state.
Arconic Inc. is planning to separate into two publicly traded companies April 1.
As a result, ownership of the company’s property and facilities in Upper Burrell on Route 780 will be transferred from Arconic Inc. (formerly Alcoa) to Arconic Technologies LLC, according to Tracie Gliozzi, Arconic spokeswoman. Realty transfer taxes are imposed on the buyer and seller when property ownership is transferred.
Currently, the headcount for the iconic aluminum pioneer at its Upper Burrell technical center is more than 115, while employment at Arconic Corp.’s Pittsburgh-based facilities is about 200, she said.
The deed for about 1,500 acres and buildings was transferred Feb. 28 at a market value of $46 million, according to Westmoreland County records.
Upper Burrell and the Burrell School District will each receive about $230,600, while the state retains the balance of the tax.
“That’s about 25% of our annual operating budget,” said Ross Walker, chairman of the Upper Burrell supervisors. “It’s a real windfall for the township.”
Same for the Burrell School District: The additional revenue will increase the district’s balance at the end of the fiscal year June 30, Superintendent Shannon Wagner said.
The money could offset future one-time purchases such as buying more Chromebooks for students, she said.
The Upper Burrell supervisors have to decide what they will do with the money, Walker said. The township has no debt and can allocate the money for something beyond its budget, which is about $1 million annually.
“We’ll no doubt be making some road improvements since our biggest complaint from residents at the supervisors’ meeting are the roads,” he said.
