Montoursville Area School Board voted to refund money to 170 district residents who paid late fees on their per capita taxes.
Business Manager Robert Saul said those people apparently did not receive their first notices to pay the tax, which amounts to $10 per resident.
It is believed many of the taxpayers failed to receive their notices due to a mailing address problem, he said.
After the tax notices once again were sent out to the residents, they were assessed a $25 delinquent fee.
Richard Walsh told the board it was wrong that each of his parents paid a late fee in addition to the per capita tax.
"You guys really need to know how you are going to address this going forward," he said.
Saul said the problem is being resolved.
The board voted to refund $25 - the delinquent fee - to each of the 170 residents who paid it to the tax collection agency, Statewide Tax Recovery, of Sunbury.
That amounts to $4,250.
In the meantime, the district will seek to have the collection agency refund the district.
Saul said residents who fell victim to the addressing problem live along routes 87, 864 and 973.
Addresses for those people on the mailers didn't include "state route" on the envelopes. As a result, they didn't receive their tax bills or the bills simply vanished.
Some board members suggested that perhaps the tax be eliminated.
"It's turned into a nightmare tax," board member Tom McNamara said.
In other matters, the board took action on several personnel matters.
The board accepted the retirement of Janice Sauers as high school secretary. Sauers, who will retire July 30, has worked for the district for 16 years.
The resignation of cafeteria worker Kristina Nau was accepted by school directors. Her resignation was effective Feb. 22.
The board accepted the resignation of Erin Bennett as girls head soccer coach.