PRINTER'S NO. 1074
No. 943 Session of 1985
INTRODUCED BY FRYER, STUBAN, SWEET, A. C. FOSTER, JR. AND
SIRIANNI, APRIL 16, 1985
REFERRED TO COMMITTEE ON FINANCE, APRIL 16, 1985
AN ACT
1 Amending the act of July 7, 1947 (P.L.1368, No.542), entitled,
2 as amended, "An act amending, revising and consolidating the
3 laws relating to delinquent county, city, except of the first
4 and second class and second class A, borough, town, township,
5 school district, except of the first class and school
6 districts within cities of the second class A, and
7 institution district taxes, providing when, how and upon what
8 property, and to what extent liens shall be allowed for such
9 taxes, the return and entering of claims therefor; the
10 collection and adjudication of such claims, sales of real
11 property, including seated and unseated lands, subject to the
12 lien of such tax claims; the disposition of the proceeds
13 thereof, including State taxes and municipal claims recovered
14 and the redemption of property; providing for the discharge
15 and divestiture by certain tax sales of all estates in
16 property and of mortgages and liens on such property, and the
17 proceedings therefor; creating a Tax Claim Bureau in each
18 county, except counties of the first and second class, to act
19 as agent for taxing districts; defining its powers and
20 duties, including sales of property, the management of
21 property taken in sequestration, and the management, sale and
22 disposition of property heretofore sold to the county
23 commissioners, taxing districts and trustees at tax sales;
24 providing a method for the service of process and notices;
25 imposing duties on taxing districts and their officers and on
26 tax collectors, and certain expenses on counties and for
27 their reimbursement by taxing districts; and repealing
28 existing laws," adding and amending definitions; further
29 providing for the creation of bureaus in counties, for
30 appointment and compensation of personnel, for the bonding of
31 certain personnel and for accounting and distribution;
32 increasing certain costs and fees; further providing for tax
33 liens, filings, adjudications and collection; providing for
1 discharge of tax claims; further providing for sale and
2 purchase of property; and making editorial changes.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. Section 102 of the act of July 7, 1947 (P.L.1368,
6 No.542), known as the Real Estate Tax Sale Law, amended May 20,
7 1949 (P.L.1602, No.484), January 18, 1952 (1951 P.L.2098,
8 No.595), September 23, 1961 (P.L.1609, No.680), July 10, 1980
9 (P.L.417, No.98) and September 26, 1981 (P.L.274, No.92), is
10 amended to read:
11 Section 102. Definitions.--As used in this act, the
12 following words shall be construed as herein defined, unless the
13 context clearly indicates otherwise:
14 "Absolute," the perfection of a claim for taxes under section
15 311, after which the validity of the claim may not be
16 challenged.
17 "Actual sale," payment of the full amount of money agreed to
18 be paid as the sale price by the successful bidder or purchaser
19 at upset sale under sections 605 through 609.
20 "Bureau," the Tax Claim Bureau created by this act in the
21 several counties.
22 "Claim," a claim entered in a claim docket by the bureau to
23 recover the taxes returned by the various taxing districts
24 against a certain property.
25 "County," a county of the second A, third, fourth, fifth,
26 sixth, seventh or eighth class, including counties of these
27 classes which have adopted or may adopt home rule charters under
28 the act of April 13, 1972 (P.L.184, No.62), known as the "Home
29 Rule Charter and Optional Plans Law."
30 "County Commissioner," includes the equivalent official in
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1 home rule counties.
2 "Director," the director of the Tax Claim Bureau [of the
3 several counties].
4 "Discharge of tax claim period," the period of time between
5 entry of claim and actual sale of property.
6 "Owner," the person in whose name the property is last
7 registered, if registered according to law, or, if not
8 registered according to law, the person whose name last appears
9 as an owner of record on any deed or instrument of conveyance
10 recorded in the county office designated for recording and in
11 all other cases means any person in open, peaceable and
12 notorious possession of the property, as apparent owner or
13 owners thereof, or the reputed owner or owners thereof, in the
14 neighborhood of such property; as to property having been turned
15 over to the bureau under Article VII by any county, "owner"
16 shall mean the county.
17 "Owner Occupant," the owner of [all] a property which has
18 improvements constructed thereon and for which the annual tax
19 bill is mailed to [the] an owner residing at the same address as
20 that of the property.
21 "Property," real property which shall include a mobilehome or
22 house trailer permanently attached to land or connected with
23 water, gas, electricity or sewage facilities, subject to a tax
24 lien or against which a claim is being or has been filed as a
25 lien. "Property," includes both seated and unseated lands.
26 "Taxes," [any county except counties of the first and second
27 class, city except of the first or second class or second class
28 A, borough, incorporated town, township, school district, except
29 of the first class or school district within a city of the
30 second class A, or institution district taxes, and interest and
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1 penalties due thereon, except where interest and penalties have
2 been abated by provisions of law, if the owner pays his
3 delinquent taxes on the instalment plan, in which case interest
4 and penalties shall be included as may be provided by the act
5 abating the penalties and interest if there has been a default
6 by the owner in the payment of any instalment of taxes] all
7 taxes, with added interest and penalties, levied by a taxing
8 district upon real property, including improvements. Whenever
9 interest and penalties have been abated by a statute which
10 provides for payment of delinquent taxes on an instalment basis,
11 interest and penalties shall be included in the event of a
12 default as prescribed by the abatement statute.
13 "Taxing District," any county [except counties of the first
14 and second class], city [except a city of the first or second
15 class or second class A], borough, incorporated town, township,
16 school district[, except a school district of the first class,
17 or a school district within a city of the second class A,] or
18 institution district[: Provided, however, That this act shall
19 not be construed to require any city of the third class, or any
20 school district within a city of the third class, to collect its
21 delinquent taxes on property under and in accordance with the
22 provisions of this act, if the city or the school district shall
23 notify the Tax Claim Bureau, in writing, on or before the first
24 day of May, 1948 that, pursuant to a resolution of the city
25 council, the city or the board of directors of the school
26 district has resolved that returns of property will not be made
27 under the provisions of this act but that its delinquent taxes
28 will be collected by the filing of liens in the office of the
29 prothonotary, or by sale of such property at a city treasurer's
30 sale under existing laws. Any such city and any such school
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1 district in any county having adopted the system provided by
2 this act may, in any year notify the Tax Claim Bureau on or
3 before the first day of May of the year that pursuant to a
4 resolution of the city council, or of the board of directors,
5 the city or school district, as the case may be, has resolved to
6 collect its delinquent taxes on property under and in accordance
7 with the provisions of this act, and thereafter the city's or
8 school district's delinquent taxes shall be collected only under
9 and in accordance with the provisions of this act: Provided,
10 further, That any county of the fourth class which has not
11 previously held a tax sale pursuant to this act may, by
12 resolution adopted by its commissioners, be exempt from
13 collecting its delinquent taxes pursuant to the provisions of
14 this act: Provided, however, That this exemption shall only be
15 available for a three year period immediately following January
16 1, 1976 and the county commissioners shall by resolution,
17 provide for the collection of delinquent taxes during this
18 interim.] except counties of the first and second class and
19 cities, boroughs, incorporated towns, townships, school
20 districts or institution districts therein and cities of the
21 second class A and school districts therein.
22 Section 2. Sections 201, 202 and 203 of the act, amended
23 September 26, 1981 (P.L.274, No.92), are amended to read:
24 Section 201. Creation of Bureaus.--A Tax Claim Bureau is
25 hereby created in each [of the counties hereinafter enumerated
26 as follows:
27 (a) In counties of the second A, third, fourth, fifth,
28 sixth, seventh and eighth classes] county in the office of the
29 county commissioners.
30 Section 202. Appointment and Compensation of Personnel.--
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1 (a) In [counties of the second A, third, fourth, fifth,
2 sixth, seventh and eighth classes] each county, the county
3 commissioners shall have direct supervision and control of the
4 bureau, and shall have power to appoint a director and such
5 employes and assistants as may be necessary to properly
6 administer the affairs of the bureau, but the number and
7 compensation of such employes, including the compensation of the
8 director, shall be fixed by the salary board of the county in
9 those counties where there is a salary board, and in all other
10 counties by the county commissioners. Such compensation shall be
11 paid by the county from county funds.
12 County employes or the county treasurer may be assigned by
13 the county commissioners to act as the director or to other
14 duties in the bureau.
15 (b) The county solicitor shall be the legal advisor and
16 counsel to the bureau. The solicitor may appoint such assistant
17 solicitors at such salaries as shall be allowed by the salary
18 board.
19 Section 203. Bonds.--The county commissioners of each county
20 [of the second A, third, fourth, fifth, sixth, seventh and
21 eighth classes] shall have power to require the director of the
22 bureau [of the county] and such employes and assistants of the
23 bureau, as may by them be designated, to give bonds to the
24 Commonwealth for the use of the taxing districts, whose
25 delinquent real estate tax claims are administered through such
26 bureau, and for the use of any other person having a claim by
27 reason of any act of such director, employes or assistants in
28 such penal sum as the county commissioners shall fix,
29 conditioned for the faithful performance of the duties of their
30 office or public position and a strict accounting and [payment
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1 over] distribution of all moneys collected or received by them
2 under the provisions of this act. The cost of such bonds shall
3 be paid by the county.
4 Section 3. Section 204 of the act, amended January 18, 1952
5 (1951 P.L.2098, No.595), is amended to read:
6 Section 204. County Bureau to Collect Taxes.--
7 (a) Each county bureau shall receive and collect such taxes
8 and give proper receipt therefor when payment is offered, and to
9 make distribution of the moneys received [therefor] as provided
10 by this act.
11 (b) (1) All taxes for which returns have been made to the
12 bureau shall be payable only to the bureau and shall not be
13 payable to or be accepted by any taxing district or tax
14 collector.
15 (2) In the event that any such taxes are received or
16 accepted by any taxing district contrary to the provisions of
17 this section, the taxing district shall be liable to the bureau
18 for, and the bureau shall deduct from any distribution to which
19 the taxing district is entitled under section 205, all charges,
20 fees, costs, commission and interest to which the bureau would
21 otherwise have been entitled under the act if payment had been
22 made directly to the bureau.
23 Section 4. Section 205 of the act, amended June 22, 1980
24 (P.L.247, No.70), is amended to read:
25 Section 205. System of Accounting and [Payment Over]
26 Distribution.--
27 (a) In each county bureau a system of accounting and
28 [payment over] distribution of all moneys collected or received
29 under the provisions of this act shall be established in the
30 bureau as may be determined by the county commissioners, the
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1 county controller, if any, and county treasurer.
2 [All taxes and municipal claims recovered in full by the
3 bureau under the provisions of this act, whether by payment by
4 the owner before sale, payment by a purchaser who has bid the
5 upset price at a sale, by redemption or through sequestration
6 shall be paid over to the taxing districts entitled thereto. In
7 all other cases, including net moneys received through
8 sequestration or from the management or through public or
9 private sale of property, the moneys received shall be paid
10 over, first, to the respective taxing districts in proportion to
11 the taxes due them; second, the municipal claims against such
12 property due any taxing district; third, mortgages and other
13 liens in order of their priority; and fourth, except in cases of
14 property purchased by a taxing district prior to the effective
15 date of this act and turned over to the bureau for sale, the
16 balance remaining shall be paid to the owner of the property
17 sold. Such payments shall in all cases be less the percentage to
18 which the county is entitled in accordance with this act:
19 Provided, however, That where by the sale or redemption of
20 property, tax liens of the Commonwealth are recovered, payment
21 shall first be made of the tax liens of the Commonwealth to the
22 State Treasurer through the Department of Revenue, and in the
23 case of the public or private sale of property by the bureau
24 after the continuance of a former sale, because of insufficient
25 bid, the purchase price received shall first be applied to the
26 satisfaction of the tax liens of the Commonwealth and shall be
27 paid over in like manner.
28 Moneys recovered on account of costs, fees and expenses
29 advanced by the county or any other taxing district shall be
30 repaid to the taxing district making the advance. Whenever no
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1 claim for payment of any balance due the owner of the property
2 is presented by or on behalf of the owner within a period of
3 three years of the date of the sale, the balance of the proceeds
4 shall be distributed to the respective taxing districts pro rata
5 based on the millage imposed by the respective taxing districts
6 as of the year such property was sold. Interest earned by the
7 proceeds of the sale during the three-year holding period shall
8 revert to the county.
9 The bureau shall keep an accurate account of all moneys
10 received by it under the provisions of this act and a separate
11 account for each property.
12 All payments, out of moneys recovered, shall be made by the
13 bureau at stated intervals, but not less frequently than once
14 every three (3) months.]
15 (b) The bureau shall keep an accurate account of all money
16 recovered and received by it under this act and maintain a
17 separate account for each property.
18 (c) Money received on account of costs, fees and expenses
19 advanced by any taxing district shall be repaid to the taxing
20 district making the advance. Other money collected under this
21 act shall be subject, first, to a commission of five per centum
22 (5%) of all money collected to be retained by the bureau to
23 offset costs of the administration of this act. Interest earned
24 on money held by the bureau prior to distribution shall also be
25 retained by the bureau for administrative costs.
26 (d) It shall then be the duty of the bureau to distribute
27 the entire remaining balance of money collected against each
28 account at least once every three (3) months in the following
29 manner and according to the following priority:
30 (1) First, to the Commonwealth, by payment to the State
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1 Treasurer through the Department of Revenue, for satisfaction of
2 tax liens of the Commonwealth only if the total amount of such
3 liens or such portion thereof have been included in the purchase
4 price and paid by the purchaser or the property is sold at
5 judicial sale pursuant to this act.
6 (2) Second, to the respective taxing districts in proportion
7 to the taxes due them.
8 (3) Third, to taxing districts or municipal authorities for
9 satisfaction of municipal claims.
10 (4) Fourth, to mortgagees and other lien holders, in order
11 of their priority, for satisfaction of mortgages and liens as
12 they may appear of record, whether or not discharged by the
13 sale.
14 (5) Fifth, to the owner of the property.
15 (e) Prior to the actual distribution required by this
16 section, the bureau shall petition the court of common pleas for
17 a confirmation of distribution. The petition shall set forth a
18 proposed schedule of distribution for each account and shall
19 request the court to issue a rule to show cause on each
20 distributee why the court should not confirm the distribution as
21 proposed. The rule to show cause, and a copy of the petition,
22 shall be served upon each distributee by first class mail, with
23 proof of mailing to the last residence or place of business of
24 the distributee known to the bureau. If the rule to show cause
25 is not returned by any distributee on or before the time set for
26 its return, the court shall forthwith confirm the distribution
27 absolutely. If any distributee makes a return of the rule within
28 the time set by the court, the court shall forthwith hear any
29 objections and exceptions to the proposed distribution and
30 thereafter adjust the schedule of distribution as it deems just
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1 and equitable according to law and confirm the distribution
2 absolutely as adjusted. An absolute confirmation of distribution
3 by the court shall be final and nonappealable with respect to
4 all distributees listed in the petition.
5 (f) Whenever no claim for payment of any balance due the
6 owner of the property is presented by or on behalf of the owner
7 within a period of three (3) years of the date of the sale, the
8 balance of the proceeds shall be distributed to the respective
9 taxing districts pro rata based on the millage imposed by the
10 respective taxing districts as of the year such property was
11 sold. Interest earned by the proceeds of the sale during this
12 three-year period shall be retained by the county.
13 Section 5. Section 207 of the act, amended September 27,
14 1973 (P.L.264, No.74), is amended to read:
15 Section 207. Reimbursement of County; Charges.--(a) In
16 order to reimburse the county for the actual costs and expenses
17 of operating the bureau created by this act, the county shall
18 receive and retain out of all moneys collected or received under
19 the provisions of this act, five per centum (5%) thereof, which
20 percentage shall be deducted by the bureau before paying over
21 moneys to the respective taxing districts entitled thereto[,
22 and]. This percentage and interest earned under section 205
23 shall be paid into the county treasury for the use of the
24 county. The reimbursement herein provided for shall be in
25 addition to the costs, fees and expenses advanced by the county,
26 which, upon recovery, are payable to the county as provided by
27 the preceding section of this act.
28 (b) In addition to the five per centum (5%) authorized by
29 subsection (a), and the reimbursement as therein provided,
30 maximum charges for the following or similar type services are
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1 authorized:
2 (1) Entry of Claim, includes ................ [$5.00] $10.00
3 (i) audit lien sheets
4 (ii) enter on property card
5 (iii) enter in docket
6 (iv) enter in index
7 (v) type notice of return
8 (vi) mail notice of return
9 (2) Satisfaction of Claim, includes .................. $5.00
10 (i) prepare receipt
11 (ii) satisfy docket
12 (iii) satisfy index
13 (iv) post property card
14 (v) enter on daily distribution sheet
15 (3) Preparation of Sale, includes ........... [$5.00] $15.00
16 (i) prepare cost sheet
17 (ii) type notice of sale
18 (iii) mail notice of sale
19 (iv) prepare advertising copy
20 (4) [Title Search] Review of Records,
21 includes ............................... [$7.00] $10.00
22 (i) check assessment records
23 (ii) check Recorder of Deeds
24 (iii) check Register of Wills
25 (5) Preparation of Deed .................... [$15.00] $25.00
26 (6) [Redemption by Lien Creditor] Discharge of Tax Claim,
27 Section 501 [(b)] ................................ $5.00
28 (6.1) Removal from Sale, Section 603...................$5.00
29 (7) [Quarterly Payment] Agreement to Stay Sale,
30 Section 603............................ [$5.00] $15.00
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1 (8) Postage......................................Actual cost
2 It is the intent of this act to authorize the bureau to charge
3 the costs of its operation against the properties for which a
4 delinquent return is made on an equitable and pro-rata basis in
5 so far as is possible. The charge made for each service shall
6 bear a reasonable relationship to the service rendered.
7 Section 6. Section 208 of the act, amended May 6, 1955
8 (P.L.40, No.15), is amended to read:
9 Section 208. Agent of Taxing Districts; Lien Certificates.--
10 The bureau and the director thereof shall, in the administration
11 of this act, be the agent of the taxing districts whose tax
12 claims are returned to the bureau for collection and prosecution
13 under the provisions of this act, and in the management and
14 disposition of property in accordance with the provisions of
15 this act.
16 The bureau shall, upon request of any person, furnish [to
17 him] a lien certificate showing the taxes due on any property as
18 shown by its records. A fee of [two dollars ($2)] not more than
19 five dollars ($5) shall be charged for any such certificate [for
20 the use of] and shall be payable to the county.
21 Section 7. Section 301 of the act, amended September 27,
22 1973 (P.L.264, No.74), is amended to read:
23 Section 301. Taxes, a First Lien.--All taxes which may
24 hereafter be lawfully levied on property in this Commonwealth by
25 any taxing district, and all taxes heretofore lawfully levied by
26 any taxing district on any property, the lien of which has not
27 been lost under existing laws (whether or not a claim has been
28 filed, or return thereof has been made to the county
29 commissioners) shall be and are hereby declared to be a first
30 lien on said property. Such liens shall have priority to and be
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1 fully paid and satisfied out of the proceeds of any [public]
2 sale of said property held under the provisions of this act
3 before any mortgage, ground rent, obligation, judgment claim,
4 lien or estate with which the said property may have or shall
5 become charged, or for which it may become liable, save and
6 except only the costs of the sale and of the proceedings upon
7 which it is made, and such tax liens [in favor] of the
8 Commonwealth of Pennsylvania[, which shall have] given priority
9 [to such tax liens] of payment by section 205 of this act.
10 Section 8. Section 302 of the act is amended to read:
11 Section 302. [Who Entitled to] Lien [for Taxes]
12 Entitlement.--The lien for taxes shall exist in favor of[,] the
13 taxing district to which the tax is payable and the claim
14 therefor shall be filed against[,] the property taxed [on behalf
15 of the taxing district to which the tax is payable].
16 Section 9. Section 303 of the act, amended September 15,
17 1961 (P.L.1334, No.589), is amended to read:
18 Section 303. Property Subject to [and] or Exempt from
19 Claim.--All property, by whomsoever owned and for whatsoever
20 purpose used, and all property the owner of which is unknown and
21 has been unknown for a period of not less than [ten] five years,
22 shall be subject to claims for taxes, except such property [as]
23 which is exempt by law from taxation[, or as] or which is not
24 made subject to taxation by law.
25 Section 10. Section 304 of the act, amended September 27,
26 1973 (P.L.264, No.74), is amended to read:
27 Section 304. Tax Liens and Municipal Claims Divested by
28 Sale.--The lien of all taxes and municipal claims now or
29 hereafter imposed, levied or assessed against any property and
30 included in the upset price shall be divested by any [public]
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1 upset sale of such property under the provisions of this act, if
2 the amount of the purchase money shall be at least equal to the
3 amount of [prior] tax liens of the Commonwealth having priority
4 under section 205, the amount of all taxes [and municipal
5 claims] due on such property, the amount of all municipal claims
6 certified to the bureau under section 605 and costs of sale.
7 [It is hereby made the duty of the bureau and of any other
8 officer having claims or judgments for taxes and municipal
9 claims for collection against any property, advertised to be
10 sold at public sale under the provisions of this act, to give
11 notice to the officer or person selling any such property of the
12 amount of tax liens of the Commonwealth, and of the amount of
13 all taxes and municipal claims against the same, and the bureau
14 selling such property shall, through the county treasurer, pay
15 out the proceeds arising from such sale in the order of their
16 priority, first, the costs of sale and the proceedings upon
17 which it is made; second, the tax liens of the Commonwealth;
18 third, taxes and and costs due thereon; fourth, municipal claims
19 and costs due thereon; fifth lien holders in the order of their
20 priority; and sixth, any balance remaining to the real owner at
21 the time of sale.]
22 Section 11. Section 306 of the act, amended September 27,
23 1973 (P.L.264, No.74) and April 6, 1981 (P.L.7, No.3), is
24 amended to read:
25 Section 306. Return of Property and Delinquent Taxes;
26 Interest; Settlements by Tax Collectors.--
27 (a) It shall be the duty of each receiver or collector of
28 any county, city, borough, town, township, school district or
29 institution district taxes[,] to make a return to the [county]
30 bureau on or before the [first Monday of May] last day of April
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1 of each year, but no earlier than the first day of January of
2 that year. The return shall be typewritten on a form provided by
3 or acceptable to the county and shall include a list of all
4 properties against which taxes were levied, the whole or any
5 part of which were due and payable in the calendar year
6 immediately preceding and which remain unpaid, giving the
7 description of each such property[,] as it appears in the tax
8 duplicate, and the name and address of the owner as it appears
9 in the tax duplicate, together with the amount of such unpaid
10 taxes, penalties and interest due to but not including the first
11 [Monday of May of the year of] day of the month following the
12 return. Such return shall be accompanied by a signed affidavit
13 that the return is correct and complete. Interest shall be
14 charged on taxes so returned from and after but not before the
15 first [Monday of May of the year of] day of the month following
16 the return. Interest shall be charged at the rate of [six per
17 centum (6%)] nine per centum (9%) per annum.
18 (b) [The first return made by a tax collector under the
19 provisions of this act shall also include all taxes for any year
20 or years preceding the year provided for by this section, if the
21 lien of such taxes has continued under existing law, but a claim
22 for such taxes has not been reduced to judgment; and for such
23 purpose, the lien of such taxes shall be further continued for
24 the purpose of making return of such taxes, and the making of
25 the claim therefor absolute under the provisions of this act.
26 (c)] No taxes shall be returned by any tax collector where
27 the owner is paying his delinquent taxes under the provisions of
28 any act of Assembly abating penalties, interest and costs,
29 unless there has been a default in payment by the owner, in
30 which case or at any time when a yearly return is being made
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1 after any such default, return shall be made of the balance due
2 as fixed by the act of Assembly abating penalties, interest and
3 costs, or either. The lien of all such taxes shall be continued
4 for the purpose of making a return thereof and collecting the
5 same under the provisions of this act.
6 [(d) The taxing district shall have power to require its tax
7 collector to adjust his duplicate from time to time, as may be
8 required by the taxing district, and to finally settle and
9 adjust the tax duplicate in his possession within such time as
10 will enable him to make the return, herein provided for, within
11 the time required. All laws providing for the adjustment and
12 settlement of duplicates prior to the time fixed by the taxing
13 districts, as herein provided, are hereby repealed insofar as
14 they apply to the time fixed for the settlement of duplicates.]
15 (c) The county commissioners, by resolution, may establish
16 and fix a return date, other than the return date prescribed in
17 subsection (a), on or before which tax collectors must make the
18 return to the bureau required by this section. No return shall
19 be made or return date established before the first date of
20 January following the date when taxes first become due and
21 payable as specified on the tax notice and no return date shall
22 be established which is later than the last day of April
23 immediately following the first day of the penalty period
24 specified on the tax notice. The single return date established
25 and fixed by said resolution shall be uniform within the county
26 for all taxes returnable under the provisions of this act.
27 Whenever the resolution establishes and fixes a return date,
28 interest shall be charged on taxes so returned from and after
29 the first day of the month immediately following the month in
30 which the return is required. Interest shall be charged at the
19850H0943B1074 - 17 -
1 rate of nine per centum (9%) per annum.
2 Section 12. Section 307 of the act, amended May 20, 1949
3 (P.L.1602, No.484) and July 13, 1953 (P.L.439, No.98), is
4 amended to read:
5 Section 307. Filing Claims[; Testing Validity of Old Claims;
6 Joinder of Claims of Taxing Districts].--(a) Claims for taxes
7 against property so returned must be entered by the bureau in
8 the office thereof in suitable dockets.
9 (b) [Claims for taxes due on property returned to the county
10 commissioners and certified to the county treasurer for tax sale
11 purposes under existing law must, if no sale on such claims has
12 been held, be transferred to the bureau from the office of the
13 county treasurer on or before the first Monday of May, one
14 thousand nine hundred forty-eight. And where a taxing district
15 shall hereafter become subject to the provisions of this act,
16 such transfer shall be made on or before the first day of June
17 of the year the taxing district becomes so subject. In cases
18 where an owner is paying taxes under the provisions of any act
19 of Assembly abating penalties, interest and costs, or either,
20 the claims must likewise be transferred, as herein provided, but
21 no costs involved in such transfer shall be chargeable to the
22 owner so long as he is not in default in his payments. Such
23 costs shall be payable by the county except where there is a
24 default.
25 (c) Before the bureau makes any transfer of tax claims from
26 the office of the county treasurer and enters the same in the
27 proper dockets, the director shall examine such returns and
28 determine, in writing, those claims, if any, the liens of which,
29 in his opinion, have been lost, or the returns of which are
30 invalid on their face, and which cannot be corrected. The
19850H0943B1074 - 18 -
1 director shall file his findings in the office of the bureau,
2 and copies thereof shall be furnished to any taxing district
3 having an interest in any claims determined by the director to
4 have been lost or invalid. The director shall, within ten (10)
5 days after such filing, give notice once a week for two (2)
6 consecutive weeks in two (2) newspapers of general circulation,
7 if so many are published in the county, and in the legal
8 journal, if any, designated by the court for the publication of
9 legal notices, (1) of the date of his filing of such findings,
10 (2) where a copy of the findings may be secured, and (3) that
11 any taxing district, having objection to the findings, may file
12 exceptions with the bureau within fifteen (15) days from the
13 date of the filing of the findings. If, after hearing thereon,
14 the exceptions are disallowed by the bureau, the taxing district
15 may, within fifteen (15) days thereafter, appeal by petition to
16 the court of common pleas, specifically setting forth the
17 findings to which objection is made, the reasons therefor and
18 the refusal of the bureau to sustain their exceptions. Upon the
19 filing of the petition in open court, the court shall order the
20 petition and the findings of the director and any other
21 petitions filed, docketed to the same number, and shall fix a
22 day for hearing the petitions, of which such notice shall be
23 given to all parties interested, as the court may direct. After
24 hearing, the court shall enter its order either affirming,
25 modifying or reversing the findings of the director as to it
26 shall appear just and proper. The claims, held, lost or invalid
27 by the findings of the director, where there has been no appeal;
28 or after affirmation or modification of such findings by the
29 court; or in the opinion of the court reversing the findings of
30 the director, shall not thereafter be further proceeded with.
19850H0943B1074 - 19 -
1 The decisions of the court shall be final.
2 (d)] Not later than the thirtieth day of June, each year,
3 [or for the first year in which any county operates under the
4 provisions of this act, not later than the thirtieth day of
5 September,] the bureau shall make up from the tax returns
6 received from the taxing districts, as aforesaid, a claim for
7 each property returned, which shall contain the unpaid taxes
8 against such property, which are due all taxing districts as
9 found in the various returns. Such claims shall be entered by
10 the bureau in a suitable claim docket and may be in the form of
11 written or typewritten lists. A claim shall cover the unpaid
12 taxes due all taxing districts, but the amount due each taxing
13 district shall nevertheless be shown separately. A number of
14 years' taxes of different kinds may be included in one claim.
15 Any claims shall be amendable by leave of the bureau upon notice
16 to the defendant as the bureau may require.
17 Section 13. Section 308 of the act, amended July 10, 1980
18 (P.L.417, No.36) and July 28, 1983 (P.L.134, No.36) (expired
19 January 1, 1985), is amended to read:
20 Section 308. Notice of Filing of Returns and Entry of
21 Claim.--(a) Not later than the thirty-first day of July of each
22 year, [or for the first year a county operates under this act,
23 not later than the thirty-first day of October, or whenever,
24 heretofore, any claims have been returned to and a claim entered
25 with the tax claim bureau and the same has not been pursued to
26 sale as provided for by the act of Assembly, then within six (6)
27 months after the effective date of this act,] the bureau shall
28 give only one notice of the return of said taxes and the entry
29 of such claim [to] in one envelope for each delinquent taxable
30 property, by United States registered mail or United States
19850H0943B1074 - 20 -
1 certified mail, return receipt requested, postage prepaid,
2 addressed to the [owner personally] owners at [his last known
3 post office] the same address listed on the form returned by the
4 tax collector for taxes that are delinquent. In the case of
5 property owned by joint tenants, tenants in common, or husband
6 and wife as tenants by the entireties, the bureau may give the
7 notice required by this section by forwarding only one notice
8 addressed to such joint tenants, tenants in common or husband
9 and wife at the same post office address. If the owner of the
10 property is unknown and has been unknown for a period of not
11 less than [ten] five years, such notice shall be given only by
12 posting on the property affected. If no post office address of
13 the owner is known or if a notice mailed to an owner at such
14 last known post office address is not delivered [to him] by the
15 postal authorities, then notice as herein provided shall
16 [immediately] be posted on the property affected. If the
17 property owner has entered into an agreement with the bureau for
18 the payment of the delinquent taxes, the posting is not
19 necessary. Each mailed and posted notice shall, (1) show all the
20 information shown on the claim entered, (2) state that if
21 payment of the amount due the several taxing districts for said
22 taxes is not made to the bureau on or before the thirty-first
23 day of December next following, [in cases where the notice was
24 mailed prior to August first, or that if payment is not made on
25 or before March thirty-first of the following year, in cases
26 where the notice was mailed on or after August first, or] and no
27 exceptions thereto are filed, the said claim shall become
28 absolute, (3) state that on July first of the year in which such
29 notice is given [or if the notice was mailed after July thirty-
30 first, that on the first day of the month (naming it) in which
19850H0943B1074 - 21 -
1 the notice was mailed the] a one (1) year period [of redemption]
2 for discharge of tax claim shall commence or has commenced to
3 run, and that if [redemption] full payment of taxes is not made
4 during that period as provided by this act, the property shall
5 be [sold pursuant to the provisions of] advertised for and
6 exposed to sale under this act, and (4) state that there shall
7 be no [further] redemption after [such] the actual sale.
8 (b) [In the case of claim for taxes, filed in the office of
9 the prothonotary, which have not been heretofore reduced to
10 judgment, where the lien of such claim has not been lost, the
11 respective taxing districts shall return to the bureau on or
12 before the first Monday of May, one thousand nine hundred forty-
13 eight, or on or before the first Monday of June of any year in
14 which any city of the third class or any county shall elect to
15 collect its delinquent taxes in accordance with this act, a
16 complete list of such claims and the properties against which
17 the same are filed, and the bureau shall give such owners the
18 same notice as above provided or shall post such notice on the
19 property.
20 (c)] Notice given in the manner provided by this section
21 shall constitute proper service on the owner. A statement in the
22 claim entered that due notice of the same was given shall be
23 conclusive evidence that notice was given as required by law.
24 The notice given in the manner provided by this section shall
25 contain the following provision which shall be conspicuously
26 placed upon said notice and set in at least 10-point type in a
27 box as follows:
28 WARNING
29 "IF YOU FAIL TO PAY THIS TAX CLAIM OR FAIL TO TAKE LEGAL
30 ACTION TO CHALLENGE THIS TAX CLAIM, YOUR PROPERTY WILL BE
19850H0943B1074 - 22 -
1 SOLD WITHOUT YOUR CONSENT AS PAYMENT FOR THESE TAXES. YOUR
2 PROPERTY MAY BE SOLD FOR A SMALL FRACTION OF ITS FAIR MARKET
3 VALUE. If YOU PAY THIS TAX CLAIM BEFORE JULY 1, 19 , YOUR
4 PROPERTY WILL NOT BE SOLD. IF YOU PAY THIS CLAIM AFTER JULY
5 1, 19 , BUT BEFORE ACTUAL SALE, YOUR PROPERTY WILL NOT BE
6 SOLD BUT WILL BE LISTED ON ADVERTISEMENTS FOR SUCH SALE. IF
7 YOU HAVE ANY QUESTIONS, PLEASE CALL YOUR ATTORNEY, THE TAX
8 CLAIM BUREAU AT THE FOLLOWING TELEPHONE NUMBER ___________,
9 OR THE [LEGAL AID] COUNTY LAWYER REFERRAL SERVICE [AT THE
10 FOLLOWING TELEPHONE NUMBER ___________]."
11 [(d)] (c) The costs of such mailed and posted notices shall
12 be [taxed as] part of the costs of the proceedings and shall be
13 paid by the owner the same as other costs.
14 Section 14. Section 309 of the act, amended September 15,
15 1961 (P.L.1334, No.589), is amended to read:
16 Section 309. Contents of Claims Entered.--All claims for
17 taxes returned, made up as a claim and entered in the claim
18 docket in the bureau shall set forth:
19 (a) The names of the taxing districts for which filed,
20 (b) Except when the owner of the property is unknown and has
21 been unknown for a period of not less than [ten] five years, the
22 name of the owner of the property against which it is filed,
23 (c) A description of the property against which the claim is
24 filed sufficient to identify the same. A description of the
25 property shall be deemed sufficient if it contains (1) a
26 reference to a record of a deed or other instrument of
27 conveyance which describes the property, or (2) a reference to
28 the number or number and block of the property in a plan,
29 recorded in the office of the recorder of deeds of the county,
30 and the record of such plan, or (3) a reference to the number on
19850H0943B1074 - 23 -
1 any lot and block plan officially adopted by a taxing district,
2 or (4) a statement of the street and number of the property as
3 officially designated by public authorities of a taxing district
4 as of the time the property was assessed, or (5) where the
5 property is not identified by reference to the record of a deed,
6 or other instrument of conveyance, and may not be identified by
7 street and number, or by recorded plan, or by a lot and block
8 plan, a statement of the approximate acreage of the property and
9 the name of at least one (1) owner of adjoining property, if
10 such statement is accompanied by information showing the
11 character of and use to which the property is devoted, as for
12 instance "dwelling and lot," "vacant lot," "vacant land" or
13 "hotel, restaurant, apartment house, office building, bank
14 building, manufacturing plant, industrial plant and the lands
15 belonging thereto," or "farm and the buildings thereon," or
16 "plant nursery and buildings thereon," or "forest or woodland,"
17 or "wasteland," or "coal, oil or other mineral severed from the
18 surface," etc., or intelligible abbreviations thereof. A
19 variation in the description of the property given in the claim
20 filed from that shown on the assessment for tax purposes shall
21 not constitute an irregularity and shall not invalidate the
22 claim. The aforesaid description shall not be deemed exclusive.
23 (d) The year or years, period or periods, for which the
24 respective taxes were levied, and the amount of taxes due for
25 each year, or period, and the penalties and interest due thereon
26 at the time of filing.
27 (e) That due notice of the returns of such taxes, the entry
28 of the claim and that the same would become absolute, if no
29 exceptions were filed, was given to the owner or posted on the
30 property in the manner required by law.
19850H0943B1074 - 24 -
1 Section 15. Section 311 of the act, amended July 13, 1953
2 (P.L.439, No.98), is amended to read:
3 Section 311. Claims Become Absolute.--On the first day of
4 January next following the notice hereinbefore prescribed, [in
5 cases where the notice was mailed prior to August first, or on
6 the first day of April, in cases where the notice was mailed on
7 or after August first,] if the amount of the tax claim referred
8 to in the notice has not been paid, or no exceptions thereto
9 filed, the claim shall become absolute. Every such claim shall
10 bear interest as hereinbefore provided to the date of payment,
11 or date of sale held under the provisions of this act, except in
12 the case of claims where the owner is paying his taxes under the
13 provisions of any law abating penalties, interests and costs, or
14 either, in which case the claim shall bear no interest and
15 costs, unless there is a default in payment, in which case
16 interest shall run on the amount due on the claim at the time of
17 default, and penalties, interest and costs abated shall be added
18 as provided by the act of Assembly abating the same.
19 Section 16. Section 312 of the act is amended to read:
20 Section 312. Lien Lost if Not Returned [or Transferred] to
21 Bureau.--Any such claim for taxes, if such taxes were returned
22 to the bureau [or transferred from the office of the county
23 treasurer to the bureau] within the time required by this act,
24 shall remain a lien upon said property until fully paid and
25 satisfied, or until said property shall be sold as provided in
26 this act. If a tax is not returned [or transferred] to the
27 bureau within the time required by this act, its lien on the
28 property shall be wholly lost. But where a tax has not been
29 returned [or transferred] as required by this act, a taxing
30 district may nevertheless proceed, by action in assumpsit, to
19850H0943B1074 - 25 -
1 recover the amount of any taxes due and owing by an owner at any
2 time within six (6) years after the taxes first became due.
3 Section 17. Section 314 of the act, amended May 20, 1949
4 (P.L.1602, No.484) and July 13, 1953 (P.L.439, No.98), is
5 amended to read:
6 Section 314. Proceeding to Attack Validity of Claim.--
7 (a) Any claim for taxes may, prior to the time it becomes
8 absolute, be set aside or reduced in amount by the bureau [in]
9 with which it is filed if the claim is found invalid in whole,
10 or in part, by reason of the fact that the taxes for which the
11 claim was entered were paid in whole, or in part, to a proper
12 officer or agent of the taxing district, or is found invalid, in
13 whole or in part, for any other reason not involving a question
14 which could have been raised by an appeal provided for by law.
15 Any such claim prior to the time it becomes absolute may be
16 set aside or reduced in amount by the court of common pleas on
17 appeal, as hereinafter provided, for any reason which
18 constitutes a just, sufficient and valid defense to the claim in
19 whole, or in part, except want of notice of the return and entry
20 of the claim by the bureau, or for any dispute in the amount of
21 the claim which involves the amount of the assessed valuation of
22 the property or the validity of the tax levied.
23 (b) Any defendant in any such claim, at any time before the
24 day fixed for the claim to become absolute under section 311,
25 may file with the bureau exceptions to the claim as entered, or
26 to any part of the claim. The bureau, after giving due notice to
27 the taxing districts interested, shall hold a hearing thereon
28 and either disallow the exceptions or allow the exceptions in
29 whole, or in part, and strike off or reduce the claim in
30 accordance with the evidence produced and the powers of the
19850H0943B1074 - 26 -
1 bureau as hereinbefore prescribed.
2 If the defendant is aggrieved by the decision of the bureau
3 he may, within fifteen (15) days after notice thereof, appeal by
4 petition to the court of common pleas of the county setting
5 forth the defense he has to the claim, or any part thereof, and
6 the refusal of the bureau to allow his exceptions and strike off
7 or reduce the amount of the claim. Thereupon the court shall
8 grant a rule on the taxing district or districts to show cause
9 why the claim should not be set aside or reduced in amount as
10 prayed for in the petition. The petitioners shall give notice of
11 such proceeding to the bureau.
12 (c) The issues raised by the petition and the answer thereto
13 by the taxing district or districts shall be tried by the court
14 or a jury.
15 (d) The petition and the answer or answers thereto, if an
16 issue of fact is raised, shall be endorsed with a statement
17 signed by the party or his attorney in the following form:
18 "Jury trial demanded," or
19 "Jury trial waived."
20 The endorsement of "jury trial waived" on both petition and
21 answer or answers shall be deemed a waiver of a trial by jury of
22 every issue in the proceeding.
23 (e) No taxpayer shall have the right to proceed by petition
24 to the court of common pleas to open a claim absolute under the
25 provisions of this act, except on the ground of payment of the
26 tax involved or failure to receive notice. The remedy provided
27 by this section to contest a tax claim entered shall be deemed
28 exclusive except as herein otherwise provided.
29 (f) After verdict by the court or the jury, the court shall,
30 by its final order, either affirm or set the claim aside, or
19850H0943B1074 - 27 -
1 reduce the amount of the claim and fix the proper amount thereof
2 in accordance with the verdict, and shall assess the costs of
3 the proceedings as it shall determine. [Any party aggrieved by
4 the final order entered in the proceeding may appeal to the
5 Superior or Supreme Court as in other cases.] Upon final order
6 of the court, or upon final disposition thereof[,] upon appeal
7 [to the Supreme or Superior Court], if the entire claim has not
8 been set aside, such return shall become absolute.
9 Section 18. Section 404 of the act, amended January 18, 1952
10 (1951 P.L.2098, No.595), is amended to read:
11 Section 404. Powers of Sequestrator.--A sequestrator shall
12 have power to retain possession of the property, as
13 sequestrator, until all taxes owing to the several taxing
14 districts shall have been collected or paid. He shall have power
15 (a) to lease the property for a period not exceeding one (1)
16 year, with the usual privilege of renewal or termination thereof
17 upon three (3) months' notice, (b) to make such repairs to the
18 property as may be reasonably necessary to restore and maintain
19 it in a tenantable condition, and to carry insurance on such
20 property, (c) to advertise the property for rent, (d) to collect
21 the costs of repairs, advertising and commissions of rental
22 agents from rentals collected or from a redeeming owner, (e) to
23 sell and dispose of growing crops, and (f) to appoint a licensed
24 real estate broker or agent, as agent to collect the rentals of
25 the property, and pay such agents the customary commissions for
26 rent collections. The bureau shall not, in any case, without
27 prior approval of the county commissioners, [or in case of
28 cities of the first class, the city council,] incur any expense
29 for the maintenance, repair or alteration of any property in
30 excess of eighty per centum (80%) of the amount of rental to be
19850H0943B1074 - 28 -
1 received from such property within a period of one (1) year
2 under a lease entered into at or before the time such expense is
3 incurred. All commissions, costs and necessary expenses shall be
4 deducted from the rents collected before paying the net balance
5 toward taxes.
6 Section 19. Section 405 of the act is amended to read:
7 Section 405. Return of Possession.--Any owner of the
8 property may redeem it from the sequestrator and be again
9 entitled to possession thereof upon payment of the amount of
10 taxes then owing upon the property after the payment of
11 commissions, costs and expenses of the sequestration
12 proceedings. Upon payment of all taxes and costs or the
13 satisfaction of the taxes and costs by collection of rentals,
14 the sequestrator shall transfer possession of the property to
15 the owner, subject to any existing lease given by the
16 sequestrator, which lease shall be assigned to the owner. The
17 sequestrator shall in such cases enter satisfaction on the
18 record of the tax claim.
19 In any case where it appears to the sequestrator that
20 property taken into possession does not yield any revenue or not
21 sufficient revenue to continue in possession thereof, he may,
22 with the consent of the court, return possession of the property
23 to the owner subject to any existing lease given by the
24 sequestrator, and thereafter such property [may] shall be sold
25 at the next sale held at least ninety (90) days after such
26 return of possession in the manner provided by this act.
27 Section 20. The heading of Article V of the act is amended
28 to read:
29 ARTICLE V.
30 [REDEMPTION OF PROPERTY]
19850H0943B1074 - 29 -
1 DISCHARGE OF TAX CLAIM BEFORE SALE.
2 Section 21. Section 501 of the act, amended July 10, 1975
3 (P.L.41, No.22), is amended to read:
4 Section 501. [Redemption of Property From Effects] Discharge
5 of Tax Claims.--
6 (a) Any owner, his heirs or legal representatives, or any
7 lien creditor, his heirs, assigns or legal representative, or
8 other person interested, if such other person has a duly
9 executed power of attorney from the owner, his heirs or assigns
10 or legal representative or any of them empowering such person to
11 make payment may[, within one (1) year after the first day of
12 July of the year in which the claim was filed and notice given,
13 if the notice was mailed prior to August first, or within one
14 year from the first day of the month in which the notice was
15 mailed, if mailed on or after August first, redeem such] cause
16 the discharge of tax claims and liens entered against the
17 property for the benefit of the owner by payment to the bureau
18 of the amount of the aforesaid claim and interest thereon, the
19 amount of any other tax claim or tax judgment due on such
20 property and interest thereon, and the amount of all accrued
21 taxes which have been returned and remain unpaid, the record
22 costs, including pro rata costs of the notice or notices given
23 in connection with the returns or claims. If, prior to July 1 of
24 the year following the notice of claim, payment is made in an
25 amount equal to the sum of:
26 (1) outstanding taxes entered on notice of claim and
27 interest due on those taxes;
28 (2) the amount of all accrued taxes which have been returned
29 and remain unpaid; and
30 (3) the record costs;
19850H0943B1074 - 30 -
1 then the subject property shall be removed from exposure to sale
2 and shall not be listed in any advertisement relating to sale of
3 property for delinquent taxes. If payment is made after July 1
4 of the year following the notice of claim, but before the actual
5 sale of the property, the property shall not be sold, but the
6 property and name of owner may appear in an advertisement
7 relating to the sale of property for delinquent taxes.
8 [The] Upon receipt of payment or upon certification to the
9 bureau that payment of all taxes and other charges otherwise
10 payable to the bureau under this act has been made to a taxing
11 district, the bureau shall [receive and receipt for said
12 payments, and shall make distribution thereof to the taxing
13 districts entitled thereto. The bureau shall forthwith
14 acknowledge the receipt of the redemption moneys by entering]
15 issue written acknowledgement of receipt and a certificate of
16 discharge and shall enter satisfaction on the record [of the
17 claim in the office of the bureau which shall be signed by the
18 director]. All payments received shall be distributed to the
19 taxing district entitled thereto not less than once every three
20 (3) months.
21 (b) When any property is [so redeemed] discharged from tax
22 claim by payment by a lien creditor, or his heirs, assigns or
23 legal representatives, or by any person interested for the
24 benefit of the owner, the [bureau shall issue to the person
25 redeeming such property a certificate, stating the fact of such
26 redemption, a brief description of the property redeemed, and
27 the amount of the redemption money paid, which] certificate
28 shall be issued to the person making the payment and shall state
29 the fact of the discharge, a brief description of the property
30 discharged and the amount of the discharge payment. This
19850H0943B1074 - 31 -
1 certificate may be entered in the office of the prothonotary [of
2 the county] as a judgment against the owner of the property for
3 the amount stated therein. The lien of any such judgment shall
4 have priority over all other liens against such property in the
5 same manner and to the same extent as the taxes involved in the
6 [redemption] discharge.
7 (c) There shall be no redemption of any property after the
8 actual sale thereof.
9 Section 22. The act is amended by adding before section 601
10 a subarticle heading to read:
11 (a) Upset Sale.
12 Section 23. Section 601 of the act, amended May 20, 1949
13 (P.L.1602, No.484) and July 10, 1980 (P.L.417, No.98), is
14 amended to read:
15 Section 601. Date of Sale.--(a) [Commencing on] The bureau
16 shall schedule the date of the sale no earlier than the second
17 Monday of September [of each year or for the first year any
18 county is operating under the provisions of this act, at the
19 bureau's discretion, commencing on the second Monday of October,
20 and for the first sale conducted under this act by a bureau,
21 where claims have been validated in accordance with the
22 provisions of this act, at the bureau's discretion, commencing
23 on the second Monday of October, following the expiration of the
24 redemption period, or on any day to which a] and before October
25 1, and the sale may be adjourned, [or] readjourned[, such
26 adjournment not to be for a longer period than sixty (60) days,
27 or any day to which a sale may be] or continued[, the]. No
28 additional notice of sale is required when the sale is
29 adjourned, readjourned or continued if the sale is held by the
30 end of the calendar year. The bureau may, for convenience and
19850H0943B1074 - 32 -
1 because of the number of properties involved, schedule sales of
2 property in various taxing districts or wards on different
3 dates. Except as otherwise provided in this article, all sales
4 shall be held by the bureau by the end of the calendar year.
5 (1) The bureau shall sell [such] the property [(except where
6 the property is essential to the business of quasi-public
7 corporations), or where held by the bureau under article seven
8 as agent for the various taxing districts, the premises remain
9 occupied by one or more persons in the family of the previous
10 owner who are, or within the sixty (60) days immediately
11 preceding were, receiving assistance from a public agency,
12 against which a tax claim has become absolute, and the period of
13 redemption has expired (without the property having been
14 redeemed), or against which a tax judgment has heretofore been
15 entered under any other law, which judgment has not been
16 satisfied and on which a sale has not been stayed by agreement,
17 in the manner hereinafter provided, and where the property
18 subject to the claim or judgment is not or no longer remains in
19 possession of the sequestrator. Owner occupied property shall
20 not be sold until at least ten (10) days after the owner
21 occupant as defined in section 102 is personally notified of the
22 sale by the sheriff or his designee; but, if personal notice
23 cannot be served within twenty-five (25) days, the bureau may
24 petition the court of common pleas to waive the requirement of
25 personal notice for good cause shown.] if all of the following
26 are met:
27 (i) A tax claim has become absolute.
28 (ii) The property has not been discharged from the tax claim
29 nor removed from sale under section 603; or a tax judgment has
30 been entered against the property prior to January 1, 1948, and
19850H0943B1074 - 33 -
1 is unsatisfied, and a sale of the property has not been stayed
2 by agreement under this article.
3 (iii) The property is not in the possession of the
4 sequestrator.
5 (2) Property that is essential to the business of a quasi-
6 public corporation shall not be sold.
7 (3) No owner-occupied property may be sold unless the bureau
8 has given the owner occupant written notice of such sale at
9 least ten (10) days prior to the date of actual sale by personal
10 service by the sheriff or his deputy or person deputized by the
11 sheriff for this purpose unless the county commissioners, by
12 resolution, appoint a person or persons to make all personal
13 services required by this clause. The sheriff or his deputy
14 shall make a return of service to the bureau, or the persons
15 appointed by the county commissioners in lieu of the sheriff or
16 his deputy shall file with the bureau written proof of service,
17 setting forth the name of the person served, the date and time
18 and place of service, and attach a copy of the notice which was
19 served. If such personal notice cannot be served within twenty-
20 five (25) days of the request by the bureau to make such
21 personal service, the bureau may petition the court of common
22 pleas to waive the requirement of personal notice for good cause
23 shown. Personal service of notice on one of the owners shall be
24 deemed personal service on all owners. [The bureau may for
25 convenience and because of the number of properties involved,
26 schedule sales of property in various taxing districts or wards
27 thereof on different dates, but all sales, except as herein
28 otherwise provided, shall be held by the bureau by the end of
29 the said calendar year. Taxing districts shall notify the bureau
30 of tax judgments which have, prior to the effective date of this
19850H0943B1074 - 34 -
1 act, been entered under any other law in order that properties
2 be subject to the lien of such judgments may be included in the
3 sale.]
4 (b) No property shall be exposed to sale where the
5 delinquent taxes involved in a claim are being paid by the owner
6 under any law abating penalties, interests and costs, or either,
7 unless there has been a default by the owner in payment, in
8 which case the sale of the property shall be proceeded with, as
9 herein provided, at the time fixed for the next scheduled sale,
10 occurring at least ninety (90) days after such default.
11 (c) The taxing authorities of the county and of any
12 political subdivision in the county may jointly petition the
13 court of common pleas of the county to stay the sale of property
14 in any political subdivision held under the provisions of this
15 section. The petition shall set forth the reasons for such stay.
16 If, in the opinion of the court, after hearing, there are
17 sufficient reasons for such stay, the court shall have
18 jurisdiction and power to enter an order staying such sale for
19 any period not exceeding one year from the time fixed for such
20 sale under subsection (a) of this section. In case of any such
21 stay of sale, the properties in such political subdivision shall
22 be sold in accordance with the provisions of this section on the
23 date of the next annual sale.
24 Section 24. Section 602 of the act, amended July 10, 1980
25 (P.L.417, No.98), is amended to read:
26 Section 602. Notice of Sale.--(a) At least thirty (30) days
27 prior to any scheduled sale the bureau shall give notice
28 thereof, not less than once in two (2) newspapers of general
29 circulation in the county, if so many are published therein, and
30 once in the legal journal, if any, designated by the court for
19850H0943B1074 - 35 -
1 the publication of legal notices. Such notice shall set forth
2 (1) the purposes of such sale, (2) the time of such sale, (3)
3 the place of such sale, (4) the terms of the sale including the
4 approximate upset price, (5) the descriptions of the properties
5 to be sold as stated in the claims entered[, each description
6 commencing with
7 "...............................................................
8 Name of Owner
9 ..............................................................."
10 description]
11 and the name of the owner.
12 (b) Where the owner is unknown and has been unknown for a
13 period of not less than [ten] five years, the name of the owner
14 need not be included in such description.
15 (c) The description may be given intelligible abbreviations.
16 (d) Such published notice shall be addressed to the "owners
17 of properties described in this notice and to all persons having
18 [tax] liens, [tax] judgments or municipal or other claims
19 against such properties."
20 (e) In addition to such publications, similar notice of the
21 sale shall also be given by the bureau as follows:
22 (1) At least thirty (30) days before the date of the sale,
23 by United States certified mail, [personal addressee only]
24 restricted delivery, return receipt requested, postage prepaid,
25 to each owner as defined by this act.
26 (2) If return receipt is not received from each owner
27 pursuant to the provisions of clause (1), then, at least ten
28 (10) days before the date of the sale, similar notice of the
29 sale shall be given to each owner who failed to acknowledge the
30 first notice by United States [certified] first class mail,
19850H0943B1074 - 36 -
1 [personal addressee only, return receipt requested,] postage
2 prepaid, proof of mailing, at his last known post office address
3 by virtue of the knowledge and information possessed by the
4 bureau, by the tax collector for the taxing district making the
5 return and by the county office responsible for assessments and
6 revisions of taxes. It shall be the duty of the bureau to
7 determine the last post office address known to said collector
8 and county assessment office.
9 (3) Each property scheduled for sale shall be posted at
10 least ten (10) days prior to the sale.
11 (f) The published notice, the mail notice and the posted
12 notice shall each state that the sale of any property may, at
13 the option of the bureau, be stayed if the owner thereof or any
14 lien creditor of the owner on or before the [date of] actual
15 sale enters into an agreement with the bureau to pay the taxes
16 in instalments, in the manner provided by this act[, and the
17 agreement entered into].
18 (g) All notices required by this section other than the
19 newspaper notice and notice in the legal journal shall contain
20 the following provision which shall be conspicuously placed upon
21 said notices and set in at least 10-point type in a box as
22 follows:
23 WARNING
24 "YOUR PROPERTY IS ABOUT TO BE SOLD WITHOUT YOUR CONSENT
25 FOR DELINQUENT TAXES. YOUR PROPERTY MAY BE SOLD FOR A SMALL
26 FRACTION OF ITS FAIR MARKET VALUE. IF YOU HAVE ANY QUESTIONS
27 AS TO WHAT YOU MUST DO IN ORDER TO SAVE YOUR PROPERTY, PLEASE
28 CALL YOUR ATTORNEY, THE TAX CLAIM BUREAU AT THE FOLLOWING
29 TELEPHONE NUMBER_______, OR THE [LEGAL AID] COUNTY LAWYER
30 REFERRAL SERVICE [AT THE FOLLOWING TELEPHONE NUMBER_______]."
19850H0943B1074 - 37 -
1 (h) In case the property of any corporation, limited
2 partnership or joint-stock association is advertised for sale,
3 the bureau shall give to the Department of Revenue [the notice
4 required by section one thousand four hundred two of the Fiscal
5 Code of the ninth day of April, one thousand nine hundred
6 twenty-nine (Pamphlet Laws 343).] at least thirty (30) days
7 prior to the date of the scheduled sale, notice of the sale by
8 certified mail on a form provided by the Department of Revenue
9 which shall set forth (1) the name and address of the bureau,
10 (2) the date of the sale, (3) the name and address of each
11 corporation, limited partnership or joint stock association, if
12 any, whose property is scheduled for sale, and (4) the total
13 number of corporations, limited partnerships and joint stock
14 associations whose properties are scheduled for sale. Upon
15 receipt of the notice and at least seven (7) days before the
16 date of sale listed on the notice, the Department of Revenue
17 shall mail to the bureau, by certified mail, a proof of claim
18 for payment of Commonwealth taxes which are accorded priority by
19 section 1401 of the act of April 9, 1929 (P.L.343, No.176),
20 known as "The Fiscal Code." The bureau shall include in the
21 upset sale price of each said property the amount of
22 Commonwealth taxes set forth on the proof of claim received from
23 the Department of Revenue. If the bureau complies with the
24 notice of provisions of this section and the Department of
25 Revenue fails to mail to the bureau, at least seven (7) days
26 before the date of sale listed on said notice by verification by
27 the postmark, by certified mail, the proof of claim required by
28 this section, the lien upon said property shall be forever
29 discharged and divested, notwithstanding any other provision of
30 this act or other law to the contrary. If the bureau does not
19850H0943B1074 - 38 -
1 receive a reply from the Department of Revenue prior to the
2 scheduled date of the sale, it shall be the duty of the bureau
3 to contact the department to determine if such reply was mailed.
4 The bureau may then opt to reschedule the sale if circumstances
5 warrant. No owner shall attack the validity of any sale on the
6 basis that the bureau failed to give the notice required by this
7 section.
8 No sale shall be defeated and no title to property sold shall
9 be invalidated because of proof that mail notice as herein
10 required was not received by the owner, provided such notice was
11 given as prescribed by this section.
12 (i) The costs of such advertisement and notices shall be
13 [taxed] added as part of the costs of such proceedings and shall
14 be paid by the owner the same as other costs.
15 Section 25. Section 603 of the act, amended November 19,
16 1959 (P.L.1513, No.531), is amended to read:
17 Section 603. Removal from Sale; Agreements to Stay Sale.--
18 Any owner or lien creditor of the owner may, at the option of
19 the bureau, prior to the [date of any first scheduled] actual
20 sale, (1) cause the property to be removed from the sale by
21 payment in full of taxes which have become absolute and of all
22 charges and interest due on these taxes to the time of payment,
23 or (2) enter into an agreement, in writing, with the bureau to
24 stay the sale of the property upon the payment of twenty-five
25 per centum (25%) of the amount due on all tax claims and tax
26 judgments filed or entered against such property and the
27 interest and costs on the taxes returned to date, as provided by
28 this act, and agreeing therein to pay the balance of said claims
29 and judgments and the interest and costs thereon in not more
30 than three (3) instalments [(the last instalment to include all
19850H0943B1074 - 39 -
1 costs due),] all within one (1) year of the date of said
2 agreement, the agreement to specify the dates on or before which
3 each instalment shall be paid, and the amount of each instalment
4 [and the costs]. So long as said agreement is being fully
5 complied with by the taxpayer, the sale of the property covered
6 by the agreement shall be stayed. But in case of default in such
7 agreement by the owner or lien creditor, the bureau, after
8 written notice of such default given by United States mail,
9 postage prepaid, to the owner or lien creditor at the address
10 stated in the agreement, shall apply all payments made against
11 the oldest delinquent taxes and costs, then against the more
12 recent. If sufficient payment has been made to discharge all the
13 taxes and claims which would have caused the property to be put
14 up for sale, the property may not be sold. If sufficient payment
15 has not been received to discharge these taxes and claims, the
16 bureau shall proceed with the sale of such property in the
17 manner herein provided either at the next scheduled upset sale
18 or at a special upset sale [of property], either of which is to
19 be held at least ninety (90) days after such default. If a party
20 to an instalment agreement defaults on the agreement, the bureau
21 shall not enter into a new instalment agreement with that person
22 within three (3) years of the default.
23 Section 26. Section 605 of the act, amended August 4, 1961
24 (P.L.932, No.410), is amended to read:
25 Section 605. Upset Sale Price.--The bureau shall fix as the
26 upset price to be realized at the sale of any property upon a
27 claim absolute, the sum of (a) the tax liens of the
28 Commonwealth, (b) the amount of the claim absolute and interest
29 thereon on which the sale is being held, (c) the amount of any
30 other tax claim or tax judgment due on such property and
19850H0943B1074 - 40 -
1 interest on the judgment to the date of sale, (d) the amount of
2 all accrued taxes including taxes levied for the current year,
3 whether or not returned, a record of which shall be furnished to
4 the bureau by tax collectors, receivers of taxes and taxing
5 districts, (e) the amount of the municipal claims against the
6 property, and (f) the record costs and costs of sale, including
7 pro rata costs of the publication of notice and costs of mail
8 and posted notices in connection with the return of the claim
9 and mail and posted notices of sale.
10 It shall be the duty of all taxing districts, and municipal
11 authorities having municipal claims against any such property,
12 to certify by August 30 of the year of the scheduled sale, the
13 amount thereof to the bureau for the purpose of including the
14 same in the upset price. If a taxing district or municipal
15 authority fails to certify the amount of any municipal claim
16 which has become a claim against the property prior to August 1
17 of the year of the scheduled sale, the claim shall be divested
18 by the upset sale, notwithstanding any provision of this act to
19 the contrary.
20 No sale of property shall be made by the bureau unless a bid
21 equal to the upset price is made[, and where sufficient is not
22 bid, the sale shall be continued from month to month without
23 further advertisement for not more than three (3) months]. If no
24 bid equal to the upset price is received, the sale shall be
25 continued without further advertisement in order to give the
26 bureau a chance to sell the property at private sale, or to
27 petition court for an order to sell the same, freed and
28 discharged of all liens as hereinafter provided. No upset sale
29 may be continued beyond the end of the calendar year, and no
30 property may be sold at private sale or judicial sale unless the
19850H0943B1074 - 41 -
1 property has first been exposed to upset sale and was not sold
2 at upset sale.
3 Section 27. Section 606 of the act is amended to read:
4 Section 606. Payments by Purchasers at Sales.--The purchaser
5 of any property at [any such] an upset sale shall[, as soon as
6 the property is struck down,] pay to the bureau the entire
7 purchase money on the date of the sale, no later than one (1)
8 hour before the close of business or at such other time as
9 designated by the bureau. In case said amount is not so paid,
10 the sale shall be voided and the property shall be put up again
11 at the same sale, if possible, or at any adjournment,
12 readjournment or continuation of the sale.
13 Section 28. Section 607 of the act, amended May 10, 1951
14 (P.L.258, No.41) and July 10, 1980 (P.L.417, No.98), is amended
15 to read:
16 Section 607. Bureau's Consolidated Return to Court; Notice;
17 Confirmation; Appeal.--(a) It shall be the duty of the bureau,
18 not later than sixty (60) days after a [scheduled] sale was
19 held, to make a consolidated return to the court of common pleas
20 of the county, wherein it shall set forth, (1) a brief
21 description of each property exposed to sale, (2) the name of
22 the owner in whose name it was assessed, (3) the name of the
23 owner at the time of sale, and to whom notice by mail was given
24 as provided by this act, (4) a reference to the record of the
25 tax claim on which the sale was held, (5) the time when and the
26 newspapers in which the advertisement for sale was made, with a
27 copy of said advertisement, (6) the time of sale, (7) the name
28 of the purchaser, if any, and (8) the price for which each
29 property was sold, or that no bid was made equal to the upset
30 price and the property was not sold. [Upon the] Within thirty
19850H0943B1074 - 42 -
1 (30) days of presentation of [said] the consolidated return, if
2 it shall appear to said court that such sale has been regularly
3 conducted under the provisions of this act, the [said]
4 consolidated return and the sales so made shall be confirmed
5 nisi. No consolidated return shall be made to the court until
6 notice has been given to the owner under subsection (a.1)(1).
7 (a.1) (1) Notice shall be given by the bureau within thirty
8 (30) days of the actual sale to each owner by United States
9 certified mail, [personal addressee only] restricted delivery,
10 return receipt requested, postage prepaid, to each owner at his
11 last known post office address as determined in section
12 602(e)(2) that the property was sold and that the owner [has
13 within sixty (60) days from the date of the mailing of the
14 notice to] may file objections or exceptions with the court
15 relating to the regularity and procedures followed during the
16 sale no later than thirty (30) days after the court has made a
17 confirmation nisi of the consolidated return.
18 (2) All notices required by this subsection shall contain
19 the following provisions and be in the following form set in at
20 least 10-point type in a box as follows:
21 WARNING
22 "YOUR PROPERTY HAS BEEN SOLD AT A TAX SALE ON
23 __________FOR THE COLLECTION FOR DELINQUENT TAXES INCURRED
24 IN____________.
25 YOU [HAVE SIXTY (60) DAYS FROM THE DATE OF MAILING OF
26 THIS NOTICE TO QUESTION THE RIGHT OF THE BUREAU TO CONDUCT
27 THE SALE BECAUSE OF A FAILURE ON THE BUREAU'S PART TO COMPLY
28 WITH THE LAW] MAY FILE OBJECTIONS OR EXCEPTIONS TO THE SALE
29 IMMEDIATELY BUT NO LATER THAN THIRTY (30) DAYS FOLLOWING THE
30 CONFIRMATION NISI OF THE RETURN BY THE COURT.
19850H0943B1074 - 43 -
1 IF YOU HAVE ANY QUESTIONS PLEASE CALL YOUR ATTORNEY, THIS
2 TAX CLAIM BUREAU AT THE FOLLOWING TELEPHONE
3 NUMBER___________, OR THE [LEGAL AID] COUNTY LAWYER REFERRAL
4 SERVICE [AT THE FOLLOWING TELEPHONE NUMBER________]."
5 [(3) No sale shall be defeated and no title to property sold
6 shall be invalidated because of proof that the mail notice as
7 herein required was not received by the owner, provided that
8 such notice was given as prescribed by this section.]
9 (b) The bureau shall, at the expense of the county, within
10 ten (10) days after confirmation nisi of the consolidated
11 return, publish a general notice once in a newspaper of general
12 circulation published in the county, and in the legal journal,
13 if any, designated by rules of court for the publication of
14 legal notices, stating (1) that the consolidated return of the
15 bureau with respect to any such sale for taxes has been
16 presented to the court, (2) giving the date of [such
17 presentation,] confirmation nisi and (3) that objections or
18 exceptions thereto may be filed by any owner or lien creditor
19 within [sixty (60)] thirty (30) days after the [date of return,
20 otherwise] court has made a confirmation nisi of the
21 consolidated return or that the return will be confirmed
22 absolutely.
23 (b.1) If notice is given under subsection (a.1)(2), proof
24 that notice under subsection (a.1)(1) was not received by the
25 owner shall not defeat a sale nor invalidate title to property.
26 If the mailed or published notice required under this section
27 is defective or was served in an untimely manner, the court
28 shall enter an order nunc pro tunc for cause and, upon proof of
29 prejudice, shall grant the owner leave to file objections and
30 exceptions.
19850H0943B1074 - 44 -
1 (c) In case no objections or exceptions are filed to any
2 such sale within [sixty (60)] thirty (30) days after the [date
3 of return] court has made a confirmation nisi, a decree of
4 absolute confirmation shall be entered as of course by the
5 prothonotary.
6 (d) Any objections or exceptions to such a sale may question
7 the regularity or legality of the proceedings of the bureau in
8 respect to such sale, but may not raise the legality of the
9 taxes on which the sale was held, [or] of the return [thereof]
10 by the tax collector to the bureau[,] or of the claim entered
11 [therefor]. In case any objections or exceptions are filed they
12 shall be disposed of according to the practice of the court. If
13 the same are overruled or set aside, a decree of absolute
14 confirmation shall be entered by the court.
15 (e) If such objections or exceptions are sustained and the
16 court deems the defect not amendable, it shall, by its order or
17 decree, invalidate the sale and order another sale to be held in
18 conformity with this act at such time and under such conditions
19 as it shall fix.
20 (g) If no objections or exceptions are filed[,] or [where]
21 if objections or exceptions are finally overruled and the sale
22 confirmed absolutely, the validity of the tax, its return for
23 nonpayment, the entry of the claim, or the making of such claim
24 absolute and the proceedings of the bureau with respect to such
25 sale, [except as to the giving of notice as required by the act,
26 or the time of holding the sale, or of petitioning court for an
27 order of sale] shall not thereafter be inquired into judicially
28 in equity or by civil proceedings by the person in whose name
29 such property was sold, [his or her or theirs, or his, her or
30 their grantees or assigns or] by a grantee or assignee, by any
19850H0943B1074 - 45 -
1 lien creditor or by any other person [whatever], except with
2 respect to the giving of notice under the act, to the time of
3 holding the sale, or to the time of petitioning the court for an
4 order of sale. There shall be no period of redemption after such
5 sale and the sale shall be deemed to pass a good and valid title
6 to the purchaser, free from any liens or encumbrances
7 whatsoever, except such liens as are hereafter specifically
8 saved, and in all respects as valid and effective as if acquired
9 by a sheriff's deed.
10 Section 29. Section 608 of the act, amended January 18, 1952
11 (1951 P.L.2098, No.595), is amended to read:
12 Section 608. Deed.--[When] After the court has confirmed the
13 sale and the purchaser has paid the amount of his bid, it shall
14 be the duty of the bureau to make to the said purchaser, his or
15 their heirs or assigns a deed in fee simple for the property
16 sold. Each such deed shall be in the name of the bureau as
17 trustee grantor and shall be executed and duly acknowledged
18 before the prothonotary by the director and a notation of such
19 deed and acknowledgement shall be duly entered on the proper
20 records. The deed shall, before delivery, be recorded in the
21 office for the recording of deeds at the cost of the purchaser.
22 Section 30. Section 609 of the act, amended June 8, 1984
23 (P.L.382, No.79), is amended to read:
24 Section 609. Nondivestiture of Liens.--Every such sale shall
25 convey title to the property under and subject to the lien of
26 every recorded obligation, claim, lien, estate, mortgage [or],
27 ground rent and Commonwealth tax lien not included in the upset
28 price with which said property may have or shall become charged
29 or for which it may become liable.
30 Section 31. The act is amended by adding before section 610
19850H0943B1074 - 46 -
1 a subarticle heading to read:
2 (b) Judicial Sale.
3 Section 32. Section 610 of the act, amended December 21,
4 1973 (P.L.441, No.157), is amended to read:
5 Section 610. [Proceedings When Upset Price Not Bid] Petition
6 for Judicial Sale.--In cases where the upset price shall not be
7 bid at any such sale, [the property shall not be sold at that
8 time and] the sale shall be continued [from month to month, for
9 not more than three (3) months], but not beyond the end of the
10 calendar year, without further advertising, and[, if the
11 property is not thereafter sold by the bureau pursuant to
12 section 613,] the bureau may, at any time during or after the
13 continuance, and shall, immediately at the written direction of
14 a taxing district, file its petition in the court of common
15 pleas of the county [setting forth] to sell the property under
16 sections 612 and 612.1. The bureau shall set forth on the
17 petition (1) the tax claim upon which the property was exposed
18 for sale, (2) that neither the owner, his heirs or legal
19 representatives or any lien creditor, his heirs, assigns or
20 legal representatives or other person interested has [redeemed
21 the property,] caused stay of sale, discharge of tax claim or
22 removal from sale, (3) that the property was exposed to public
23 sale and the date of such sale, (4) that before exposing the
24 property to public sale the bureau fixed an upset price, as
25 herein provided, and (5) that it was unable to obtain a bid
26 sufficient to pay said upset price. Upon the presentation of
27 such petition, accompanied with searches, showing the state of
28 the record and the ownership of the property and all tax and
29 municipal claims, liens, mortgages [and], ground rents, charges
30 and estates against the same, the court shall grant a rule upon
19850H0943B1074 - 47 -
1 all parties thus shown to be interested to appear and show cause
2 why a decree should not be made that said property be sold,
3 freed and cleared of their respective tax and municipal claims,
4 liens, mortgages, charges and estates, except separately taxed
5 ground rents. The rule shall be made returnable in not more than
6 thirty (30) days from the date the petition was presented or as
7 otherwise determined by the court.
8 Section 33. Section 612 of the act, amended July 10, 1969
9 (P.L.146, No.59), is amended to read:
10 Section 612. Hearing and Order for Judicial Sale.--
11 (a) If upon hearing, the court is satisfied that service of
12 the rule has been made upon the parties named in the rule, in
13 the manner provided by this act, and that the facts stated in
14 the petition are true, it shall order and decree that said
15 property be sold at a subsequent day to be fixed by the court,
16 freed and cleared of all tax and municipal claims, mortgages,
17 liens, charges and estates [of whatsoever kind], except
18 separately taxed ground rents, to the highest bidder, and that
19 the purchaser at such sale shall take and thereafter have an
20 absolute title to the property sold free and clear of all tax
21 and municipal claims, mortgages, liens, charges and estates of
22 whatsoever kind, except ground rents, separately taxed. Out of
23 the proceeds of such sale shall be paid the costs set forth in
24 the upset price at the prior sale, and the additional costs
25 incurred relative to this sale, including the fee for title
26 search[, not to exceed fifty dollars ($50) and the]. The court
27 order may specify that no sale shall be made except to the
28 county unless a bid equal to such costs is offered. The
29 remainder of said proceeds shall be distributed by the [county
30 treasurer as hereinbefore provided] office designated by the
19850H0943B1074 - 48 -
1 county commissioners under section 205. After the purchaser
2 shall have paid over the purchase price, the bureau shall make
3 and deliver a deed in the manner hereinbefore provided.
4 (b) When aforesaid petition for sale is presented within
5 three (3) months after the date of the [former] scheduled upset
6 sale, the court, [on] in its order, shall direct that no further
7 advertisement is required. In cases where said petition is
8 presented after the three (3) month period has expired, the
9 court shall, in its order fixing a subsequent sale, direct that
10 the readvertisement of such sale need not be published three (3)
11 consecutive weeks, nor include a list and description of the
12 lands to be sold, but need only be advertised by one (1)
13 insertion in one (1) or (2) newspapers as hereinbefore provided
14 for such advertisements, at least thirty (30) days prior to the
15 sale, and include the purpose, the time, the place and the terms
16 of such sale with a reference to the prior advertisement.
17 (c) In any such petition for sale, the bureau may, if it
18 deems the same advantageous, request the court to fix the place
19 of sale at the property to be sold, and if the court is
20 convinced the taxing districts interested will be benefited
21 thereby, it shall order the sale to be held on the property to
22 be sold.
23 Section 34. Section 612.1 of the act, reenacted and amended
24 September 27, 1973 (P.L.264, No.74), is amended to read:
25 Section 612.1. County Commissioners May Bid and Purchase
26 Property; Costs Paid by Taxing Districts.--Whenever any property
27 shall be put up for public sale upon order of court, as provided
28 in section [six hundred twelve] 612, the county commissioners
29 are hereby authorized to bid up to and including one dollar over
30 and above all costs, as prescribed in section [six hundred
19850H0943B1074 - 49 -
1 twelve] 612, for said property at such sale and if the property
2 is sold to them for the county, the county shall take and have
3 an absolute title, free and clear of all tax and municipal
4 claims, mortgages, liens and charges and estates of whatsoever
5 kind, except ground rents, separately taxed in the same manner
6 and to the same extent as a private purchaser would have taken.
7 In such cases, the proportionate share of said costs shall be
8 paid to the county by the respective taxing districts in
9 proportion to the taxes due them on such property. An amount
10 equal to such costs due the county from any taxing district may
11 be deducted from any tax moneys thereafter payable to such
12 district under the provisions of this act. Upon the sale
13 thereafter of such property by the county, the proceeds from the
14 sale shall be distributed to the taxing authorities in
15 proportion to the taxes due them on such property at the time of
16 the last tax sale.
17 Any property purchased at such sale by the county may
18 thereafter by the county commissioners be (1) leased to any
19 taxing district to be used for public purposes; (2) used for any
20 suitable public purpose by the county; (3) sold in the same
21 manner as any other real property owned in fee simple by the
22 county; or (4) sold upon petition to the court of common pleas,
23 which shall fix a day not more than thirty (30) days thereafter
24 for a hearing and sale. At least five (5) days notice of such
25 hearing and sale shall be given to all the taxing authorities
26 having an interest therein, and notice shall also be given by
27 publication at least two times, with approximately ten (10) days
28 intervening, in at least one (1) newspaper of general
29 circulation published in the county and the official legal
30 journal of the county, setting forth the location of the
19850H0943B1074 - 50 -
1 property that was acquired at a public tax sale, giving the date
2 and place, the terms of the proposed sale, and that the property
3 will be sold clear and free of all tax and municipal claims,
4 mortgages, liens [and], charges [(] and estates, except
5 separately taxed ground rents[, if any)], and the lowest amount
6 which the county is prepared to accept for the sale of the
7 property.
8 If, after such hearing, the court is satisfied that the
9 proposed sale is proper and to the advantage of the county and
10 the other taxing districts interested, it shall allow any person
11 to offer more than the minimum price fixed by the county, or
12 other price, as the court may find proper, and enter a decree
13 approving such sale and directing a conveyance of such property
14 to the person or persons purchasing the same, upon the payment
15 of the purchase price and all costs of the proceeding. The title
16 conveyed shall be free and clear of all tax and municipal
17 claims, mortgages, liens and charges and estates of whatever
18 kind, except ground rents separately taxed.
19 Section 35. The act is amended by adding before section 613
20 a subarticle heading to read:
21 (c) Private Sale.
22 Section 36. Section 613 of the act, amended September 26,
23 1981 (P.L.274, No.92), is amended to read:
24 Section 613. Properties Not Sold Because of Insufficient Bid
25 May be Sold at Private Sale.--(a) At any time after any
26 property has been exposed to public sale and such [sale is]
27 property was not sold because no bid was made equal to the upset
28 price, as hereinbefore provided, and whether or not proceedings
29 are initiated pursuant to sections 610 through 612.1, the bureau
30 may, on its own motion, and shall, on the written instructions
19850H0943B1074 - 51 -
1 of any taxing district having any tax claims or tax judgments
2 against said property, agree to sell the property at private
3 sale, at any price approved by the bureau. Notice of the
4 proposed sale, stating the price and the property proposed to be
5 sold, shall be given to each such taxing district and to the
6 owner of the property. Notice shall also be given by publication
7 at least two (2) times, with approximately ten (10) days
8 intervening between each publication, in at least one (1)
9 newspaper of general circulation published in the county where
10 the property is located and in the official legal journal of
11 that county. The notice by publication shall set forth the
12 location of the property, the date and place of sale, the price
13 and terms of sale, and the provision that the property will be
14 sold free and clear of all tax claims and tax judgments. The
15 corporate authorities of any taxing district[,] having any tax
16 claims or tax judgments against the property which is to be sold
17 [or], the owner, an interested party, or a person interested in
18 purchasing the property may, if not satisfied that the sale
19 price approved by the bureau is sufficient, within forty-five
20 (45) days after notice of the proposed sale, petition the court
21 of common pleas of the county to disapprove the sale. The court
22 shall, in such case, after notice to each such taxing district,
23 the owner, the bureau [and], the purchaser and any other person
24 who has joined in the petition, hear all [interested] parties.
25 After such hearing, the court may either confirm or disapprove
26 the sale as to it appears just and proper. If the sale is
27 disapproved, the court shall at the same time fix a price below
28 which such property shall not be sold and order that, if no
29 private sale can be arranged, the property be sold at public
30 judicial sale under this act. If more than one party agrees to
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1 pay the minimum price set by the court, the court shall direct
2 the bureau to conduct an auction-style bid of the property among
3 the parties to the proceedings. If only one party agrees to pay
4 the minimum price set by the court, the bureau shall sell the
5 property to that party without the necessity of an auction.
6 (b) When an offer to purchase any such property has been
7 received, and the price has been disapproved by the bureau, the
8 bureau shall, on the written instructions[,] of any interested
9 taxing district, submit by petition the proposed sale to the
10 court of common pleas of the county for approval. The court
11 shall, after affording the owner and each taxing district having
12 any tax claims or tax judgments against the property an
13 opportunity to be heard on such notice, as the court deems
14 appropriate, approve or disapprove the sale. If the court
15 approves the sale, it shall be consummated with like effect as
16 through it had been approved by the bureau and by all taxing
17 districts having said interest.
18 Section 37. The act is amended by adding before section 616
19 a subarticle heading to read:
20 (d) Mandatory Judicial Sale.
21 Section 38. Section 616 of the act, amended July 10, 1969
22 (P.L.146, No.59), is amended to read:
23 Section 616. [When Bureau Shall Petition Court for Public
24 Sale to Divest All Liens] Mandatory Judicial Sale.--[The bureau
25 may, on its own motion, during or after the aforesaid
26 continuance of the prior sale, after receiving the consent of
27 all taxing districts having any tax claims or tax judgments
28 against said property, and shall, on the written directions of
29 such taxing districts, file its petition in the court of common
30 pleas for an order to sell the property at public sale, free and
19850H0943B1074 - 53 -
1 discharged from all tax and municipal claims, mortgages, liens,
2 charges and estates of whatsoever kind in the manner
3 hereinbefore provided.] If within the period of ten (10) months
4 after the date of [said prior] the scheduled upset sale, the
5 [said petition has not been filed] bureau has not filed a
6 petition for a judicial sale under section 610 or the property
7 has not been sold at private sale, the bureau shall, within the
8 next immediately following two (2) months, [or within eighteen
9 (18) months of the effective date of this amendatory act,
10 whichever is later,] file [its] a petition [as aforesaid and
11 sell the property at the time and place prescribed in the order
12 of court if such order is made] for judicial sale of the
13 property in the manner set forth in section 610.
14 Section 39. The act is amended by adding before section 617
15 a subarticle heading to read:
16 (e) Miscellaneous.
17 Section 40. Section 617 of the act is amended to read:
18 Section 617. Errors as to Description; Names, etc., May be
19 Amended on Petition.--When a property has been sold [at public
20 sale, as herein provided] under the provisions of this act, and
21 there are errors in the description or in the spelling of any
22 person's name, or other obvious errors in the claim, or in the
23 return to court, or in any petition relative to the proceedings,
24 or in the bureau's tax deed, such error may be amended by a
25 petition to court for a rule on all parties interested to show
26 cause why the records should not be amended and such errors
27 corrected. After hearing on the rule, the court may make such
28 order relative thereto as to it seems just and proper.
29 Section 41. The act is amended by adding a section and a
30 subarticle to read:
19850H0943B1074 - 54 -
1 Section 618. Repurchase by Owner.--The owner shall have no
2 right to purchase his own property at either a judicial sale or
3 a private sale conducted under the provisions of this act.
4 (f) Repository for Unsold Property.
5 Section 625. Purpose.--It is the intent of this subarticle
6 to establish a procedure to minimize the number of properties
7 which the county, through the tax claim bureau, holds because of
8 delinquent tax claims, recognizing that some properties have
9 little or no value except perhaps to a neighboring property
10 owner and that holding such properties constitutes a cost to the
11 county and bureau.
12 Section 626. Unsold Property Repository.--If, after
13 conducting and exposing a property to a judicial sale under the
14 provisions of this act, whether prior to, at the time of or
15 after the effective date of this amendatory act, any property
16 remains unsold, it shall be placed in a category to be termed
17 "repository for unsold properties." A list of properties in this
18 category shall be maintained by the bureau and shall be
19 available during normal office hours to any member of the
20 general public. From time to time, the bureau may publish a list
21 of these properties in a locally circulating newspaper.
22 Section 627. Sale of Property in Repository.--The bureau may
23 accept an offer of any price for property placed in the
24 "repository for unsold properties" without court approval and
25 published notice of sale. The property shall be conveyed to the
26 purchaser upon payment of the agreed price, free and clear of
27 all tax and municipal claims, mortgages, liens, and charges and
28 estates of whatsoever kind, except ground rents separately
29 taxed. It shall be the responsibility of the bureau to have the
30 deed recorded at the expense of the purchaser.
19850H0943B1074 - 55 -
1 Section 628. Assessment Restrictions on Property Sold From
2 Repository.--Notwithstanding any other provisions of the various
3 assessment laws of this Commonwealth, the price for which
4 property is sold under this subarticle of the act only, shall be
5 deemed to be the fair market value of the property for tax
6 assessment purposes. The assessment and the consideration upon
7 which it was made shall not be changed unless any of the
8 following occurs:
9 (1) It is changed as part of a general county reassessment.
10 (2) It is sold as an individual parcel or as part of a
11 combined parcel.
12 (3) It is improved as provided for in the several assessment
13 laws of this Commonwealth.
14 Section 629. Notification of Sale.--The bureau shall notify
15 all affected taxing districts, the county assessment office and
16 any affected tax collector of the sale and of the restriction on
17 the assessment.
18 Section 630. Distribution of All Moneys Received.--Moneys
19 received under this subarticle shall be distributed as provided
20 for in section 205.
21 Section 42. Section 701 of the act, amended May 20, 1949
22 (P.L.1579, No.477) and May 20, 1949 (P.L.1602, No.484), is
23 amended to read:
24 Section 701. Property Heretofore Purchased by Taxing
25 Districts to be Turned Over to Bureau.--Where the county
26 commissioners, any taxing district or trustee for any taxing
27 districts have, [prior to the effective date of this act or]
28 prior to the time when this act became effective in any taxing
29 district, acquired any property at a tax sale or a sale on a
30 judgment for a tax claim, unless such property or interest shall
19850H0943B1074 - 56 -
1 have been resold or used for a public purpose, for which the
2 property might otherwise have been acquired, such commissioners,
3 taxing district or trustees shall[, prior to the first day of
4 January, one thousand nine hundred forty-nine, or within one
5 year after this act becomes effective as to a taxing district,
6 or in cases where the redemption period has not expired, at such
7 time immediately on the expiration thereof, delivered] deliver
8 possession of such property to the bureau together with all the
9 pertinent information, as to when and how it was acquired, the
10 taxes for which it was offered for sale at the time, the party
11 which purchased it, the known mortgages, liens or estates, if
12 any, not discharged by such sale, [known to the taxing district
13 to be a charge on the property,] and the taxes which would have
14 been levied against such property had it not been purchased by
15 the taxing district[, if known to the taxing district, and in
16 such cases as those in which one or more persons in the family
17 of the previous owner now occupy the premises and receive
18 assistance from any public agency, such information as will aid
19 the bureau in determining whether or not to lease the property
20 to the former owner or other member of his family dwelling
21 therein, as hereinafter provided]. Thereafter all rights and
22 title to the property, held by such taxing district or trustee,
23 shall vest in the county, as trustee, for all taxing
24 districts[,] having the power to levy taxes against such
25 property, if it were privately owned, and the bureau shall
26 become the agent of all taxing districts having an interest in
27 the management and control of such property with the following
28 powers and duties with respect thereto.
29 Section 43. Section 703 of the act, amended July 10, 1969
30 (P.L.146, No.59), is amended to read:
19850H0943B1074 - 57 -
1 Section 703. Such Properties to be Sold Under Provisions of
2 Article VI.--(a) All properties so turned over to the bureau
3 which have not been sold at private sale, as hereinbefore
4 provided, [with the exception of such properties leased to a
5 previous owner or other member of his family dwelling therein
6 and receiving, or within the preceding sixty (60) days having
7 received, assistance from any public agency,] may be sold at
8 public sale by the bureau upon written request of any taxing
9 authorities having any tax claims or tax judgments against the
10 property. Such sale shall be made at the time specified in the
11 request [or within eighteen (18) months of the effective date of
12 this amending act, whichever is later,] and in the same manner
13 as if the property was being sold at a first sale on a tax
14 claim, as provided in Articles III and VI, except that it shall
15 be a simple public sale with no upset price, and shall divest
16 only the lien of tax claims and tax judgments. The purchaser of
17 any such property shall be given a deed, executed and
18 acknowledged as hereinbefore provided, which shall convey title
19 free, clear and discharged of all tax claims and tax judgments,
20 whether or not returned, filed or entered as provided by this or
21 any other act. The notices to be given of such sale, as required
22 in Article VI for an upset sale, as provided for in sections 605
23 through 612.1, shall state that there is no upset price and that
24 the sale shall divest only the lien of taxes and tax judgments.
25 (b) In lieu of the public sale provided for in the preceding
26 subsection, or if such sale is held but the property is not sold
27 due to the absence of any bid, the bureau, upon written request
28 of any such interested taxing authorities, may sell such
29 property upon petition to court for an order to sell clear and
30 free of all claims, liens, mortgages and estates in the same
19850H0943B1074 - 58 -
1 manner with like proceedings and with like effect as if said
2 properties had been first exposed to public sale as provided in
3 Article VI but not sold because of insufficient bid. The sale of
4 properties turned over to the bureau under the provisions of
5 this article shall, except as herein otherwise provided, be
6 subject to all the provisions of Article VI in so far as they
7 may be applicable, and when sold at public sale by order of
8 court, as above provided, such properties shall be sold free and
9 discharged from all tax and municipal claims, mortgages, liens,
10 charges and estates whatsoever.
11 Section 44. The act is amended by adding sections to read:
12 Section 704. Validation of Title.--Each property to which
13 the county does not have title under the provisions of this
14 article shall be subject to Article VI unless title to these
15 properties which have been acquired under Article VII shall have
16 been ratified, confirmed and validated in the manner provided by
17 law for the validation of titles by the court of common pleas of
18 the county in which each property is located, upon proof of
19 title to the property. Any titles ratified, confirmed and
20 validated pursuant to this section shall not be challenged or
21 invalidated thereafter by reason of any defect whatsoever in the
22 acquisition or retention thereof, notwithstanding any law or act
23 of assembly to the contrary.
24 Section 705. Exoneration from Damages.--No liability for
25 damages shall be assessed against, nor shall a cause of action,
26 in tort or contract, exist against a taxing district or against
27 an officer, employe or agent of a taxing district who, prior to
28 the effective date of this amendatory act, has not performed or
29 exercised, as trustee or otherwise, any duty, responsibility or
30 power required or imposed by law.
19850H0943B1074 - 59 -
1 Section 706. Duty of County and Bureau; Enforcement
2 Provision.--With respect to properties to which the county has
3 title under this article, it shall be the duty of the county and
4 of the bureau to perform every fiduciary duty imposed on them by
5 law, including, but not limited to, making a pro rata
6 distribution of rents, profits and issues of the properties to
7 the appropriate taxing districts according to the interest of
8 the taxing districts in the properties and the entitlement of
9 the taxing districts to the rents, profits and issues, and also
10 including, but not limited to, selling properties subject to
11 this article, if the sale is a good faith exercise of the
12 fiduciary duty imposed. A taxing district may enforce the
13 provisions of this section by an action at law or in equity, or
14 as otherwise provided by law.
15 Section 45. This act shall take effect in 60 days.
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