1Amending the act of May 16, 1923 (P.L.207, No.153), entitled "An
2act providing when, how, upon what property, and to what
3extent, liens shall be allowed for taxes and for municipal
4improvements, for the removal of nuisances, and for water
5rents or rates, sewer rates, and lighting rates; for the
6procedure upon claims filed therefor; the methods for
7preserving such liens and enforcing payment of such claims;
8the effect of judicial sales of the properties liened; the
9distribution of the proceeds of such sales, and the
10redemption of the property therefrom; for the lien and
11collection of certain taxes heretofore assessed, and of
12claims for municipal improvements made and nuisances removed,
13within six months before the passage of this act; and for the
14procedure on tax and municipal claims filed under other and
15prior acts of Assembly," further providing for authorization
16to municipalities to impose tax liens on any property
17throughout this Commonwealth and on the funds in certain bank
18accounts<-; and providing for treatment of property tax claims 
19reduced to judgment as money judgments.

20The General Assembly of the Commonwealth of Pennsylvania
21hereby enacts as follows:

22Section 1. Section 2 of the act of May 16, 1923 (P.L.207,
23No.153), referred to as the Municipal Claim and Tax Lien Law, is
24amended to read:

25Section 2. All taxes which may hereafter be lawfully imposed

1or assessed on any property in this Commonwealth, and all taxes
2heretofore lawfully imposed or assessed by any municipality on
3any property in this Commonwealth for the years one thousand
4nine hundred and twenty-one, one thousand nine hundred and
5twenty-two, and one thousand nine hundred and twenty-three, in
6the manner and to the extent hereinafter set forth, shall be and
7they are hereby declared to be a first lien on said property,
8together with all charges, expenses, and fees added thereto for
9failure to pay promptly; and such liens shall have priority to
10and be fully paid and satisfied out of the proceeds of any
11judicial sale of said property, before any other obligation,
12judgment, claim, lien, or estate with which the said property
13may become charged or for which it may become liable, save and
14except only the costs of [the] any sale and of the writ upon
15which [it] such sale is made.

16Section 2. Section 3(a) and (a.1) of the act, amended August
1714, 2003 (P.L.83, No.20), are amended to read:

18Section 3. (a) (1) All municipal claims, municipal liens,
19taxes, tax claims and tax liens which may hereafter be lawfully
20imposed or assessed on any property in this Commonwealth, and
21all such claims heretofore lawfully imposed or assessed within
22six months before the passage of this act and not yet liened, in
23the manner and to the extent hereinafter set forth, shall be and
24they are hereby declared to be a lien on said property, together
25with all charges, expenses, and fees incurred in the collection
26of any delinquent account, including reasonable attorney fees
27under subsection (a.1), added thereto for failure to pay
28promptly; and municipal claims and municipal liens shall arise
29when lawfully imposed and assessed and shall have priority to
30and be fully paid and satisfied out of the proceeds of any

1judicial sale of said property, before any other obligation,
2judgment, claim, lien, or estate with which the said property
3may become charged, or for which it may become liable, save and
4except only the costs of the sale and of the writ upon which it
5is made, and the taxes, tax claims and tax liens imposed or
6assessed upon said property.

7(2) (i) When any municipal tax on real property becomes
8delinquent, such tax, together with all charges, expenses and
9fees, including reasonable attorney fees, added thereto for
10failure to pay promptly, shall be a lien upon all other real
11property that is both owned by the delinquent taxpayer and
12located within this Commonwealth. Provided, however, that with
13respect to real property located outside the taxing
14municipality, no lien shall exist against such real property
15until filed with the prothonotary of the county or counties in
16which the real property is situated.

17(ii) A lien under this paragraph shall have the same force
18and effect as a personal judgment against the delinquent
19taxpayer and shall be subject to all prior claims, mortgages,
20ground rents, charges and estates.

21(iii) The inclusion in a lien under this paragraph of
22charges, expenses and fees incurred in the collection of any
23delinquent account, including reasonable attorney fees, shall be
24subject to the requirements of subsection (a.1).

25(a.1) It is not the intent of this [subsection] section to
26require owners to pay, or municipalities to sanction,
27inappropriate or unreasonable attorney fees, charges or expenses
28for routine functions. Attorney fees incurred in the collection
29of any delinquent account, including municipal claims, municipal
30liens, taxes, tax claims and tax liens, shall be in an amount

1sufficient to compensate attorneys undertaking collection and
2representation of a municipality or its assignee in any actions
3in law or equity involving claims arising under this act. A
4municipality by ordinance, or by resolution if the municipality
5is of a class which does not have the power to enact an
6ordinance, shall adopt the schedule of attorney fees. Where
7attorney fees are sought to be collected in connection with the
8collection of a delinquent account, including municipal claims,
9municipal liens, taxes, tax claims and tax liens, the owner may
10petition the court of common pleas in the county where the
11property subject to the municipal claim and lien, tax claim and
12lien or taxes is located to adjudicate the reasonableness of the
13attorney fees imposed. In the event that there is a challenge to
14the reasonableness of the attorney fees imposed in accordance
15with this section, the court shall consider, but not be limited
16to, the following:

17(1) The time and labor required, the novelty and difficulty
18of the questions involved and the skill requisite to properly
19undertake collection and representation of a [municipality in
20actions arising under subsection (a)] municipality.

21(2) The customary charges of the members of the bar for
22similar services.

23(3) The amount of the delinquent account collected and the
24benefit to the municipality from the services.

25(4) The contingency or the certainty of the compensation.

26* * *

27Section 3. Section 4 of the act, amended July 28, 1953
28(P.L.678, No.212), is amended to read:

29Section 4. The lien for taxes shall exist in favor of[, and
30the claim therefor may be filed against the property taxed by,]

1any municipality to which the tax is payable and the lien may be 
2filed against the property taxed by such municipality, as well 
3as against all other property that is both owned by the person 
4who owns the property subject to the tax and located within this 
5Commonwealth.

6The lien for the removal of nuisances shall exist in favor
7of, and the claim therefor may be filed against the property
8from which it is removed, or by which it is caused, by, any
9municipality by or for which the nuisance is removed.

10The lien for grading, guttering, paving, macadamizing, or
11otherwise improving the cartways of any highways; for grading,
12curbing, recurbing, paving, repaving, constructing, or repairing
13the footways thereof; or for laying water pipes, gas pipes,
14culverts, sewers, branch sewers, or sewer connections in any
15highway; for assessments for benefits in the opening, widening,
16or vacation thereof; or in the changing of watercourses or
17construction of sewers through private lands; or in highways of
18townships of the first class; or in the acquisition of sewers
19and drains constructed and owned by individuals or corporations,
20and of rights in and to use the same; or for water rates,
21lighting rates, or sewer rates, or rates for any other service
22furnished by a municipality,--shall exist in favor of, and the
23claim therefor may be filed against the property thereby
24benefited by, the municipality extending the benefit; or the
25city, borough, or township in which the property is located, if
26the work, material or service forming the basis of such lien was
27supplied by a municipal authority organized by a city of the
28second class, by a county of the second class or by a city of
29the third class and such liens or the claim therefor has been
30assigned to it.

1Municipal authorities organized by cities of the second
2class, by counties of the second class or by cities of the third
3class are hereby authorized to assign their municipal claims and
4their liens to the city, borough, or township in which the
5property subject thereto is located, and cities, boroughs and
6townships in which such property is located are hereby
7authorized to purchase the same. Upon such assignment or
8purchase the city, borough, or township acquiring such municipal
9claim or lien shall have the same rights thereunder as if it had
10supplied the work, material or service upon which such municipal
11claim or lien is based.

12When the contractor performing the work is to be paid by
13assessment bills, the lien shall exist for, and the claim shall
14be filed to, his use, and he shall under no circumstances have
15recourse to the municipality authorizing the work.

<-16Section 4. The act is amended by adding a section to read:

17Section 39.6. (a) A claim for property taxes that has been
18reduced to judgment shall be enforceable as a lien against real
19property in the same manner and to the same extent as a judgment
20for money under the generally applicable laws of this
21Commonwealth. For purposes of this subsection, "reduced to
22judgment" means claims rendered absolute in accordance with
23section 311 of the act of July 7, 1947 (P.L.1368, No.542), known 
24as the "Real Estate Tax Sale Law," and those given the effect of 
25a judgment in accordance with subsection (b).

26(b) Notwithstanding any other provision of law, when a
27judgment or lien under this section is reduced or satisfied by
28payment or a sale of the property, the judgment creditor shall
29so notify the tax claim bureau or prothonotary where the
30original tax claim is docketed, and shall enter such

1satisfaction in the office of the clerk of the court in the
2county where the judgment is outstanding. No tax claim shall be
3subject to additional interest as a result of enforcement as a
4judgment lien under this section.

5(c) A lien under this subsection shall exist separate and
6apart from the tax lien. Nothing in this section shall be
7construed as affecting other remedies available to a
8municipality for collection of a tax or the priority or amount
9of a tax lien.

10Section <-4 5. This act shall take effect in 60 days.