PRIOR PRINTER'S NOS. 2045, 2544, 2662 PRINTER'S NO. 2666
No. 1670 Session of 1999
INTRODUCED BY McNAUGHTON, FARGO, SCHRODER, FICHTER, SCRIMENTI,
FLICK, SEYFERT, GEIST, S. H. SMITH, R. MILLER, HARHAI,
THOMAS, M. COHEN, ROSS, RUBLEY, YOUNGBLOOD, ZUG AND MAITLAND,
JUNE 15, 1999
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
NOVEMBER 15, 1999
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," providing for the alternative collection of
29 taxes; AND FURTHER PROVIDING FOR DISCHARGE OF TAX CLAIMS AND <--
30 FOR DATE OF SALE.
31 The General Assembly of the Commonwealth of Pennsylvania
1 hereby enacts as follows:
2 Section 1. Section 201 of the act of July 7, 1947 (P.L.1368,
3 No.542), known as the Real Estate Tax Sale Law, amended July 3,
4 1986 (P.L.351, No.81), is amended to read:
5 Section 201. Creation of Bureaus.--[A] Except as otherwise
6 provided in section 201.1, a Tax Claim Bureau is hereby created
7 in each county in the office of the county commissioners.
8 Section 2. The act is amended by adding a section to read:
9 Section 201.1. Alternative Collection of Taxes.--(a) In
10 lieu of creating a bureau, counties are authorized to provide,
11 by ordinance, for the appointment and compensation of such
12 agents, clerks, collectors and other assistants and employes,
13 either under existing departments, in private sector entities or
14 otherwise as may be deemed necessary, for the collection and
15 distribution of taxes under this act. Any alternative collection
16 method shall be subject to all of the notices, time frames,
17 enumerated fees and protections for property owners contained in
18 this act. Two or more counties may enter into a joint agreement
19 under 53 Pa.C.S. Ch. 23 Subch. A (relating to intergovernmental
20 cooperation) to provide for the alternative collection of taxes
21 under this section.
22 (b) The requirement of section 203 to furnish bonds,
23 provisions of this act relating to accounting and distribution
24 of moneys and other provisions relating to operation of a bureau
25 shall apply to an alternative collection system established
26 under this section.
27 SECTION 3. SECTION 501 OF THE ACT, AMENDED JANUARY 29, 1998 <--
28 (P.L.24, NO.5) AND DECEMBER 21, 1998 (P.L.1008, NO.133), IS
29 AMENDED TO READ:
30 SECTION 501. DISCHARGE OF TAX CLAIMS.--
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1 (A) ANY OWNER, HIS HEIRS OR LEGAL REPRESENTATIVES, OR ANY
2 LIEN CREDITOR, HIS HEIRS, ASSIGNS OR LEGAL REPRESENTATIVE, OR
3 OTHER INTERESTED PERSON OR, WITH THE APPROVAL OF THE LIENHOLDING
4 POLITICAL SUBDIVISION, DISINTERESTED PERSON MAY CAUSE THE
5 DISCHARGE OF TAX CLAIMS AND LIENS ENTERED AGAINST THE PROPERTY
6 BY PAYMENT TO THE BUREAU OF THE AMOUNT OF THE AFORESAID CLAIM
7 AND INTEREST THEREON, THE AMOUNT OF ANY OTHER TAX CLAIM OR TAX
8 JUDGMENT DUE ON SUCH PROPERTY AND INTEREST THEREON, AND THE
9 AMOUNT OF ALL ACCRUED TAXES WHICH HAVE BEEN RETURNED AND REMAIN
10 UNPAID, THE RECORD COSTS, INCLUDING PRO RATA COSTS OF THE NOTICE
11 OR NOTICES GIVEN IN CONNECTION WITH THE RETURNS OR CLAIMS
12 CALCULATED UNDER PARAGRAPH (1), (2) OR (3). THE COUNTY MAY GIVE
13 THE RIGHT OF FIRST REFUSAL FOR DISCHARGE OF TAX CLAIMS UNDER
14 THIS SECTION TO THE LOCAL REDEVELOPMENT AUTHORITY, MUNICIPALITY
15 OR ITS DESIGNATED AGENT. THE SUBJECT PROPERTY SHALL BE REMOVED
16 FROM EXPOSURE TO SALE AND SHALL NOT BE LISTED IN ANY
17 ADVERTISEMENT RELATING TO SALE OF PROPERTY FOR DELINQUENT TAXES
18 IF, PRIOR TO JULY 1 OF THE YEAR FOLLOWING THE NOTICE OF CLAIM,
19 PAYMENT IS MADE IN ANY OF THE FOLLOWING AMOUNTS:
20 (1) AN AMOUNT EQUAL TO THE SUM OF:
21 (I) THE OUTSTANDING TAXES ENTERED ON NOTICE OF CLAIM AND
22 INTEREST DUE ON THOSE TAXES;
23 (II) THE AMOUNT OF ANY OTHER TAX CLAIM ON OR TAX JUDGMENT
24 AGAINST SUCH PROPERTY AND INTEREST ON THAT CLAIM OR JUDGMENT;
25 (III) THE AMOUNT OF ALL ACCRUED TAXES WHICH HAVE BEEN
26 RETURNED AND REMAIN UNPAID; AND
27 (IV) THE RECORD COSTS, INCLUDING PRO RATA COSTS OF NOTICE
28 GIVEN IN CONNECTION WITH RETURNS AND CLAIMS.
29 (2) AN AMOUNT LESS THAN THE TOTAL AMOUNT DUE UNDER PARAGRAPH
30 (1) IF THE POLITICAL SUBDIVISION AGREES TO ACCEPT THAT AMOUNT.
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1 IF PAYMENT IS MADE AFTER JULY 1 OF THE YEAR FOLLOWING THE NOTICE
2 OF CLAIM, BUT BEFORE THE ACTUAL SALE OF THE PROPERTY, THE
3 PROPERTY SHALL NOT BE SOLD, BUT THE PROPERTY AND NAME OF OWNER
4 MAY APPEAR IN AN ADVERTISEMENT RELATING TO THE SALE OF PROPERTY
5 FOR DELINQUENT TAXES.
6 (3) WITH RESPECT TO TWO (2) OR MORE CLAIMS OR JUDGMENTS
7 TRANSFERRED BY A POLITICAL SUBDIVISION TO A PERSON, AN AMOUNT
8 LESS THAN THE AGGREGATE AMOUNT DUE FOR SUCH CLAIMS OR JUDGMENTS
9 UNDER PARAGRAPH (1) IF THE POLITICAL SUBDIVISION AGREES TO
10 ACCEPT THAT AMOUNT.
11 (A.1) UPON RECEIPT OF PAYMENT OR UPON CERTIFICATION TO THE
12 BUREAU THAT PAYMENT OF ALL TAXES AND OTHER CHARGES OTHERWISE
13 PAYABLE TO THE BUREAU UNDER THIS ACT HAS BEEN MADE TO A TAXING
14 DISTRICT, THE BUREAU SHALL ISSUE WRITTEN ACKNOWLEDGEMENT OF
15 RECEIPT AND A CERTIFICATE OF DISCHARGE AND SHALL ENTER
16 SATISFACTION ON THE RECORD. ALL PAYMENTS RECEIVED SHALL BE
17 DISTRIBUTED TO THE TAXING DISTRICT ENTITLED THERETO NOT LESS
18 THAN ONCE EVERY THREE (3) MONTHS.
19 (B) WHEN ANY PROPERTY IS DISCHARGED FROM TAX CLAIM BY
20 PAYMENT BY A LIEN CREDITOR, OR HIS HEIRS, ASSIGNS OR LEGAL
21 REPRESENTATIVES, OR BY ANY PERSON, WHETHER INTERESTED OR
22 DISINTERESTED, THE CERTIFICATE SHALL BE ISSUED TO THE PERSON
23 MAKING THE PAYMENT AND SHALL STATE THE FACT OF THE DISCHARGE, A
24 BRIEF DESCRIPTION OF THE PROPERTY DISCHARGED AND THE AMOUNT OF
25 THE DISCHARGE PAYMENT. THIS CERTIFICATE MAY BE ENTERED IN THE
26 OFFICE OF THE PROTHONOTARY AS A JUDGMENT AGAINST THE OWNER OF
27 THE PROPERTY FOR THE ENTIRE AMOUNT DUE TO THE POLITICAL
28 SUBDIVISION, REGARDLESS OF WHETHER THE PROPERTY WAS DISCHARGED
29 FROM TAX CLAIM BY PAYMENT UNDER SUBSECTION (A)(1), (2) OR (3).
30 THE LIEN OF ANY SUCH JUDGMENT SHALL HAVE PRIORITY OVER ALL OTHER
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1 LIENS AGAINST SUCH PROPERTY IN THE SAME MANNER AND TO THE SAME
2 EXTENT AS THE TAXES INVOLVED IN THE DISCHARGE.
3 (B.1) IN ADDITION TO ANY OTHER REMEDY PROVIDED BY LAW, A
4 CERTIFICATE UNDER SUBSECTION (B) ENABLES THE PERSON FOR WHOSE
5 BENEFIT JUDGMENT WAS ENTERED TO PROCEED BY ACTION IN ASSUMPSIT
6 AND RECOVER THE AMOUNT OF TAX DUE BY AN OWNER AND TO RECOVER
7 RELATED ATTORNEY FEES AND COURT COSTS AND REASONABLE COLLECTION
8 COSTS RELATED THERETO. AN ACTION UNDER THIS SUBSECTION MUST BE
9 COMMENCED WITHIN SIX (6) YEARS AFTER THE TAXES FIRST BECAME DUE.
10 (C) THERE SHALL BE NO REDEMPTION OF ANY PROPERTY AFTER THE
11 ACTUAL SALE THEREOF.
12 (D) NOTHING IN THIS SECTION SHALL PRECLUDE THE BUREAU FROM
13 RETAINING THE FIVE PER CENTUM (5%) COMMISSION ON ALL MONEY
14 COLLECTED BY THE BUREAU AND ANY INTEREST EARNED ON MONEY HELD BY
15 THE BUREAU AS PROVIDED IN SECTION 205(C).
16 (E) IF ANY INTERESTED OR DISINTERESTED PERSON HOLDING A
17 JUDGMENT CERTIFICATE SELLS REAL OR PERSONAL PROPERTY SUBJECT TO
18 A JUDGMENT CERTIFICATE AT A JUDICIAL OR A PRIVATE SALE AND THE
19 PROCEEDS OF THE SALE ARE LESS THAN THE AMOUNT OF THE JUDGMENT
20 CERTIFICATE AND ANY MUNICIPAL OR OTHER CLAIM WITH LIENS ON THE
21 PROPERTY THAT ARE COEQUAL OR SENIOR TO THE LIEN OF THE PERSON
22 HOLDING THE JUDGMENT CERTIFICATE, THE PROCEEDS OF THE SALE SHALL
23 BE DISTRIBUTED IN THE FOLLOWING ORDER OF PRIORITY:
24 (1) FIRST TO THE COSTS OF ENFORCEMENT AND SALE, INCLUDING
25 ATTORNEY FEES OR COMMISSIONS, INCURRED BY THE PERSON HOLDING THE
26 JUDGMENT CERTIFICATE IN ENFORCING ITS RIGHTS AGAINST THE
27 PROPERTY;
28 (2) TO ANY AND ALL CLAIMS SENIOR IN PRIORITY TO THAT OF THE
29 HOLDER OF THE JUDGMENT CERTIFICATE IN PROPORTION TO SUCH CLAIMS;
30 AND
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1 (3) THE BALANCE TO ALL MUNICIPAL CLAIMS COEQUAL IN LIEN
2 PRIORITY WITH THE JUDGMENT CERTIFICATE, INCLUDING THE CLAIM TO
3 WHICH THE JUDGMENT CERTIFICATE RELATES, IN PROPORTION TO SUCH
4 CLAIMS.
5 SECTION 4. SECTION 601 OF THE ACT IS AMENDED BY ADDING A
6 SUBSECTION TO READ:
7 SECTION 601. DATE OF SALE.--* * *
8 (D) NO INDIVIDUAL WHOSE LANDLORD LICENSE OR CERTIFICATE OF
9 OCCUPANCY HAS BEEN REVOKED OR SUSPENDED, AS DETERMINED BY LOCAL
10 ORDINANCE, MAY PURCHASE PROPERTY AT A TAX SALE UNDER THIS
11 SECTION. EVERY PERSON BIDDING FOR PROPERTY TO BE SOLD AT A TAX
12 SALE UNDER THIS SECTION MUST CERTIFY THAT THEY ARE NOT BIDDING
13 FOR OR ACTING AS AN AGENT FOR A PERSON WHO IS BARRED FROM
14 PARTICIPATING IN A SALE UNDER THIS SUBSECTION. PURSUANT TO THIS
15 SUBSECTION, THE LOCAL MUNICIPALITY SHALL FURNISH TO THE COUNTY
16 DOCUMENTATION RELATING TO LANDLORD LICENSE AND CERTIFICATE OF
17 OCCUPANCY REVOCATIONS, AS DETERMINED BY LOCAL ORDINANCE.
18 Section 3 5. This act shall take effect in 60 days. <--
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