SENATE AMENDED
PRIOR PRINTER'S NO. 2400 PRINTER'S NO. 2641
No. 1883 Session of 1989
INTRODUCED BY LAUGHLIN, LaGROTTA, VEON, WASS, WAMBACH, MRKONIC,
KUKOVICH, TIGUE, BATTISTO, DIETTERICK, HERMAN, LINTON,
BELFANTI, ITKIN, DeWEESE, MORRIS, NOYE, SAURMAN, JOSEPHS,
FARMER, PESCI, McNALLY, DISTLER, LASHINGER, E. Z. TAYLOR,
TANGRETTI, DeLUCA, WILLIAMS, COLAIZZO, DOMBROWSKI, FEE,
NAHILL, PISTELLA, GIGLIOTTI, MAINE, MICHLOVIC, OLASZ, JAMES,
KOSINSKI, COLAFELLA, McCALL, MELIO, TELEK AND CIVERA,
SEPTEMBER 18, 1989
AS AMENDED ON SECOND CONSIDERATION, IN SENATE, OCTOBER 18, 1989
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
1 existing laws," reviving provisions relating to extension of
2 the period for discharge of tax claims; AND MAKING REPEALS. <--
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. Sections 308(a), 502 and 503 of the act of July
6 7, 1947 (P.L.1368, No.542), known as the Real Estate Tax Sale
7 Law, amended July 3, 1986 (P.L.351, No.81), are reenacted to
8 read:
9 Section 308. Notice of Filing of Returns and Entry of
10 Claim.--(a) Not later than the thirty-first day of July of each
11 year, the bureau shall give only one notice of the return of
12 said taxes and the entry of such claim in one envelope for each
13 delinquent taxable property, by United States registered mail or
14 United States certified mail, return receipt requested, postage
15 prepaid, addressed to the owners at the same address listed on
16 the form returned by the tax collector for taxes that are
17 delinquent. In the case of property owned by joint tenants,
18 tenants in common, or husband and wife as tenants by the
19 entireties, the bureau may give the notice required by this
20 section by forwarding only one notice addressed to such joint
21 tenants, tenants in common or husband and wife at the same post
22 office address. If the owner of the property is unknown and has
23 been unknown for a period of not less than five years, such
24 notice shall be given only by posting on the property affected.
25 If no post office address of the owner is known or if a notice
26 mailed to an owner at such last known post office address is not
27 delivered by the postal authorities, then notice as herein
28 provided shall be posted on the property affected. If the
29 property owner has entered into an agreement with the bureau for
30 the payment of the delinquent taxes, the posting is not
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1 necessary. Each mailed and posted notice shall, (1) show all the
2 information shown on the claim entered, (2) state that if
3 payment of the amount due the several taxing districts for said
4 taxes is not made to the bureau on or before the thirty-first
5 day of December next following, and no exceptions thereto are
6 filed, the said claim shall become absolute, (3) state that on
7 July first of the year in which such notice is given a one (1)
8 year period for discharge of tax claim shall commence or has
9 commenced to run, and that if full payment of taxes is not made
10 during that period as provided by this act, the property shall
11 be advertised for and exposed to sale under this act, (4) state
12 that there shall be no redemption after the actual sale and (5)
13 state that the owner of any owner-occupied real estate can apply
14 for an extension of the period for discharge of tax claim for up
15 to twelve (12) additional months under and subject to the
16 provisions of sections 502 and 503 of this act.
17 * * *
18 Section 502. Option of County to Extend Period for Discharge
19 of Tax Claim.--A county may at the option of its commissioners
20 enact legislation extending the period for discharge of tax
21 claim for real estate taxes for taxpayers for up to twelve (12)
22 additional months.
23 Section 503. Extension of Period for Discharge of Tax
24 Claim.--(a) If the county commissioners of the county enact
25 legislation pursuant to section 502, then the county
26 commissioners, acting through the county tax claim bureau
27 determine that a tax claim or tax claims constitute severe
28 hardship to the taxpayer and that extenuating circumstances
29 beyond the taxpayer's control have caused the tax claim or
30 claims to be filed or remain unpaid and there is a reasonable
19890H1883B2641 - 3 -
1 probability that the taxpayer will be able to meet the
2 indebtedness if granted an extension of the period for discharge
3 of tax claim for up to twelve (12) additional months, they shall
4 have the authority in the event of an application for extension
5 submitted by the taxpayer to:
6 (1) Extend the period for discharge of tax claim for owner-
7 occupied real estate for up to twelve (12) additional months:
8 Provided, That the taxpayer enters into an equitable apportioned
9 payment schedule consistent therewith.
10 (2) Abate, suspend, continue or stay the tax sale
11 proceedings pending with respect to such owner-occupied
12 residential real estate.
13 (b) The payment schedule authorized under subsection (a)
14 shall permit the taxpayer to make payment of the amount due in
15 at least four (4) separate payments, spaced at least thirty (30)
16 days apart, and shall require the initial payment to be not more
17 than twenty-five per centum (25%) of the total indebtedness
18 calculated to be due under such schedule. However, the
19 provisions of this subsection and of section 603
20 notwithstanding, the county commissioners may, in their
21 discretion, in special hardship cases, establish payment
22 schedules specifically suited to the capabilities of the
23 particular affected taxpayer.
24 (c) The application for extension authorized in clause (1)
25 of subsection (a) shall be made in such form as shall be
26 provided by the bureau. Within thirty (30) days of receipt of
27 such an application, the director of the bureau shall either
28 allow or disallow such an extension. If such an extension is
29 allowed, the bureau shall set the length of such extension. Any
30 taxpayer aggrieved by the decision of the bureau may, within
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1 fifteen (15) days after notice thereof, appeal to the county
2 court of common pleas for de novo review of the application.
3 (d) For the purpose of this section the phrase "extenuating
4 circumstances" means:
5 (1) Serious physical illness or injury or a combination of
6 such illness or injury with a state of prolonged unemployment
7 if: (i) the taxpayer is a permanent resident of the
8 Commonwealth, (ii) the illness or injury, or combination
9 thereof, occurred or persisted during any of the tax years for
10 which the delinquent taxes were assessed or during the year
11 immediately preceding any such delinquency, and (iii) the
12 illness or injury, or combination thereof, has been a
13 substantial cause of the taxpayer's failure to pay any such
14 delinquent tax or taxes to the date of application for relief
15 under this section.
16 (2) Unemployment if: (i) the taxpayer is a permanent
17 resident of the Commonwealth, (ii) the unemployment occurred or
18 persisted during any of the tax years for which the delinquent
19 taxes were assessed or during the year immediately preceding any
20 such delinquency, and (iii) the unemployment has been a
21 substantial cause of the taxpayer's failure to pay any such
22 delinquent tax or taxes to the date of application for relief
23 under this section.
24 (e) For the purpose of this section an extension of the
25 period for discharge of tax claim shall only apply to one (1)
26 owner-occupied property per taxpayer.
27 Section 2. Section 5 of the act of November 6, 1985 <--
28 SECTION 2. THE FOLLOWING ACTS AND PARTS OF ACTS ARE <--
29 REPEALED:
30 SECTION 5 OF THE ACT OF NOVEMBER 6, 1985 (P.L.305, No.76),
19890H1883B2641 - 5 -
1 entitled "An act amending the act of July 7, 1947 (P.L.1368,
2 No.542), entitled, as amended, 'An act amending, revising and
3 consolidating the laws relating to delinquent county, city,
4 except of the first and second class and second class A,
5 borough, town, township, school district, except of the first
6 class and school districts within cities of the second class A,
7 and institution district taxes, providing when, how and upon
8 what property, and to what extent liens shall be allowed for
9 such 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 and
15 divestiture by certain tax sales of all estates in property and
16 of mortgages and liens on such property, and the proceedings
17 therefor; creating a Tax Claim Bureau in each county, except
18 counties of the first and second class, to act as agent for
19 taxing districts; defining its powers and duties, including
20 sales of property, the management of property taken in
21 sequestration, and the management, sale and disposition of
22 property heretofore sold to the county commissioners, taxing
23 districts and trustees at tax sales; providing a method for the
24 service of process and notices; imposing duties on taxing
25 districts and their officers and on tax collectors, and certain
26 expenses on counties and for their reimbursement by taxing
27 districts; and repealing existing laws,' reviving provisions
28 relating to extension of the redemption period; authorizing
29 counties to extend the redemption period at the option of the
30 county commissioners; and making a repeal," is repealed. <--
19890H1883B2641 - 6 -
1 REPEAL." <--
2 SECTION 47 OF THE ACT OF JULY 3, 1986 (P.L.351, NO.81),
3 ENTITLED "AN ACT AMENDING THE ACT OF JULY 7, 1947 (P.L.1368,
4 NO.542), ENTITLED, AS AMENDED, 'AN ACT AMENDING, REVISING AND
5 CONSOLIDATING THE LAWS RELATING TO DELINQUENT COUNTY, CITY,
6 EXCEPT OF THE FIRST AND SECOND CLASS AND SECOND CLASS A,
7 BOROUGH, TOWN, TOWNSHIP, SCHOOL DISTRICT, EXCEPT OF THE FIRST
8 CLASS AND SCHOOL DISTRICTS WITHIN CITIES OF THE SECOND CLASS A,
9 AND INSTITUTION DISTRICT TAXES, PROVIDING WHEN, HOW AND UPON
10 WHAT PROPERTY, AND TO WHAT EXTENT LIENS SHALL BE ALLOWED FOR
11 SUCH TAXES, THE RETURN AND ENTERING OF CLAIMS THEREFOR; THE
12 COLLECTION AND ADJUDICATION OF SUCH CLAIMS, SALES OF REAL
13 PROPERTY, INCLUDING SEATED AND UNSEATED LANDS, SUBJECT TO THE
14 LIEN OF SUCH TAX CLAIMS; THE DISPOSITION OF THE PROCEEDS
15 THEREOF, INCLUDING STATE TAXES AND MUNICIPAL CLAIMS RECOVERED
16 AND THE REDEMPTION OF PROPERTY; PROVIDING FOR THE DISCHARGE AND
17 DIVESTITURE BY CERTAIN TAX SALES OF ALL ESTATES IN PROPERTY AND
18 OF MORTGAGES AND LIENS ON SUCH PROPERTY, AND THE PROCEEDINGS
19 THEREFOR; CREATING A TAX CLAIM BUREAU IN EACH COUNTY, EXCEPT
20 COUNTIES OF THE FIRST AND SECOND CLASS, TO ACT AS AGENT FOR
21 TAXING DISTRICTS; DEFINING ITS POWERS AND DUTIES, INCLUDING
22 SALES OF PROPERTY, THE MANAGEMENT OF PROPERTY TAKEN IN
23 SEQUESTRATION, AND THE MANAGEMENT, SALE AND DISPOSITION OF
24 PROPERTY HERETOFORE SOLD TO THE COUNTY COMMISSIONERS, TAXING
25 DISTRICTS AND TRUSTEES AT TAX SALES; PROVIDING A METHOD FOR THE
26 SERVICE OF PROCESS AND NOTICES; IMPOSING DUTIES ON TAXING
27 DISTRICTS AND THEIR OFFICERS AND ON TAX COLLECTORS, AND CERTAIN
28 EXPENSES ON COUNTIES AND FOR THEIR REIMBURSEMENT BY TAXING
29 DISTRICTS; AND REPEALING EXISTING LAWS,' ADDING AND AMENDING
30 DEFINITIONS; FURTHER PROVIDING FOR THE CREATION OF BUREAUS IN
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1 COUNTIES, FOR APPOINTMENT AND COMPENSATION OF PERSONNEL, FOR THE
2 BONDING OF CERTAIN PERSONNEL AND FOR ACCOUNTING AND
3 DISTRIBUTION; INCREASING CERTAIN COSTS AND FEES; FURTHER
4 PROVIDING FOR TAX LIENS, FILINGS, ADJUDICATIONS AND COLLECTION;
5 PROVIDING FOR DISCHARGE OF TAX CLAIMS; IMPOSING ADDITIONAL
6 NOTIFICATION REQUIREMENTS; FURTHER PROVIDING FOR SALE AND
7 PURCHASE OF PROPERTY; AND MAKING EDITORIAL CHANGES."
8 Section 3. The provisions of this act shall apply to all tax
9 claims against owner-occupied property which has not yet been
10 sold on the effective date of this act. The court of common
11 pleas of the county upon petition of the Tax Claims Bureau shall
12 stay the sale under this act of owner-occupied property subject
13 to a tax claim for which the period for discharge of tax claims
14 of section 501(a) of the act has expired on or before the
15 effective date of this act or for which the period for discharge
16 of tax claims will expire in less than 90 days from the
17 effective date of this act. The stay shall be for such period as
18 the court determines necessary for the bureau to comply with the
19 provisions of this act.
20 Section 4. Sections 308(a)(5), 502 and 503, reenacted by
21 this amendatory act, shall expire January 1, 1991.
22 Section 5. This act shall be retroactive to December 31,
23 1987.
24 Section 6. This act shall take effect immediately.
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