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.

19The General Assembly of the Commonwealth of Pennsylvania
20hereby enacts as follows:

21Section 1. Section 2 of the act of May 16, 1923 (P.L.207,
22No.153), referred to as the Municipal Claim and Tax Lien Law, is
23amended to read:

24Section 2. All taxes which may hereafter be lawfully imposed
25or assessed on any property in this Commonwealth, and all taxes
26heretofore lawfully imposed or assessed by any municipality on

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

14Section 2. Section 3(a) and (a.1) of the act, amended August
1514, 2003 (P.L.83, No.20), are amended to read:

16Section 3. (a) (1) All municipal claims, municipal liens,
17taxes, tax claims and tax liens which may hereafter be lawfully
18imposed or assessed on any property in this Commonwealth, and
19all such claims heretofore lawfully imposed or assessed within
20six months before the passage of this act and not yet liened, in
21the manner and to the extent hereinafter set forth, shall be and
22they are hereby declared to be a lien on said property, together
23with all charges, expenses, and fees incurred in the collection
24of any delinquent account, including reasonable attorney fees
25under subsection (a.1), added thereto for failure to pay
26promptly; and municipal claims and municipal liens shall arise
27when lawfully imposed and assessed and shall have priority to
28and be fully paid and satisfied out of the proceeds of any
29judicial sale of said property, before any other obligation,
30judgment, claim, lien, or estate with which the said property

1may become charged, or for which it may become liable, save and
2except only the costs of the sale and of the writ upon which it
3is made, and the taxes, tax claims and tax liens imposed or
4assessed upon said property.

5(2) (i) When any municipal tax on real property becomes
6delinquent, such tax, together with all charges, expenses and
7fees, including reasonable attorney fees, added thereto for
8failure to pay promptly, shall be a lien upon all other real
9property that is both owned by the delinquent taxpayer and
10located within this Commonwealth. Provided, however, that with
11respect to real property located outside the taxing
12municipality, no lien shall exist against such real property
13until filed with the prothonotary of the county or counties in
14which the real property is situated.

15(ii) A lien under this paragraph shall have the same force
16and effect as a personal judgment against the delinquent
17taxpayer and shall be subject to all prior claims, mortgages,
18ground rents, charges and estates.

19(iii) The inclusion in a lien under this paragraph of
20charges, expenses and fees incurred in the collection of any
21delinquent account, including reasonable attorney fees, shall be
22subject to the requirements of subsection (a.1).

23(a.1) It is not the intent of this [subsection] section to
24require owners to pay, or municipalities to sanction,
25inappropriate or unreasonable attorney fees, charges or expenses
26for routine functions. Attorney fees incurred in the collection
27of any delinquent account, including municipal claims, municipal
28liens, taxes, tax claims and tax liens, shall be in an amount
29sufficient to compensate attorneys undertaking collection and
30representation of a municipality or its assignee in any actions

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

15(1) The time and labor required, the novelty and difficulty
16of the questions involved and the skill requisite to properly
17undertake collection and representation of a [municipality in
18actions arising under subsection (a)] municipality.

19(2) The customary charges of the members of the bar for
20similar services.

21(3) The amount of the delinquent account collected and the
22benefit to the municipality from the services.

23(4) The contingency or the certainty of the compensation.

24* * *

25Section 3. Section 4 of the act, amended July 28, 1953
26(P.L.678, No.212), is amended to read:

27Section 4. The lien for taxes shall exist in favor of[, and
28the claim therefor may be filed against the property taxed by,]
29any municipality to which the tax is payable and the lien may be 
30filed against the property taxed by such municipality, as well 

1as against all other property that is both owned by the person 
2who owns the property subject to the tax and located within this 
3Commonwealth.

4The lien for the removal of nuisances shall exist in favor
5of, and the claim therefor may be filed against the property
6from which it is removed, or by which it is caused, by, any
7municipality by or for which the nuisance is removed.

8The lien for grading, guttering, paving, macadamizing, or
9otherwise improving the cartways of any highways; for grading,
10curbing, recurbing, paving, repaving, constructing, or repairing
11the footways thereof; or for laying water pipes, gas pipes,
12culverts, sewers, branch sewers, or sewer connections in any
13highway; for assessments for benefits in the opening, widening,
14or vacation thereof; or in the changing of watercourses or
15construction of sewers through private lands; or in highways of
16townships of the first class; or in the acquisition of sewers
17and drains constructed and owned by individuals or corporations,
18and of rights in and to use the same; or for water rates,
19lighting rates, or sewer rates, or rates for any other service
20furnished by a municipality,--shall exist in favor of, and the
21claim therefor may be filed against the property thereby
22benefited by, the municipality extending the benefit; or the
23city, borough, or township in which the property is located, if
24the work, material or service forming the basis of such lien was
25supplied by a municipal authority organized by a city of the
26second class, by a county of the second class or by a city of
27the third class and such liens or the claim therefor has been
28assigned to it.

29Municipal authorities organized by cities of the second
30class, by counties of the second class or by cities of the third

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

10When the contractor performing the work is to be paid by
11assessment bills, the lien shall exist for, and the claim shall
12be filed to, his use, and he shall under no circumstances have
13recourse to the municipality authorizing the work.

14Section 4. This act shall take effect in 60 days.