SENATE AMENDED
PRIOR PRINTER'S NOS. 498, 1456, 3305 PRINTER'S NO. 3383
No. 459 Session of 2005
INTRODUCED BY GINGRICH, ARMSTRONG, BALDWIN, BARRAR, BROWNE,
CALTAGIRONE, DENLINGER, J. EVANS, GEIST, GOODMAN, HALUSKA,
HARPER, HARRIS, HERMAN, HERSHEY, HICKERNELL, KAUFFMAN,
M. KELLER, MARSICO, R. MILLER, MUNDY, NAILOR, O'NEILL,
PETRONE, PHILLIPS, READSHAW, RUBLEY, SCAVELLO, STEIL,
E. Z. TAYLOR, WILT AND YOUNGBLOOD, FEBRUARY 14, 2005
SENATOR THOMPSON, APPROPRIATIONS, IN SENATE, RE-REPORTED AS
AMENDED, JANUARY 23, 2006
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," further providing for property subject to or
1 exempt from claim and for content of claims entered; and
2 providing for public record lists and for report of
3 nonpayment of taxes.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Sections 303 and 309 of the act of July 7, 1947
7 (P.L.1368, No.542), known as the Real Estate Tax Sale Law,
8 amended July 3, 1986 (P.L.351, No.81), are amended to read:
9 Section 303. Property Subject to or Exempt from Claim.-- <--
10 [All] (a) Except as provided in subsections (b) and (c), all
11 property, by whomsoever owned and for whatsoever purpose used,
12 and all property the owner of which is unknown and has been
13 unknown for a period of not less than five years, shall be
14 subject to claims for taxes[, except such property which is
15 exempt by law from taxation or which is not made subject to
16 taxation by law].
17 (b) Property which is exempt by law from taxation or which
18 is not made subject to taxation by law shall be exempt from
19 claims for taxes.
20 (c) (1) If the owner of property that is subject to a claim
21 for taxes donates the property to a county, city, borough,
22 incorporated town, township, home rule municipality, optional
23 plan municipality, optional charter municipality, school
24 district or redevelopment authority, pursuant to a joint
25 agreement, the claim for taxes against the property shall be
26 discharged and extinguished.
27 (2) Property that has been donated in accordance with this
28 subsection shall be exempt from claims filed by all local taxing
29 authorities for taxes during the time that it remains in the
30 ownership of the county, city, borough, incorporated town,
31 township, home rule municipality, optional plan municipality,
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1 optional charter municipality, school district or redevelopment
2 authority to which it was donated.
3 (3) If an owner of property that is subject to a claim for
4 taxes wishes to donate the property, the owner must do so prior
5 to receiving a notice of sale as required in section 602.
6 (4) Nothing in this section shall be construed to require a
7 county, city, borough, incorporated town, township, home rule
8 municipality, optional plan municipality, optional charter
9 municipality, school district or redevelopment authority to
10 accept an offer of property donation.
11 (d) Notwithstanding any other provision of law, an owner
12 that donates property in accordance with subsection (c) shall
13 not be personally liable for the amount of claims for taxes
14 exempted or extinguished as a result of the donation.
15 (e) For the purpose of this section, the phrase "claims for
16 taxes" shall include all penalties, interest and fees assessed
17 against the property.
18 SECTION 303. PROPERTY SUBJECT TO OR EXEMPT FROM CLAIM.--(A) <--
19 ALL PROPERTY, BY WHOMSOEVER OWNED AND FOR WHATSOEVER PURPOSE
20 USED, AND ALL PROPERTY THE OWNER OF WHICH IS UNKNOWN AND HAS
21 BEEN UNKNOWN FOR A PERIOD OF NOT LESS THAN FIVE YEARS, SHALL BE
22 SUBJECT TO CLAIMS FOR TAXES, EXCEPT SUCH PROPERTY WHICH IS
23 EXEMPT BY LAW FROM TAXATION OR WHICH IS NOT MADE SUBJECT TO
24 TAXATION BY LAW.
25 (B) NOTWITHSTANDING SUBSECTION (A), A LOCAL TAXING DISTRICT,
26 INCLUDING A MUNICIPAL AUTHORITY OR A SCHOOL DISTRICT IF ACTING
27 PURSUANT TO PARAGRAPH (6), MAY ACCEPT THE DONATION OF A PROPERTY
28 THAT IS SUBJECT TO A CLAIM FOR TAXES UNDER THIS ACT. A LOCAL
29 TAXING DISTRICT SHALL PROVIDE WRITTEN NOTICE TO ALL OTHER LOCAL
30 TAXING DISTRICTS OR THEIR DESIGNEES UNDER PARAGRAPH (5) OF A
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1 DONATION PROPOSED BY THE OWNER OF THE PROPERTY. A DONATION UNDER
2 THIS SUBSECTION SHALL NOT BE ACCEPTED LESS THAN THIRTY (30) DAYS
3 AFTER NOTICE TO ALL OTHER LOCAL TAXING DISTRICTS WHICH HAVE A
4 CLAIM FOR TAXES ON THE SUBJECT PROPERTY UNDER THIS ACT. A
5 DONATION UNDER THIS SUBSECTION SHALL DIVEST ALL LIENS AGAINST
6 THE PROPERTY POSSESSED BY THE LOCAL TAXING DISTRICT ACCEPTING
7 THE DONATION, AND ALL OTHER LOCAL TAX LIENS RECORDED PRIOR TO
8 THE DATE OF DONATION, EXCEPT AS PROVIDED IN THIS SUBSECTION.
9 (1) A LOCAL TAXING DISTRICT WHICH RECEIVES A NOTICE OF
10 PROPOSED DONATION MAY REQUEST TO PARTICIPATE IN NEGOTIATIONS
11 WITH REGARD TO THE DONATION AND EXTINGUISHMENT OF ALL OR PART OF
12 ITS LIENS AND WITH REGARD TO PROPOSALS TO RETURN THE PROPERTY TO
13 THE TAX ROLLS OR TO PRODUCTIVE PUBLIC USE. A LOCAL TAXING
14 DISTRICT WHICH DOES NOT RESPOND IN WRITING TO THE NOTICE WITHIN
15 THIRTY (30) DAYS OF RECEIPT OF THE NOTICE SHALL WAIVE ITS RIGHT
16 TO PARTICIPATE IN THE DONATION NEGOTIATIONS AND ITS LIEN SHALL
17 BE EXTINGUISHED. A LOCAL TAXING DISTRICT PARTICIPATING IN
18 DONATION NEGOTIATIONS MAY AGREE TO EXTINGUISH ALL EXISTING LIENS
19 AGAINST THE PROPERTY IN EXCHANGE FOR FULL OR PARTIAL
20 SATISFACTION OF ITS CLAIMS UPON FUTURE SALE OF THE PROPERTY BY
21 THE LOCAL TAXING DISTRICT ACCEPTING THE DONATION. EVERY
22 NEGOTIATION SHALL CONSIDER THE STRUCTURE OF THE PROPERTY, THE
23 MARKET VALUE OF THE PROPERTY IN ITS CURRENT CONDITION, THE BEST
24 USE OF THE PROPERTY GIVEN THE NEIGHBORHOOD AND LOCAL ORDINANCES
25 AND THE COSTS TO CURE ANY DEFECTS, INCLUDING DEFECTS IN TITLE.
26 (2) A DONATION UNDER THIS SUBSECTION SHALL BE BY DEED
27 RECORDED, AND REGISTERED WHERE REQUIRED, WITH THE COUNTY
28 RECORDER OF DEEDS. THE DEED SHALL BE ACCOMPANIED BY RECORDED
29 SATISFACTIONS OF ANY AND ALL CLAIMS FOR TAXES WHICH ARE
30 EXTINGUISHED BY VIRTUE OF THE DONATION. IN ALL INSTANCES, THE
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1 SATISFACTION FROM THE LOCAL TAXING DISTRICT WHICH IS ACCEPTING
2 OWNERSHIP OF THE PROPERTY PURSUANT TO THE DONATION SHALL PROVIDE
3 FOR FULL EXTINGUISHMENT OF ALL CLAIMS UNDER THIS ACT POSSESSED
4 BY IT. SATISFACTIONS OF LIENS SHALL PROVIDE THAT ALL CLAIMS OF
5 ALL LOCAL TAXING DISTRICTS IN WHICH THE PROPERTY IS LOCATED ARE
6 DISCHARGED AND EXTINGUISHED, UNLESS TERMS ARE OTHERWISE AGREED
7 UPON BETWEEN THE OWNER AND THE LOCAL TAXING DISTRICTS
8 PARTICIPATING IN THE DONATION NEGOTIATIONS.
9 (3) PROPERTY THAT HAS BEEN DONATED IN ACCORDANCE WITH THIS
10 SUBSECTION SHALL BE EXEMPT FROM CLAIMS FOR TAXES FROM ANY LOCAL
11 TAXING DISTRICT IN WHICH IT IS LOCATED DURING THE TIME THAT IT
12 REMAINS IN THE OWNERSHIP OF THE COUNTY, CITY, BOROUGH,
13 INCORPORATED TOWN, SCHOOL DISTRICT, TOWNSHIP, HOME RULE <--
14 MUNICIPALITY, OPTIONAL PLAN MUNICIPALITY, REDEVELOPMENT
15 AUTHORITY OR OPTIONAL CHARTER MUNICIPALITY TO WHICH IT WAS
16 DONATED.
17 (4) AN OWNER THAT DONATES PROPERTY IN ACCORDANCE WITH THIS
18 SUBSECTION SHALL NOT BE PERSONALLY LIABLE FOR THE AMOUNT OF
19 CLAIMS FOR TAXES EXEMPTED OR EXTINGUISHED AS A RESULT OF THE
20 DONATION.
21 (5) A LOCAL TAXING DISTRICT POSSESSING A CLAIM UNDER THIS
22 ACT MAY DESIGNATE ANOTHER LOCAL TAXING DISTRICT, OR THE
23 REDEVELOPMENT AUTHORITY IN THE COUNTY IN WHICH THE PROPERTY IS
24 LOCATED, TO ACT AS ITS AGENT WITH REGARD TO A DONATION UNDER
25 THIS SUBSECTION. A SINGLE LOCAL TAXING DISTRICT OR THE
26 REDEVELOPMENT AUTHORITY MAY BE SELECTED AS THE AGENT FOR ALL
27 LOCAL TAXING DISTRICTS HOLDING A TAX CLAIM OR LIEN AGAINST THE
28 PROPERTY UNDER THIS ACT. IN RETURNING THE PROPERTY TO THE TAX
29 ROLLS OR TO PRODUCTIVE PUBLIC USE, A REDEVELOPMENT AUTHORITY MAY
30 SEEK THE ASSISTANCE OF A COMMUNITY DEVELOPMENT CORPORATION
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1 SERVING THE AREA WHERE THE PROPERTY IS LOCATED.
2 (6) A SCHOOL DISTRICT OR MUNICIPAL AUTHORITY OTHER THAN A
3 REDEVELOPMENT AUTHORITY MAY PARTICIPATE IN THE PROVISIONS OF
4 THIS SUBSECTION ONLY IF THE SCHOOL DISTRICT OR MUNICIPAL
5 AUTHORITY HAS DESIGNATED AN AGENT IN ACCORDANCE WITH PARAGRAPH
6 (5). NOTHING IN THIS SUBSECTION SHALL PREVENT A SCHOOL DISTRICT
7 OR MUNICIPAL AUTHORITY FROM TAKING TITLE TO A DONATED PROPERTY
8 IF IT IS DETERMINED DURING NEGOTIATIONS THAT THE BEST MANNER TO
9 RETURN THE PROPERTY TO PRODUCTIVE USE IS TO ALLOW A SCHOOL
10 DISTRICT OR MUNICIPAL AUTHORITY TO USE THE PROPERTY FOR PURPOSES
11 DIRECTLY RELATED TO THE MISSION OF THE DISTRICT OR AUTHORITY.
12 (C) IF AN OWNER OF PROPERTY THAT IS SUBJECT TO A CLAIM FOR
13 TAXES WISHES TO DONATE THE PROPERTY UNDER SUBSECTION (B), THE
14 OWNER MUST DO SO PRIOR TO RECEIVING A NOTICE OF SALE AS REQUIRED
15 IN SECTION 602.
16 (D) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO REQUIRE A
17 COUNTY, CITY, BOROUGH, INCORPORATED TOWN, TOWNSHIP, HOME RULE
18 MUNICIPALITY, OPTIONAL PLAN MUNICIPALITY, OPTIONAL CHARTER
19 MUNICIPALITY, SCHOOL DISTRICT OR REDEVELOPMENT AUTHORITY TO
20 ACCEPT AN OFFER OF PROPERTY DONATION.
21 (E) FOR THE PURPOSE OF THIS SECTION, THE PHRASE "CLAIMS FOR
22 TAXES" SHALL INCLUDE ALL PENALTIES, INTEREST AND FEES ASSESSED
23 AGAINST THE PROPERTY.
24 Section 309. Contents of Claims Entered.--All claims for
25 taxes returned, made up as a claim and entered in the claim
26 docket in the bureau shall set forth:
27 (a) The names of the taxing districts for which filed,
28 (b) Except when the owner of the property is unknown and has
29 been unknown for a period of not less than five years, the name
30 of the owner and the owner's last known address, including the
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1 zip code by virtue of the knowledge and information possessed by
2 the bureau, by the tax collector for the taxing district making
3 the return and by the county office responsible for assessments
4 and revisions of taxes, of the property against which it is
5 filed,
6 (c) A description of the property against which the claim is
7 filed sufficient to identify the same. A description of the
8 property shall be deemed sufficient if it contains (1) a
9 reference to a record of a deed or other instrument of
10 conveyance which describes the property, or (2) a reference to
11 the number or number and block of the property in a plan,
12 recorded in the office of the recorder of deeds of the county,
13 and the record of such plan, or (3) a reference to the number on
14 any lot and block plan officially adopted by a taxing district,
15 or (4) a statement of the street and number of the property as
16 officially designated by public authorities of a taxing district
17 as of the time the property was assessed, or (5) where the
18 property is not identified by reference to the record of a deed,
19 or other instrument of conveyance, and may not be identified by
20 street and number, or by recorded plan, or by a lot and block
21 plan, a statement of the approximate acreage of the property and
22 the name of at least one (1) owner of adjoining property, if
23 such statement is accompanied by information showing the
24 character of and use to which the property is devoted, as for
25 instance "dwelling and lot," "vacant lot," "vacant land" or
26 "hotel, restaurant, apartment house, office building, bank
27 building, manufacturing plant, industrial plant and the lands
28 belonging thereto," or "farm and the buildings thereon," or
29 "plant nursery and buildings thereon," or "forest or woodland,"
30 or "wasteland," or "coal, oil or other mineral severed from the
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1 surface," etc., or intelligible abbreviations thereof. A
2 variation in the description of the property given in the claim
3 filed from that shown on the assessment for tax purposes shall
4 not constitute an irregularity and shall not invalidate the
5 claim. The aforesaid description shall not be deemed exclusive.
6 (d) The year or years, period or periods, for which the
7 respective taxes were levied, and the amount of taxes due for
8 each year, or period, and the penalties and interest due thereon
9 at the time of filing.
10 (e) That due notice of the returns of such taxes, the entry
11 of the claim and that the same would become absolute, if no
12 exceptions were filed, was given to the owner or posted on the
13 property in the manner required by law.
14 Said claim shall be entered in the office of the bureau in
15 the proper claim docket and be signed by or have stamped thereon
16 a facsimile signature of the director.
17 Section 2. Section 315 of the act, amended September 27,
18 1973 (P.L.264, No.74) is amended to read:
19 Section 315. Claims; Dockets; Satisfaction[.--] and Public
20 Record Lists.--(a) Every return made to and every claim made up
21 by the bureau and the result of every proceeding thereon,
22 entered in accordance with this act, shall be docketed in
23 appropriate dockets in the office of the bureau suitably indexed
24 and when so entered shall continue the lien of the tax against
25 the property charged with the tax.
26 When a claim is stricken off or reduced or satisfied by
27 payment or a sale has been held of the property covered by the
28 claim, the director shall cause a note thereof to be made on
29 such docket and index and shall authenticate the same.
30 (b) In addition, the bureau shall maintain as a public
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1 record a list of all properties against which taxes were levied,
2 the whole or any part of which were due and payable in a prior
3 year and which remain unpaid. This list shall describe the
4 property and identify its location, provide the name and last
5 known address, including the zip code of the owner of the
6 property, as determined by the knowledge and information
7 possessed by the bureau, the tax collector for the taxing
8 district that made the return, and the county office responsible
9 for making assessment and revisions of taxes, and the amount of
10 unpaid taxes, penalties and interest due, for all years other
11 than the current tax year. If taxes on the list are paid or
12 another settlement had been agreed to or if a tax sale of the
13 property is held, this fact shall be noted on the list.
14 (c) The bureau may report any nonpayment of taxes, including
15 liens, to one or more consumer reporting agencies, as defined by
16 the Fair Credit Reporting Act (Public Law 91-508, 15 U.S.C. §
17 1681 et seq.).
18 Section 3. This act shall take effect in 60 days.
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