PRIOR PRINTER'S NO. 874 PRINTER'S NO. 1456
No. 777 Session of 2007
INTRODUCED BY BROWNE, BOSCOLA, ERICKSON, COSTA, FERLO, LOGAN, O'PAKE AND ORIE, APRIL 23, 2007
SENATOR BROWNE, FINANCE, RE-REPORTED AS AMENDED, OCTOBER 15, 2007
AN ACT 1 Amending the act of May 16, 1923 (P.L.207, No.153), entitled "An 2 act providing when, how, upon what property, and to what 3 extent, liens shall be allowed for taxes and for municipal 4 improvements, for the removal of nuisances, and for water 5 rents or rates, sewer rates, and lighting rates; for the 6 procedure upon claims filed therefor; the methods for 7 preserving such liens and enforcing payment of such claims; 8 the effect of judicial sales of the properties liened; the 9 distribution of the proceeds of such sales, and the 10 redemption of the property therefrom; for the lien and 11 collection of certain taxes heretofore assessed, and of 12 claims for municipal improvements made and nuisances removed, 13 within six months before the passage of this act; and for the 14 procedure on tax and municipal claims filed under other and 15 prior acts of Assembly," changing the date from which, and 16 the rate of which, interest is charged on certain delinquent 17 taxes and other municipal claims; providing for the duties of 18 third-party collectors and for adoption of ordinance for the 19 exclusive collection of taxes; further providing for locality 20 index; and modernizing the law relating to collection of such <-- 21 taxes and claims; AND PROVIDING FOR SEVERABILITY. <-- 22 The General Assembly of the Commonwealth of Pennsylvania 23 hereby enacts as follows: 24 Section 1. Section 1 of the act of May 16, 1923 (P.L.207, <-- 25 No.153), referred to as the Municipal Claim and Tax Lien Law, 26 amended August 14, 2003 (P.L.83, No.20) and July 15, 2004
1 (P.L.726, No.83), is amended to read: 2 Section 1. Be it enacted, &c., That the word "taxes," as 3 used in this act, means any county, city, borough, incorporated 4 town, township, school, bridge, road, or poor taxes, together 5 with and including all penalties, interest, costs, charges, 6 expenses and fees, including reasonable attorney fees, as 7 allowed by this act and all other applicable laws. 8 Except with respect to counties of the second class, the word 9 "delinquent," as used in this act, refers to taxes that remain 10 unpaid on December 31 of the calendar year in which they were 11 assessed; and municipal claims, other than tax claims, that 12 remain unpaid ninety days after the date of billing for such 13 claims. 14 The word "highway," as used in this act, means the whole or 15 any part of any public street, public road, public lane, public 16 alley, or other public highway. 17 The words "tax claim," as used in this act, mean the claim 18 filed to recover taxes. 19 The words "municipal claim," as used in this act, unless 20 specifically indicated otherwise, mean and include (1) the claim 21 arising out of, or resulting from, a tax assessed, service 22 supplied, work done, or improvement authorized and undertaken, 23 by a municipality, although the amount thereof be not at the 24 time definitely ascertained by the authority authorized to 25 determine the same, and a lien therefor be not filed, but 26 becomes filable within the period and in the manner herein 27 provided, (2) the claim filed to recover for the grading, 28 guttering, macadamizing, or otherwise improving, the cartways of 29 any public highway; for grading, curbing, recurbing, paving, 30 repaving, constructing, or repairing the footways thereof; for 20070S0777B1456 - 2 -
1 laying water pipes, gas pipes, culverts, sewers, branch sewers, 2 or sewer connections therein; for assessments for benefits in 3 the opening, widening or vacation thereof; or in the changing of 4 water-courses or the construction of sewers through private 5 lands; or in highways of townships of the first class; or in the 6 acquisition of sewers and drains constructed and owned by 7 individuals or corporations, and of rights in and to use the 8 same; for the removal of nuisances; or for garbage fees, 9 recycling fees, landlord licensing and inspection fees, water 10 rates, lighting rates, or sewer rates, and (3) the claim filed 11 to recover for work, material, and services rendered or 12 furnished in the construction, improvement, maintenance, and 13 operation of a project or projects of a body politic or 14 corporate created as a Municipal Authority pursuant to law. A 15 municipal claim shall be together with and shall include all 16 penalties, interest, costs, fines, charges, expenses and fees, 17 including reasonable attorney fees, as allowed by this act and 18 all other applicable laws. 19 The word "claimant," as used in this act, means the plaintiff 20 or use-plaintiff in whose favor the claim is filed as a lien. 21 The word "contractor," as used in this act, means the person 22 or persons who, under contract with the legal plaintiff, 23 performed the work for which the lien is given. 24 The word "property," as used in this act, means the real 25 estate subject to the lien and against which the claim is filed 26 as a lien. 27 The word "owner," as used in this act, means the person or 28 persons in whose name the property is registered, if registered 29 according to law, and, in all other cases, means any person or 30 persons in open, peaceable and notorious possession of the 20070S0777B1456 - 3 -
1 property, as apparent owner or owners thereof, if any, or the 2 reputed owner or owners thereof in the neighborhood of such 3 property. 4 The word "municipality," as used in this act, means any 5 county, city, borough, incorporated town, township, school 6 district, or a body politic and corporate created as a Municipal 7 Authority pursuant to law and any assignees thereof. 8 The words "charges, expenses, and fees," as used in this act, 9 include all sums paid or incurred by a municipality to file, 10 preserve and collect unpaid taxes, tax claims, tax liens, 11 municipal claims and municipal liens, including, but not limited 12 to, prothonotary and sheriff fees, postage expenses, [and] title 13 search expenses and title insurance fees. A county, city, 14 borough, incorporated town, township, school district or 15 municipal authority may also recover as "charges, expenses, and 16 fees" the charges, expenses, commissions and fees of third-party 17 collectors retained by the county, city, borough, incorporated 18 town, township, school district or municipal authority, provided 19 that the charges, expenses, commissions and fees of such third- 20 party collectors are approved by legislative action of the 21 county, city, borough, incorporated town, township, school 22 district or municipal authority which levies the unpaid taxes, 23 tax claims, tax liens, municipal claims and municipal liens. 24 Section 2. Section 3 of the act, amended August 14, 2003 25 (P.L.83, No.20), is amended to read: 26 Section 3. (a) All municipal claims, municipal liens, 27 taxes, tax claims and tax liens which may hereafter be lawfully 28 imposed or assessed on any property in this Commonwealth, and 29 all such claims heretofore lawfully imposed or assessed within 30 six months before the passage of this act and not yet liened, in 20070S0777B1456 - 4 -
1 the manner and to the extent hereinafter set forth, shall be and 2 they are hereby declared to be a lien on said property, together 3 with all charges, expenses, and fees incurred in the collection 4 of any delinquent account, including reasonable attorney fees 5 under subsection (a.1), added thereto for failure to pay 6 promptly; and municipal claims and municipal liens shall arise 7 when lawfully imposed and assessed and shall have priority to 8 and be fully paid and satisfied out of the proceeds of any 9 judicial sale of said property, before any other obligation, 10 judgment, claim, lien, or estate with which the said property 11 may become charged, or for which it may become liable, save and 12 except only the costs of the sale and of the writ upon which it 13 is made, and the taxes, tax claims and tax liens imposed or 14 assessed upon said property. 15 (a.1) [It is not the intent of this subsection to require 16 owners to pay, or municipalities to sanction, inappropriate or 17 unreasonable attorney fees, charges or expenses for routine 18 functions.] Attorney fees incurred in the collection of any 19 delinquent account, including municipal claims, municipal liens, 20 taxes, tax claims and tax liens, shall be in an amount 21 sufficient to compensate attorneys undertaking collection and 22 representation of a municipality or its assignee in any actions 23 in law or equity involving claims arising under this act. A 24 municipality by ordinance, or by resolution if the municipality 25 is of a class which does not have the power to enact an 26 ordinance, shall adopt the schedule of attorney fees. Where 27 attorney fees are sought to be collected in connection with the 28 collection of a delinquent account, including municipal claims, 29 municipal liens, taxes, tax claims and tax liens, the owner may 30 petition the court of common pleas in the county where the 20070S0777B1456 - 5 -
1 property subject to the municipal claim and lien, tax claim and 2 lien or taxes is located to adjudicate the reasonableness of the 3 attorney fees imposed. In the event that there is a challenge to 4 the reasonableness of the attorney fees imposed in accordance 5 with this section, the court shall consider, but not be limited 6 to, the following: 7 (1) The time and labor required, the novelty and difficulty 8 of the questions involved and the skill requisite to properly 9 undertake collection and representation of a municipality in 10 actions arising under subsection (a). 11 (2) The customary charges of the members of the bar for 12 similar services. 13 (3) The [amount of the delinquent account collected and the] 14 benefit to the municipality from the services. 15 (4) The contingency or the certainty of the compensation. 16 (a.2) Any time attorney fees are awarded pursuant to any 17 provision of law, the municipality shall not be entitled to 18 duplicate recovery of attorney fees under this section. 19 (a.3) (1) At least thirty days prior to assessing or 20 imposing attorney fees in connection with the collection of a 21 delinquent account, including municipal claims, municipal liens, 22 taxes, tax claims and tax liens, a municipality shall, by United 23 States certified mail, return receipt requested, postage 24 prepaid, mail to the owner the notice required by this 25 subsection. 26 (2) If within thirty days of mailing the notice in 27 accordance with clause (1) the certified mail is refused or 28 unclaimed or the return receipt is not received, then at least 29 ten days prior to assessing or imposing attorney fees in 30 connection with the collection of a delinquent account, a 20070S0777B1456 - 6 -
1 municipality shall, by United States first class mail, mail to 2 the owner the notice required by this subsection. 3 (3) The notice required by this subsection shall be mailed 4 to the owner's last known post office address by virtue of the 5 knowledge and information possessed by the municipality and by 6 the county office responsible for assessments and revisions of 7 taxes. It shall be the duty of the municipality to determine the 8 owner's last post office address known to said collector and 9 county assessment office. 10 (4) The notice to the owner shall include the following: 11 (i) A statement of the municipality's intent to impose or 12 assess attorney fees within thirty days of mailing the notice 13 pursuant to clause (1) or within ten days of the mailing of the 14 notice pursuant to clause (2). 15 (ii) The manner in which the imposition or assessment of 16 attorney fees may be avoided by payment of the delinquent 17 account. 18 (b) With the exception of those claims which have been 19 assigned, any municipal claim, municipal lien, tax, tax claim or 20 tax lien, including interest, penalty and costs, imposed by a 21 city of the first class, shall be a judgment only against the 22 said property when the lien has been docketed by the 23 prothonotary. The docketing of the lien shall be given the 24 effect of a judgment against the said property only with respect 25 to which the claim is filed as a lien. The prothonotary shall 26 maintain an in rem index, the form and location of which shall 27 be within the prothonotary's discretion. All tax claims, water 28 rents or rates, lighting rates, power rates and sewer rates 29 heretofore filed are hereby ratified, confirmed and made valid 30 subsisting liens as of the date of their original filing. 20070S0777B1456 - 7 -
1 (c) A writ of execution may issue directly without 2 prosecution to judgment of a writ of scire facias. Any property 3 sold in execution shall be sold in compliance with the 4 provisions of section 31.2. 5 (d) Attorney fees may be imposed and collected in accordance 6 with this section upon all taxes, tax claims, tax liens, 7 municipal claims, municipal liens, writs of scire facias, 8 judgments or executions filed on or after December 19, 1990. 9 Section 3. Section 9 of the act, amended February 21, 2006 10 (P.L.46, No.18), is amended to read: 11 Section 9. Claims for taxes, water rents or rates, lighting 12 rates, power rates and sewer rates must be filed in the court of 13 common pleas of the county in which the property is situated 14 unless the property is situate in the City of Philadelphia and 15 the taxes or rates do not exceed the maximum amount over which 16 the Municipal Court of Philadelphia has original jurisdiction, 17 in which event the claim must be filed in the Municipal Court of 18 Philadelphia. All such claims shall be filed on or before the 19 last day of the third calendar year after that in which the 20 taxes or rates are first payable, except that in cities and 21 school districts of the first class claims for taxes and other 22 municipal claims, which have heretofore become liens pursuant to 23 the provisions of this act or which have been entered of record 24 as liens or which have been liened and revived, shall continue 25 and remain as liens for the period of twenty years from such 26 revival, entry or lien by operation of law, whichever shall have 27 last occurred; and other municipal claims must be filed in said 28 court of common pleas or the Municipal Court of Philadelphia 29 within six months from the time the work was done in front of 30 the particular property, where the charge against the property 20070S0777B1456 - 8 -
1 is assessed or made at the time the work is authorized; within 2 six months after the completion of the improvement, where the 3 assessment is made by the municipality upon all the properties 4 after the completion of the improvement; and within six months 5 after confirmation by the court, where confirmation is required; 6 the certificate of the surveyor, engineer, or other officer 7 supervising the improvement, filed in the proper office, being 8 conclusive of the time of completion thereof, but he being 9 personally liable to anyone injured by any false statement 10 therein. Where a borough lies in more than one county, any such 11 claim filed by such borough may be filed in each of such 12 counties. In case the real estate benefited by the improvement 13 is sold before the municipal claim is filed, the date of 14 completion in said certificate shall determine the liability for 15 the payment of the claim as between buyer and seller, unless 16 otherwise agreed upon or as above set forth. A number of years' 17 taxes or rates of different kinds if payable to the same 18 plaintiff may be included in one claim. Interest as determined 19 by the municipality at a rate not to exceed ten per cent per 20 annum shall be collectible on all taxes, tax claims and 21 municipal claims from the date [of the completion of the work 22 after it is filed as a lien, and on claims for taxes, water 23 rents or rates, lighting rates, or sewer rates from the date of 24 the filing of the lien therefor] on which the claims become 25 delinquent or as otherwise provided by law for counties of the 26 second class: Provided, however, That after the effective date 27 of this amendatory act where municipal claims are filed arising 28 out of a municipal project which required the municipality to 29 issue bonds to finance the project interest shall be collectible 30 on such claims at the rate of interest of the bond issue or at 20070S0777B1456 - 9 -
1 the rate of twelve per cent per annum, whichever is less. Where 2 the provisions of any other act relating to claims for taxes, 3 water rents or rates, lighting rates, power rates, sewer rents 4 or rates or for any other type of municipal claim or lien 5 utilizes the procedures provided in this act and where the 6 provisions of such other act establishes a different rate of 7 interest for such claims or liens, the maximum rate of interest 8 of ten per cent per annum as provided for in this section shall 9 be applicable to the claims and liens provided for under such 10 other acts: Provided, however, That after the effective date of 11 this amendatory act where municipal claims are filed arising out 12 of a municipal project which required the municipality to issue 13 bonds to finance the project interest shall be collectible on 14 such claims at the rate of interest of the bond issue or at the 15 rate of twelve per cent per annum, whichever is less. 16 Claims for taxes, water rents, or rates, lighting rates, 17 power rates and sewer rates may be in the form of written or 18 typewritten lists showing the names of the taxables, including 19 the name and last known address, with its zip code, of the owner 20 of each property against which a claim is being filed, and 21 descriptions of the properties against which the claims are 22 filed, together with the amount of the taxes due such 23 municipality. Such lists may be filed on behalf of a single 24 municipality, or they may cover the unpaid taxes due any two or 25 more municipalities whose taxes are collected by the same tax 26 collector, provided the amounts due each municipality are 27 separately shown. All tax claims, water rents, or rates, 28 lighting rates, power rates and sewer rates, heretofore filed in 29 such form, are hereby ratified, confirmed and made valid 30 subsisting liens as of the date of their original filing. 20070S0777B1456 - 10 -
1 A number of years' taxes or rates of different kinds, if 2 payable to the same plaintiff, may be included in one claim. 3 Municipal claims shall likewise be filed within said period, 4 where any appeal is taken from the assessment for the recovery 5 of which such municipal claim is filed. In such case the lien 6 filed shall be in the form hereinafter provided, except that it 7 shall set forth the amount of the claim as an undetermined 8 amount, the amount thereof to be determined by the appeal taken 9 from the assessment upon which such municipal claim is based, 10 pending in a certain court (referring to the court and the 11 proceeding where such appeal is pending). Upon the filing of 12 such municipal claim, the claim shall be indexed by the 13 prothonotary upon the judgment index and upon the locality index 14 of the court, and the amount of the claim set forth therein as 15 an undetermined amount. 16 If final judgment is not obtained upon such appeal within 17 twenty years from the filing of such municipal claim, the 18 claimant in the lien shall, within such period of twenty years, 19 file a suggestion of nonpayment, in the form hereinafter set 20 forth, which shall have the effect of continuing the lien 21 thereof for a further period of twenty years from the date of 22 filing such suggestion, except that with respect to claims for 23 taxes and other municipal claims, in cities and school districts 24 of the first class, if final judgment is not obtained upon such 25 appeal within twenty years from the filing of such municipal 26 claims, the claimant in the lien shall, within such period of 27 twenty years, file a suggestion of nonpayment in the prescribed 28 form which shall have the effect of continuing the lien thereof 29 for a further period of twenty years from the date of filing 30 such suggestion. Such municipal claim shall be revived in a 20070S0777B1456 - 11 -
1 similar manner during each recurring period of twenty years 2 thereafter, until final judgment is entered upon said appeal and 3 the undetermined amount of such municipal claim is fixed in the 4 manner hereinafter provided, except that with respect to claims 5 for taxes and other municipal claims, in cities and school 6 districts of the first class, such municipal claims shall be 7 revived in a similar manner during each recurring period of 8 twenty years thereafter until final judgment is entered upon 9 said appeal and the undetermined amount of such municipal claim 10 is fixed in the manner hereinafter provided. 11 When the final judgment is obtained upon such appeal, the 12 court in which said municipal claim is pending shall, upon the 13 petition of any interested party, make an order fixing the 14 undetermined amount claimed in such claim at the amount 15 determined by the final judgment upon said appeal, which shall 16 bear interest from the date of the verdict upon which final 17 judgment was entered, and thereafter the amount of said claim 18 shall be the sum thus fixed. Proceedings upon said municipal 19 claim thereafter shall be as in other cases. 20 Where, on final judgment upon said appeal, it appears that no 21 amount is due upon the assessment for the recovery of which such 22 claim is filed, the court in which such municipal claim is 23 pending shall, upon the petition of any interested party, make 24 an order striking such municipal claim from the record, and 25 charge the costs upon such claim to the plaintiff in the claim 26 filed. 27 Where such appeal is discontinued, the court in which such 28 municipal claim is pending shall, upon the petition of any 29 interested party, make an order fixing the undetermined amount 30 claimed at the amount of the original assessment, which shall 20070S0777B1456 - 12 -
1 bear interest from the date that such assessment was originally 2 payable, and thereafter the amount of such claim shall be the 3 sum thus fixed. 4 In counties of the second class and municipalities therein, 5 interest at the applicable per annum rate shall accrue monthly 6 on all taxes, tax claims and municipal claims on the first day 7 of the month for the entire month, or part thereof, in which the 8 taxes, tax claims or municipal claims are paid. Interest shall 9 not be paid on a per diem basis. In counties of the second 10 class, all county taxes after the same become delinquent, as 11 provided by law, shall include a penalty of five per centum for 12 such delinquency. 13 In counties of the second class, taxes and tax claims, when 14 collected, shall be paid into the county treasury for the use of 15 the county unless the taxes and tax claims are assigned, in 16 which event there is no requirement that the taxes and tax 17 claims collected by the assignee be paid into the county 18 treasury. 19 In counties of the second class, the county shall not be 20 required to advance or pay any fee to the prothonotary for the 21 filing of paper or electronic filing or performing any services 22 for the second class county relating to the filing, 23 satisfaction, assignment, transfer, revival, amendment, 24 enforcement and collection of taxes, tax claims and tax liens. 25 The prothonotary shall accept filings by or on behalf of the 26 second class county relating to the taxes, tax claims and tax 27 liens and note the cost for such service performed on the 28 docket, and the second class county, its employees, 29 representatives, agents and assigns shall thereafter collect 30 such fee as a cost as part of the taxes, tax claims and tax 20070S0777B1456 - 13 -
1 liens. 2 Section 4. Sections 14 and 18 of the act are amended to 3 read: 4 Section 14. Any defendant named in the claim, or any person 5 allowed to intervene and defend thereagainst, may, at any stage 6 of the proceedings, present his petition, under oath or 7 affirmation, setting forth that he has a defense in whole or in 8 part thereto, and of what it consists; and praying that a rule 9 be granted upon the claimant to file an affidavit of the amount 10 claimed by him, and to show cause why the petitioner should not 11 have leave to pay money into court; and, in the case of a 12 municipal claim, to enter security in lieu of the claim; 13 whereupon a rule shall be granted as prayed for. Upon the 14 pleadings filed, or from the claim and the affidavit of defense, 15 and without a petition where an affidavit of defense has been 16 filed, the court shall determine how much of the claim is 17 admitted or not sufficiently denied; and shall enter a decree 18 that upon payment by such petitioner to the claimant of the 19 amount thus found to be due, with interest and costs if anything 20 be found to be due, or upon payment into court, if the claimant 21 refuses to accept the same, and upon payment into court of a sum 22 sufficient to cover the balance claimed, with interest and 23 costs, or upon the entry of approved security in the case of a 24 municipal claim, that such claim shall be wholly discharged as a 25 lien against the property described therein, and shall be 26 stricken from the judgment index. Thereafter the material, 27 disputed facts, if any, [shall] may be tried by a jury or the 28 court, without further pleadings, with the same effect as if a 29 writ of scire facias had duly issued upon said claim, to recover 30 the balance thereof; but the jury or the court shall be sworn to 20070S0777B1456 - 14 -
1 try the issues between the claimant and the parties who paid the 2 fund into court or entered security, and verdict, judgment and 3 payment, or execution, shall follow as in other cases. The same 4 course may be pursued, at the instance of any owner, where the 5 claim has not in fact been filed, and if, in that event, the 6 petitioner complies with the decree made, the money paid into 7 court or security entered shall stand in lieu of the claim and 8 the latter shall not be filed, and if filed shall be stricken 9 off upon motion. 10 Section 18. The sheriff to whom the scire facias is given 11 for service shall add to the writ, as parties defendant, all 12 persons, other than those named therein, who may be found in 13 possession of the property described, or any part thereof, and 14 in case no one is found in possession by the sheriff he shall 15 post a true copy of the writ on the most public part of said 16 property; and he shall add to the said writ the names of any 17 persons, not already named therein, whom he may ascertain to 18 have an interest in the property described, or any part thereof, 19 which writ shall then be further served as follows: 20 (a) By serving, as in the case of a summons, such of those 21 named in the writ, or added thereto, as may be found in the 22 county in which the writ issued; and, 23 (b) Where the sheriff has information that those named in 24 the writ, or added thereto, or any of them, may be found in any 25 other county of this Commonwealth, the said person shall be 26 served, as in the case of a summons, by the sheriff of the 27 county in which the said defendants or any of them may reside, 28 he being deputized for that purpose by the sheriff of the county 29 in which the writ issues; and, 30 (c) (1) (i) In case any of those named in the writ, or 20070S0777B1456 - 15 -
1 added thereto, cannot be found by the sheriff, or their 2 residences within this Commonwealth are unknown to him, or in 3 case they reside without the Commonwealth or are deceased, the 4 said writ may be served [by advertising a copy thereof, or a 5 brief notice of the contents of the same, once a week for three 6 successive weeks, in one newspaper of general circulation in the 7 county, and in the legal periodical, if any, designated by the 8 court for that purpose: Provided, however, That any defendant 9 may accept service of said writ, in person or by counsel, with 10 the same effect as if duly served therewith by the sheriff.] as 11 follows: 12 (A) advertising a copy thereof, or a brief notice of the 13 contents of the same, once a week for three successive weeks, in 14 one newspaper of general circulation in the county, and in the 15 legal periodical, if any, designated by the court for that 16 purpose. If service is authorized by advertising upon the heirs 17 and assigns of a deceased defendant, service may be made by 18 advertising against the heirs or assigns generally if their 19 identity is unknown; or 20 (B) in the alternative, service may be made in accordance 21 with Pa.R.C.P. No.410 (relating to real property actions) for 22 service in real property actions. 23 (ii) Notwithstanding subparagraph (i), any defendant may 24 accept service of said writ, in person or by counsel, with the 25 same effect as if duly served therewith by the sheriff. 26 (2) Where the said writ, or the brief notice of the contents 27 thereof, have been advertised as aforesaid, the same shall have 28 the same effect as if the writ had been personally served; and 29 all those named therein, or added thereto, as to whom 30 publication has been made, shall file their affidavit of 20070S0777B1456 - 16 -
1 defense, as required by the said writ, within fifteen days after 2 the date of the last weekly advertisement of the said writ; and 3 all those named therein or added thereto, who have been served 4 as in case of a summons, shall file their affidavit of defense, 5 as required by said writ, within fifteen days after such 6 service. Service of any such writ may be made at any time within 7 three months from the date on which it was issued, but it shall 8 be served and returned at the earliest date possible, and the 9 plaintiff may require its return at any time, whether or not it 10 be actually served. 11 Section 5. Section 26 of the act, amended February 21, 2006 12 (P.L.46, No.18), is amended to read: 13 Section 26. (a) It shall be the duty of the prothonotaries 14 of the courts of common pleas to keep a locality index, in which 15 shall be entered all tax or municipal claims hereafter filed, 16 and, upon any written order therefor, they shall give a 17 certificate of search, showing all the claims filed against any 18 property. For so doing they shall receive the sum of twenty-five 19 cents, and five cents additional for each claim certified, and 20 no more. 21 (b) (1) In addition to the requirements of subsection (a), 22 [the department or public official responsible for collection of 23 delinquent taxes in a city of the first class or other 24 municipality that utilizes this act for the collection of 25 delinquent taxes, and the county treasurer in a county of the 26 second class,] any municipality that utilizes the act for the 27 collection of delinquent taxes shall maintain [as] a public 28 record [a list of] with respect to all properties against which 29 taxes [were] are levied, the whole or any part of which were due 30 and payable in a prior year and which remain unpaid. [This list 20070S0777B1456 - 17 -
1 shall describe the property and identify its location, provide 2 the name and last known address, including the zip code, of the 3 owner of the property and the amount of unpaid taxes, penalties 4 and interest due, for all years other than the current tax year. 5 If taxes on the list are paid or another settlement had been 6 agreed to or if a tax sale of the property is held, this fact 7 shall be noted on the list.] In a city of the first class, the 8 public record shall be maintained by the department or public 9 official responsible for collection of delinquent taxes. In a 10 county of the second class, the public record shall be 11 maintained by the county treasurer. The record shall be 12 considered to be a public record under the act of June 21, 1957 13 (P.L.390, No.212), referred to as the Right-to-Know Law, and 14 shall contain all of the following for each property: 15 (i) Its location. 16 (ii) The property owner's name. 17 (iii) The last known address, including the zip code of the 18 owner, if available. 19 (iv) The amount of unpaid taxes, penalties and interest due 20 for all years other than the current tax year. 21 (2) In addition to the requirements of subsection (a), the 22 department or public official responsible for collection of 23 delinquent taxes may report any nonpayment of taxes, including 24 liens, to one or more consumer reporting agencies, as defined by 25 the Fair Credit Reporting Act (Public Law 91-508, 15 U.S.C. § 26 1681 et seq.). 27 (3) Unless otherwise provided for by the municipality, a 28 third-party collector responsible for a given year's taxes shall 29 comply with all requirements of clause (1). A municipality and 30 third-party collector may agree to delegate the municipality's 20070S0777B1456 - 18 -
1 requirements under clause (1) to the third-party collector. 2 Absent such delegation, the municipality shall be the custodian 3 of the list in clause (1). This requirement may be met by 4 publishing the information electronically or by paper lists. 5 (4) Certifications of taxes due and taxes paid, in a form 6 acceptable to the county, city, borough, incorporated town, 7 township or school district, may be issued by the municipality 8 and third-party collector at the request of any person or 9 entity. A reasonable fee for preparing and issuing 10 certifications of taxes due and taxes paid shall be chargeable 11 by the municipality and third-party collector to the person or 12 entity requesting the certification if the fee is approved by 13 legislative action of the county, city, borough, incorporated 14 town, township or school district. A certification issued by a 15 third-party collector under this act shall be deemed as if it 16 were issued by the county, city, borough, incorporated town, 17 township or school district. Any person or entity that relies 18 upon a certification issued by a municipality or a third-party 19 collector in accordance with this act shall not be liable for 20 any claim or action for damages or monetary loss caused by the 21 inaccuracy of the certification. 22 (5) The term "third-party collector," as used in this 23 subsection, means any entity appointed by the municipality and 24 delegated the responsibility of collecting delinquent taxes on 25 behalf of the municipality under this act. 26 Section 6. Section 31 of the act, amended November 29, 2004 27 (P.L.1299, No.163), is amended to read: 28 Section 31. The lien of a tax or a municipal claim shall not 29 be divested by any judicial sale of the property liened, where 30 the amount due is indefinite or undetermined, or where the same 20070S0777B1456 - 19 -
1 is not due and payable; nor shall the lien of a tax or municipal 2 claim be divested by any judicial sale of the property liened, 3 as respects so much thereof as the proceeds of such sale may be 4 insufficient to discharge; nor, except as hereinafter provided, 5 shall a judicial sale of the property liened, under a judgment 6 obtained on a tax or municipal claim, discharge the lien of any 7 other tax or municipal claim than that upon which said sale is 8 had, except to the extent that the proceeds realized are 9 sufficient for its payment, after paying the costs, charges and 10 fees, including reasonable attorney fees, expenses of the sale, 11 and of the writ upon which it was made, and any other prior tax 12 or municipal claims to which the fund may first be applicable. 13 On any such sale being made all tax claims shall be paid out of 14 the proceeds thereof: first, the oldest tax having priority; and 15 municipal claims shall be paid next, the oldest in point of lien 16 having priority. Mortgages, ground-rents, and other charges on 17 or estates in the property which were recorded, or created where 18 recording is not required, before any tax other than for the 19 current year accrue, or before the actual doing of the work in 20 front of or upon the particular property for which the municipal 21 claim is filed, shall not be disturbed by such sale unless a 22 prior lien is also discharged thereby. 23 In case the property be not sold for a sum sufficient to pay 24 all taxes and municipal claims, together with the costs thereon, 25 the plaintiff in any such claim may postpone the sale by 26 announcement to the assembled bidders or as may otherwise be 27 provided by local rule or conditions of sale, without payment of 28 costs, and file his petition setting forth that more than one 29 year has elapsed since the filing of his claim; that he has 30 exposed the property to sheriff's sale thereunder, and was 20070S0777B1456 - 20 -
1 unable to obtain a bid sufficient to pay the upset price in 2 full; and, if the plaintiff is not a municipality as defined in 3 this act, that he will bid sufficient to pay the upset price, 4 and upon the production of searches or a title insurance policy 5 showing the state of the record and the ownership of the 6 property, and of all tax and municipal claims, mortgages, 7 ground-rents, or other charges on or estates in the land, the 8 court shall grant a rule upon all parties thus shown to be 9 interested to appear and show cause why a decree should not be 10 made that said property be sold, freed, and cleared of their 11 respective claims, mortgages, charges, and estates. If, upon a 12 hearing thereafter, the court is satisfied that service has been 13 made of said rule upon the parties respondent, in the manner 14 provided in section 39.2, and that the facts stated in the 15 petition be true, it shall order and decree that said property 16 be sold at a subsequent sheriff's sale day, to be fixed by the 17 court without further advertisement, and the court may fix a 18 common date and place of sale for more than one of said 19 properties if it deems a joint sale to be advantageous. All 20 property at sheriff's sale shall be sold, clear of all claims, 21 liens, mortgages, charges, and estates, to the highest bidder at 22 such sale; and the proceeds realized therefrom shall be 23 distributed in accordance with the priority of such claims; and 24 the purchaser at such sale shall take, and forever thereafter 25 have, an absolute title to the property sold, free, and 26 discharged of all tax and municipal claims, liens, mortgages, 27 charges, and estates of whatsoever kind, subject only to the 28 right of redemption as provided by law. In counties of the 29 second class, upon return of the writ upon which the sale was 30 made and upon the expiration of the statutory right of 20070S0777B1456 - 21 -
1 redemption and if no petition to set aside the sale is pending, 2 the prothonotary shall satisfy all tax claims and municipal 3 claims divested by the judicial sale in accordance with the 4 order of court authorizing such sale. 5 Any person interested may, at any time before the sale, pay 6 the petitioner the whole of his claim, with interest, costs, 7 charges, expenses, fees and attorney fees, whereupon the 8 proceedings on petition shall at once determine. 9 For the purpose of enabling the petitioner in any such 10 proceedings to give the notice required, he may take the 11 testimony of the defendant in the claim, or of any other person 12 whom he may have reason to believe has knowledge of the 13 whereabouts of any of the parties respondent, either by 14 deposition, commission, or letters rogatory. 15 Any municipality, being a claimant, shall have the right, and 16 is hereby empowered, to bid and become the purchaser of the 17 property at such sale; and while the said property, so 18 purchased, is held and owned by any county, city, borough, 19 incorporated town, township, school district or a body politic 20 and corporate created as a municipal authority pursuant to law, 21 it shall not be subject to tax claims, unless it be redeemed by 22 the former owner or other person having the right to redeem, as 23 provided by law. If, however, a municipality shall become the 24 purchaser at said sale, the former owner or other person, 25 desiring to redeem, shall pay all taxes and municipal claims 26 accrued and chargeable against the property prior to the sale 27 thereof, together with the costs and interest thereon, and also 28 all taxes and claims, whether filed or not, which would have 29 accrued and become chargeable against the property had the same 30 been purchased at the sale by some party other than the 20070S0777B1456 - 22 -
1 municipality. 2 Upon the delivery by the sheriff of a deed for any property 3 sold under a tax or municipal claim, the judgment upon which 4 such sale was had shall thereupon and forever thereafter be 5 final and conclusive as to all matters of defense which could 6 have been raised in the proceeding, including payment, and no 7 error or irregularity in obtaining or entering of such judgment 8 shall effect the validity thereof. 9 Section 7. Section 39.2 of the act, amended February 7, 1996 10 (P.L.1, No.1) and August 14, 2003 (P.L.83, No.20), is amended to 11 read: 12 Section 39.2. (a) In cities of the first class, notice of a 13 rule to show cause why a property should not be sold free and 14 clear of all encumbrances issued by a court pursuant to a 15 petition filed by a claimant under section 31.2 of this act 16 shall be served by the claimant upon owners, mortgagees, holders 17 of ground rents, liens and charges or estates of whatsoever kind 18 as follows: 19 (1) By posting a true and correct copy of the petition and 20 rule on the most public part of the property; 21 (2) By mailing by first class mail to the address registered 22 by any interested party pursuant to section 39.1 of this act a 23 true and correct copy of the petition and rule; and 24 (3) By reviewing a title search, title insurance policy or 25 tax information certificate that identifies interested parties 26 of record who have not registered their addresses pursuant to 27 section 39.1 of this act, the city shall mail by first class 28 mail and either by certified mail, return receipt requested, or 29 by registered mail to such addresses as appear on the respective 30 records relating to the premises a true and correct copy of the 20070S0777B1456 - 23 -
1 petition and rule. 2 Service of notice pursuant to this section shall be deemed 3 accomplished on the date of mailing. The city shall file an 4 affidavit of service with the court prior to seeking a decree 5 ordering the sale of the premises. 6 (a.1) In counties of the second class and municipalities 7 therein, notice of a rule to show cause why a property should 8 not be sold free and clear of all liens and encumbrances issued 9 by a court pursuant to a petition filed by a claimant under 10 sections 28 and 31.1 of this act shall be served by the claimant 11 upon owners, mortgagees, holders of ground rents, liens and 12 charges or estates of whatsoever kind as follows: 13 (1) By posting a true and correct copy of the petition and 14 rule on the most public part of the property. 15 (2) By reviewing a title search, title insurance policy or 16 tax information certificate that identifies interested parties 17 of record, the county or municipality shall mail by first class 18 mail and either by certified mail, return receipt requested, or 19 by certificate of mailing to such addresses as appear on the 20 respective records relating to the premises a true and correct 21 copy of the petition and rule. Notice pursuant to this section 22 shall be deemed accomplished on the date of mailing. The county 23 or municipality shall file an affidavit of service with the 24 court prior to seeking a decree ordering the sale of the 25 premises. 26 (a.2) Except in cities of the first class, counties of the 27 second class and municipalities located in counties of the 28 second class, notice of a rule to show cause why a property 29 should not be sold free and clear of all liens and encumbrances 30 issued by a court pursuant to a petition filed by a claimant 20070S0777B1456 - 24 -
1 under section 31 shall be served by the claimant upon owners, 2 mortgagees, holders of ground rents, liens and charges or 3 estates of whatsoever kind as follows: 4 (1) By posting a true and correct copy of the petition and 5 rule on the most public part of the property. 6 (2) By reviewing a title search, title insurance policy or 7 tax information certificate that identifies interested parties 8 of record, the county or municipality shall mail by first class 9 mail and either by certified mail, return receipt requested, or 10 by certificate of mailing to such addresses as appear on the 11 respective records relating to the premises a true and correct 12 copy of the petition and rule. Notice pursuant to this 13 subsection shall be deemed accomplished on the date of mailing. 14 The county or municipality shall file an affidavit of service 15 with the court prior to seeking a decree ordering the sale of 16 the premises. 17 (b) No party whose interest did not appear on a title 18 search, title insurance policy or tax information certificate or 19 who failed to accurately register his interest and address 20 pursuant to section 39.1 of this act shall have standing to 21 complain of improper notice if the city shall have complied with 22 subsection (a) of this section. This provision shall not apply 23 if the mortgage or interest was otherwise properly recorded in 24 the Office of the Recorder of Deeds and the document contains a 25 current address sufficient to satisfy the notice requirements of 26 this section. Notwithstanding any other requirement set forth in 27 this act or any other law to the contrary, the notice required 28 by subsection (a) of this section shall constitute the only 29 notice required before a court may enter a decree ordering a tax 30 sale. 20070S0777B1456 - 25 -
1 (b.1) No party whose interest did not appear on a title 2 search or title insurance policy, because of the party's failure 3 to record or properly record its interest, shall have standing 4 to complain of improper notice if the county or municipality 5 shall have complied with subsection (a.1). This provision shall 6 not apply if the mortgage or interest was otherwise properly 7 recorded in the Office of the Recorder of Deeds and the document 8 contains a current address sufficient to satisfy the notice 9 requirements of this section. Notwithstanding any other 10 requirement set forth by subsection (a.1), notice thereunder 11 shall constitute the only notice required before a court may 12 enter a decree ordering a tax sale free and clear of liens. 13 (b.2) If the county or municipality shall have complied with 14 subsection (a.2), no party whose interest did not appear on a 15 title search or title insurance policy because of the party's 16 failure to record or properly record its interest shall have 17 standing to complain of improper notice. This provision shall 18 not apply if the mortgage or interest was otherwise properly 19 recorded in the Office of the Recorder of Deeds and the document 20 contains a current address sufficient to satisfy the notice 21 requirements of this section. Notwithstanding any other 22 requirement of subsection (a.2), notice thereunder shall 23 constitute the only notice required before a court may enter a 24 decree ordering a tax sale free and clear of liens. 25 (c) Notice of the court's decree ordering a tax sale, 26 together with the time, place and date of the sale, shall be 27 served by first class mail on all parties served with the 28 petition and rule, on any parties whose interest appeared of 29 record after the filing of the petition but before the court's 30 decree and on any creditor who has obtained judgment against the 20070S0777B1456 - 26 -
1 owner of the premises prior to the date of the decree. The city 2 shall file an affidavit of service of these notices prior to the 3 date of the sale. 4 (d) Except in cities of the first class, in sales pursuant 5 to a petition filed by a claimant under section 31 or 31.1, 6 notice of the court's decree ordering a tax sale, together with 7 the time, place and date of the sale, shall be served along with 8 the notice of sheriff's sale and shall be provided to all 9 parties entitled to receive notice pursuant to Pa.R.C.P. 10 No.3129.1 (relating to sale of real property; notice; 11 affidavit). 12 (e) Except in cities of the first class, in sales pursuant 13 to a petition filed by a claimant under section 28 or 31, notice 14 of the court's decree ordering a sale, together with the time, 15 place and date of the sale, shall be served by first class mail 16 upon all parties who receive notice pursuant to Pa.R.C.P. 17 No.3129.1 prior to the initial sale. Notice under this section 18 shall be provided no later than seven days prior to the 19 continued sale. 20 Section 8. The act is amended by adding a section to read: 21 Section 42. Notwithstanding any other provision of law, any 22 taxing district in this Commonwealth may adopt an ordinance or a 23 resolution if the taxing district is of a class which does not 24 have the power to enact an ordinance to collect taxes under this 25 act exclusively and independently of any other statute governing 26 the collection of taxes, including the act of July 7, 1947 27 (P.L.1368, No.542), known as the "Real Estate Tax Sale Law" and 28 independent of any county tax claim bureau. Any taxing district 29 which adopts an ordinance or resolution to collect taxes under 30 this section shall not be required to comply with any of the 20070S0777B1456 - 27 -
1 procedures or provisions of the "Real Estate Tax Sale Law," 2 including the obligation to make annual returns to any county 3 tax claim bureau. For the purposes of this section, the term 4 "taxing district" shall have the same meaning as given to it 5 under section 102 of the "Real Estate Tax Sale Law". 6 Section 9. This act shall apply as follows: 7 (1) The amendment of section 3 of the act shall apply 8 retroactively to January 1, 1996. 9 (2) The addition of section 42 of the act shall apply 10 retroactively to January 1, 2005. 11 Section 10. This act shall take effect in 60 days. 12 SECTION 1. SECTION 1 OF THE ACT OF MAY 16, 1923 (P.L.207, <-- 13 NO.153), REFERRED TO AS THE MUNICIPAL CLAIM AND TAX LIEN LAW, 14 AMENDED AUGUST 14, 2003 (P.L.83, NO.20) AND JULY 15, 2004 15 (P.L.726, NO.83), IS AMENDED TO READ: 16 SECTION 1. BE IT ENACTED, &C., THAT THE WORD "TAXES," AS 17 USED IN THIS ACT, MEANS ANY COUNTY, CITY, BOROUGH, INCORPORATED 18 TOWN, TOWNSHIP, SCHOOL, BRIDGE, ROAD, OR POOR TAXES, TOGETHER 19 WITH AND INCLUDING ALL PENALTIES, INTEREST, COSTS, CHARGES, 20 EXPENSES AND FEES, INCLUDING REASONABLE ATTORNEY FEES, AS 21 ALLOWED BY THIS ACT AND ALL OTHER APPLICABLE LAWS. 22 THE WORD "DELINQUENT," AS USED IN THIS ACT, EXCEPT WITH 23 RESPECT TO COUNTY TAXES IN COUNTIES OF THE SECOND CLASS, REFERS 24 TO TAXES THAT REMAIN UNPAID ON DECEMBER 31 OF THE CALENDAR YEAR 25 IN WHICH THEY BECAME FIRST DUE AND PAYABLE, EXCEPT THAT IF THE 26 TAXES ARE BEING PAID IN INSTALLMENTS PURSUANT TO AND IN 27 ACCORDANCE WITH THE PROVISIONS OF ANY ACT PERMITTING OR 28 REQUIRING INSTALLMENT PAYMENTS, THE TERM SHALL MEAN THAT PORTION 29 OF THE TAXES THAT REMAINS UNPAID ON THE FIRST DAY OF THE MONTH 30 FOLLOWING THE MONTH THAT THE LAST REQUIRED INSTALLMENT PAYMENT 20070S0777B1456 - 28 -
1 WAS DUE AND PAYABLE. FOR MUNICIPAL CLAIMS, OTHER THAN TAX 2 CLAIMS, THE TERM MEANS NINETY DAYS AFTER THE DATE OF THE INITIAL 3 BILLING FOR THE CLAIMS. 4 THE WORD "HIGHWAY," AS USED IN THIS ACT, MEANS THE WHOLE OR 5 ANY PART OF ANY PUBLIC STREET, PUBLIC ROAD, PUBLIC LANE, PUBLIC 6 ALLEY, OR OTHER PUBLIC HIGHWAY. 7 THE WORDS "TAX CLAIM," AS USED IN THIS ACT, MEAN THE CLAIM 8 FILED TO RECOVER TAXES. 9 THE WORDS "MUNICIPAL CLAIM," AS USED IN THIS ACT, UNLESS 10 SPECIFICALLY INDICATED OTHERWISE, MEAN AND INCLUDE (1) THE CLAIM 11 ARISING OUT OF, OR RESULTING FROM, A TAX ASSESSED, SERVICE 12 SUPPLIED, WORK DONE, OR IMPROVEMENT AUTHORIZED AND UNDERTAKEN, 13 BY A MUNICIPALITY, ALTHOUGH THE AMOUNT THEREOF BE NOT AT THE 14 TIME DEFINITELY ASCERTAINED BY THE AUTHORITY AUTHORIZED TO 15 DETERMINE THE SAME, AND A LIEN THEREFOR BE NOT FILED, BUT 16 BECOMES FILABLE WITHIN THE PERIOD AND IN THE MANNER HEREIN 17 PROVIDED, (2) THE CLAIM FILED TO RECOVER FOR THE GRADING, 18 GUTTERING, MACADAMIZING, OR OTHERWISE IMPROVING, THE CARTWAYS OF 19 ANY PUBLIC HIGHWAY; FOR GRADING, CURBING, RECURBING, PAVING, 20 REPAVING, CONSTRUCTING, OR REPAIRING THE FOOTWAYS THEREOF; FOR 21 LAYING WATER PIPES, GAS PIPES, CULVERTS, SEWERS, BRANCH SEWERS, 22 OR SEWER CONNECTIONS THEREIN; FOR ASSESSMENTS FOR BENEFITS IN 23 THE OPENING, WIDENING OR VACATION THEREOF; OR IN THE CHANGING OF 24 WATER-COURSES OR THE CONSTRUCTION OF SEWERS THROUGH PRIVATE 25 LANDS; OR IN HIGHWAYS OF TOWNSHIPS OF THE FIRST CLASS; OR IN THE 26 ACQUISITION OF SEWERS AND DRAINS CONSTRUCTED AND OWNED BY 27 INDIVIDUALS OR CORPORATIONS, AND OF RIGHTS IN AND TO USE THE 28 SAME; FOR THE REMOVAL OF NUISANCES; OR FOR GARBAGE FEES, 29 RECYCLING FEES, LANDLORD LICENSING AND INSPECTION FEES, WATER 30 RATES, LIGHTING RATES, OR SEWER RATES, AND (3) THE CLAIM FILED 20070S0777B1456 - 29 -
1 TO RECOVER FOR WORK, MATERIAL, AND SERVICES RENDERED OR 2 FURNISHED IN THE CONSTRUCTION, IMPROVEMENT, MAINTENANCE, AND 3 OPERATION OF A PROJECT OR PROJECTS OF A BODY POLITIC OR 4 CORPORATE CREATED AS A MUNICIPAL AUTHORITY PURSUANT TO LAW. A 5 MUNICIPAL CLAIM SHALL BE TOGETHER WITH AND SHALL INCLUDE ALL 6 PENALTIES, INTEREST, COSTS, FINES, CHARGES, EXPENSES AND FEES, 7 INCLUDING REASONABLE ATTORNEY FEES, AS ALLOWED BY THIS ACT AND 8 ALL OTHER APPLICABLE LAWS. 9 THE WORD "CLAIMANT," AS USED IN THIS ACT, MEANS THE PLAINTIFF 10 OR USE-PLAINTIFF IN WHOSE FAVOR THE CLAIM IS FILED AS A LIEN. 11 THE WORD "CONTRACTOR," AS USED IN THIS ACT, MEANS THE PERSON 12 OR PERSONS WHO, UNDER CONTRACT WITH THE LEGAL PLAINTIFF, 13 PERFORMED THE WORK FOR WHICH THE LIEN IS GIVEN. 14 THE WORD "PROPERTY," AS USED IN THIS ACT, MEANS THE REAL 15 ESTATE SUBJECT TO THE LIEN AND AGAINST WHICH THE CLAIM IS FILED 16 AS A LIEN. 17 THE WORD "OWNER," AS USED IN THIS ACT, MEANS THE PERSON OR 18 PERSONS IN WHOSE NAME THE PROPERTY IS REGISTERED, IF REGISTERED 19 ACCORDING TO LAW, AND, IN ALL OTHER CASES, MEANS ANY PERSON OR 20 PERSONS IN OPEN, PEACEABLE AND NOTORIOUS POSSESSION OF THE 21 PROPERTY, AS APPARENT OWNER OR OWNERS THEREOF, IF ANY, OR THE 22 REPUTED OWNER OR OWNERS THEREOF IN THE NEIGHBORHOOD OF SUCH 23 PROPERTY. 24 THE WORD "MUNICIPALITY," AS USED IN THIS ACT, MEANS ANY 25 COUNTY, CITY, BOROUGH, INCORPORATED TOWN, TOWNSHIP, SCHOOL 26 DISTRICT, OR A BODY POLITIC AND CORPORATE CREATED AS A MUNICIPAL 27 AUTHORITY PURSUANT TO LAW AND ANY ASSIGNEES THEREOF. 28 THE WORDS "CHARGES, EXPENSES, AND FEES," AS USED IN THIS ACT, 29 INCLUDE ALL SUMS PAID OR INCURRED BY A MUNICIPALITY TO FILE, 30 PRESERVE AND COLLECT UNPAID TAXES, TAX CLAIMS, TAX LIENS, 20070S0777B1456 - 30 -
1 MUNICIPAL CLAIMS AND MUNICIPAL LIENS, INCLUDING, BUT NOT LIMITED 2 TO, PROTHONOTARY AND SHERIFF FEES, POSTAGE EXPENSES, AND TITLE 3 SEARCH EXPENSES. A COUNTY, CITY, BOROUGH, INCORPORATED TOWN, 4 TOWNSHIP, SCHOOL DISTRICT OR MUNICIPAL AUTHORITY MAY ALSO 5 RECOVER AS "CHARGES, EXPENSES, AND FEES" THE CHARGES, EXPENSES, 6 COMMISSIONS AND FEES OF THIRD-PARTY COLLECTORS RETAINED BY THE 7 COUNTY, CITY, BOROUGH, INCORPORATED TOWN, TOWNSHIP, SCHOOL 8 DISTRICT OR MUNICIPAL AUTHORITY, PROVIDED THAT THE CHARGES, 9 EXPENSES, COMMISSIONS AND FEES OF SUCH THIRD-PARTY COLLECTORS 10 ARE APPROVED BY LEGISLATIVE ACTION OF THE COUNTY, CITY, BOROUGH, 11 INCORPORATED TOWN, TOWNSHIP, SCHOOL DISTRICT OR MUNICIPAL 12 AUTHORITY WHICH LEVIES THE UNPAID TAXES, TAX CLAIMS, TAX LIENS, 13 MUNICIPAL CLAIMS AND MUNICIPAL LIENS. 14 SECTION 2. SECTION 3 OF THE ACT, AMENDED AUGUST 14, 2003 15 (P.L.83, NO.20), IS AMENDED TO READ: 16 SECTION 3. (A) ALL MUNICIPAL CLAIMS, MUNICIPAL LIENS, 17 TAXES, TAX CLAIMS AND TAX LIENS WHICH MAY HEREAFTER BE LAWFULLY 18 IMPOSED OR ASSESSED ON ANY PROPERTY IN THIS COMMONWEALTH, AND 19 ALL SUCH CLAIMS HERETOFORE LAWFULLY IMPOSED OR ASSESSED WITHIN 20 SIX MONTHS BEFORE THE PASSAGE OF THIS ACT AND NOT YET LIENED, IN 21 THE MANNER AND TO THE EXTENT HEREINAFTER SET FORTH, SHALL BE AND 22 THEY ARE HEREBY DECLARED TO BE A LIEN ON SAID PROPERTY, TOGETHER 23 WITH ALL CHARGES, EXPENSES, AND FEES INCURRED IN THE COLLECTION 24 OF ANY DELINQUENT ACCOUNT, INCLUDING REASONABLE ATTORNEY FEES 25 UNDER SUBSECTION (A.1), ADDED THERETO FOR FAILURE TO PAY 26 PROMPTLY; AND MUNICIPAL CLAIMS AND MUNICIPAL LIENS SHALL ARISE 27 WHEN LAWFULLY IMPOSED AND ASSESSED AND SHALL HAVE PRIORITY TO 28 AND BE FULLY PAID AND SATISFIED OUT OF THE PROCEEDS OF ANY 29 JUDICIAL SALE OF SAID PROPERTY, BEFORE ANY OTHER OBLIGATION, 30 JUDGMENT, CLAIM, LIEN, OR ESTATE WITH WHICH THE SAID PROPERTY 20070S0777B1456 - 31 -
1 MAY BECOME CHARGED, OR FOR WHICH IT MAY BECOME LIABLE, SAVE AND 2 EXCEPT ONLY THE COSTS OF THE SALE AND OF THE WRIT UPON WHICH IT 3 IS MADE, AND THE TAXES, TAX CLAIMS AND TAX LIENS IMPOSED OR 4 ASSESSED UPON SAID PROPERTY. 5 (A.1) [IT IS NOT THE INTENT OF THIS SUBSECTION TO REQUIRE 6 OWNERS TO PAY, OR MUNICIPALITIES TO SANCTION, INAPPROPRIATE OR 7 UNREASONABLE ATTORNEY FEES, CHARGES OR EXPENSES FOR ROUTINE 8 FUNCTIONS.] ATTORNEY FEES INCURRED IN THE COLLECTION OF ANY 9 DELINQUENT ACCOUNT, INCLUDING MUNICIPAL CLAIMS, MUNICIPAL LIENS, 10 TAXES, TAX CLAIMS AND TAX LIENS, SHALL BE IN AN AMOUNT 11 SUFFICIENT TO COMPENSATE ATTORNEYS UNDERTAKING COLLECTION AND 12 REPRESENTATION OF A MUNICIPALITY OR ITS ASSIGNEE IN ANY ACTIONS 13 IN LAW OR EQUITY INVOLVING CLAIMS ARISING UNDER THIS ACT. A 14 MUNICIPALITY BY ORDINANCE, OR BY RESOLUTION IF THE MUNICIPALITY 15 IS OF A CLASS WHICH DOES NOT HAVE THE POWER TO ENACT AN 16 ORDINANCE, SHALL ADOPT THE SCHEDULE OF ATTORNEY FEES. WHERE 17 ATTORNEY FEES ARE SOUGHT TO BE COLLECTED IN CONNECTION WITH THE 18 COLLECTION OF A DELINQUENT ACCOUNT, INCLUDING MUNICIPAL CLAIMS, 19 MUNICIPAL LIENS, TAXES, TAX CLAIMS AND TAX LIENS, THE OWNER MAY 20 PETITION THE COURT OF COMMON PLEAS IN THE COUNTY WHERE THE 21 PROPERTY SUBJECT TO THE MUNICIPAL CLAIM AND LIEN, TAX CLAIM AND 22 LIEN OR TAXES IS LOCATED TO ADJUDICATE THE REASONABLENESS OF THE 23 ATTORNEY FEES IMPOSED. IN THE EVENT THAT THERE IS A CHALLENGE TO 24 THE REASONABLENESS OF THE ATTORNEY FEES IMPOSED IN ACCORDANCE 25 WITH THIS SECTION, THE COURT SHALL CONSIDER, BUT NOT BE LIMITED 26 TO, THE FOLLOWING: 27 (1) THE TIME AND LABOR REQUIRED, THE NOVELTY AND DIFFICULTY 28 OF THE QUESTIONS INVOLVED AND THE SKILL REQUISITE TO PROPERLY 29 UNDERTAKE COLLECTION AND REPRESENTATION OF A MUNICIPALITY IN 30 ACTIONS ARISING UNDER SUBSECTION (A). 20070S0777B1456 - 32 -
1 (2) THE CUSTOMARY CHARGES OF THE MEMBERS OF THE BAR FOR 2 SIMILAR SERVICES. 3 (3) THE [AMOUNT OF THE DELINQUENT ACCOUNT COLLECTED AND THE] 4 BENEFIT TO THE MUNICIPALITY FROM THE SERVICES. 5 (4) THE CONTINGENCY OR THE CERTAINTY OF THE COMPENSATION. 6 (A.2) ANY TIME ATTORNEY FEES ARE AWARDED PURSUANT TO ANY 7 PROVISION OF LAW, THE MUNICIPALITY SHALL NOT BE ENTITLED TO 8 DUPLICATE RECOVERY OF ATTORNEY FEES UNDER THIS SECTION. 9 (A.3) (1) AT LEAST THIRTY DAYS PRIOR TO ASSESSING OR 10 IMPOSING ATTORNEY FEES IN CONNECTION WITH THE COLLECTION OF A 11 DELINQUENT ACCOUNT, INCLUDING MUNICIPAL CLAIMS, MUNICIPAL LIENS, 12 TAXES, TAX CLAIMS AND TAX LIENS, A MUNICIPALITY SHALL, BY UNITED 13 STATES CERTIFIED MAIL, RETURN RECEIPT REQUESTED, POSTAGE 14 PREPAID, MAIL TO THE OWNER THE NOTICE REQUIRED BY THIS 15 SUBSECTION. NOTWITHSTANDING THE PROVISION OF THIS SECTION, A 16 REASONABLE FEE PAID OR INCURRED BY A MUNICIPALITY TO AN ATTORNEY 17 OR LAW FIRM TO SATISFY THE NOTICE REQUIREMENTS OF THIS SECTION 18 MAY BE ASSESSED WITHOUT PROVIDING PRIOR NOTICE. 19 (2) IF WITHIN THIRTY DAYS OF MAILING THE NOTICE IN 20 ACCORDANCE WITH CLAUSE (1) THE CERTIFIED MAIL IS REFUSED OR 21 UNCLAIMED OR THE RETURN RECEIPT IS NOT RECEIVED, THEN AT LEAST 22 TEN DAYS PRIOR TO ASSESSING OR IMPOSING ATTORNEY FEES IN 23 CONNECTION WITH THE COLLECTION OF A DELINQUENT ACCOUNT, A 24 MUNICIPALITY SHALL, BY UNITED STATES FIRST CLASS MAIL, MAIL TO 25 THE OWNER THE NOTICE REQUIRED BY THIS SUBSECTION. 26 (3) THE NOTICE REQUIRED BY THIS SUBSECTION SHALL BE MAILED 27 TO THE OWNER'S LAST KNOWN POST OFFICE ADDRESS BY VIRTUE OF THE 28 KNOWLEDGE AND INFORMATION POSSESSED BY THE MUNICIPALITY AND BY 29 THE COUNTY OFFICE RESPONSIBLE FOR ASSESSMENTS AND REVISIONS OF 30 TAXES. IT SHALL BE THE DUTY OF THE MUNICIPALITY TO DETERMINE THE 20070S0777B1456 - 33 -
1 OWNER'S LAST POST OFFICE ADDRESS KNOWN TO SAID COLLECTOR AND 2 COUNTY ASSESSMENT OFFICE. 3 (4) THE NOTICE TO THE OWNER SHALL INCLUDE THE FOLLOWING: 4 (I) A STATEMENT OF THE MUNICIPALITY'S INTENT TO IMPOSE OR 5 ASSESS ATTORNEY FEES WITHIN THIRTY DAYS OF MAILING THE NOTICE 6 PURSUANT TO CLAUSE (1) OR WITHIN TEN DAYS OF THE MAILING OF THE 7 NOTICE PURSUANT TO CLAUSE (2). 8 (II) THE MANNER IN WHICH THE IMPOSITION OR ASSESSMENT OF 9 ATTORNEY FEES MAY BE AVOIDED BY PAYMENT OF THE DELINQUENT 10 ACCOUNT. 11 (B) WITH THE EXCEPTION OF THOSE CLAIMS WHICH HAVE BEEN 12 ASSIGNED, ANY MUNICIPAL CLAIM, MUNICIPAL LIEN, TAX, TAX CLAIM OR 13 TAX LIEN, INCLUDING INTEREST, PENALTY AND COSTS, IMPOSED BY A 14 CITY OF THE FIRST CLASS, SHALL BE A JUDGMENT ONLY AGAINST THE 15 SAID PROPERTY WHEN THE LIEN HAS BEEN DOCKETED BY THE 16 PROTHONOTARY. THE DOCKETING OF THE LIEN SHALL BE GIVEN THE 17 EFFECT OF A JUDGMENT AGAINST THE SAID PROPERTY ONLY WITH RESPECT 18 TO WHICH THE CLAIM IS FILED AS A LIEN. THE PROTHONOTARY SHALL 19 MAINTAIN AN IN REM INDEX, THE FORM AND LOCATION OF WHICH SHALL 20 BE WITHIN THE PROTHONOTARY'S DISCRETION. ALL TAX CLAIMS, WATER 21 RENTS OR RATES, LIGHTING RATES, POWER RATES AND SEWER RATES 22 HERETOFORE FILED ARE HEREBY RATIFIED, CONFIRMED AND MADE VALID 23 SUBSISTING LIENS AS OF THE DATE OF THEIR ORIGINAL FILING. 24 (C) A WRIT OF EXECUTION MAY ISSUE DIRECTLY WITHOUT 25 PROSECUTION TO JUDGMENT OF A WRIT OF SCIRE FACIAS. ANY PROPERTY 26 SOLD IN EXECUTION SHALL BE SOLD IN COMPLIANCE WITH THE 27 PROVISIONS OF SECTION 31.2. 28 (D) ATTORNEY FEES MAY BE IMPOSED AND COLLECTED IN ACCORDANCE 29 WITH THIS SECTION UPON ALL TAXES, TAX CLAIMS, TAX LIENS, 30 MUNICIPAL CLAIMS, MUNICIPAL LIENS, WRITS OF SCIRE FACIAS, 20070S0777B1456 - 34 -
1 JUDGMENTS OR EXECUTIONS FILED ON OR AFTER DECEMBER 19, 1990. 2 SECTION 3. SECTION 9 OF THE ACT, AMENDED FEBRUARY 21, 2006 3 (P.L.46, NO.18), IS AMENDED TO READ: 4 SECTION 9. CLAIMS FOR TAXES, WATER RENTS OR RATES, LIGHTING 5 RATES, POWER RATES AND SEWER RATES MUST BE FILED IN THE COURT OF 6 COMMON PLEAS OF THE COUNTY IN WHICH THE PROPERTY IS SITUATED 7 UNLESS THE PROPERTY IS SITUATE IN THE CITY OF PHILADELPHIA AND 8 THE TAXES OR RATES DO NOT EXCEED THE MAXIMUM AMOUNT OVER WHICH 9 THE MUNICIPAL COURT OF PHILADELPHIA HAS ORIGINAL JURISDICTION, 10 IN WHICH EVENT THE CLAIM MUST BE FILED IN THE MUNICIPAL COURT OF 11 PHILADELPHIA. ALL SUCH CLAIMS SHALL BE FILED ON OR BEFORE THE 12 LAST DAY OF THE THIRD CALENDAR YEAR AFTER THAT IN WHICH THE 13 TAXES OR RATES ARE FIRST PAYABLE, EXCEPT THAT IN CITIES AND 14 SCHOOL DISTRICTS OF THE FIRST CLASS CLAIMS FOR TAXES AND OTHER 15 MUNICIPAL CLAIMS, WHICH HAVE HERETOFORE BECOME LIENS PURSUANT TO 16 THE PROVISIONS OF THIS ACT OR WHICH HAVE BEEN ENTERED OF RECORD 17 AS LIENS OR WHICH HAVE BEEN LIENED AND REVIVED, SHALL CONTINUE 18 AND REMAIN AS LIENS FOR THE PERIOD OF TWENTY YEARS FROM SUCH 19 REVIVAL, ENTRY OR LIEN BY OPERATION OF LAW, WHICHEVER SHALL HAVE 20 LAST OCCURRED; AND OTHER MUNICIPAL CLAIMS MUST BE FILED IN SAID 21 COURT OF COMMON PLEAS OR THE MUNICIPAL COURT OF PHILADELPHIA 22 WITHIN SIX MONTHS FROM THE TIME THE WORK WAS DONE IN FRONT OF 23 THE PARTICULAR PROPERTY, WHERE THE CHARGE AGAINST THE PROPERTY 24 IS ASSESSED OR MADE AT THE TIME THE WORK IS AUTHORIZED; WITHIN 25 SIX MONTHS AFTER THE COMPLETION OF THE IMPROVEMENT, WHERE THE 26 ASSESSMENT IS MADE BY THE MUNICIPALITY UPON ALL THE PROPERTIES 27 AFTER THE COMPLETION OF THE IMPROVEMENT; AND WITHIN SIX MONTHS 28 AFTER CONFIRMATION BY THE COURT, WHERE CONFIRMATION IS REQUIRED; 29 THE CERTIFICATE OF THE SURVEYOR, ENGINEER, OR OTHER OFFICER 30 SUPERVISING THE IMPROVEMENT, FILED IN THE PROPER OFFICE, BEING 20070S0777B1456 - 35 -
1 CONCLUSIVE OF THE TIME OF COMPLETION THEREOF, BUT HE BEING 2 PERSONALLY LIABLE TO ANYONE INJURED BY ANY FALSE STATEMENT 3 THEREIN. WHERE A BOROUGH LIES IN MORE THAN ONE COUNTY, ANY SUCH 4 CLAIM FILED BY SUCH BOROUGH MAY BE FILED IN EACH OF SUCH 5 COUNTIES. IN CASE THE REAL ESTATE BENEFITED BY THE IMPROVEMENT 6 IS SOLD BEFORE THE MUNICIPAL CLAIM IS FILED, THE DATE OF 7 COMPLETION IN SAID CERTIFICATE SHALL DETERMINE THE LIABILITY FOR 8 THE PAYMENT OF THE CLAIM AS BETWEEN BUYER AND SELLER, UNLESS 9 OTHERWISE AGREED UPON OR AS ABOVE SET FORTH. A NUMBER OF YEARS' 10 TAXES OR RATES OF DIFFERENT KINDS IF PAYABLE TO THE SAME 11 PLAINTIFF MAY BE INCLUDED IN ONE CLAIM. INTEREST AS DETERMINED 12 BY THE MUNICIPALITY AT A RATE NOT TO EXCEED TEN PER CENT PER 13 ANNUM SHALL BE COLLECTIBLE ON [ALL] THE FACE AND PENALTY AMOUNT 14 OF BOTH TAXES AND MUNICIPAL CLAIMS FROM THE DATE [OF THE 15 COMPLETION OF THE WORK AFTER IT IS FILED AS A LIEN, AND ON 16 CLAIMS FOR TAXES, WATER RENTS OR RATES, LIGHTING RATES, OR SEWER 17 RATES FROM THE DATE OF THE FILING OF THE LIEN THEREFOR] ON WHICH 18 THE TAXES OR MUNICIPAL CLAIMS BECOME DELINQUENT OR FOR COUNTY 19 TAXES IN COUNTIES OF THE SECOND CLASS, AS OTHERWISE PROVIDED BY 20 LAW: PROVIDED, HOWEVER, THAT AFTER THE EFFECTIVE DATE OF THIS 21 AMENDATORY ACT WHERE MUNICIPAL CLAIMS ARE FILED ARISING OUT OF A 22 MUNICIPAL PROJECT WHICH REQUIRED THE MUNICIPALITY TO ISSUE BONDS 23 TO FINANCE THE PROJECT INTEREST SHALL BE COLLECTIBLE ON SUCH 24 CLAIMS AT THE RATE OF INTEREST OF THE BOND ISSUE OR AT THE RATE 25 OF TWELVE PER CENT PER ANNUM, WHICHEVER IS LESS. WHERE THE 26 PROVISIONS OF ANY OTHER ACT RELATING TO CLAIMS FOR TAXES, WATER 27 RENTS OR RATES, LIGHTING RATES, POWER RATES, SEWER RENTS OR 28 RATES OR FOR ANY OTHER TYPE OF MUNICIPAL CLAIM OR LIEN UTILIZES 29 THE PROCEDURES PROVIDED IN THIS ACT AND WHERE THE PROVISIONS OF 30 SUCH OTHER ACT ESTABLISHES A DIFFERENT RATE OF INTEREST FOR SUCH 20070S0777B1456 - 36 -
1 CLAIMS OR LIENS, THE MAXIMUM RATE OF INTEREST OF TEN PER CENT 2 PER ANNUM AS PROVIDED FOR IN THIS SECTION SHALL BE APPLICABLE TO 3 THE CLAIMS AND LIENS PROVIDED FOR UNDER SUCH OTHER ACTS: 4 PROVIDED, HOWEVER, THAT AFTER THE EFFECTIVE DATE OF THIS 5 AMENDATORY ACT WHERE MUNICIPAL CLAIMS ARE FILED ARISING OUT OF A 6 MUNICIPAL PROJECT WHICH REQUIRED THE MUNICIPALITY TO ISSUE BONDS 7 TO FINANCE THE PROJECT INTEREST SHALL BE COLLECTIBLE ON SUCH 8 CLAIMS AT THE RATE OF INTEREST OF THE BOND ISSUE OR AT THE RATE 9 OF TWELVE PER CENT PER ANNUM, WHICHEVER IS LESS. 10 CLAIMS FOR TAXES, WATER RENTS, OR RATES, LIGHTING RATES, 11 POWER RATES AND SEWER RATES MAY BE IN THE FORM OF WRITTEN OR 12 TYPEWRITTEN LISTS SHOWING THE NAMES OF THE TAXABLES, INCLUDING 13 THE NAME AND LAST KNOWN ADDRESS, WITH ITS ZIP CODE, OF THE OWNER 14 OF EACH PROPERTY AGAINST WHICH A CLAIM IS BEING FILED, AND 15 DESCRIPTIONS OF THE PROPERTIES AGAINST WHICH THE CLAIMS ARE 16 FILED, TOGETHER WITH THE AMOUNT OF THE TAXES DUE SUCH 17 MUNICIPALITY. SUCH LISTS MAY BE FILED ON BEHALF OF A SINGLE 18 MUNICIPALITY, OR THEY MAY COVER THE UNPAID TAXES DUE ANY TWO OR 19 MORE MUNICIPALITIES WHOSE TAXES ARE COLLECTED BY THE SAME TAX 20 COLLECTOR, PROVIDED THE AMOUNTS DUE EACH MUNICIPALITY ARE 21 SEPARATELY SHOWN. ALL TAX CLAIMS, WATER RENTS, OR RATES, 22 LIGHTING RATES, POWER RATES AND SEWER RATES, HERETOFORE FILED IN 23 SUCH FORM, ARE HEREBY RATIFIED, CONFIRMED AND MADE VALID 24 SUBSISTING LIENS AS OF THE DATE OF THEIR ORIGINAL FILING. 25 A NUMBER OF YEARS' TAXES OR RATES OF DIFFERENT KINDS, IF 26 PAYABLE TO THE SAME PLAINTIFF, MAY BE INCLUDED IN ONE CLAIM. 27 MUNICIPAL CLAIMS SHALL LIKEWISE BE FILED WITHIN SAID PERIOD, 28 WHERE ANY APPEAL IS TAKEN FROM THE ASSESSMENT FOR THE RECOVERY 29 OF WHICH SUCH MUNICIPAL CLAIM IS FILED. IN SUCH CASE THE LIEN 30 FILED SHALL BE IN THE FORM HEREINAFTER PROVIDED, EXCEPT THAT IT 20070S0777B1456 - 37 -
1 SHALL SET FORTH THE AMOUNT OF THE CLAIM AS AN UNDETERMINED 2 AMOUNT, THE AMOUNT THEREOF TO BE DETERMINED BY THE APPEAL TAKEN 3 FROM THE ASSESSMENT UPON WHICH SUCH MUNICIPAL CLAIM IS BASED, 4 PENDING IN A CERTAIN COURT (REFERRING TO THE COURT AND THE 5 PROCEEDING WHERE SUCH APPEAL IS PENDING). UPON THE FILING OF 6 SUCH MUNICIPAL CLAIM, THE CLAIM SHALL BE INDEXED BY THE 7 PROTHONOTARY UPON THE JUDGMENT INDEX AND UPON THE LOCALITY INDEX 8 OF THE COURT, AND THE AMOUNT OF THE CLAIM SET FORTH THEREIN AS 9 AN UNDETERMINED AMOUNT. 10 IF FINAL JUDGMENT IS NOT OBTAINED UPON SUCH APPEAL WITHIN 11 TWENTY YEARS FROM THE FILING OF SUCH MUNICIPAL CLAIM, THE 12 CLAIMANT IN THE LIEN SHALL, WITHIN SUCH PERIOD OF TWENTY YEARS, 13 FILE A SUGGESTION OF NONPAYMENT, IN THE FORM HEREINAFTER SET 14 FORTH, WHICH SHALL HAVE THE EFFECT OF CONTINUING THE LIEN 15 THEREOF FOR A FURTHER PERIOD OF TWENTY YEARS FROM THE DATE OF 16 FILING SUCH SUGGESTION, EXCEPT THAT WITH RESPECT TO CLAIMS FOR 17 TAXES AND OTHER MUNICIPAL CLAIMS, IN CITIES AND SCHOOL DISTRICTS 18 OF THE FIRST CLASS, IF FINAL JUDGMENT IS NOT OBTAINED UPON SUCH 19 APPEAL WITHIN TWENTY YEARS FROM THE FILING OF SUCH MUNICIPAL 20 CLAIMS, THE CLAIMANT IN THE LIEN SHALL, WITHIN SUCH PERIOD OF 21 TWENTY YEARS, FILE A SUGGESTION OF NONPAYMENT IN THE PRESCRIBED 22 FORM WHICH SHALL HAVE THE EFFECT OF CONTINUING THE LIEN THEREOF 23 FOR A FURTHER PERIOD OF TWENTY YEARS FROM THE DATE OF FILING 24 SUCH SUGGESTION. SUCH MUNICIPAL CLAIM SHALL BE REVIVED IN A 25 SIMILAR MANNER DURING EACH RECURRING PERIOD OF TWENTY YEARS 26 THEREAFTER, UNTIL FINAL JUDGMENT IS ENTERED UPON SAID APPEAL AND 27 THE UNDETERMINED AMOUNT OF SUCH MUNICIPAL CLAIM IS FIXED IN THE 28 MANNER HEREINAFTER PROVIDED, EXCEPT THAT WITH RESPECT TO CLAIMS 29 FOR TAXES AND OTHER MUNICIPAL CLAIMS, IN CITIES AND SCHOOL 30 DISTRICTS OF THE FIRST CLASS, SUCH MUNICIPAL CLAIMS SHALL BE 20070S0777B1456 - 38 -
1 REVIVED IN A SIMILAR MANNER DURING EACH RECURRING PERIOD OF 2 TWENTY YEARS THEREAFTER UNTIL FINAL JUDGMENT IS ENTERED UPON 3 SAID APPEAL AND THE UNDETERMINED AMOUNT OF SUCH MUNICIPAL CLAIM 4 IS FIXED IN THE MANNER HEREINAFTER PROVIDED. 5 WHEN THE FINAL JUDGMENT IS OBTAINED UPON SUCH APPEAL, THE 6 COURT IN WHICH SAID MUNICIPAL CLAIM IS PENDING SHALL, UPON THE 7 PETITION OF ANY INTERESTED PARTY, MAKE AN ORDER FIXING THE 8 UNDETERMINED AMOUNT CLAIMED IN SUCH CLAIM AT THE AMOUNT 9 DETERMINED BY THE FINAL JUDGMENT UPON SAID APPEAL, WHICH SHALL 10 BEAR INTEREST FROM THE DATE OF THE VERDICT UPON WHICH FINAL 11 JUDGMENT WAS ENTERED, AND THEREAFTER THE AMOUNT OF SAID CLAIM 12 SHALL BE THE SUM THUS FIXED. PROCEEDINGS UPON SAID MUNICIPAL 13 CLAIM THEREAFTER SHALL BE AS IN OTHER CASES. 14 WHERE, ON FINAL JUDGMENT UPON SAID APPEAL, IT APPEARS THAT NO 15 AMOUNT IS DUE UPON THE ASSESSMENT FOR THE RECOVERY OF WHICH SUCH 16 CLAIM IS FILED, THE COURT IN WHICH SUCH MUNICIPAL CLAIM IS 17 PENDING SHALL, UPON THE PETITION OF ANY INTERESTED PARTY, MAKE 18 AN ORDER STRIKING SUCH MUNICIPAL CLAIM FROM THE RECORD, AND 19 CHARGE THE COSTS UPON SUCH CLAIM TO THE PLAINTIFF IN THE CLAIM 20 FILED. 21 WHERE SUCH APPEAL IS DISCONTINUED, THE COURT IN WHICH SUCH 22 MUNICIPAL CLAIM IS PENDING SHALL, UPON THE PETITION OF ANY 23 INTERESTED PARTY, MAKE AN ORDER FIXING THE UNDETERMINED AMOUNT 24 CLAIMED AT THE AMOUNT OF THE ORIGINAL ASSESSMENT, WHICH SHALL 25 BEAR INTEREST FROM THE DATE THAT SUCH ASSESSMENT WAS ORIGINALLY 26 PAYABLE, AND THEREAFTER THE AMOUNT OF SUCH CLAIM SHALL BE THE 27 SUM THUS FIXED. 28 IN COUNTIES OF THE SECOND CLASS AND MUNICIPALITIES THEREIN, 29 INTEREST AT THE APPLICABLE PER ANNUM RATE SHALL ACCRUE MONTHLY 30 ON ALL TAXES, TAX CLAIMS AND MUNICIPAL CLAIMS ON THE FIRST DAY 20070S0777B1456 - 39 -
1 OF THE MONTH FOR THE ENTIRE MONTH, OR PART THEREOF, IN WHICH THE
2 TAXES, TAX CLAIMS OR MUNICIPAL CLAIMS ARE PAID. INTEREST SHALL
3 NOT BE PAID ON A PER DIEM BASIS. IN COUNTIES OF THE SECOND
4 CLASS, ALL COUNTY TAXES AFTER THE SAME BECOME DELINQUENT, AS
5 PROVIDED BY LAW, SHALL INCLUDE A PENALTY OF FIVE PER CENTUM FOR
6 SUCH DELINQUENCY.
7 IN COUNTIES OF THE SECOND CLASS, TAXES AND TAX CLAIMS, WHEN
8 COLLECTED, SHALL BE PAID INTO THE COUNTY TREASURY FOR THE USE OF
9 THE COUNTY UNLESS THE TAXES AND TAX CLAIMS ARE ASSIGNED, IN
10 WHICH EVENT THERE IS NO REQUIREMENT THAT THE TAXES AND TAX
11 CLAIMS COLLECTED BY THE ASSIGNEE BE PAID INTO THE COUNTY
12 TREASURY.
13 IN COUNTIES OF THE SECOND CLASS, THE COUNTY SHALL NOT BE
14 REQUIRED TO ADVANCE OR PAY ANY FEE TO THE PROTHONOTARY FOR THE
15 FILING OF PAPER OR ELECTRONIC FILING OR PERFORMING ANY SERVICES
16 FOR THE SECOND CLASS COUNTY RELATING TO THE FILING,
17 SATISFACTION, ASSIGNMENT, TRANSFER, REVIVAL, AMENDMENT,
18 ENFORCEMENT AND COLLECTION OF TAXES, TAX CLAIMS AND TAX LIENS.
19 THE PROTHONOTARY SHALL ACCEPT FILINGS BY OR ON BEHALF OF THE
20 SECOND CLASS COUNTY RELATING TO THE TAXES, TAX CLAIMS AND TAX
21 LIENS AND NOTE THE COST FOR SUCH SERVICE PERFORMED ON THE
22 DOCKET, AND THE SECOND CLASS COUNTY, ITS EMPLOYEES,
23 REPRESENTATIVES, AGENTS AND ASSIGNS SHALL THEREAFTER COLLECT
24 SUCH FEE AS A COST AS PART OF THE TAXES, TAX CLAIMS AND TAX
25 LIENS.
26 SECTION 4. SECTIONS 14 AND 18 OF THE ACT ARE AMENDED TO
27 READ:
28 SECTION 14. ANY DEFENDANT NAMED IN THE CLAIM, OR ANY PERSON
29 ALLOWED TO INTERVENE AND DEFEND [THEREAGAINST] THERE AGAINST,
30 MAY, AT ANY STAGE OF THE PROCEEDINGS, PRESENT HIS PETITION,
20070S0777B1456 - 40 -
1 UNDER OATH OR AFFIRMATION, SETTING FORTH THAT HE HAS A DEFENSE 2 IN WHOLE OR IN PART THERETO, AND OF WHAT IT CONSISTS; AND 3 PRAYING THAT A RULE BE GRANTED UPON THE CLAIMANT TO FILE AN 4 AFFIDAVIT OF THE AMOUNT CLAIMED BY HIM, AND TO SHOW CAUSE WHY 5 THE PETITIONER SHOULD NOT HAVE LEAVE TO PAY MONEY INTO COURT; 6 AND, IN THE CASE OF A MUNICIPAL CLAIM, TO ENTER SECURITY IN LIEU 7 OF THE CLAIM; WHEREUPON A RULE SHALL BE GRANTED AS PRAYED FOR. 8 UPON THE PLEADINGS FILED, OR FROM THE CLAIM AND THE AFFIDAVIT OF 9 DEFENSE, AND WITHOUT A PETITION WHERE AN AFFIDAVIT OF DEFENSE 10 HAS BEEN FILED, THE COURT SHALL DETERMINE HOW MUCH OF THE CLAIM 11 IS ADMITTED OR NOT SUFFICIENTLY DENIED; AND SHALL ENTER A DECREE 12 THAT UPON PAYMENT BY SUCH PETITIONER TO THE CLAIMANT OF THE 13 AMOUNT THUS FOUND TO BE DUE, WITH INTEREST AND COSTS IF ANYTHING 14 BE FOUND TO BE DUE, OR UPON PAYMENT INTO COURT, IF THE CLAIMANT 15 REFUSES TO ACCEPT THE SAME, AND UPON PAYMENT INTO COURT OF A SUM 16 SUFFICIENT TO COVER THE BALANCE CLAIMED, WITH INTEREST AND 17 COSTS, OR UPON THE ENTRY OF APPROVED SECURITY IN THE CASE OF A 18 MUNICIPAL CLAIM, THAT SUCH CLAIM SHALL BE WHOLLY DISCHARGED AS A 19 LIEN AGAINST THE PROPERTY DESCRIBED THEREIN, AND SHALL BE 20 STRICKEN FROM THE JUDGMENT INDEX. THEREAFTER THE MATERIAL, 21 DISPUTED FACTS, IF ANY, [SHALL] MAY BE TRIED BY A JURY OR THE 22 COURT, WITHOUT FURTHER PLEADINGS, WITH THE SAME EFFECT AS IF A 23 WRIT OF SCIRE FACIAS HAD DULY ISSUED UPON SAID CLAIM, TO RECOVER 24 THE BALANCE THEREOF; BUT THE JURY OR THE COURT SHALL BE SWORN TO 25 TRY THE ISSUES BETWEEN THE CLAIMANT AND THE PARTIES WHO PAID THE 26 FUND INTO COURT OR ENTERED SECURITY, AND VERDICT, JUDGMENT AND 27 PAYMENT, OR EXECUTION, SHALL FOLLOW AS IN OTHER CASES. THE SAME 28 COURSE MAY BE PURSUED, AT THE INSTANCE OF ANY OWNER, WHERE THE 29 CLAIM HAS NOT IN FACT BEEN FILED, AND IF, IN THAT EVENT, THE 30 PETITIONER COMPLIES WITH THE DECREE MADE, THE MONEY PAID INTO 20070S0777B1456 - 41 -
1 COURT OR SECURITY ENTERED SHALL STAND IN LIEU OF THE CLAIM AND 2 THE LATTER SHALL NOT BE FILED, AND IF FILED SHALL BE STRICKEN 3 OFF UPON MOTION. 4 SECTION 18. THE SHERIFF TO WHOM THE SCIRE FACIAS IS GIVEN 5 FOR SERVICE SHALL ADD TO THE WRIT, AS PARTIES DEFENDANT, ALL 6 PERSONS, OTHER THAN THOSE NAMED THEREIN, WHO MAY BE FOUND IN 7 POSSESSION OF THE PROPERTY DESCRIBED, OR ANY PART THEREOF, AND 8 IN CASE NO ONE IS FOUND IN POSSESSION BY THE SHERIFF HE SHALL 9 POST A TRUE COPY OF THE WRIT ON THE MOST PUBLIC PART OF SAID 10 PROPERTY; AND HE SHALL ADD TO THE SAID WRIT THE NAMES OF ANY 11 PERSONS, NOT ALREADY NAMED THEREIN, WHOM HE MAY ASCERTAIN TO 12 HAVE AN INTEREST IN THE PROPERTY DESCRIBED, OR ANY PART THEREOF, 13 WHICH WRIT SHALL THEN BE FURTHER SERVED AS FOLLOWS: 14 (A) BY SERVING, AS IN THE CASE OF A SUMMONS, SUCH OF THOSE 15 NAMED IN THE WRIT, OR ADDED THERETO, AS MAY BE FOUND IN THE 16 COUNTY IN WHICH THE WRIT ISSUED; AND, 17 (B) WHERE THE SHERIFF HAS INFORMATION THAT THOSE NAMED IN 18 THE WRIT, OR ADDED THERETO, OR ANY OF THEM, MAY BE FOUND IN ANY 19 OTHER COUNTY OF THIS COMMONWEALTH, THE SAID PERSON SHALL BE 20 SERVED, AS IN THE CASE OF A SUMMONS, BY THE SHERIFF OF THE 21 COUNTY IN WHICH THE SAID DEFENDANTS OR ANY OF THEM MAY RESIDE, 22 HE BEING DEPUTIZED FOR THAT PURPOSE BY THE SHERIFF OF THE COUNTY 23 IN WHICH THE WRIT ISSUES; AND, 24 (C) (1) (I) IN CASE ANY OF THOSE NAMED IN THE WRIT, OR 25 ADDED THERETO, CANNOT BE FOUND BY THE SHERIFF, OR THEIR 26 RESIDENCES WITHIN THIS COMMONWEALTH ARE UNKNOWN TO HIM, OR IN 27 CASE THEY RESIDE WITHOUT THE COMMONWEALTH OR ARE DECEASED, THE 28 SAID WRIT [MAY] SHALL BE SERVED [BY ADVERTISING A COPY THEREOF, 29 OR A BRIEF NOTICE OF THE CONTENTS OF THE SAME, ONCE A WEEK FOR 30 THREE SUCCESSIVE WEEKS, IN ONE NEWSPAPER OF GENERAL CIRCULATION 20070S0777B1456 - 42 -
1 IN THE COUNTY, AND IN THE LEGAL PERIODICAL, IF ANY, DESIGNATED 2 BY THE COURT FOR THAT PURPOSE: PROVIDED, HOWEVER, THAT ANY 3 DEFENDANT MAY ACCEPT SERVICE OF SAID WRIT, IN PERSON OR BY 4 COUNSEL, WITH THE SAME EFFECT AS IF DULY SERVED THEREWITH BY THE 5 SHERIFF.] IN ACCORDANCE WITH THE PENNSYLVANIA RULES OF CIVIL 6 PROCEDURE FOR SERVICE IN REAL PROPERTY ACTIONS. 7 (II) NOTWITHSTANDING SUBCLAUSE (I), ANY DEFENDANT MAY ACCEPT 8 SERVICE OF SAID WRIT, IN PERSON OR BY COUNSEL, WITH THE SAME 9 EFFECT AS IF DULY SERVED THEREWITH BY THE SHERIFF. 10 (2) WHERE THE SAID WRIT[, OR THE BRIEF NOTICE OF THE 11 CONTENTS THEREOF, HAVE BEEN ADVERTISED AS AFORESAID, THE SAME 12 SHALL HAVE THE SAME EFFECT AS IF THE WRIT HAD BEEN PERSONALLY 13 SERVED; AND ALL THOSE NAMED THEREIN, OR ADDED THERETO, AS TO 14 WHOM PUBLICATION HAS BEEN MADE, SHALL FILE THEIR AFFIDAVIT OF 15 DEFENSE, AS REQUIRED BY THE SAID WRIT, WITHIN FIFTEEN DAYS AFTER 16 THE DATE OF THE LAST WEEKLY ADVERTISEMENT OF THE SAID WRIT;] HAS 17 BEEN SERVED UNDER SUBSECTION (C)(1)(I), THE SERVICE SHALL HAVE 18 THE SAME EFFECT AS IF THE WRIT HAD BEEN PERSONALLY SERVED; AND 19 ALL THOSE NAMED THEREIN, OR ADDED THERETO, SHALL FILE THEIR 20 AFFIDAVIT OF DEFENSE, AS REQUIRED BY THE SAID WRIT, WITHIN 21 FIFTEEN DAYS AFTER THE DATE OF SERVICE OF THE SAID WRIT; AND ALL 22 THOSE NAMED THEREIN OR ADDED THERETO, WHO HAVE BEEN SERVED AS IN 23 CASE OF A SUMMONS, SHALL FILE THEIR AFFIDAVIT OF DEFENSE, AS 24 REQUIRED BY SAID WRIT, WITHIN FIFTEEN DAYS AFTER SUCH SERVICE. 25 SERVICE OF ANY SUCH WRIT MAY BE MADE AT ANY TIME WITHIN THREE 26 MONTHS FROM THE DATE ON WHICH IT WAS ISSUED, BUT IT SHALL BE 27 SERVED AND RETURNED AT THE EARLIEST DATE POSSIBLE, AND THE 28 PLAINTIFF MAY REQUIRE ITS RETURN AT ANY TIME, WHETHER OR NOT IT 29 BE ACTUALLY SERVED. 30 SECTION 5. SECTION 26 OF THE ACT, AMENDED FEBRUARY 21, 2006 20070S0777B1456 - 43 -
1 (P.L.46, NO.18), IS AMENDED TO READ: 2 SECTION 26. (A) IT SHALL BE THE DUTY OF THE PROTHONOTARIES 3 OF THE COURTS OF COMMON PLEAS TO KEEP A LOCALITY INDEX, IN WHICH 4 SHALL BE ENTERED ALL TAX OR MUNICIPAL CLAIMS HEREAFTER FILED, 5 AND, UPON ANY WRITTEN ORDER THEREFOR, THEY SHALL GIVE A 6 CERTIFICATE OF SEARCH, SHOWING ALL THE CLAIMS FILED AGAINST ANY 7 PROPERTY. FOR SO DOING THEY SHALL RECEIVE THE SUM OF TWENTY-FIVE 8 CENTS, AND FIVE CENTS ADDITIONAL FOR EACH CLAIM CERTIFIED, AND 9 NO MORE. 10 [(B) (1) IN ADDITION TO THE REQUIREMENTS OF SUBSECTION (A), 11 THE DEPARTMENT OR PUBLIC OFFICIAL RESPONSIBLE FOR COLLECTION OF 12 DELINQUENT TAXES IN A CITY OF THE FIRST CLASS OR OTHER 13 MUNICIPALITY THAT UTILIZES THIS ACT FOR THE COLLECTION OF 14 DELINQUENT TAXES, AND THE COUNTY TREASURER IN A COUNTY OF THE 15 SECOND CLASS, SHALL MAINTAIN AS A PUBLIC RECORD A LIST OF ALL 16 PROPERTIES AGAINST WHICH TAXES WERE LEVIED, THE WHOLE OR ANY 17 PART OF WHICH WERE DUE AND PAYABLE IN A PRIOR YEAR AND WHICH 18 REMAIN UNPAID. THIS LIST SHALL DESCRIBE THE PROPERTY AND 19 IDENTIFY ITS LOCATION, PROVIDE THE NAME AND LAST KNOWN ADDRESS, 20 INCLUDING THE ZIP CODE, OF THE OWNER OF THE PROPERTY AND THE 21 AMOUNT OF UNPAID TAXES, PENALTIES AND INTEREST DUE, FOR ALL 22 YEARS OTHER THAN THE CURRENT TAX YEAR. IF TAXES ON THE LIST ARE 23 PAID OR ANOTHER SETTLEMENT HAD BEEN AGREED TO OR IF A TAX SALE 24 OF THE PROPERTY IS HELD, THIS FACT SHALL BE NOTED ON THE LIST. 25 (2) IN ADDITION TO THE REQUIREMENTS OF SUBSECTION (A), THE 26 DEPARTMENT OR PUBLIC OFFICIAL RESPONSIBLE FOR COLLECTION OF 27 DELINQUENT TAXES MAY REPORT ANY NONPAYMENT OF TAXES, INCLUDING 28 LIENS, TO ONE OR MORE CONSUMER REPORTING AGENCIES, AS DEFINED BY 29 THE FAIR CREDIT REPORTING ACT (PUBLIC LAW 91-508, 15 U.S.C. § 30 1681 ET SEQ.).] 20070S0777B1456 - 44 -
1 (B) (1) EXCEPT IN CITIES OF THE FIRST CLASS AND COUNTIES OF 2 THE SECOND CLASS, IN ADDITION TO THE REQUIREMENTS OF SUBSECTION 3 (A) EACH COUNTY SHALL DESIGNATE AN OFFICE OR DEPARTMENT TO 4 MAINTAIN A PUBLIC RECORD, BY PAPER LISTS AND ELECTRONICALLY, 5 WITH RESPECT TO DELINQUENT TAXES. THE RECORD SHALL BE CONSIDERED 6 TO BE A PUBLIC RECORD UNDER THE ACT OF JUNE 21, 1957 (P.L.390, 7 NO.212), REFERRED TO AS THE RIGHT-TO-KNOW LAW, BUT SHALL NOT BE 8 CONSIDERED A CERTIFICATION OF DELINQUENT TAXES DUE OR PAID. 9 (2) ANY MUNICIPALITY THAT UTILIZES THIS ACT FOR THE 10 COLLECTION OF DELINQUENT TAXES IN LIEU OF THE ACT OF JULY 7, 11 1947 (P.L.1368, NO.542), KNOWN AS THE "REAL ESTATE TAX SALE 12 LAW," SHALL ANNUALLY PREPARE A LIST OF ALL PROPERTIES AGAINST 13 WHICH TAXES WERE DUE AND PAYABLE IN THE PRIOR YEAR AND WHICH 14 REMAIN UNPAID. THE LIST SHALL BE GIVEN UPON COMPLETION BY THE 15 MUNICIPALITY ON OR BEFORE THE LAST DAY OF APRIL EACH YEAR BUT NO 16 EARLIER THAN THE FIRST DAY OF JANUARY OF THAT YEAR TO THE OFFICE 17 OR DEPARTMENT DESIGNATED BY THE COUNTY UNDER CLAUSE (1) TO BE 18 MAINTAINED AS A PUBLIC RECORD. THE LIST SHALL NOT BE DEEMED A 19 RETURN UNDER THE "REAL ESTATE TAX SALE LAW." IF A MUNICIPALITY 20 HAS PREVIOUSLY FILED A RETURN OF THE SAME DELINQUENT TAXES WITH 21 THE COUNTY TAX CLAIM BUREAU UNDER THE "REAL ESTATE TAX SALE 22 LAW," IT SHALL BE EXEMPT FROM FILING THE LIST REQUIRED UNDER 23 THIS SUBSECTION. THE LIST SHALL INCLUDE ALL OF THE FOLLOWING FOR 24 EACH PROPERTY: 25 (I) THE ADDRESS AND PARCEL IDENTIFICATION NUMBER OR TAX 26 PARCEL NUMBER. 27 (II) THE OWNER'S NAME. 28 (III) THE LAST KNOWN ADDRESS, INCLUDING THE ZIP CODE OF THE 29 OWNER, IF AVAILABLE. 30 (IV) THE YEAR THE TAX BECAME DUE. 20070S0777B1456 - 45 -
1 (V) THE FACE AMOUNT OF THE TAX. 2 (VI) THE NAME AND CONTACT INFORMATION FOR THE ENTITY 3 RESPONSIBLE TO COLLECT THE DELINQUENT TAX. 4 (3) WITHIN FORTY-FIVE DAYS AFTER RECEIPT OF PAYMENT IN FULL 5 OF ANY DELINQUENT TAX CLAIM, THE MUNICIPALITY SHALL NOTIFY THE 6 OFFICE OR DEPARTMENT DESIGNATED BY THE COUNTY UNDER CLAUSE (1) 7 THAT THE TAX HAS BEEN PAID. 8 (4) THE OFFICE OR DEPARTMENT DESIGNATED BY THE COUNTY UNDER 9 CLAUSE (1), UPON REQUEST OF ANY PERSON OR ENTITY, SHALL ISSUE 10 CERTIFICATIONS OF DELINQUENT TAXES PAID. A FEE NOT TO EXCEED TEN 11 DOLLARS PER TAX YEAR MAY BE CHARGED TO THE PERSON OR ENTITY 12 REQUESTING THE CERTIFICATION. A CERTIFICATION UNDER THIS 13 SUBSECTION SHALL BE BINDING UPON THE MUNICIPALITY TO WHICH THE 14 DELINQUENT TAX IS DUE. EXCEPT AS PROVIDED UNDER CLAUSE (5), IF 15 THE CERTIFICATION ERRONEOUSLY LISTS A DELINQUENT TAX AS PAID AND 16 IS RELIED UPON BY A BONA FIDE PURCHASER, LESSEE OR MORTGAGEE WHO 17 ACQUIRES FOR VALUABLE CONSIDERATION AN INTEREST IN REAL ESTATE 18 COVERED BY A TAX CERTIFICATION, THE MUNICIPALITY SHALL BE 19 ESTOPPED FROM ASSERTING A TAX LIEN FOR THE TAXES COVERED BY THE 20 CERTIFICATION AGAINST THE REAL ESTATE THAT HAS BEEN TRANSFERRED. 21 THE MUNICIPALITY SHALL RETAIN A CAUSE OF ACTION IN ASSUMPSIT TO 22 RECOVER THE DELINQUENT TAX DUE IN ACCORDANCE WITH THE APPLICABLE 23 LAW. 24 (5) NOTHING IN THIS SECTION SHALL AFFECT THE REQUIREMENT TO 25 FILE TAX CLAIMS FOR DELINQUENT TAXES WITH THE PROTHONOTARIES OF 26 THE SEVERAL COUNTIES IN THIS COMMONWEALTH IN ACCORDANCE WITH 27 THIS ACT AND ALL OTHER APPLICABLE LAWS. A TAX CLAIM FILED WITH 28 THE PROTHONOTARY SHALL REMAIN OPEN AND UNSATISFIED UNTIL THE 29 DELINQUENT TAXES WHICH ARE THE SUBJECT OF THE TAX CLAIM ARE PAID 30 OR OTHERWISE DISCHARGED OR SATISFIED AS PROVIDED BY LAW. 20070S0777B1456 - 46 -
1 NOTWITHSTANDING THE REQUIREMENTS OF CLAUSE (4) AN ERRONEOUS 2 CERTIFICATION THAT DELINQUENT TAXES ARE PAID SHALL NOT BE 3 BINDING UPON A MUNICIPALITY IF A TAX CLAIM RELATED TO THE 4 DELINQUENT TAXES REMAINS OPEN AND UNSATISFIED ON THE 5 PROTHONOTARY'S DOCKET AT THE TIME THAT THE CERTIFICATION IS 6 ISSUED. 7 (6) IN THE EVENT THAT THE RECORDS OF THE OFFICE OR 8 DEPARTMENT DESIGNATED BY THE COUNTY UNDER CLAUSE (1) DO NOT 9 INDICATE THAT DELINQUENT TAXES ARE PAID OR IF A TAX CLAIM 10 REMAINS OPEN AND UNSATISFIED IN THE PROTHONOTARY'S DOCKET, A 11 CERTIFICATION OF DELINQUENT TAXES DUE SHALL BE ISSUED BY OR ON 12 BEHALF OF THE MUNICIPALITY. THE CERTIFICATION OF DELINQUENT 13 TAXES DUE SHALL SPECIFY THE AMOUNT DUE AND OWING THROUGH A DATE 14 CERTAIN AND SHALL PROVIDE AN AMOUNT TO SATISFY ANY TAX CLAIM 15 FILED FOR THE DELINQUENT TAXES. THE FEE FOR A CERTIFICATION OF 16 TAXES DUE SHALL BE THE SAME AS THE FEE ESTABLISHED UNDER CLAUSE 17 (4) AND SHALL BE CHARGEABLE BY OR ON BEHALF OF THE MUNICIPALITY 18 TO THE PERSON OR ENTITY REQUESTING THE CERTIFICATION. IF THE 19 CERTIFIED BALANCE DUE THROUGH THE DATE PROVIDED ON THE 20 CERTIFICATION IS TIMELY PAID, THE DELINQUENT TAXES AND TAX 21 CLAIMS RELATING TO THE DELINQUENT TAXES SHALL BE SATISFIED. IF A 22 CERTIFICATION ERRONEOUSLY STATES THE BALANCE DUE AND IS RELIED 23 UPON BY A BONA FIDE PURCHASER, LESSEE OR MORTGAGEE WHO ACQUIRES 24 FOR VALUABLE CONSIDERATION AN INTEREST IN REAL ESTATE COVERED BY 25 A TAX CERTIFICATION, THE MUNICIPALITY SHALL BE ESTOPPED FROM 26 ASSERTING A TAX LIEN FOR THE TAXES COVERED BY THE CERTIFICATION 27 AGAINST THE REAL ESTATE THAT HAS BEEN TRANSFERRED. THE 28 MUNICIPALITY SHALL RETAIN A CAUSE OF ACTION IN ASSUMPSIT TO 29 RECOVER THE DELINQUENT TAXES DUE IN ACCORDANCE WITH APPLICABLE 30 LAW. WITHIN FORTY-FIVE DAYS AFTER RECEIPT OF PAYMENT IN FULL OF 20070S0777B1456 - 47 -
1 ANY DELINQUENT TAX CLAIM, THE MUNICIPALITY OR ITS AGENT SHALL 2 SATISFY THE LIEN FILED WITH THE PROTHONOTARY'S OFFICE. 3 (C) IN ADDITION TO THE REQUIREMENTS OF SUBSECTION (A), ANY 4 MUNICIPALITY THAT UTILIZES THIS ACT FOR THE COLLECTION OF 5 DELINQUENT TAXES MAY REPORT ANY NONPAYMENT OF TAXES, INCLUDING 6 LIENS, TO ONE OR MORE CONSUMER REPORTING AGENCIES, AS DEFINED BY 7 THE FAIR CREDIT REPORTING ACT (PUBLIC LAW 91-508, 15 U.S.C. § 8 1681 ET SEQ.). 9 (D) EXCEPT IN CITIES OF THE FIRST CLASS, COUNTIES OF THE 10 SECOND CLASS AND MUNICIPALITIES IN COUNTIES OF THE SECOND CLASS, 11 ANY CERTIFICATION ISSUED UNDER SUBSECTION (B)(4) AND (6) SHALL 12 BE SUBJECT TO THE TIME LIMITATIONS SET FORTH UNDER SECTION 3.4 13 AND THE APPEAL PROCEDURES SET FORTH UNDER SECTION 3.5 OF THE ACT 14 OF JUNE 21, 1957 (P.L.390, NO.212), REFERRED TO AS THE RIGHT-TO- 15 KNOW LAW. 16 SECTION 6. SECTION 31 OF THE ACT, AMENDED NOVEMBER 29, 2004 17 (P.L.1299, NO.163), IS AMENDED TO READ: 18 SECTION 31. THE LIEN OF A TAX OR A MUNICIPAL CLAIM SHALL NOT 19 BE DIVESTED BY ANY JUDICIAL SALE OF THE PROPERTY LIENED, WHERE 20 THE AMOUNT DUE IS INDEFINITE OR UNDETERMINED, OR WHERE THE SAME 21 IS NOT DUE AND PAYABLE; NOR SHALL THE LIEN OF A TAX OR MUNICIPAL 22 CLAIM BE DIVESTED BY ANY JUDICIAL SALE OF THE PROPERTY LIENED, 23 AS RESPECTS SO MUCH THEREOF AS THE PROCEEDS OF SUCH SALE MAY BE 24 INSUFFICIENT TO DISCHARGE; NOR, EXCEPT AS HEREINAFTER PROVIDED, 25 SHALL A JUDICIAL SALE OF THE PROPERTY LIENED, UNDER A JUDGMENT 26 OBTAINED ON A TAX OR MUNICIPAL CLAIM, DISCHARGE THE LIEN OF ANY 27 OTHER TAX OR MUNICIPAL CLAIM THAN THAT UPON WHICH SAID SALE IS 28 HAD, EXCEPT TO THE EXTENT THAT THE PROCEEDS REALIZED ARE 29 SUFFICIENT FOR ITS PAYMENT, OBTAINED ON A TAX OR MUNICIPAL 30 CLAIM, DISCHARGE THE LIEN OF ANY OTHER TAX OR MUNICIPAL CLAIM 20070S0777B1456 - 48 -
1 THAN THAT UPON WHICH SAID SALE IS HAD, EXCEPT TO THE EXTENT THAT 2 THE PROCEEDS REALIZED ARE SUFFICIENT FOR ITS PAYMENT, AFTER 3 PAYING THE COSTS, CHARGES AND FEES, INCLUDING REASONABLE 4 ATTORNEY FEES, EXPENSES OF THE SALE, AND OF THE WRIT UPON WHICH 5 IT WAS MADE, AND ANY OTHER PRIOR TAX OR MUNICIPAL CLAIMS TO 6 WHICH THE FUND MAY FIRST BE APPLICABLE. ON ANY SUCH SALE BEING 7 MADE ALL TAX CLAIMS SHALL BE PAID OUT OF THE PROCEEDS THEREOF: 8 FIRST, THE OLDEST TAX HAVING PRIORITY; AND MUNICIPAL CLAIMS 9 SHALL BE PAID NEXT, THE OLDEST IN POINT OF LIEN HAVING PRIORITY. 10 MORTGAGES, GROUND-RENTS, AND OTHER CHARGES ON OR ESTATES IN THE 11 PROPERTY WHICH WERE RECORDED, OR CREATED WHERE RECORDING IS NOT 12 REQUIRED, BEFORE ANY TAX OTHER THAN FOR THE CURRENT YEAR ACCRUE, 13 OR BEFORE THE ACTUAL DOING OF THE WORK IN FRONT OF OR UPON THE 14 PARTICULAR PROPERTY FOR WHICH THE MUNICIPAL CLAIM IS FILED, 15 SHALL NOT BE DISTURBED BY SUCH SALE UNLESS A PRIOR LIEN IS ALSO 16 DISCHARGED THEREBY. 17 IN CASE THE PROPERTY BE NOT SOLD FOR A SUM SUFFICIENT TO PAY 18 ALL TAXES AND MUNICIPAL CLAIMS, TOGETHER WITH THE COSTS THEREON, 19 THE PLAINTIFF IN ANY SUCH CLAIM MAY POSTPONE THE SALE BY 20 ANNOUNCEMENT TO THE ASSEMBLED BIDDERS OR AS MAY OTHERWISE BE 21 PROVIDED BY LOCAL RULE OR CONDITIONS OF SALE, WITHOUT PAYMENT OF 22 COSTS, AND FILE HIS PETITION SETTING FORTH THAT MORE THAN ONE 23 YEAR HAS ELAPSED SINCE THE FILING OF HIS CLAIM; THAT HE HAS 24 EXPOSED THE PROPERTY TO SHERIFF'S SALE THEREUNDER, AND WAS 25 UNABLE TO OBTAIN A BID SUFFICIENT TO PAY THE UPSET PRICE IN 26 FULL; AND, IF THE PLAINTIFF IS NOT A MUNICIPALITY AS DEFINED IN 27 THIS ACT, THAT HE WILL BID SUFFICIENT TO PAY THE UPSET PRICE, 28 AND UPON THE PRODUCTION OF SEARCHES OR A TITLE INSURANCE POLICY 29 SHOWING THE STATE OF THE RECORD AND THE OWNERSHIP OF THE 30 PROPERTY, AND OF ALL TAX AND MUNICIPAL CLAIMS, MORTGAGES, 20070S0777B1456 - 49 -
1 GROUND-RENTS, OR OTHER CHARGES ON OR ESTATES IN THE LAND, THE 2 COURT SHALL GRANT A RULE UPON ALL PARTIES THUS SHOWN TO BE 3 INTERESTED TO APPEAR AND SHOW CAUSE WHY A DECREE SHOULD NOT BE 4 MADE THAT SAID PROPERTY BE SOLD, FREED, AND CLEARED OF THEIR 5 RESPECTIVE CLAIMS, MORTGAGES, CHARGES, AND ESTATES. IF, UPON A 6 HEARING THEREAFTER, THE COURT IS SATISFIED THAT SERVICE HAS BEEN 7 MADE OF SAID RULE UPON THE PARTIES RESPONDENT, IN THE MANNER 8 PROVIDED IN SECTION 39.2, AND THAT THE FACTS STATED IN THE 9 PETITION BE TRUE, IT SHALL ORDER AND DECREE THAT SAID PROPERTY 10 BE SOLD AT A SUBSEQUENT SHERIFF'S SALE DAY, TO BE FIXED BY THE 11 COURT WITHOUT FURTHER ADVERTISEMENT, AND THE COURT MAY FIX A 12 COMMON DATE AND PLACE OF SALE FOR MORE THAN ONE OF SAID 13 PROPERTIES IF IT DEEMS A JOINT SALE TO BE ADVANTAGEOUS. ALL 14 PROPERTY AT SHERIFF'S SALE SHALL BE SOLD, CLEAR OF ALL CLAIMS, 15 LIENS, MORTGAGES, CHARGES, AND ESTATES, TO THE HIGHEST BIDDER AT 16 SUCH SALE; AND THE PROCEEDS REALIZED THEREFROM SHALL BE 17 DISTRIBUTED IN ACCORDANCE WITH THE PRIORITY OF SUCH CLAIMS; AND 18 THE PURCHASER AT SUCH SALE SHALL TAKE, AND FOREVER THEREAFTER 19 HAVE, AN ABSOLUTE TITLE TO THE PROPERTY SOLD, FREE, AND 20 DISCHARGED OF ALL TAX AND MUNICIPAL CLAIMS, LIENS, MORTGAGES, 21 CHARGES, AND ESTATES OF WHATSOEVER KIND, SUBJECT ONLY TO THE 22 RIGHT OF REDEMPTION AS PROVIDED BY LAW. IN COUNTIES OF THE 23 SECOND CLASS, UPON RETURN OF THE WRIT UPON WHICH THE SALE WAS 24 MADE AND UPON THE EXPIRATION OF THE STATUTORY RIGHT OF 25 REDEMPTION AND IF NO PETITION TO SET ASIDE THE SALE IS PENDING, 26 THE PROTHONOTARY SHALL SATISFY ALL TAX CLAIMS AND MUNICIPAL 27 CLAIMS DIVESTED BY THE JUDICIAL SALE IN ACCORDANCE WITH THE 28 ORDER OF COURT AUTHORIZING SUCH SALE. 29 ANY PERSON INTERESTED MAY, AT ANY TIME BEFORE THE SALE, PAY 30 THE PETITIONER THE WHOLE OF HIS CLAIM, WITH INTEREST, COSTS, 20070S0777B1456 - 50 -
1 CHARGES, EXPENSES, FEES AND ATTORNEY FEES, WHEREUPON THE 2 PROCEEDINGS ON PETITION SHALL AT ONCE DETERMINE. 3 FOR THE PURPOSE OF ENABLING THE PETITIONER IN ANY SUCH 4 PROCEEDINGS TO GIVE THE NOTICE REQUIRED, HE MAY TAKE THE 5 TESTIMONY OF THE DEFENDANT IN THE CLAIM, OR OF ANY OTHER PERSON 6 WHOM HE MAY HAVE REASON TO BELIEVE HAS KNOWLEDGE OF THE 7 WHEREABOUTS OF ANY OF THE PARTIES RESPONDENT, EITHER BY 8 DEPOSITION, COMMISSION, OR LETTERS ROGATORY. 9 ANY MUNICIPALITY, BEING A CLAIMANT, SHALL HAVE THE RIGHT, AND 10 IS HEREBY EMPOWERED, TO BID AND BECOME THE PURCHASER OF THE 11 PROPERTY AT SUCH SALE; AND WHILE THE SAID PROPERTY, SO 12 PURCHASED, IS HELD AND OWNED BY ANY COUNTY, CITY, BOROUGH, 13 INCORPORATED TOWN, TOWNSHIP, SCHOOL DISTRICT OR A BODY POLITIC 14 AND CORPORATE CREATED AS A MUNICIPAL AUTHORITY PURSUANT TO LAW, 15 IT SHALL NOT BE SUBJECT TO TAX CLAIMS, UNLESS IT BE REDEEMED BY 16 THE FORMER OWNER OR OTHER PERSON HAVING THE RIGHT TO REDEEM, AS 17 PROVIDED BY LAW. IF, HOWEVER, A MUNICIPALITY SHALL BECOME THE 18 PURCHASER AT SAID SALE, THE FORMER OWNER OR OTHER PERSON, 19 DESIRING TO REDEEM, SHALL PAY ALL TAXES AND MUNICIPAL CLAIMS 20 ACCRUED AND CHARGEABLE AGAINST THE PROPERTY PRIOR TO THE SALE 21 THEREOF, TOGETHER WITH THE COSTS AND INTEREST THEREON, AND ALSO 22 ALL TAXES AND CLAIMS, WHETHER FILED OR NOT, WHICH WOULD HAVE 23 ACCRUED AND BECOME CHARGEABLE AGAINST THE PROPERTY HAD THE SAME 24 BEEN PURCHASED AT THE SALE BY SOME PARTY OTHER THAN THE 25 MUNICIPALITY. 26 UPON THE DELIVERY BY THE SHERIFF OF A DEED FOR ANY PROPERTY 27 SOLD UNDER A TAX OR MUNICIPAL CLAIM, THE JUDGMENT UPON WHICH 28 SUCH SALE WAS HAD SHALL THEREUPON AND FOREVER THEREAFTER BE 29 FINAL AND CONCLUSIVE AS TO ALL MATTERS OF DEFENSE WHICH COULD 30 HAVE BEEN RAISED IN THE PROCEEDING, INCLUDING PAYMENT, AND NO 20070S0777B1456 - 51 -
1 ERROR OR IRREGULARITY IN OBTAINING OR ENTERING OF SUCH JUDGMENT 2 SHALL EFFECT THE VALIDITY THEREOF. 3 SECTION 7. SECTION 39.2 OF THE ACT, AMENDED FEBRUARY 7, 1996 4 (P.L.1, NO.1) AND AUGUST 14, 2003 (P.L.83, NO.20), IS AMENDED TO 5 READ: 6 SECTION 39.2. (A) IN CITIES OF THE FIRST CLASS, NOTICE OF A 7 RULE TO SHOW CAUSE WHY A PROPERTY SHOULD NOT BE SOLD FREE AND 8 CLEAR OF ALL ENCUMBRANCES ISSUED BY A COURT PURSUANT TO A 9 PETITION FILED BY A CLAIMANT UNDER SECTION 31.2 OF THIS ACT 10 SHALL BE SERVED BY THE CLAIMANT UPON OWNERS, MORTGAGEES, HOLDERS 11 OF GROUND RENTS, LIENS AND CHARGES OR ESTATES OF WHATSOEVER KIND 12 AS FOLLOWS: 13 (1) BY POSTING A TRUE AND CORRECT COPY OF THE PETITION AND 14 RULE ON THE MOST PUBLIC PART OF THE PROPERTY; 15 (2) BY MAILING BY FIRST CLASS MAIL TO THE ADDRESS REGISTERED 16 BY ANY INTERESTED PARTY PURSUANT TO SECTION 39.1 OF THIS ACT A 17 TRUE AND CORRECT COPY OF THE PETITION AND RULE; AND 18 (3) BY REVIEWING A TITLE SEARCH, TITLE INSURANCE POLICY OR 19 TAX INFORMATION CERTIFICATE THAT IDENTIFIES INTERESTED PARTIES 20 OF RECORD WHO HAVE NOT REGISTERED THEIR ADDRESSES PURSUANT TO 21 SECTION 39.1 OF THIS ACT, THE CITY SHALL MAIL BY FIRST CLASS 22 MAIL AND EITHER BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, OR 23 BY REGISTERED MAIL TO SUCH ADDRESSES AS APPEAR ON THE RESPECTIVE 24 RECORDS RELATING TO THE PREMISES A TRUE AND CORRECT COPY OF THE 25 PETITION AND RULE. 26 SERVICE OF NOTICE PURSUANT TO THIS SECTION SHALL BE DEEMED 27 ACCOMPLISHED ON THE DATE OF MAILING. THE CITY SHALL FILE AN 28 AFFIDAVIT OF SERVICE WITH THE COURT PRIOR TO SEEKING A DECREE 29 ORDERING THE SALE OF THE PREMISES. 30 (A.1) IN COUNTIES OF THE SECOND CLASS AND MUNICIPALITIES 20070S0777B1456 - 52 -
1 THEREIN, NOTICE OF A RULE TO SHOW CAUSE WHY A PROPERTY SHOULD 2 NOT BE SOLD FREE AND CLEAR OF ALL LIENS AND ENCUMBRANCES ISSUED 3 BY A COURT PURSUANT TO A PETITION FILED BY A CLAIMANT UNDER 4 SECTIONS [28] 31 AND 31.1 OF THIS ACT SHALL BE SERVED BY THE 5 CLAIMANT UPON OWNERS, MORTGAGEES, HOLDERS OF GROUND RENTS, LIENS 6 AND CHARGES OR ESTATES OF WHATSOEVER KIND AS FOLLOWS: 7 (1) BY POSTING A TRUE AND CORRECT COPY OF THE PETITION AND 8 RULE ON THE MOST PUBLIC PART OF THE PROPERTY. 9 (2) BY REVIEWING A TITLE SEARCH, TITLE INSURANCE POLICY OR 10 TAX INFORMATION CERTIFICATE THAT IDENTIFIES INTERESTED PARTIES 11 OF RECORD, THE [COUNTY OR]MUNICIPALITY SHALL MAIL BY FIRST CLASS 12 MAIL AND EITHER BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, OR 13 BY CERTIFICATE OF MAILING TO SUCH ADDRESSES AS APPEAR ON THE 14 RESPECTIVE RECORDS RELATING TO THE PREMISES A TRUE AND CORRECT 15 COPY OF THE PETITION AND RULE. NOTICE PURSUANT TO THIS SECTION 16 SHALL BE DEEMED ACCOMPLISHED ON THE DATE OF MAILING. THE [COUNTY 17 OR] MUNICIPALITY SHALL FILE AN AFFIDAVIT OF SERVICE WITH THE 18 COURT PRIOR TO SEEKING A DECREE ORDERING THE SALE OF THE 19 PREMISES[.] WHICH SHALL INCLUDE A LIST OF THOSE PERSONS OR 20 ENTITIES WHOSE NOTIFICATION UNDER THIS SECTION WAS RETURNED BY 21 THE POST OFFICE AS UNDELIVERABLE. 22 (A.2) EXCEPT IN CITIES OF THE FIRST CLASS, COUNTIES OF THE 23 SECOND CLASS AND MUNICIPALITIES LOCATED IN COUNTIES OF THE 24 SECOND CLASS, NOTICE OF A RULE TO SHOW CAUSE WHY A PROPERTY 25 SHOULD NOT BE SOLD FREE AND CLEAR OF ALL LIENS AND ENCUMBRANCES 26 ISSUED BY A COURT PURSUANT TO A PETITION FILED BY A CLAIMANT 27 UNDER SECTION 31 SHALL BE SERVED BY THE CLAIMANT UPON OWNERS, 28 MORTGAGEES, HOLDERS OF GROUND RENTS, LIENS AND CHARGES OR 29 ESTATES OF WHATSOEVER KIND AS FOLLOWS: 30 (1) BY POSTING A TRUE AND CORRECT COPY OF THE PETITION AND 20070S0777B1456 - 53 -
1 RULE ON THE MOST PUBLIC PART OF THE PROPERTY. 2 (2) BY REVIEWING A TITLE SEARCH, TITLE INSURANCE POLICY OR 3 TAX INFORMATION CERTIFICATE THAT IDENTIFIES INTERESTED PARTIES 4 OF RECORD, THE MUNICIPALITY SHALL MAIL BY FIRST CLASS MAIL AND 5 EITHER BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, OR BY 6 CERTIFICATE OF MAILING TO SUCH ADDRESSES AS APPEAR ON THE 7 RESPECTIVE RECORDS RELATING TO THE PREMISES A TRUE AND CORRECT 8 COPY OF THE PETITION AND RULE. NOTICE PURSUANT TO THIS 9 SUBSECTION SHALL BE DEEMED ACCOMPLISHED ON THE DATE OF MAILING. 10 THE MUNICIPALITY SHALL FILE AN AFFIDAVIT OF SERVICE WITH THE 11 COURT PRIOR TO SEEKING A DECREE ORDERING THE SALE OF THE 12 PREMISES WHICH SHALL INCLUDE A LIST OF THOSE PERSONS OR ENTITIES 13 WHOSE NOTIFICATION UNDER THIS SECTION WAS RETURNED BY THE POST 14 OFFICE AS UNDELIVERABLE. 15 (B) NO PARTY WHOSE INTEREST DID NOT APPEAR ON A TITLE 16 SEARCH, TITLE INSURANCE POLICY OR TAX INFORMATION CERTIFICATE OR 17 WHO FAILED TO ACCURATELY REGISTER HIS INTEREST AND ADDRESS 18 PURSUANT TO SECTION 39.1 OF THIS ACT SHALL HAVE STANDING TO 19 COMPLAIN OF IMPROPER NOTICE IF THE CITY SHALL HAVE COMPLIED WITH 20 SUBSECTION (A) OF THIS SECTION. THIS PROVISION SHALL NOT APPLY 21 IF THE MORTGAGE OR INTEREST WAS OTHERWISE PROPERLY RECORDED IN 22 THE OFFICE OF THE RECORDER OF DEEDS AND THE DOCUMENT CONTAINS A 23 CURRENT ADDRESS SUFFICIENT TO SATISFY THE NOTICE REQUIREMENTS OF 24 THIS SECTION. NOTWITHSTANDING ANY OTHER REQUIREMENT SET FORTH IN 25 THIS ACT OR ANY OTHER LAW TO THE CONTRARY, THE NOTICE REQUIRED 26 BY SUBSECTION (A) OF THIS SECTION SHALL CONSTITUTE THE ONLY 27 NOTICE REQUIRED BEFORE A COURT MAY ENTER A DECREE ORDERING A TAX 28 SALE. 29 (B.1) NO PARTY WHOSE INTEREST DID NOT APPEAR ON A TITLE 30 SEARCH OR TITLE INSURANCE POLICY, BECAUSE OF THE PARTY'S FAILURE 20070S0777B1456 - 54 -
1 TO RECORD OR PROPERLY RECORD ITS INTEREST, SHALL HAVE STANDING 2 TO COMPLAIN OF IMPROPER NOTICE IF THE COUNTY OR MUNICIPALITY 3 SHALL HAVE COMPLIED WITH SUBSECTION (A.1). THIS PROVISION SHALL 4 NOT APPLY IF THE MORTGAGE OR INTEREST WAS OTHERWISE PROPERLY 5 RECORDED IN THE OFFICE OF THE RECORDER OF DEEDS AND THE DOCUMENT 6 CONTAINS A CURRENT ADDRESS SUFFICIENT TO SATISFY THE NOTICE 7 REQUIREMENTS OF THIS SECTION. NOTWITHSTANDING ANY OTHER 8 REQUIREMENT SET FORTH BY SUBSECTION (A.1), NOTICE THEREUNDER 9 SHALL CONSTITUTE THE ONLY NOTICE REQUIRED BEFORE A COURT MAY 10 ENTER A DECREE ORDERING A TAX SALE FREE AND CLEAR OF LIENS. 11 (B.2) IF THE MUNICIPALITY SHALL HAVE COMPLIED WITH 12 SUBSECTION (A.2), NO PARTY WHOSE INTEREST DID NOT APPEAR ON A 13 TITLE SEARCH OR TITLE INSURANCE POLICY BECAUSE OF THE PARTY'S 14 FAILURE TO RECORD OR PROPERLY RECORD ITS INTEREST SHALL HAVE 15 STANDING TO COMPLAIN OF IMPROPER NOTICE. THIS PROVISION SHALL 16 NOT APPLY IF THE MORTGAGE OR INTEREST WAS OTHERWISE PROPERLY 17 RECORDED IN THE OFFICE OF THE RECORDER OF DEEDS AND THE DOCUMENT 18 CONTAINS A CURRENT ADDRESS SUFFICIENT TO SATISFY THE NOTICE 19 REQUIREMENTS OF THIS SECTION. NOTWITHSTANDING ANY OTHER 20 REQUIREMENT OF SUBSECTION (A.2), NOTICE THEREUNDER SHALL 21 CONSTITUTE THE ONLY NOTICE REQUIRED BEFORE A COURT MAY ENTER A 22 DECREE ORDERING A TAX SALE FREE AND CLEAR OF LIENS. 23 (C) NOTICE OF THE COURT'S DECREE ORDERING A TAX SALE, 24 TOGETHER WITH THE TIME, PLACE AND DATE OF THE SALE, SHALL BE 25 SERVED BY FIRST CLASS MAIL ON ALL PARTIES SERVED WITH THE 26 PETITION AND RULE, ON ANY PARTIES WHOSE INTEREST APPEARED OF 27 RECORD AFTER THE FILING OF THE PETITION BUT BEFORE THE COURT'S 28 DECREE AND ON ANY CREDITOR WHO HAS OBTAINED JUDGMENT AGAINST THE 29 OWNER OF THE PREMISES PRIOR TO THE DATE OF THE DECREE. THE CITY 30 SHALL FILE AN AFFIDAVIT OF SERVICE OF THESE NOTICES PRIOR TO THE 20070S0777B1456 - 55 -
1 DATE OF THE SALE. 2 (D) EXCEPT IN CITIES OF THE FIRST CLASS, IN SALES PURSUANT 3 TO A PETITION FILED BY A CLAIMANT UNDER SECTION 31 OR 31.1, 4 NOTICE OF THE COURT'S DECREE ORDERING A TAX SALE, TOGETHER WITH 5 THE TIME, PLACE AND DATE OF THE SALE, SHALL BE SERVED ALONG WITH 6 THE NOTICE OF SHERIFF'S SALE AND SHALL BE PROVIDED TO ALL 7 PARTIES ENTITLED TO RECEIVE NOTICE PURSUANT TO PA.R.C.P. 8 NO.3129.1 (RELATING TO SALE OF REAL PROPERTY; NOTICE; 9 AFFIDAVIT). 10 (E) EXCEPT IN CITIES OF THE FIRST CLASS, IN SALES PURSUANT 11 TO A PETITION FILED BY A CLAIMANT UNDER SECTION 28 OR 31, NOTICE 12 OF THE COURT'S DECREE ORDERING A SALE, TOGETHER WITH THE TIME, 13 PLACE AND DATE OF THE SALE, SHALL BE SERVED BY FIRST CLASS MAIL 14 UPON ALL PARTIES WHO RECEIVE NOTICE PURSUANT TO PA.R.C.P. 15 NO.3129.1 PRIOR TO THE INITIAL SALE. NOTICE UNDER THIS SECTION 16 SHALL BE PROVIDED NO LATER THAN SEVEN DAYS PRIOR TO THE 17 CONTINUED SALE. 18 SECTION 8. THE ACT IS AMENDED BY ADDING SECTIONS TO READ: 19 SECTION 42. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, ANY 20 TAXING DISTRICT IN THIS COMMONWEALTH MAY ADOPT A RESOLUTION TO 21 COLLECT TAXES UNDER THIS ACT EXCLUSIVELY AND INDEPENDENTLY OF 22 ANY OTHER STATUTE GOVERNING THE COLLECTION OF TAXES, INCLUDING 23 THE ACT OF JULY 7, 1947 (P.L.1368, NO.542), KNOWN AS THE "REAL 24 ESTATE TAX SALE LAW," AND INDEPENDENT OF ANY COUNTY TAX CLAIM 25 BUREAU. ANY TAXING DISTRICT WHICH ADOPTS A RESOLUTION TO COLLECT 26 TAXES UNDER THIS SECTION SHALL NOT BE REQUIRED TO COMPLY WITH 27 ANY OF THE PROCEDURES OR PROVISIONS OF THE "REAL ESTATE TAX SALE 28 LAW," INCLUDING THE OBLIGATION TO MAKE ANNUAL RETURNS TO ANY 29 COUNTY TAX CLAIM BUREAU. FOR THE PURPOSES OF THIS SECTION, THE 30 TERM "TAXING DISTRICT" SHALL HAVE THE SAME MEANING AS GIVEN TO 20070S0777B1456 - 56 -
1 IT UNDER SECTION 102 OF THE "REAL ESTATE TAX SALE LAW." 2 SECTION 43. IF ANY PROVISION OF THIS ACT OR ITS APPLICATION 3 TO ANY PERSON OR CIRCUMSTANCE IS HELD INVALID OR UNENFORCEABLE, 4 THE REMAINDER OF THIS ACT OR THE APPLICATION OF THE PROVISIONS 5 TO OTHER PERSONS OR CIRCUMSTANCES SHALL NOT BE AFFECTED. 6 SECTION 9. THIS ACT SHALL APPLY AS FOLLOWS: 7 (1) THE AMENDMENT OF SECTION 3 OF THE ACT SHALL APPLY 8 RETROACTIVELY TO JANUARY 1, 2005. 9 (2) THE AMENDMENT OF SECTION 26 OF THE ACT SHALL APPLY 10 RETROACTIVELY TO JANUARY 1, 2005. 11 (3) THE ADDITION OF SECTION 42 OF THE ACT SHALL APPLY 12 RETROACTIVELY TO JANUARY 1, 2005. 13 SECTION 10. THIS ACT SHALL TAKE EFFECT AS FOLLOWS: 14 (1) THIS SECTION SHALL TAKE EFFECT IMMEDIATELY. 15 (2) THE FOLLOWING PROVISIONS SHALL TAKE EFFECT JANUARY 16 1, 2009: 17 (I) THE AMENDMENT OF SECTION 26 OF THE ACT. 18 (II) SECTION 9(2) OF THIS ACT. 19 (3) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT IN 60 20 DAYS. D17L53MSP/20070S0777B1456 - 57 -