THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY PHILLIPS, GEIST, SAYLOR, BARRAR, CREIGHTON, HELM, HENNESSEY, HESS, KORTZ, MOUL AND MURT, MARCH 25, 2009

REFERRED TO COMMITTEE ON FINANCE, MARCH 25, 2009  

AN ACT

Amending the act of May 25, 1945 (P.L.1050, No.394), entitled

"An act relating to the collection of taxes levied by

counties, county institution districts, cities of the third

class, boroughs, towns, townships, certain school districts

and vocational school districts; conferring powers and

imposing duties on tax collectors, courts and various

officers of said political subdivisions; and prescribing

penalties," requiring tax collectors to receive tax payments

from escrow agents or escrow accounts; further providing for

penalties; and providing for application of requirements.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The act of May 25, 1945 (P.L.1050, No.394), known

as the Local Tax Collection Law, is amended by adding a section

to read:

Section 13.1.  Collectors Required to Receive Payment of

Taxes from Escrow Accounts.--(a)  Taxes due on property may be

paid by an escrow agent from an escrow account. It shall be the

duty of the tax collector to receive and receipt, in accordance

with this act, the payment of taxes by an escrow agent

regardless of the payment being made payable to the taxing

district or to the tax collector, provided such payment is

tendered or mailed in a timely fashion, includes corresponding

taxpayer identification information, is in the appropriate

amount due and is otherwise tendered in accordance with this

act. In the event an escrow agent tenders one payment on behalf

of multiple taxpayers, it shall be the duty of the tax collector

to receive and receipt the payment, provided such payment is

tendered or mailed in a timely fashion, includes corresponding

taxpayer identification information for each taxpayer, is in the

appropriate aggregate amount due from those taxpayers and is

otherwise tendered in accordance with this act.

(b)  The following words and phrases when used in this

section shall have the meanings given to them in this subsection

unless the context clearly indicates otherwise:

"Corresponding taxpayer identification information" shall

mean an original tax notice, a duplicate of an original tax

notice or information displaying each unique parcel

identification number assigned and recognized by the county tax

assessor, each property owner's name and the amount being paid

for each tax bill.

"Escrow account" shall mean any account established in

conjunction with a mortgage loan on property, into which

payments are made and out of which the escrow agent pays the

taxes on the property covered by the mortgage. The term shall

also include an escrow arrangement the intent of which is to

serve the same purposes as an escrow account but which does not

require the formal establishment of an account.

"Escrow agent" shall mean the bank, mortgage banker or other

institution, association, partnership corporation or person who

or which has made or services the loan of moneys in conjunction

with a mortgage on property, including the successors in

interest of the foregoing, among whose duties and obligations is

the payment of taxes from the escrow account on the mortgaged

property.

Section 2.  Section 42 of the act, amended July 7, 2006

(P.L.374, No.80), is amended to read:

Section 42.  Penalty.--(a)  Any tax collector failing to

comply with the provisions of section thirteen or 13.1 of this

act, and any tax collector, treasurer or commissioner who

violates any of the provisions of section fourteen of this act,

shall be sentenced to pay a fine of not more than five hundred

dollars and any penalty and interest incurred by the taxpayer as

a result of the violation or failure to comply, or be sentenced

to imprisonment for not more than six months, or both, at the

discretion of the court.

(b)  A person who formerly held the office of tax collector

who unlawfully and intentionally impairs the availability of tax

collection records in violation of section 4.3(d) commits a

misdemeanor of the second degree.

Section 3.  (a)  In addition to applying to taxes that will

become due after the effective date of this section, the

addition of section 13.1 of the act shall also apply to all

taxes which are to be collected by the tax collector during the

calendar year in which this section becomes effective,

notwithstanding that taxes may first have become due prior to

the effective date of this section.

(b)  The amendment of section 42(a) of the act shall not

apply to refusals to accept payment of taxes in accordance with

section 13.1 of the act made prior to the effective date of this

section.

Section 4.  This act shall take effect immediately.