CORRECTIVE REPRINT
PRIOR PRINTER'S NO. 3504
PRINTER'S NO. 3530
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2316
Session of
2020
INTRODUCED BY GLEIM, RYAN, O'NEAL, ROWE, ROTHMAN, MOUL AND
KEEFER, APRIL 3, 2020
REFERRED TO COMMITTEE ON FINANCE, APRIL 3, 2020
AN ACT
Amending the act of July 7, 1947 (P.L.1368, No.542), entitled
"An act amending, revising and consolidating the laws
relating to delinquent county, city, except of the first and
second class and second class A, borough, town, township,
school district, except of the first class and school
districts within cities of the second class A, and
institution district taxes, providing when, how and upon what
property, and to what extent liens shall be allowed for such
taxes, the return and entering of claims therefor; the
collection and adjudication of such claims, sales of real
property, including seated and unseated lands, subject to the
lien of such tax claims; the disposition of the proceeds
thereof, including State taxes and municipal claims recovered
and the redemption of property; providing for the discharge
and divestiture by certain tax sales of all estates in
property and of mortgages and liens on such property, and the
proceedings therefor; creating a Tax Claim Bureau in each
county, except counties of the first and second class, to act
as agent for taxing districts; defining its powers and
duties, including sales of property, the management of
property taken in sequestration, and the management, sale and
disposition of property heretofore sold to the county
commissioners, taxing districts and trustees at tax sales;
providing a method for the service of process and notices;
imposing duties on taxing districts and their officers and on
tax collectors, and certain expenses on counties and for
their reimbursement by taxing districts; and repealing
existing laws," in tax claim bureau, further providing for
system of accounting and distribution; in lien of taxes,
filing of tax returns and adjudication, further providing for
taxes, a first lien; and making inconsistent repeals.
The General Assembly of the Commonwealth of Pennsylvania
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
hereby enacts as follows:
Section 1. Sections 205(d) and 301 of the act of July 7,
1947 (P.L.1368, No.542), known as the Real Estate Tax Sale Law,
are amended to read:
Section 205. System of Accounting and Distribution.--
* * *
(d) It shall be the duty of the bureau to distribute all
moneys collected as the result of any tax sale conducted under
the provisions of this act, less the deductions authorized by
subsection (c), in the following manner and according to the
following priority:
(1) First, to the following in order of their priority in
time of filing:
(i) To the Commonwealth, by payment to the State Treasurer
through the Department of Revenue, for satisfaction of tax liens
of the Commonwealth only if the total amount of such liens or
such portion thereof have been included in the purchase price
and paid by the purchaser or the property is sold at judicial
sale pursuant to this act.
[(2) Second, to] (ii) To the respective taxing districts in
proportion to the taxes due them.
[(3) Third, to] (iii) To taxing districts or municipal
authorities for satisfaction of municipal claims.
[(4) Fourth, to] (iv) To mortgagees and other lien holders,
in order of their priority, for satisfaction of mortgages and
liens as they may appear of record, whether or not discharged by
the sale.
[(5) Fifth,] (2) Second, to the owner of the property.
* * *
Section 301. Taxes, a [First] Lien.--All taxes which may
20200HB2316PN3530 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
hereafter be lawfully levied on property in this Commonwealth by
any taxing district, and all taxes heretofore lawfully levied by
any taxing district on any property, the lien of which has not
been lost under existing laws (whether or not a claim has been
filed, or return thereof has been made to the county
commissioners) shall be and are hereby declared to be a [first]
lien on said property. Such liens shall [have priority to and be
fully] be paid and satisfied out of the proceeds of any sale of
said property held under the provisions of this act [before any
mortgage, ground rent, obligation, judgment claim, lien or
estate with which the said property may have or shall become
charged, or for which it may become liable, save and except only
the costs of the sale and of the proceedings upon which it is
made, and such tax liens of the Commonwealth of Pennsylvania]
and given priority of payment as provided by section 205 of this
act. The only exceptions are costs of the sale and of the
proceedings upon which it is made, which shall have priority
over any other claim against the property.
Section 2. The following acts and parts of acts are repealed
insofar as they are inconsistent with the amendment of sections
205(d) and 301 of the act:
(1) The act of May 22, 1895 (P.L.111, No.84), relating
to land sold at tax sales cleared of tax liens.
(2) Section 1401 of the act of April 9, 1929 (P.L.343,
No.176), known as The Fiscal Code.
(3) Section 4 of the act of May 29, 1931 (P.L.280,
No.132), referred to as the Local Delinquent Tax Return Law.
(4) Section 3 of the act of May 25, 1933 (P.L.1019,
No.230), relating to tax sales of lands purchased by
counties.
20200HB2316PN3530 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(5) Section 4 of the act of June 26, 1939 (P.L.1100,
No.386), relating to sales of realty for tax claim judgment.
(6) The act of March 21, 1945 (P.L.47, No.24), relating
to local tax liens.
Section 3. The amendment of sections 205(d) and 301 of the
act shall apply only to claims for which the right to file a
lien accrues after the effective date of this section.
Section 4. The Secretary of the Commonwealth shall submit to
the Legislative Reference Bureau a notice for publication in the
Pennsylvania Bulletin when the General Assembly has enacted all
of the following:
(1) This act.
(2) An act amending the act of October 11, 1984
(P.L.876, No.171), known as the Second Class City Treasurer's
Sale and Collection Act, to provide that tax and municipal
claims and other claims against a property, including
mortgages, judgment claims, liens or other obligations with
which the property is charged, shall have priority of payment
in order of their priority in time of filing.
(3) An act amending the act of May 16, 1923 (P.L.207,
No.153), referred to as the Municipal Claim and Tax Lien Law,
to provide that tax and municipal claims and other claims
against a property, including mortgages, judgment claims,
liens or other obligations with which the property is
charged, shall have priority of payment in order of their
priority in time of filing.
Section 5. This act shall take effect as follows:
(1) Section 4 of this act and this section shall take
effect immediately.
(2) The remainder of this act shall take effect upon
20200HB2316PN3530 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
publication of the notice under section 4 of this act.
20200HB2316PN3530 - 5 -
1