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A08919
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
1099
Session of
2018
INTRODUCED BY MARTIN, MENSCH, RESCHENTHALER AND AUMENT,
APRIL 11, 2018
REFERRED TO LOCAL GOVERNMENT, APRIL 11, 2018
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," further providing for definitions; providing for
county option to collect real property taxes, for optional
alternative tax collection agreements and for collection of
school taxes by school districts; and further providing for
bonds of tax collectors.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "tax collector" or "elected tax
collector" in section 2 of the act of May 25, 1945 (P.L.1050,
No.394), known as the Local Tax Collection Law, is amended to
read:
Section 2. Definitions.--The words--
* * *
"Tax Collector" or "Elected Tax Collector" shall include
every person duly elected or appointed to collect all taxes,
levied by any political subdivision included in the provisions
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of this act, including the treasurers of cities of the third
class, elected collectors of taxes in townships of the first
class and county collectors of taxes in counties of the third,
fourth, fifth, sixth, seventh and eighth class who have been
designated to collect county and institution district taxes in
cities of the third class and county treasurers in counties of
the fourth, fifth, sixth, seventh and eighth class who have been
designated to collect county taxes in municipalities existing or
organized under 53 Pa.C.S. Pt. III Subpt. E (relating to home
rule and optional plan government) that have eliminated the
elective office of tax collector and county treasurers in
counties of the third, fourth, fifth, sixth, seventh and eighth
class who have been designated to collect taxes under section
3.1, 3.2 or 4.4 of this act. The term includes a person
authorized to collect taxes under section 3.2, 3.3 or 4.2 of
this act.
* * *
Section 2. The act is amended by adding sections to read:
Section 3.1. County Collection of Real Property Taxes.--(a)
Notwithstanding any other provision of law, a county of the
third , fourth, fifth, sixth, seventh or eighth class may, by
resolution, provide for the collection by the county treasurer
of all real property taxes levied by the county. Upon the
adoption of a resolution by a county, t he county treasurer shall
have the powers, duties and responsibilities of billing and
collecting real property taxes levied by the county. The county
shall provide written notice of the adoption of the resolution
to the taxing districts and the elected tax collectors in the
taxing districts.
(b) The compensation of personnel and other expenses of
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billing and collecting county real property taxes pursuant to
this section shall be paid out of the general fund in the county
treasury. The compensation and number of such employes other
than the county treasurer shall be governed by the provisions of
the act of August 9, 1955 (P.L.323, No.130), known as "The
County Code," relating to the county salary board. The county
treasurer shall not receive added compensation for performing
such functions.
(c) If a county elects to discontinue the collection by the
county treasurer of real property taxes levied by the county,
the county shall provide written notice to the taxing districts
and elected tax collectors in the taxing districts.
(d) This section shall not apply to home rule counties of
the third class. Any reclassification of counties as a result of
a Federal decennial census or of a State statute shall not apply
to this section.
Section 3.2. Optional Alternative Tax Collection
Agreements.-- (a) (1) Notwithstanding any other provision of
law, the governing body of a municipality within a county of t he
third class may, by ordinance, enter into an optional
alternative tax collection agreement with a tax officer named by
the governing body of the municipality to be responsible for the
billing and collection of all taxes previously collected by an
elected tax collector. The tax officer shall be one of the
following:
(i) The county treasurer, provided that p rior to adoption of
an ordinance under this paragraph, the governing body of the
municipality and the county commissioners shall each adopt a
resolution specifying:
(A) The conditions of the agreement.
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(B) The duration of the agreement, if any.
(C) The purpose and objectives of the agreement, including
the powers and scope of authority delegated under the agreement.
(ii) A private agency already defined as a tax officer under
section 501 of the act of December 31, 1965 (P.L.1257, No.511),
known as "The Local Tax Enabling Act."
(iii) A public employe of the municipality or home rule
municipality.
(2) For calendar years in which a tax collector is to be
elected in the municipality, an ordinance may not be adopted
after the deadline for filing nomination petitions has passed.
(3) Upon the adoption of an ordinance by the municipality,
the office of tax collector is abolished, subject to subsection
(c). The municipality shall notify the taxing districts served
by the elected tax collector of the tax officer named to replace
the elected tax collector.
(4) When a tax officer is named under this section, the
municipal treasurer shall have the authority to take receipt of
payment of taxes if the tax officer is located outside of the
municipality.
(5) The optional alternative tax collection agreement shall
be deemed a professional services contract and not subject to a
competitive bidding process.
(b) The ordinance to enter into an optional alternative tax
collection agreement shall take effect as follows:
(1) If the office of tax collector is vacant and the
municipality has named a tax officer prior to the effective date
of the ordinance, the ordinance shall take effect immediately.
(2) If the office of tax collector is not vacant, the
ordinance may not take effect until the office of tax collector
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becomes vacant or the term of office of the tax collector has
expired.
(c) A tax collector in office when a municipality adopts an
ordinance under this section shall remain in office until the
end of the term of office and shall continue to have all the
powers and duties of the office.
(d) The person appointed by the governing body of the
municipality as tax collector shall receive such compensation as
agreed to between the governing body of the municipality and the
appointee.
(e) (1) A tax officer appointed by a municipality shall be
subject to the basic and continuing education requirements of
this act.
(2) If the tax officer is an organization composed of
multiple people, then at least one individual shall be
designated to comply with the basic and continuing education
requirements of this act.
(f) A tax officer shall name a deputy in accordance with
section 22(b).
(g) A tax officer shall comply with the bonding requirements
of section 4.
(h) A municipality shall provide a copy of an optional
alternative tax collection agreement entered into with a tax
officer to the county board of elections. After the effective
date of the agreement, the board of elections may not place the
office of tax collector on the ballot in that municipality.
(i) An optional alternative tax collection agreement entered
into by a governing body of a municipality is not required to
have a fixed duration and may be amended or terminated at any
time by the governing body.
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(j) Prior to terminating an optional alternative tax
collection agreement, the municipality shall provide written
notice to the tax officer, the taxing district and the county
board of elections. Upon receipt of the notification, the county
board of elections shall place the office of tax collector on
the ballot for the municipality during the next municipal
election. The tax officer shall continue to collect taxes until
a tax collector has been elected and sworn into office.
(k) This section shall not apply to home rule counties of
the third class. Any reclassification of counties as a result of
a Federal decennial census or of a State statute shall not apply
to this section.
(k) (l) As used in this section, the term "municipality"
shall mean a borough, town or township within a county of the
third , fourth, fifth, sixth, seventh or eighth class.
Section 3.3. Collection of School Taxes by School
Districts.--(a) Notwithstanding any law, the board of school
directors in each school district of the second, third or fourth
in a county of the third class may appoint, by resolution, one
or more suitable persons as tax collectors in such school
districts. The board of school directors in any school district,
appointing any tax collector or tax collectors, may authorize
and direct any one tax collector to collect the school taxes in
any one or more wards or other proper divisions in such school
district.
(b) The board of school directors shall provide written
notice of the adoption of the resolution to the elected tax
collector of the taxing district.
(c) The person appointed by the board of school directors as
tax collector shall receive such compensation as agreed to
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between the board of school directors and the appointee.
(d) If a board of school directors elects to discontinue the
collection by the person appointed by the board of school
directors as tax collector, the board of school directors shall
provide written notice to the elected tax collector of the
taxing district.
(e) This section shall not apply to home rule counties of
the third class. Any reclassification of counties as a result of
a Federal decennial census or of a State statute shall not apply
to this section.
Section 3. Section 4(b) of the act is amended to read:
Section 4. Bonds of Tax Collectors.--* * *
(b) In boroughs, towns and townships of the first or second
class, the [elected] tax collector shall be the collector of
borough, town or township taxes, as the case may be, and of
county, county institution district, school district and
vocational school district taxes. He shall, before he enters
upon the duties of his office, take and subscribe an oath of
office and file the same in the office of the clerk of the court
of common pleas of the county. He shall enter into one surety
bond to the Commonwealth for all taxes to be collected by him,
in an amount to be fixed by the court of common pleas of the
county, which amount shall never exceed the estimated amount of
taxes charged in the duplicates to be delivered to him in one
year. Such bond may, at the option of the tax collector, be an
annual bond or may cover the full term of office for which the
tax collector shall have been elected or appointed. Such bond
shall have thereon at least one bonding company, and the
sufficiency of the sureties on the bond shall be approved by the
court of common pleas at any time prior to the delivery of a tax
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duplicate to the tax collector. The bond shall be filed in the
office of the clerk of the court of common pleas on or before
the fifteenth day of March of the year in which the tax
collector qualifies for office and annually thereafter, except
where the first bond given by the tax collector covers the full
term of office for which he was elected or appointed. Should any
of the taxing districts be of the opinion, at any time, that the
bond given by the tax collector is not sufficient in amount, or
as to the surety thereon, the said taxing district may apply to
the court by petition to have the tax collector furnish
additional bond in the manner provided by this section.
Thereupon the tax collector shall furnish such additional bond,
if any, as the court of common pleas may prescribe, but not
exceeding the limitation as to the amount hereinbefore
prescribed: Provided, That where taxes for borough purposes are
collected by an appointee of council the bond shall be as may be
prescribed by council. The board of commissioners of any county
by resolution adopted no later than November 1 of the prior year
may authorize and require for the following year the joint
bidding by the board of commissioners of bonds for all tax
collectors for the county and for boroughs, incorporated towns
and townships of the first or second class, and school districts
and vocational school districts within the county. The joint
bidding of the bonds shall be subject to all provisions of this
act not inconsistent with the requirement of joint bidding.
* * *
Section 4. This act shall take effect in 60 days.
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