PRINTER'S NO. 2927
No. 2217 Session of 1988
INTRODUCED BY CALTAGIRONE, HALUSKA, TRELLO, F. TAYLOR, MRKONIC,
BATTISTO, COLE, VAN HORNE, OLASZ, LUCYK AND DUFFY,
FEBRUARY 24, 1988
REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 24, 1988
AN ACT
1 Amending the act of July 7, 1947 (P.L.1368, No.542), entitled,
2 as amended, "An act amending, revising and consolidating the
3 laws relating to delinquent county, city, except of the first
4 and second class and second class A, borough, town, township,
5 school district, except of the first class and school
6 districts within cities of the second class A, and
7 institution district taxes, providing when, how and upon what
8 property, and to what extent liens shall be allowed for such
9 taxes, the return and entering of claims therefor; the
10 collection and adjudication of such claims, sales of real
11 property, including seated and unseated lands, subject to the
12 lien of such tax claims; the disposition of the proceeds
13 thereof, including State taxes and municipal claims recovered
14 and the redemption of property; providing for the discharge
15 and divestiture by certain tax sales of all estates in
16 property and of mortgages and liens on such property, and the
17 proceedings therefor; creating a Tax Claim Bureau in each
18 county, except counties of the first and second class, to act
19 as agent for taxing districts; defining its powers and
20 duties, including sales of property, the management of
21 property taken in sequestration, and the management, sale and
22 disposition of property heretofore sold to the county
23 commissioners, taxing districts and trustees at tax sales;
24 providing a method for the service of process and notices;
25 imposing duties on taxing districts and their officers and on
26 tax collectors, and certain expenses on counties and for
27 their reimbursement by taxing districts; and repealing
28 existing laws," authorizing counties to extend the time for
29 certain unpaid taxes and to defer certain unpaid taxes.
30 The General Assembly of the Commonwealth of Pennsylvania
31 hereby enacts as follows:
1 Section 1. The act of July 7, 1947 (P.L.1368, No.542), known
2 as the Real Estate Tax Sale Law, is amended by adding a section
3 to read:
4 Section 504. Extension for Elderly.--(a) The county
5 commissioners may enact legislation which provides that, if the
6 county commissioners, acting through the bureau, determine or
7 have reason to believe that a tax claim or tax claims relate to
8 residential real estate which is owned and occupied solely by a
9 person sixty-five (65) years of age or older or is owned and
10 occupied jointly by persons all of whom are sixty-five (65)
11 years of age or older, and there is a possibility that such
12 owner is not fully informed as to the tax claim or claims and
13 the effect of the impending sale, or otherwise needs assistance
14 to prevent the property from going to sale, the period for
15 discharge of the tax claim or claims may be extended or payment
16 of the tax claim or claims may be deferred to a later time.
17 (b) Legislation enacted as authorized by subsection (a) may
18 authorize the bureau, either through its own action or in
19 cooperation with the Area Agency on Aging or any other
20 organization, group or individuals, to examine documents of
21 record, conduct inquiries or take any other action to determine
22 if the owner of the property to which the tax claim relates is
23 sixty-five (65) years of age or older. If it is determined that
24 the owner is sixty-five (65) years of age or older and otherwise
25 qualifies for special consideration under this section, such
26 legislation may authorize any of the following insofar as such
27 action will not ultimately result in loss to the bureau or the
28 taxing district:
29 (1) Extend the period for discharge of the tax claim or
30 claims for up to three (3) additional months if it appears to
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1 the bureau that suitable arrangement for payment of the tax
2 claim or claims can be made within that period.
3 (2) If it is determined that the owner desires to continue
4 to reside in the residence and cannot afford to pay the tax
5 claim or claims and continue to live in a comfortable lifestyle,
6 stay the tax sale and defer payment of the tax claim or claims
7 until such time as title to the property is transferred or the
8 owner is no longer the sole occupant of the property. Any such
9 tax deferral program shall include requirements relating to
10 income limitations, value of the property, owner's equity in the
11 property, insurance of the property and other requirements
12 deemed necessary for entitlement to the deferral and for
13 protection of the tax claim or claims. All taxes so deferred
14 shall constitute a prior lien on the property in favor of the
15 taxing district, and shall attach as of the date and in the same
16 manner and shall be collected as other liens for taxes, but the
17 taxes shall be due and payable only when title to the property
18 is transferred or the eligible owner is no longer the sole
19 occupant.
20 (3) If it is determined that the owner does not desire to
21 continue to reside in the residence, or that a deferral of tax
22 pursuant to paragraph (2) would jeopardize ultimate recovery of
23 the tax claim or claims in full, and it appears that the owner
24 has equity in the residence which would be lost at a regular tax
25 sale, a special sale of the residence can be arranged. At least
26 two independent appraisals of the residence shall be obtained,
27 and the residence shall be placed on the market at a price
28 midway between such appraisals for a period not to exceed eleven
29 (11) months from the date the property was initially scheduled
30 for sale. If the property is sold within that period, the
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1 proceeds shall be distributed in the priority stated in section
2 205(d) and confirmed as provided in section 205(e). Cost of the
3 appraisals and seller's costs of the sale shall be borne by the
4 owner. If the property is not sold within that period, the
5 property shall be sold at the next regularly scheduled tax sale,
6 and costs incurred shall be recouped by the bureau at the sale.
7 (c) The procedures set forth in this section are not
8 intended to be exclusive, but are intended to express the intent
9 of the General Assembly to permit county commissioners to enact
10 whatever legislation they may deem beneficial to senior citizens
11 to prevent them from losing their residences, or losing equity
12 in their residences, as a result of unpaid real estate taxes, to
13 the extent that such measures may be enacted pursuant to section
14 2(b)(ii) of Article VIII of the Constitution of Pennsylvania,
15 but subject to the condition that such legislation does not
16 jeopardize the ultimate receipt in full of taxes imposed by the
17 taxing districts.
18 Section 2. This act shall take effect in 60 days.
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