1Amending the act of May 16, 1923 (P.L.207, No.153), entitled "An
2act providing when, how, upon what property, and to what
3extent, liens shall be allowed for taxes and for municipal
4improvements, for the removal of nuisances, and for water
5rents or rates, sewer rates, and lighting rates; for the
6procedure upon claims filed therefor; the methods for
7preserving such liens and enforcing payment of such claims;
8the effect of judicial sales of the properties liened; the
9distribution of the proceeds of such sales, and the
10redemption of the property therefrom; for the lien and
11collection of certain taxes heretofore assessed, and of
12claims for municipal improvements made and nuisances removed,
13within six months before the passage of this act; and for the
14procedure on tax and municipal claims filed under other and
15prior acts of Assembly," further providing for definitions,
16for taxes on property to be first liens and for municipal
17claims to be liens; providing for liens on property for
18delinquent taxes, for attorney fees and costs and for
19collection of costs and attorney fees associated with tax
20collection; and further providing for lien to be in favor of
21municipalities.

22The General Assembly of the Commonwealth of Pennsylvania
23hereby enacts as follows:

24Section 1. Section 1 of the act of May 16, 1923 (P.L.207,
25No.153), referred to as the Municipal Claim and Tax Lien Law,
26amended August 14, 2003 (P.L.83, No.20) and July 15, 2004
27(P.L.726, No.83), is amended to read:

28Section 1. Be it enacted, &c., That the word "taxes," as

1used in this act, means any county, city, borough, incorporated
2town, township, school, bridge, road, or poor taxes, together
3with and including all penalties, interest, costs, charges,
4expenses and fees, including reasonable attorney fees, as
5allowed by this act and all other applicable laws.

6The word "highway," as used in this act, means the whole or
7any part of any public street, public road, public lane, public
8alley, or other public highway.

9The words "tax claim," as used in this act, mean the claim
10filed to recover taxes.

11The words "municipal claim," as used in this act, unless
12specifically indicated otherwise, mean and include (1) the claim
13arising out of, or resulting from, a tax assessed, service
14supplied, work done, fine imposed, or improvement authorized and
15undertaken, by a municipality, although the amount thereof be
16not at the time definitely ascertained by the authority
17authorized to determine the same, and a lien therefor be not
18filed, but becomes filable within the period and in the manner
19herein provided, (2) the claim filed to recover for the grading,
20guttering, macadamizing, or otherwise improving, the cartways of
21any public highway; for grading, curbing, recurbing, paving,
22repaving, constructing, or repairing the footways thereof; for
23laying water pipes, gas pipes, culverts, sewers, branch sewers,
24or sewer connections therein; for assessments for benefits in
25the opening, widening or vacation thereof; or in the changing of
26water-courses or the construction of sewers through private
27lands; or in highways of townships of the first class; or in the
28acquisition of sewers and drains constructed and owned by
29individuals or corporations, and of rights in and to use the
30same; for the removal of nuisances; or for water rates, lighting

1rates, or sewer rates, and (3) the claim filed to recover for
2work, material, and services rendered or furnished in the
3construction, improvement, maintenance, and operation of a
4project or projects of a body politic or corporate created as a
5Municipal Authority pursuant to law. A municipal claim shall be
6together with and shall include all penalties, interest, costs,
7fines, charges, expenses and fees, including reasonable attorney
8fees, as allowed by this act and all other applicable laws.

9The word "claimant," as used in this act, means the plaintiff
10or use-plaintiff in whose favor the claim is filed as a lien.

11The word "contractor," as used in this act, means the person
12or persons who, under contract with the legal plaintiff,
13performed the work for which the lien is given.

14The words "financial institution," as used in this act, mean
15any of the following: (1) a depository institution, as defined
16in section 3(c) of the Federal Deposit Insurance Act (64 Stat.
17873, 12 U.S.C. § 1813(c)); (2) a Federal credit union or State
18credit union, as defined in section 1752(1) of the Federal
19Credit Union Act (48 Stat. 1216, 12 U.S.C. § 1752(1)); or (3) a
20benefit association, insurance company, safe deposit company,
21money market mutual fund or similar entity doing business in
22this Commonwealth that holds property or maintains accounts
23reflecting property belonging to others.

24The words "personal property," as used in this act, mean
25personal property subject to the lien and against which the
26claim is filed as a lien.

27The word "property," as used in this act, includes personal
28property and real property.

29The [word "property,"] words "real property," as used in this
30act, [means] mean the real estate subject to the lien and

1against which the claim is filed as a lien.

2The word "owner," as used in this act with respect to real 
3property, means the person or persons in whose name the real
4property is registered, if registered according to law[, and, in
5all other cases], or, where the real property is not registered
6means any person or persons in open, peaceable and notorious
7possession of the real property, as apparent owner or owners
8thereof, if any, or the reputed owner or owners thereof in the
9neighborhood of such real property. In the case of personal 
10property, the word "owner" means the person or persons having 
11the right to possess, use and convey such property or otherwise 
12having title to it.

13The word "municipality," as used in this act, means any
14county, city, borough, incorporated town, township, school
15district, or a body politic and corporate created as a Municipal
16Authority pursuant to law and any assignees thereof.

17The words "charges, expenses, and fees," as used in this act,
18include all sums paid or incurred by a municipality to file,
19preserve and collect unpaid taxes, tax claims, tax liens,
20municipal claims and municipal liens, including, but not limited
21to, prothonotary and sheriff fees, postage expenses, and title
22search expenses. A county, city, borough, incorporated town,
23township, school district or municipal authority may also
24recover as "charges, expenses, and fees" the charges, expenses,
25commissions and fees of third-party collectors retained by the
26county, city, borough, incorporated town, township, school
27district or municipal authority, provided that the charges,
28expenses, commissions and fees of such third-party collectors
29are approved by legislative action of the county, city, borough,
30incorporated town, township, school district or municipal

1authority which levies the unpaid taxes, tax claims, tax liens,
2municipal claims and municipal liens.

3Section 2. Section 2 of the act is amended to read:

4Section 2. All taxes which may hereafter be lawfully imposed
5or assessed on any property in this Commonwealth, and all taxes
6heretofore lawfully imposed or assessed by any municipality on
7any property in this Commonwealth for the years one thousand
8nine hundred and twenty-one, one thousand nine hundred and
9twenty-two, and one thousand nine hundred and twenty-three, in
10the manner and to the extent hereinafter set forth, shall be and
11they are hereby declared to be a first lien on said property,
12together with all charges, expenses, and fees added thereto for
13failure to pay promptly; and such liens shall have priority to
14and be fully paid and satisfied out of the proceeds of any
15judicial sale of said property, before any other obligation,
16judgment, claim, lien, or estate with which the said property
17may become charged or for which it may become liable, save and
18except only the costs of [the] any sale and of the writ upon
19which [it] such sale is made.

20Section 3. Section 3 of the act, amended August 14, 2003
21(P.L.83, No.20), is amended to read:

22Section 3. (a) All municipal claims, municipal liens,
23taxes, tax claims and tax liens which may hereafter be lawfully
24imposed or assessed on any real property in this Commonwealth,
25and all such claims heretofore lawfully imposed or assessed
26within six months before the passage of this act and not yet
27liened, in the manner and to the extent hereinafter set forth,
28shall be and they are hereby declared to be a lien on said real
29property, together with all charges, expenses, and fees incurred
30in the collection of any delinquent account, including

1reasonable attorney fees under [subsection (a.1)] section 3.3,
2added thereto for failure to pay promptly; and municipal claims
3and municipal liens shall arise when lawfully imposed and
4assessed and shall have priority to and be fully paid and
5satisfied out of the proceeds of any judicial sale of said
6property, before any other obligation, judgment, claim, lien, or
7estate with which the said property may become charged, or for
8which it may become liable, save and except only the costs of
9the sale and of the writ upon which it is made, and the taxes,
10tax claims and tax liens imposed or assessed upon said property.

11[(a.1) It is not the intent of this subsection to require
12owners to pay, or municipalities to sanction, inappropriate or
13unreasonable attorney fees, charges or expenses for routine
14functions. Attorney fees incurred in the collection of any
15delinquent account, including municipal claims, municipal liens,
16taxes, tax claims and tax liens, shall be in an amount
17sufficient to compensate attorneys undertaking collection and
18representation of a municipality or its assignee in any actions
19in law or equity involving claims arising under this act. A
20municipality by ordinance, or by resolution if the municipality
21is of a class which does not have the power to enact an
22ordinance, shall adopt the schedule of attorney fees. Where
23attorney fees are sought to be collected in connection with the
24collection of a delinquent account, including municipal claims,
25municipal liens, taxes, tax claims and tax liens, the owner may
26petition the court of common pleas in the county where the
27property subject to the municipal claim and lien, tax claim and
28lien or taxes is located to adjudicate the reasonableness of the
29attorney fees imposed. In the event that there is a challenge to
30the reasonableness of the attorney fees imposed in accordance

1with this section, the court shall consider, but not be limited
2to, the following:

3(1) The time and labor required, the novelty and difficulty
4of the questions involved and the skill requisite to properly
5undertake collection and representation of a municipality in
6actions arising under subsection (a).

7(2) The customary charges of the members of the bar for
8similar services.

9(3) The amount of the delinquent account collected and the
10benefit to the municipality from the services.

11(4) The contingency or the certainty of the compensation.

12(a.2) Any time attorney fees are awarded pursuant to any
13provision of law, the municipality shall not be entitled to
14duplicate recovery of attorney fees under this section.

15(a.3) (1) At least thirty days prior to assessing or
16imposing attorney fees in connection with the collection of a
17delinquent account, including municipal claims, municipal liens,
18taxes, tax claims and tax liens, a municipality shall, by United
19States certified mail, return receipt requested, postage
20prepaid, mail to the owner the notice required by this
21subsection.

22(2) If within thirty days of mailing the notice in
23accordance with clause (1) the certified mail is refused or
24unclaimed or the return receipt is not received, then at least
25ten days prior to assessing or imposing attorney fees in
26connection with the collection of a delinquent account, a
27municipality shall, by United States first class mail, mail to
28the owner the notice required by this subsection.

29(3) The notice required by this subsection shall be mailed
30to the owner's last known post office address by virtue of the

1knowledge and information possessed by the municipality and by
2the county office responsible for assessments and revisions of
3taxes. It shall be the duty of the municipality to determine the
4owner's last post office address known to said collector and
5county assessment office.

6(4) The notice to the owner shall include the following:

7(i) A statement of the municipality's intent to impose or
8assess attorney fees within thirty days of mailing the notice
9pursuant to clause (1) or within ten days of the mailing of the
10notice pursuant to clause (2).

11(ii) The manner in which the imposition or assessment of
12attorney fees may be avoided by payment of the delinquent
13account.

14(b) With the exception of those claims which have been
15assigned, any municipal claim, municipal lien, tax, tax claim or
16tax lien, including interest, penalty and costs, imposed by a
17city of the first class, shall be a judgment only against the
18said property when the lien has been docketed by the
19prothonotary. The docketing of the lien shall be given the
20effect of a judgment against the said property only with respect
21to which the claim is filed as a lien. The prothonotary shall
22maintain an in rem index, the form and location of which shall
23be within the prothonotary's discretion. All tax claims, water
24rents or rates, lighting rates, power rates and sewer rates
25heretofore filed are hereby ratified, confirmed and made valid
26subsisting liens as of the date of their original filing.

27(c) A writ of execution may issue directly without
28prosecution to judgment of a writ of scire facias. Any property
29sold in execution shall be sold in compliance with the
30provisions of section 31.2.

1(d) Attorney fees may be imposed and collected in accordance
2with this section upon all taxes, tax claims, tax liens,
3municipal claims, municipal liens, writs of scire facias,
4judgments or executions filed on or after December 19, 1990.]

5(e) All charges, expenses, and fees incurred in the
6collection of a delinquent account may be added to the amount of
7the tax liability, and may be collected in any way that the
8underlying tax liability may be collected under applicable law.
9Collection of attorney fees shall be subject to section 3.2.

10Section 4. The act is amended by adding sections to read:

11Section 3.1. (a) When any municipal claim or tax becomes
12delinquent, such claim or tax, together with all charges,
13expenses and fees, including reasonable attorney fees, added
14thereto for failure to pay promptly shall be a lien upon all
15property that is both:

16(1) owned by the delinquent taxpayer; and

17(2) located within this Commonwealth or held by a financial
18institution: Provided, however, That with respect to property
19located outside the taxing municipality, no lien shall exist
20against such property until filed with the prothonotary of the
21county or counties in which the property is located.

22(b) A lien under this section shall have the same force and
23effect as a personal judgment against the delinquent taxpayer
24and shall be subject to all prior claims, mortgages, ground
25rents, charges and estates.

26(c) The inclusion in a lien under this section of charges,
27expenses and fees incurred in the collection of any delinquent
28account, including reasonable attorney fees, shall be subject to
29the requirements of section 3.2.

30(d)  This section shall not apply to any of the following:

1(1)  Any property that is subject to a lien under section 3.

2(2) Real property that became subject to a lien by a city
3under the act of December 1, 1959 (P.L.1673, No.616) known as
4the "Self-Assessed Tax Lien Act," except that charges, expenses
5and fees incurred in the collection of any delinquent account
6under that act, including reasonable attorney fees, may be
7included in a lien imposed under that act, in accordance with
8the provisions of section 3.2 of this act.

9Section 3.2. (a) It is not the intent of this section to
10require owners to pay, or municipalities to sanction,
11inappropriate or unreasonable attorney fees, charges or expenses
12for routine functions. Attorney fees incurred in the collection
13of any delinquent account, including municipal claims, municipal
14liens, taxes, tax claims and tax liens, shall be in an amount
15sufficient to compensate the municipality, where the
16municipality uses attorneys who are employes of the municipality
17or, when outside counsel is used, the municipality's outside
18counsel, for undertaking collection and bringing any actions in
19law or equity involving claims arising under this act on behalf
20of the municipality or its assignee. A municipality by
21ordinance, or by resolution if the municipality is of a class
22which does not have the power to enact an ordinance, shall adopt
23the schedule of attorney fees. Where attorney fees are sought to
24be collected in connection with the collection of a delinquent
25account, including municipal claims, municipal liens, taxes, tax
26claims and tax liens, the owner may, in the case of real
27property, petition the court of common pleas in the county where
28the property subject to the municipal claim and lien, tax claim
29and lien or taxes is located to adjudicate the reasonableness of
30the attorney fees imposed; in the case of personal property, the

1owner may file for such adjudication in either the court of
2common pleas in the county encompassing the municipality that
3imposed the tax, or the court of common pleas in the county
4where the property subject to the municipal claim and lien, tax
5claim and lien or taxes is usually located. In the event that
6there is a challenge to the reasonableness of the attorney fees
7imposed in accordance with this section, the court shall
8consider, but not be limited to, the following:

9(1) The time and labor required, the novelty and difficulty
10of the questions involved and the skill requisite to properly
11undertake collection and representation of a municipality.

12(2) The customary charges of the members of the bar for
13similar services.

14(3) The amount of the delinquent account collected and the
15benefit to the municipality from the services.

16(4) The contingency or the certainty of the compensation.

17(b) Any time attorney fees are awarded pursuant to any
18provision of law, the municipality shall not be entitled to
19duplicate recovery of attorney fees under this section.

20(c) (1) At least thirty days prior to assessing or imposing
21attorney fees in connection with the collection of a delinquent
22account, including municipal claims, municipal liens, taxes, tax
23claims and tax liens, a municipality shall, by United States
24certified mail, return receipt requested, postage prepaid, mail
25to the owner the notice required by this subsection.

26(2) If within thirty days of mailing the notice in
27accordance with clause (1) the certified mail is refused or
28unclaimed or the return receipt is not received, then at least
29ten days prior to assessing or imposing attorney fees in
30connection with the collection of a delinquent account, a

1municipality shall, by United States first class mail, mail to
2the owner the notice required by this subsection.

3(3) The notice required by this subsection shall be mailed
4to the owner's last known post office address by virtue of the
5knowledge and information possessed by the municipality and by
6the county office responsible for assessments and revisions of
7taxes. It shall be the duty of the municipality to determine the
8owner's last post office address known to said collector and
9county 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
12assess attorney fees within thirty days of mailing the notice
13pursuant to clause (1) or within ten days of the mailing of the
14notice pursuant to clause (2).

15(ii) The manner in which the imposition or assessment of
16attorney fees may be avoided by payment of the delinquent
17account.

18(d) With the exception of those claims which have been
19assigned, any municipal claim, municipal lien, tax, tax claim or
20tax lien, including interest, penalty and costs imposed by a
21city of the first class upon real property within such city,
22shall be a judgment only against the said real property when the
23lien has been docketed by the prothonotary. The docketing of the
24lien shall be given the effect of a judgment against the said
25real property. The prothonotary shall maintain an in rem index,
26the form and location of which shall be within the
27prothonotary's discretion. All tax claims, water rents or rates,
28lighting rates, power rates and sewer rates heretofore filed are
29hereby ratified, confirmed and made valid subsisting liens as of
30the date of their original filing.

1(e) A writ of execution may issue directly without
2prosecution to judgment of a writ of scire facias. Any real
3property sold in execution shall be sold in compliance with the
4provisions of section 31.2.

5(f) Attorney fees may be imposed and collected in accordance
6with this section upon all taxes, tax claims, tax liens,
7municipal claims, municipal liens, writs of scire facias,
8judgments or executions filed on or after December 19, 1990.

9Section 5. Section 4 of the act, amended July 28, 1953
10(P.L.678, No.212), is amended to read:

11Section 4. (a) The lien for taxes shall exist in favor of[,
12and the claim therefor may be filed against the property taxed
13by,] any municipality to which the tax is payable[.] and the 
14claim may be filed against the property taxed by such 
15municipality, as well as against all other property that is 
16both: (1) owned by the person who owns the property subject to 
17the tax; and (2) located within this Commonwealth or held by a 
18financial institution.

19(b) The lien for the removal of nuisances shall exist in
20favor of, and the claim therefor may be filed against the
21property from which it is removed, or by which it is caused, by,
22any municipality by or for which the nuisance is removed.

23(c) The lien for grading, guttering, paving, macadamizing,
24or otherwise improving the cartways of any highways; for
25grading, curbing, recurbing, paving, repaving, constructing, or
26repairing the footways thereof; or for laying water pipes, gas
27pipes, culverts, sewers, branch sewers, or sewer connections in
28any highway; for assessments for benefits in the opening,
29widening, or vacation thereof; or in the changing of
30watercourses or construction of sewers through private lands; or

1in highways of townships of the first class; or in the
2acquisition of sewers and drains constructed and owned by
3individuals or corporations, and of rights in and to use the
4same; or for water rates, lighting rates, or sewer rates, or
5rates for any other service furnished by a municipality,--shall
6exist in favor of, and the claim therefor may be filed against
7the property thereby benefited by, the municipality extending
8the benefit; or the city, borough, or township in which the
9property is located, if the work, material or service forming
10the basis of such lien was supplied by a municipal authority
11organized by a city of the second class, by a county of the
12second class or by a city of the third class and such liens or
13the claim therefor has been assigned to it.

14(d) Municipal authorities organized by cities of the second
15class, by counties of the second class or by cities of the third
16class are hereby authorized to assign their municipal claims and
17their liens to the city, borough, or township in which the
18property subject thereto is located, and cities, boroughs and
19townships in which such property is located are hereby
20authorized to purchase the same. Upon such assignment or
21purchase the city, borough, or township acquiring such municipal
22claim or lien shall have the same rights thereunder as if it had
23supplied the work, material or service upon which such municipal
24claim or lien is based.

25(e) When the contractor performing the work is to be paid by
26assessment bills, the lien shall exist for, and the claim shall
27be filed to, his use, and he shall under no circumstances have
28recourse to the municipality authorizing the work.

29Section 6. This act shall take effect in 60 days.