Regular Session 2017-2018 Senate Bill 1099 P.N. 1931

PRIOR PRINTER'S NO. 1642

PRINTER'S NO. 1931

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

1099

Session of

2018

INTRODUCED BY MARTIN, RESCHENTHALER, AUMENT AND WAGNER,

APRIL 11, 2018

SENATOR MARTIN, LOCAL GOVERNMENT, AS AMENDED, JUNE 22, 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

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

20180SB1099PN1931 - 2 -

<--

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.

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 THE

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.

20180SB1099PN1931 - 3 -

<--

(B) The duration of the agreement, if any.

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

20180SB1099PN1931 - 4 -

becomes vacant or the term of office of the tax collector has

expired.

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.

20180SB1099PN1931 - 5 -

(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.

tax collector shall receive such compensation as agreed to

20180SB1099PN1931 - 6 -

<--

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

20180SB1099PN1931 - 7 -

<--

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.

20180SB1099PN1931 - 8 -