PRINTER'S NO. 873
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
793
Session of
2019
INTRODUCED BY GREINER, MENTZER, FEE, RYAN, GROVE AND BERNSTINE,
MARCH 12, 2019
REFERRED TO COMMITTEE ON FINANCE, MARCH 12, 2019
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 bonds of tax collectors;
and providing for optional alternative tax collection
agreements.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 4(b) and (f) of the act of May 25, 1945
(P.L.1050, No.394), known as the Local Tax Collection Law, are
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
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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
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
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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.
* * *
(f) In case where a tax collector shall be appointed in a
borough, town or township of the first or second class [to fill
a vacancy in said office], or where the elected tax collector
shall have failed to qualify, or to furnish bond, or where a tax
collector shall have failed to settle a duplicate, as provided
in section thirty-one of this act, the person appointed in
accordance with existing laws, including an individual,
corporation or the county treasurer to collect such taxes, shall
give bond secured and conditioned as above provided; where a
township of the first or second class or a school district shall
in such cases exercise its power to appoint a separate tax
collector to collect its taxes, such appointee shall give bond
secured and conditioned as above provided.
* * *
Section 2. The act is amended by adding a section to read:
Section 4.7. Optional Alternative Tax Collection
Agreements.--(a) The following apply:
(1) Notwithstanding any other provision of law and subject
to subsection (b), a municipality may, by ordinance, enter into
an optional tax collection agreement with a tax officer named by
the municipality who shall be responsible for the continued
collection of all taxes previously collected by the tax
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collector.
(2) A tax officer shall be one of the following:
(i) a tax bureau;
(ii) the county treasurer, provided that the governing body
of the municipality and the county commissioners enter into an
agreement that provides that the county treasurer shall have the
duties and responsibilities of billing and collecting all taxes
levied in the municipality;
(iii) the tax collector of an adjoining or conveniently
located taxing district provided that the governing body of the
municipality and the governing body of the adjoining or
conveniently located taxing district enter into an agreement
that provides that the tax collector shall have the duties and
responsibilities of billing and collecting all taxes levied in
the municipality. Prior to entering into an agreement the tax
collector must agree to collect taxes on the behalf of the
adjoining or conveniently located municipality;
(iv) a private agency already defined as a tax officer under
Chapter 5 of the act of December 31, 1965 (P.L.1257, No.511),
known as The Local Tax Enabling Act; or
(v) a public employee of the municipality or home rule
municipality.
(3) After naming a tax officer the municipality shall notify
the taxing districts for which the tax collector collected taxes
that the municipality is abolishing the office of tax collector
and has named a tax officer 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
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municipality.
(5) An optional alternative tax collection agreement is a
professional services contract and is not subject to the public
bidding process.
(b) An ordinance to enter into an optional 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 entering into an optional tax collection
agreement, the ordinance shall take effect immediately.
(2) If the office of tax collector is not vacant and the
municipality enacts an ordinance to enter into an optional tax
collection agreement prior to the circulation of petitions for
the primary election, the office of tax collector shall be
abolished at the end of the current tax collector's term at
which time the optional tax collection agreement shall take
effect.
(3) If the municipality enacts an ordinance to enter into an
optional tax collection agreement after the circulation of
petitions for the primary and an individual received enough
signatures to be placed on the ballot in the primary election
for the office of tax collector, the ordinance may not take
effect until the office of tax collector becomes vacant or the
individual that has been elected to the office of tax collector
at the general election has served out his term.
(c) Any tax collector in office when a municipality enacts
an ordinance to enter into an optional tax collection agreement
under this section shall remain in office until the end of his
term and shall continue to have all the powers and duties of his
office.
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(d) The following apply:
(1) A tax officer appointed by the municipality shall comply
with the basic and continuing education requirements under 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
under this act.
(e) A tax officer shall name a deputy in accordance with
section 22(b).
(f) A tax officer shall comply with the bonding requirements
in section 4.
(g) A copy of the optional alternative tax collection
agreement entered into by the municipality shall be provided to
the county board of elections and after the effective date of
the agreement, the board of elections shall no longer place the
office of tax collector on the ballot in that municipality.
(h) An optional alternative tax collection agreement entered
into by a municipality is not required to have a fixed duration
and can be renegotiated or terminated at any time by the
municipality.
(i) The following apply:
(1) If at any time the municipality would like to end its
optional alternative tax collection agreement the municipality
shall provide written notice to the tax officer, the taxing
districts and the county board of elections that it plans to end
its optional alternative tax collection agreement
(2) Upon receipt of the notification under paragraph (1),
the board of elections shall place the office of tax collector
on the ballot for the municipality in the next municipal
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election.
(3) The tax officer shall continue to collect taxes until a
tax collector has been elected and sworn into office.
Section 3. This act shall take effect in 60 days.
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