PRINTER'S NO. 2400
No. 1883 Session of 1989
INTRODUCED BY LAUGHLIN, LaGROTTA, VEON, WASS, WAMBACH, MRKONIC,
KUKOVICH, TIGUE, BATTISTO, DIETTERICK, HERMAN, LINTON,
BELFANTI, ITKIN, DeWEESE, MORRIS, NOYE, SAURMAN, JOSEPHS,
FARMER, PESCI, McNALLY, DISTLER, LASHINGER, E. Z. TAYLOR,
TANGRETTI, DeLUCA, WILLIAMS, COLAIZZO, DOMBROWSKI, FEE,
NAHILL, PISTELLA, GIGLIOTTI, MAINE, MICHLOVIC, OLASZ, JAMES,
KOSINSKI, COLAFELLA AND McCALL, SEPTEMBER 18, 1989
REFERRED TO COMMITTEE ON FINANCE, SEPTEMBER 18, 1989
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," reviving provisions relating to extension of
29 the period for discharge of tax claims.
1 The General Assembly of the Commonwealth of Pennsylvania
2 hereby enacts as follows:
3 Section 1. Sections 308(a), 502 and 503 of the act of July
4 7, 1947 (P.L.1368, No.542), known as the Real Estate Tax Sale
5 Law, amended July 3, 1986 (P.L.351, No.81), are reenacted to
6 read:
7 Section 308. Notice of Filing of Returns and Entry of
8 Claim.--(a) Not later than the thirty-first day of July of each
9 year, the bureau shall give only one notice of the return of
10 said taxes and the entry of such claim in one envelope for each
11 delinquent taxable property, by United States registered mail or
12 United States certified mail, return receipt requested, postage
13 prepaid, addressed to the owners at the same address listed on
14 the form returned by the tax collector for taxes that are
15 delinquent. In the case of property owned by joint tenants,
16 tenants in common, or husband and wife as tenants by the
17 entireties, the bureau may give the notice required by this
18 section by forwarding only one notice addressed to such joint
19 tenants, tenants in common or husband and wife at the same post
20 office address. If the owner of the property is unknown and has
21 been unknown for a period of not less than five years, such
22 notice shall be given only by posting on the property affected.
23 If no post office address of the owner is known or if a notice
24 mailed to an owner at such last known post office address is not
25 delivered by the postal authorities, then notice as herein
26 provided shall be posted on the property affected. If the
27 property owner has entered into an agreement with the bureau for
28 the payment of the delinquent taxes, the posting is not
29 necessary. Each mailed and posted notice shall, (1) show all the
30 information shown on the claim entered, (2) state that if
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1 payment of the amount due the several taxing districts for said
2 taxes is not made to the bureau on or before the thirty-first
3 day of December next following, and no exceptions thereto are
4 filed, the said claim shall become absolute, (3) state that on
5 July first of the year in which such notice is given a one (1)
6 year period for discharge of tax claim shall commence or has
7 commenced to run, and that if full payment of taxes is not made
8 during that period as provided by this act, the property shall
9 be advertised for and exposed to sale under this act, (4) state
10 that there shall be no redemption after the actual sale and (5)
11 state that the owner of any owner-occupied real estate can apply
12 for an extension of the period for discharge of tax claim for up
13 to twelve (12) additional months under and subject to the
14 provisions of sections 502 and 503 of this act.
15 * * *
16 Section 502. Option of County to Extend Period for Discharge
17 of Tax Claim.--A county may at the option of its commissioners
18 enact legislation extending the period for discharge of tax
19 claim for real estate taxes for taxpayers for up to twelve (12)
20 additional months.
21 Section 503. Extension of Period for Discharge of Tax
22 Claim.--(a) If the county commissioners of the county enact
23 legislation pursuant to section 502, then the county
24 commissioners, acting through the county tax claim bureau
25 determine that a tax claim or tax claims constitute severe
26 hardship to the taxpayer and that extenuating circumstances
27 beyond the taxpayer's control have caused the tax claim or
28 claims to be filed or remain unpaid and there is a reasonable
29 probability that the taxpayer will be able to meet the
30 indebtedness if granted an extension of the period for discharge
19890H1883B2400 - 3 -
1 of tax claim for up to twelve (12) additional months, they shall
2 have the authority in the event of an application for extension
3 submitted by the taxpayer to:
4 (1) Extend the period for discharge of tax claim for owner-
5 occupied real estate for up to twelve (12) additional months:
6 Provided, That the taxpayer enters into an equitable apportioned
7 payment schedule consistent therewith.
8 (2) Abate, suspend, continue or stay the tax sale
9 proceedings pending with respect to such owner-occupied
10 residential real estate.
11 (b) The payment schedule authorized under subsection (a)
12 shall permit the taxpayer to make payment of the amount due in
13 at least four (4) separate payments, spaced at least thirty (30)
14 days apart, and shall require the initial payment to be not more
15 than twenty-five per centum (25%) of the total indebtedness
16 calculated to be due under such schedule. However, the
17 provisions of this subsection and of section 603
18 notwithstanding, the county commissioners may, in their
19 discretion, in special hardship cases, establish payment
20 schedules specifically suited to the capabilities of the
21 particular affected taxpayer.
22 (c) The application for extension authorized in clause (1)
23 of subsection (a) shall be made in such form as shall be
24 provided by the bureau. Within thirty (30) days of receipt of
25 such an application, the director of the bureau shall either
26 allow or disallow such an extension. If such an extension is
27 allowed, the bureau shall set the length of such extension. Any
28 taxpayer aggrieved by the decision of the bureau may, within
29 fifteen (15) days after notice thereof, appeal to the county
30 court of common pleas for de novo review of the application.
19890H1883B2400 - 4 -
1 (d) For the purpose of this section the phrase "extenuating
2 circumstances" means:
3 (1) Serious physical illness or injury or a combination of
4 such illness or injury with a state of prolonged unemployment
5 if: (i) the taxpayer is a permanent resident of the
6 Commonwealth, (ii) the illness or injury, or combination
7 thereof, occurred or persisted during any of the tax years for
8 which the delinquent taxes were assessed or during the year
9 immediately preceding any such delinquency, and (iii) the
10 illness or injury, or combination thereof, has been a
11 substantial cause of the taxpayer's failure to pay any such
12 delinquent tax or taxes to the date of application for relief
13 under this section.
14 (2) Unemployment if: (i) the taxpayer is a permanent
15 resident of the Commonwealth, (ii) the unemployment occurred or
16 persisted during any of the tax years for which the delinquent
17 taxes were assessed or during the year immediately preceding any
18 such delinquency, and (iii) the unemployment has been a
19 substantial cause of the taxpayer's failure to pay any such
20 delinquent tax or taxes to the date of application for relief
21 under this section.
22 (e) For the purpose of this section an extension of the
23 period for discharge of tax claim shall only apply to one (1)
24 owner-occupied property per taxpayer.
25 Section 2. Section 5 of the act of November 6, 1985
26 (P.L.305, No.76), entitled "An act amending the act of July 7,
27 1947 (P.L.1368, No.542), entitled, as amended, 'An act amending,
28 revising and consolidating the laws relating to delinquent
29 county, city, except of the first and second class and second
30 class A, borough, town, township, school district, except of the
19890H1883B2400 - 5 -
1 first class and school districts within cities of the second
2 class A, and institution district taxes, providing when, how and
3 upon what property, and to what extent liens shall be allowed
4 for such taxes, the return and entering of claims therefor; the
5 collection and adjudication of such claims, sales of real
6 property, including seated and unseated lands, subject to the
7 lien of such tax claims; the disposition of the proceeds
8 thereof, including State taxes and municipal claims recovered
9 and the redemption of property; providing for the discharge and
10 divestiture by certain tax sales of all estates in property and
11 of mortgages and liens on such property, and the proceedings
12 therefor; creating a Tax Claim Bureau in each county, except
13 counties of the first and second class, to act as agent for
14 taxing districts; defining its powers and duties, including
15 sales of property, the management of property taken in
16 sequestration, and the management, sale and disposition of
17 property heretofore sold to the county commissioners, taxing
18 districts and trustees at tax sales; providing a method for the
19 service of process and notices; imposing duties on taxing
20 districts and their officers and on tax collectors, and certain
21 expenses on counties and for their reimbursement by taxing
22 districts; and repealing existing laws,' reviving provisions
23 relating to extension of the redemption period; authorizing
24 counties to extend the redemption period at the option of the
25 county commissioners; and making a repeal," is repealed.
26 Section 3. The provisions of this act shall apply to all tax
27 claims against owner-occupied property which has not yet been
28 sold on the effective date of this act. The court of common
29 pleas of the county upon petition of the Tax Claims Bureau shall
30 stay the sale under this act of owner-occupied property subject
19890H1883B2400 - 6 -
1 to a tax claim for which the period for discharge of tax claims
2 of section 501(a) of the act has expired on or before the
3 effective date of this act or for which the period for discharge
4 of tax claims will expire in less than 90 days from the
5 effective date of this act. The stay shall be for such period as
6 the court determines necessary for the bureau to comply with the
7 provisions of this act.
8 Section 4. Sections 308(a)(5), 502 and 503, reenacted by
9 this amendatory act, shall expire January 1, 1991.
10 Section 5. This act shall be retroactive to December 31,
11 1987.
12 Section 6. This act shall take effect immediately.
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