THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY TALLMAN, CREIGHTON, HEFFLEY, MILLER AND TRUITT, JANUARY 10, 2012

REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, JANUARY 10, 2012  

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," providing for a transition from township

treasurers to tax collectors in first class townships; and

making editorial changes.

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, amended March

22, 2002 (P.L.200, No.14), 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 [and of townships of the first class in their capacity as

treasurers], 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. The term

includes a person authorized to collect taxes under section 4.2

of this act.

* * *

Section 2.  Section 4(a), (b), (c), (d), (e) and (f) of the

act, amended June 5, 1947 (P.L.453, No.205), May 9, 1949

(P.L.973, No.277), May 22, 1953 (P.L.213, No.24) and December 1,

1977 (P.L.247, No.82), are amended to read:

Section 4.  Bonds of Tax Collectors.--(a)  In cities of the

third class [and in townships of the first class] the treasurer,

as tax collector for the various taxing districts, shall give

bond secured and conditioned as provided by the laws relating to

such cities. [and townships. 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 townships of the first class.]

Cities of the third class may join in joint bidding with other

municipalities for bonds of tax collectors. The joint bidding of

the bonds shall be subject to all provisions of this act not

inconsistent with the requirement of joint bidding.

(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. 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. 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.

* * *

(c)  In boroughs, towns and townships of the first or second

class, the condition of the bond shall be that the collector as

tax collector for the borough, town or township, as the case may

be, and for the county, the county institution district, school

district and vocational school district shall account for and

pay over all taxes, penalties and interest received and

collected by him to the taxing districts entitled thereto.

(d)  The tax collector of boroughs, towns and townships of

the first or second class and his sureties shall be discharged

from further liability on his bond for the taxes charged in a

duplicate delivered to him as soon as all tax items contained in

the said duplicate are either--(1) collected and paid over to

the proper taxing district; or (2) certified to the taxing

authority for entry as liens in the office of the prothonotary;

or (3) returned to the county commissioners for sale of the real

estate by the county treasurer; or (4) in the case of

occupation, poll and per capita and personal property taxes

accounted for by the payment over, or by exoneration, which

shall be granted by the taxing district upon oath or affirmation

by the tax collector that he has complied with section twenty of

this act: Provided, however, That the tax collector and his

sureties shall not be discharged of their liability under the

provisions of this subsection if the tax collector has in fact

collected such taxes but has failed to pay the same over to the

proper taxing district.

(e)  The bond given by a borough, town or first or second

class township tax collector shall be for the use of the

borough, town or first or second class township, as the case may

be, and for the county, the county institution district, school

district and vocational school district.

(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 3.  Section 4.1(h) of the act, amended June 22, 2001

(P.L.377, No.25), is amended to read:

Section 4.1.  Basic and Continuing Education Programs for Tax

Collectors.--* * *

(h)  The following words and phrases when used in this

section shall have the meanings given to them in this subsection

unless the context clearly indicates otherwise:

"Department" shall mean the Department of Community and

Economic Development of the Commonwealth.

"Qualified tax collector" shall mean a person who holds a

current valid certificate of qualification issued by the

Department of Community and Economic Development.

"Tax collector" shall mean a person duly elected or appointed

to collect real property taxes levied by a political

subdivision, other than a county, including the following:

(1)  A tax collector in a borough, incorporated town or

township of the first or second class.

(2)  A treasurer of a city of the third class [or a township

of the first class] in that person's capacity as tax collector.

(3)  An employe or official who has been designated to

collect real property taxes in a municipality, other than a

county, existing or organized under 53 Pa.C.S. Pt. III Subpt. E 

(relating to home rule and optional plan government), which

municipality has eliminated the elective office of tax

collector.

Section 4.  Section 34 of the act, amended December 22, 1965

(P.L.1145, No.443), is amended to read:

Section 34.  Compensation of Tax Collector in First Class

Townships.--(a)  The township [treasurer] tax collector shall

receive for his duties as [treasurer and] tax collector for the

township, a sum equal to five per centum of all township taxes

received or collected [by him, and in addition thereto, a sum

equal to one per centum on all other moneys received or

collected by him for the township,] from the township unless a

different rate or annual compensation shall be fixed by

ordinance of the township commissioners: Provided, That in no

case shall the total compensation [of the treasurer, as

treasurer and tax collector for the township,] from the township 

exceed the sum of ten thousand dollars. The township [treasurer

as collector of township taxes] tax collector shall be allowed

such actual printing and postage expenses as shall be incurred

in performing the duties prescribed in this act. [Such amounts

shall be adjusted by the township auditor or controller, as the

case may be, at the time of auditing the treasurer's account.

The compensation of the township treasurer as collector]

(b)  The following shall apply:

(1)  For the collection of county and institution district

taxes, compensation shall be fixed by the county commissioners,

and shall not exceed five per centum of the amount collected.

[The commission or compensation of the township treasurer, as

collector]

(2)  For the collection of school district taxes,

compensation shall be fixed by the board of school directors,

and shall not exceed five per centum of the amount collected.

The total cost of such collection shall be reported annually to

the Superintendent of Public Instruction and shall be published

in his report.

(3)  For the collection of county, institution district and

school taxes, the tax collector shall be allowed by the

respective taxing authorities actual and needful expenditures

for printing, postage, books, blanks and forms.

Section 5.  The following provisions shall apply to a tax

collector in a first class township upon expiration of the term

of the township treasurer whom the tax collector was elected to

succeed, and to all tax collectors elected subsequently in that

township:

(1)  The amendment of the definition of "tax collector"

or "elected tax collector" in section 2 of the act.

(2)  The amendment of section 4(a),(b),(c),(d),(e) and

(f) of the act.

(3)  The amendment of the definition of "tax collector"

in section 4.1 of the act.

(4)  The amendment of section 34 of the act.

Section 6.  The provisions of section 36.1 of the act shall

not apply to the initial term of office of a tax collector

elected to replace a township treasurer in a first class

township but shall apply to all other terms of office and all

township tax collectors elected thereafter in that township.

Section 7.  Prior to February 15, 2014, each taxing district

to be served by the elected tax collector shall, by ordinance or

resolution, fix the compensation or salary for the office for

the first term for which the tax collector is elected.

Section 8.  If an act of the General Assembly creating

separate offices of elected tax collector and treasurer in

townships of the first class is enacted, the Secretary of the

Commonwealth shall, within three days of the date of the

enactment, transmit notice of the enactment to the Legislative

Reference Bureau for publication in the Pennsylvania Bulletin.

Section 9.  This act shall take effect as follows:

(1)  Section 5 of this act shall take effect January 12,

2014.

(2)  Section 8 of this act and this section shall take

effect immediately.

(3)  The remainder of this act shall take effect upon

publication of the notice in the Pennsylvania Bulletin under

section 8 of this act.