PRINTER'S NO. 3921
No. 2638 Session of 2004
INTRODUCED BY CAPPELLI, MAY 25, 2004
REFERRED TO COMMITTEE ON FINANCE, MAY 25, 2004
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," further providing for alternative collection
29 of delinquent property taxes, for proceeds of assignment to
30 be paid to taxing district and for administrative
31 reimbursement payment; and providing for assignment of claims
32 by taxing district.
33 The General Assembly of the Commonwealth of Pennsylvania
1 hereby enacts as follows:
2 Section 1. Section 201.1(a) of the act of July 7, 1947
3 (P.L.1368, No.542), known as the Real Estate Tax Sale Law, added
4 March 22, 2002 (P.L.205, No.16), is amended to read:
5 Section 201.1. Alternative Collection of Taxes.--(a) In
6 lieu of or in addition to creating a bureau, counties are
7 authorized to provide by ordinance for the appointment and
8 compensation of such agents, clerks, collectors and other
9 assistants and employes, either under existing departments, in
10 private sector entities or otherwise as may be deemed necessary,
11 for the collection and distribution of taxes under this act. Any
12 alternative collection method shall be subject to all of the
13 notices, time frames, enumerated fees and protections for
14 property owners contained in this act. Two or more counties may
15 enter into a joint agreement under 53 Pa.C.S. Ch. 23 Subch. A
16 (relating to intergovernmental cooperation) to provide for the
17 alternative collection of taxes under this section.
18 * * *
19 Section 2. Section 205 of the act is amended by adding a
20 subsection to read:
21 Section 205. System of Accounting and Distribution.--
22 * * *
23 (g) For assignments made in accordance with section 316, it
24 shall be the duty of the bureau to distribute all moneys
25 collected as proceeds of an assignment to the taxing district.
26 The proceeds of such an assignment shall be deemed to be the
27 money collected or received under this act for purposes of
28 determining the commission payable under subsection (c) and
29 section 207(a). Upon the distribution of the proceeds of such an
30 assignment and in accordance with the terms and conditions
20040H2638B3921 - 2 -
1 agreed to in writing between the assignee and taxing district,
2 the assignee shall be substituted for the taxing district for
3 purposes of distribution of moneys collected pursuant to
4 subsection (c.1) and proceeds of a tax sale pursuant to
5 subsection (d), and such amounts shall not themselves be subject
6 to an additional commission.
7 Section 3. Section 207(a) of the act, amended July 3, 1986
8 (P.L.351, No.81), is amended to read:
9 Section 207. Reimbursement of County; Charges.--(a) In
10 order to reimburse the county for the actual costs and expenses
11 of operating the bureau created by this act, the county shall
12 receive [and retain] out of all moneys collected or received
13 under the provisions of this act, five per centum (5%) thereof,
14 which percentage shall be deducted by the bureau before paying
15 over moneys to the respective taxing districts entitled thereto.
16 This percentage and interest earned under section 205 shall be
17 paid into the county treasury for the use of the county[.]:
18 Provided, however, That in circumstances where the county has
19 exercised its authority under section 201.1, yet also retains a
20 bureau, the county may, in its discretion, with respect to
21 collections or other receipts in respect of taxes collected
22 through alternative methods, pay some or all of this percentage
23 and interest to the taxing district giving rise to the taxes so
24 collected. The reimbursement herein provided for shall be in
25 addition to the costs, fees and expenses advanced by the county,
26 which, upon recovery, are payable to the county as provided by
27 the preceding section of this act.
28 * * *
29 Section 4. The act is amended by adding a section to read:
30 Section 316. Assignment of Claims.--(a) A taxing district
20040H2638B3921 - 3 -
1 may assign some or all of its claims, either absolutely or as
2 collateral security, for an amount to be determined by the
3 taxing district and under such terms and conditions upon which
4 the taxing district and the assignee may agree in writing. Upon
5 such an assignment, the following shall apply:
6 (1) Upon written notice provided by the taxing district or
7 the assignee, the bureau shall record notice of the assignment
8 on the docket.
9 (2) Assignment shall not be deemed a discharge or
10 satisfaction of the claim or the taxes giving rise to the claim,
11 and the lien of the assigned claim and taxes giving rise to the
12 claim shall continue in favor of the assignee.
13 (3) The assignee shall have and enjoy the same rights,
14 privileges and remedies as were held by the taxing district to
15 enforce and collect the assigned claim and the tax giving rise
16 to the claim under the provisions of this act or any other laws
17 applicable to the collection and enforcement of tax claims.
18 (4) The county may exercise its authority under section
19 201.1 to provide for the assignee to exercise all of the duties
20 of a bureau in connection with the collection and enforcement of
21 the tax claims assigned or, if the county continues to operate a
22 bureau, may provide by contract with the assignee for the
23 division or sharing of such duties between the bureau and the
24 assignee with respect to the tax claims assigned.
25 (5) An owner of property shall have the same rights and
26 defenses under this act and any other laws applicable to the
27 collection and enforcement of tax claims that the owner held
28 against the assignor.
29 (6) References in this act to a taxing district shall be
30 deemed to be references to the assignee of the taxing district
20040H2638B3921 - 4 -
1 with respect to assigned claims, except for distributions
2 pursuant to section 205(g), identification of the taxes under
3 section 309 and record of taxes and certification of municipal
4 claims under section 605, and except for references to any
5 actions taken by the taxing district before the assignment or to
6 other taxes and claims of the taxing district that have not been
7 so assigned.
8 (7) With respect to the assigned taxes and claim, the
9 assignee shall be deemed the political subdivision for purposes
10 of section 501 and a taxing authority for purposes of section
11 612.1.
12 (8) An assignee shall not be deemed a municipality for
13 purposes of section 601(d) and (e), 619 or 619.1.
14 (b) A claim assigned pursuant to this section may be further
15 assigned, with the subsequent assignee having and enjoying the
16 same rights, privileges and remedies as its assignor.
17 Section 5. This act shall take effect immediately.
E19L53BIL/20040H2638B3921 - 5 -