PRIOR PRINTER'S NO. 3921 PRINTER'S NO. 4015
No. 2638 Session of 2004
INTRODUCED BY CAPPELLI, MAY 25, 2004
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, JUNE 8, 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.
1 The General Assembly of the Commonwealth of Pennsylvania
2 hereby enacts as follows:
3 Section 1. Section 201.1(a) of the act of July 7, 1947
4 (P.L.1368, No.542), known as the Real Estate Tax Sale Law, added
5 March 22, 2002 (P.L.205, No.16), is amended to read:
6 Section 201.1. Alternative Collection of Taxes.--(a) In
7 lieu of or in addition to creating a bureau, counties are
8 authorized to provide by ordinance for the appointment and
9 compensation of such agents, clerks, collectors and other
10 assistants and employes, either under existing departments, in
11 private sector entities or otherwise as may be deemed necessary,
12 for the collection and distribution of taxes under this act. Any
13 alternative collection method shall be subject to all of the
14 notices, time frames, enumerated fees and protections for
15 property owners contained in this act. Two or more counties may
16 enter into a joint agreement under 53 Pa.C.S. Ch. 23 Subch. A
17 (relating to intergovernmental cooperation) to provide for the
18 alternative collection of taxes under this section.
19 * * *
20 Section 2. Section 205 of the act is amended by adding a
21 subsection to read:
22 Section 205. System of Accounting and Distribution.--
23 * * *
24 (g) For assignments made in accordance with section 316, it
25 shall be the duty of the bureau to distribute all moneys
26 collected as proceeds of an assignment to the taxing district
27 THAT MADE THE ASSIGNMENT. The proceeds of such an assignment <--
28 shall be deemed to be the money collected or received under this
29 act for purposes of determining the commission payable under
30 subsection (c) and section 207(a). Upon the distribution of the
20040H2638B4015 - 2 -
1 proceeds of such an assignment and in accordance with the terms
2 and conditions agreed to in writing between the assignee and
3 taxing district, the assignee shall be substituted for the
4 taxing district for purposes of distribution of moneys collected
5 pursuant to subsection (c.1) and proceeds of a tax sale pursuant
6 to subsection (d), and such amounts shall not themselves be
7 subject to an additional commission.
8 Section 3. Section 207(a) of the act, amended July 3, 1986
9 (P.L.351, No.81), is amended to read:
10 Section 207. Reimbursement of County; Charges.--(a) In
11 order to reimburse the county for the actual costs and expenses
12 of operating the bureau created by this act, the county shall
13 receive [and retain] out of all moneys collected or received
14 under the provisions of this act, five per centum (5%) thereof,
15 which percentage shall be deducted by the bureau before paying
16 over moneys to the respective taxing districts entitled thereto.
17 This percentage and interest earned under section 205 shall be
18 paid into the county treasury for the use of the county[.]:
19 Provided, however, That in circumstances where IF the county has <--
20 exercised its authority under section 201.1, yet also AND <--
21 retains a bureau, the county may, in its discretion, with
22 respect to collections or other receipts in respect of taxes
23 collected through alternative methods, pay some or all of this
24 percentage and interest to the taxing district giving rise to
25 the taxes so collected. The reimbursement herein provided for
26 shall be in addition to the costs, fees and expenses advanced by
27 the county, which, upon recovery, are payable to the county as
28 provided by the preceding section of this act.
29 * * *
30 Section 4. The act is amended by adding a section to read:
20040H2638B4015 - 3 -
1 Section 316. Assignment of Claims.--(a) A taxing district
2 may assign some or all of its claims, either absolutely or as <--
3 collateral security, PORTION OF THE CLAIMS for an amount to be <--
4 determined by the taxing district and under such terms and
5 conditions upon which the taxing district and the assignee may
6 agree in writing. FOR THE PURPOSE OF THIS SUBSECTION, A CLAIM <--
7 DOCKETED BY THE BUREAU MAY BE DIVISIBLE SO THAT ONE TAXING
8 DISTRICT MAY ASSIGN ITS PORTION OF THE CLAIM, BUT ANOTHER TAXING
9 DISTRICT MAY RETAIN ITS PORTION. Upon such an assignment, the
10 following shall apply:
11 (1) Upon written notice provided by the taxing district or
12 the assignee, the bureau shall record notice of the assignment
13 on the docket.
14 (2) Assignment shall not be deemed a discharge or
15 satisfaction of the claim or the taxes giving rise to the claim,
16 and the lien of the assigned claim and taxes giving rise to the
17 claim shall continue in favor of the assignee.
18 (3) The assignee shall have and enjoy the same rights,
19 privileges and remedies as were held by the taxing district to <--
20 enforce and collect WITH RESPECT TO the assigned claim and the <--
21 tax giving rise to the claim under the provisions of this act or
22 any other laws applicable to the collection and enforcement of
23 tax claims.
24 (4) The county may exercise its authority under section
25 201.1 to provide for the assignee to exercise all of the duties
26 of a bureau in connection with the collection and enforcement of
27 the tax claims assigned or, if the county continues to operate a
28 bureau OR HAS PROVIDED UNDER SECTION 201.1 FOR SOME OTHER PERSON <--
29 TO PERFORM SOME OR ALL OF THE FUNCTIONS OF THE COUNTY, may
30 provide by contract with the assignee for the division or
20040H2638B4015 - 4 -
1 sharing of such duties between the bureau OR OTHER PERSON and <--
2 the assignee with respect to the tax claims assigned.
3 (5) An owner of property shall have the same rights and
4 defenses under this act and any other laws applicable to the
5 collection and enforcement of tax claims that the owner held
6 against the assignor.
7 (6) References in this act to a taxing district shall be
8 deemed to be references to the assignee of the taxing district
9 with respect to assigned claims, except for distributions
10 pursuant to section 205(g), identification of the taxes under
11 section 309 and record of taxes and certification of municipal
12 claims under section 605, and except for references to any
13 actions taken by the taxing district before the assignment or to
14 other taxes and claims of the taxing district that have not been
15 so assigned.
16 (7) With respect to the assigned taxes and claim, the
17 assignee shall be deemed the political subdivision for purposes
18 of section 501 and a taxing authority for purposes of section
19 612.1.
20 (8) An assignee shall not be deemed a municipality for
21 purposes of section 601(d) and (e), 619 or 619.1.
22 (b) A claim assigned pursuant to this section may be further
23 assigned, with the subsequent assignee having and enjoying the
24 same rights, privileges and remedies as its assignor. NOTICE OF <--
25 ANY SUBSEQUENT ASSIGNMENT SHALL BE RECORDED PURSUANT TO
26 SUBSECTION (A)(1).
27 Section 5. This act shall take effect immediately.
E19L53BIL/20040H2638B4015 - 5 -