SENATE AMENDED
PRIOR PRINTER'S NOS. 3921, 4015 PRINTER'S NO. 4649
No. 2638 Session of 2004
INTRODUCED BY CAPPELLI, MAY 25, 2004
SENATOR EARLL, FINANCE, IN SENATE, AS AMENDED, NOVEMBER 9, 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
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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 if the county has exercised its
20 authority under section 201.1 and retains a bureau, the county
21 may, in its discretion, with respect to collections or other
22 receipts in respect of taxes collected through alternative
23 methods, pay some or all of this percentage and interest to the
24 taxing district giving rise to the taxes so collected. The
25 reimbursement herein provided for shall be in addition to the
26 costs, fees and expenses advanced by the county, which, upon
27 recovery, are payable to the county as provided by the preceding
28 section of this act.
29 * * *
30 Section 4 2. The act is amended by adding a section to read: <--
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1 Section 316. Assignment of Claims.--(a) A taxing district
2 may assign some or all of its portion of the claims, EITHER <--
3 ABSOLUTELY OR AS COLLATERAL SECURITY, 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 SHALL agree in writing. For the purpose of this subsection, a <--
7 claim 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. NO ASSIGNMENT SHALL BECOME <--
10 EFFECTIVE UNTIL AT LEAST THIRTY (30) DAYS AFTER THE DELIVERY TO
11 THE BUREAU OF A COPY OF THE RESOLUTION AUTHORIZING THE
12 ASSIGNMENT. Upon such an assignment, the following shall apply:
13 (1) Upon written notice provided by the taxing district or
14 the assignee, the bureau shall record notice of the assignment
15 on the docket.
16 (2) Assignment shall not be deemed a discharge or
17 satisfaction of the claim or the taxes giving rise to the claim,
18 and the lien of the assigned claim and taxes giving rise to the
19 claim shall continue in favor of the assignee.
20 (3) The assignee shall have and enjoy the same rights,
21 privileges and remedies as were held by the taxing district with
22 respect to the assigned claim and the tax giving rise to the
23 claim under the provisions of this act or any other laws
24 applicable to the collection and enforcement of tax claims, <--
25 INCLUDING THE RIGHT OF THE TAXING DISTRICT TO RECEIVE THE
26 DISTRIBUTION OF MONEYS COLLECTED PURSUANT TO SECTION 205(C.1)
27 AND THE PROCEEDS OF A TAX SALE PURSUANT TO SECTION 205(D) AND
28 (F).
29 (4) The county may exercise its authority under section
30 201.1 to provide for the assignee to exercise all of the duties
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1 of a bureau in connection with the collection and enforcement of
2 the tax claims assigned or, if the county continues to operate a
3 bureau or has provided under section 201.1 for some other person
4 to perform some or all of the functions of the county, may
5 provide by contract with the assignee for the division or
6 sharing of such duties between the bureau or other person and
7 the assignee with respect to the tax claims assigned.
8 (5) ASSIGNMENT SHALL NOT AFFECT THE FIVE PER CENTUM (5%) <--
9 COMMISSION ON TAX CLAIM COLLECTIONS PAYABLE TO THE BUREAU UNDER
10 SECTION 205(C) AND REIMBURSEMENT OF COUNTY CHARGES UNDER SECTION
11 207(A), UNLESS THE TAXING DISTRICT AND THE BUREAU AGREE WITH
12 RESPECT TO ANY SUCH ASSIGNMENT IN WRITING AS FOLLOWS:
13 (I) THE BUREAU'S FIVE PER CENTUM (5%) COMMISSION UNDER
14 SECTION 205(C) WITH RESPECT TO SUCH PORTION SHALL BE PAID IN
15 PART OUT OF THE PROCEEDS OF ASSIGNMENT OF SUCH PORTION.
16 (II) NO FURTHER COMMISSION SHALL BE PAID TO THE BUREAU WITH
17 RESPECT TO SUCH PORTION UNTIL SUCH TIME AS THE ASSIGNEE SHALL
18 HAVE RECEIVED, PURSUANT TO SECTION 205(C.1) OR (D), AN AMOUNT
19 EQUAL TO THE PROCEEDS OF THE ASSIGNMENT OF SUCH PORTION PAID BY
20 THE ASSIGNEE.
21 (III) AFTER THE ASSIGNEE HAS RECEIVED, PURSUANT TO SECTION
22 205(C.1) OR (D), AN AMOUNT EQUAL TO THE PROCEEDS OF THE
23 ASSIGNMENT OF SUCH PORTION PAID BY THE ASSIGNEE, THE BUREAU
24 SHALL BE PAID THE REMAINDER OF THE BUREAU'S FIVE PER CENTUM (5%)
25 COMMISSION IN SUCH MANNER AND AT SUCH TIMES AS THE TAXING
26 DISTRICT AND THE BUREAU SHALL HAVE AGREED IN WRITING.
27 (5) (6) An owner of property shall have the same rights and <--
28 defenses under this act and any other laws applicable to the
29 collection and enforcement of tax claims that the owner held
30 against the assignor.
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1 (6) (7) References in this act to a taxing district shall be <--
2 deemed to be references to the assignee of the taxing district
3 with respect to assigned claims, except for distributions <--
4 pursuant to section 205(g), identification of the taxes under
5 section 309 and record RECORDATION of taxes and certification of <--
6 municipal claims under section 605, and except for references to
7 any actions taken by the taxing district before the assignment
8 or to other taxes and claims of the taxing district that have
9 not been so assigned.
10 (7) (8) With respect to the assigned taxes and claim, the <--
11 assignee shall be deemed the political subdivision for purposes
12 of section 501 and a taxing authority for purposes of section
13 612.1, UNLESS OTHERWISE AGREED TO IN WRITING BETWEEN THE <--
14 ASSIGNEE AND THE TAXING DISTRICTS.
15 (8) (9) An assignee shall not be deemed a municipality for <--
16 purposes of section 601(d) and (e), 619 or 619.1.
17 (b) A claim assigned pursuant to this section may be further
18 assigned, with the subsequent assignee having and enjoying the
19 same rights, privileges and remedies as its assignor. Notice of
20 any subsequent assignment shall be recorded pursuant to
21 subsection (a)(1).
22 Section 5 3. This act shall take effect immediately. <--
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