PRIOR PRINTER'S NOS. 663, 1067 PRINTER'S NO. 1140
No. 631 Session of 1997
INTRODUCED BY SALVATORE AND ULIANA, MARCH 6, 1997
AS AMENDED ON THIRD CONSIDERATION, JUNE 3, 1997
AN ACT
1 Amending the act of May 16, 1923 (P.L.207, No.153), entitled "An
2 act providing when, how, upon what property, and to what
3 extent, liens shall be allowed for taxes and for municipal
4 improvements, for the removal of nuisances, and for water
5 rents or rates, sewer rates, and lighting rates; for the
6 procedure upon claims filed therefor; the methods for
7 preserving such liens and enforcing payment of such claims;
8 the effect of judicial sales of the properties liened; the
9 distribution of the proceeds of such sales, and the
10 redemption of the property therefrom; for the lien and
11 collection of certain taxes heretofore assessed, and of
12 claims for municipal improvements made and nuisances removed,
13 within six months before the passage of this act; and for the
14 procedure on tax and municipal claims filed under other and
15 prior acts of Assembly," further providing for FILING TAX <--
16 CLAIMS, FOR ATTORNEY FEES AND FOR sale of property in cities
17 of the first class.
18 The General Assembly of the Commonwealth of Pennsylvania
19 hereby enacts as follows:
20 Section 1. Section 31.2(b) of the act of May 16, 1923 <--
21 (P.L.207, No.153), referred to as the Municipal Claim and Tax
22 Lien Law, amended December 14, 1992 (P.L.859, No.135), is
23 amended and the section is amended by adding subsections to
24 read:
25 SECTION 1. THE ACT OF MAY 16, 1923 (P.L.207, NO.153), <--
1 REFERRED TO AS THE MUNICIPAL CLAIM AND TAX LIEN LAW, IS AMENDED
2 BY ADDING A SECTION TO READ:
3 SECTION 10.1. (A) AFTER ONE YEAR FROM THE INITIAL FILING OF
4 A TAX CLAIM PURSUANT TO SECTION 9 OF THIS ACT, THE CLAIM MAY BE
5 DISCHARGED BY A PERSON OTHER THAN THE OWNER OF THE PROPERTY
6 AGAINST WHICH THE LIEN IS FILED BY PAYMENT TO THE MUNICIPALITY
7 AS PROVIDED IN SUBSECTION (B).
8 (B) A TAX CLAIM WILL BE DISCHARGED UPON PAYMENT TO THE
9 MUNICIPALITY OF THE AMOUNT SPECIFIED IN EITHER SUBSECTION (B)(1)
10 OR (B)(2):
11 (1) AN AMOUNT EQUAL TO THE SUM OF:
12 (I) ANY OUTSTANDING TAXES OUT OF WHICH THE TAX CLAIM AROSE;
13 AND
14 (II) ANY OUTSTANDING CHARGES, EXPENSES AND FEES INCURRED IN
15 THE FILING OF THE TAX CLAIM.
16 (2) AN AMOUNT LESS THAN THE TOTAL AMOUNT DUE UNDER
17 SUBSECTION (B)(1) IF THE MUNICIPALITY AGREES TO ACCEPT THAT
18 AMOUNT. IN NO EVENT SHALL A TAX CLAIM BE DISCHARGED UNDER THIS
19 PARAGRAPH FOR AN AMOUNT LESS THAN FIFTY PER CENT OF THE AMOUNT
20 SPECIFIED IN SUBSECTION (B)(1).
21 (C) UPON PAYMENT TO THE MUNICIPALITY OF AN AMOUNT PROVIDED
22 FOR IN SUBSECTION (B), THE MUNICIPALITY SHALL ISSUE A WRITTEN
23 ACKNOWLEDGMENT OF RECEIPT AND ISSUE A CERTIFICATE OF DISCHARGE
24 TO THE PERSON MAKING THE PAYMENT TO THE MUNICIPALITY. THE
25 CERTIFICATE SHALL STATE THE DISCHARGE, A BRIEF DESCRIPTION OF
26 THE PROPERTY DISCHARGED AND THE AMOUNT OF THE TOTAL CLAIM
27 DISCHARGED AGAINST THE PROPERTY, REGARDLESS OF WHETHER THE
28 DISCHARGE WAS MADE UNDER SUBSECTION (B)(1) OR (B)(2). THE
29 CERTIFICATE MAY BE ENTERED IN THE OFFICE OF THE APPROPRIATE
30 PROTHONOTARY'S OFFICE AS A JUDGMENT AGAINST THE OWNER OF THE
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1 PROPERTY FOR THE AMOUNT STATED IN THE CERTIFICATE. THE LIEN OF
2 ANY SUCH JUDGMENT SHALL HAVE PRIORITY OVER ALL OTHER LIENS
3 AGAINST SUCH PROPERTY IN THE SAME MANNER AND TO THE SAME EXTENT
4 AS THE TAX CLAIM DISCHARGED.
5 (D) IN ADDITION TO ANY OTHER REMEDY PROVIDED BY LAW, A
6 CERTIFICATE ISSUED UNDER SUBSECTION (C) ENABLES THE HOLDER OF
7 THE CERTIFICATE TO PROCEED BY ACTION IN ASSUMPSIT AND RECOVER
8 THE AMOUNT DUE BY AN OWNER AND TO RECOVER RELATED ATTORNEY FEES,
9 COURT COSTS AND REASONABLE COLLECTION COSTS RELATED THERETO. AN
10 ACTION UNDER THIS SUBSECTION MUST BE COMMENCED WITHIN SIX YEARS
11 AFTER THE TAXES FIRST BECOME DUE.
12 (E) ANY DISCHARGE OF A MUNICIPAL CLAIM BY A PERSON UNDER
13 THIS SECTION MUST BE APPROVED BY AN ACT OF THE GOVERNING BODY OF
14 THE MUNICIPALITY. UPON APPROVAL, THE GOVERNING BODY SHALL NOTIFY
15 THE PROPERTY OWNER OF THE DISCHARGE IN WRITING. THE NOTIFICATION
16 SHALL STATE THE TOTAL AMOUNT OF THE CERTIFICATE, THE NAME AND
17 ADDRESS OF THE PERSON DISCHARGING THE CLAIM AND A STATEMENT
18 INFORMING THE PROPERTY OWNER OF HIS LIABILITY TO THAT PERSON.
19 SECTION 2. SECTION 20 OF THE ACT, AMENDED FEBRUARY 7, 1996
20 (P.L.1, NO.1), IS AMENDED TO READ:
21 SECTION 20. TAX CLAIMS AND MUNICIPAL CLAIMS SHALL BE PRIMA
22 FACIE EVIDENCE OF THE FACTS AVERRED THEREIN IN ALL CASES; AND
23 THE AVERMENTS IN BOTH TAX AND MUNICIPAL CLAIMS SHALL BE
24 CONCLUSIVE EVIDENCE OF THE FACTS AVERRED THEREIN, EXCEPT IN THE
25 PARTICULARS IN WHICH THOSE AVERMENTS SHALL BE SPECIFICALLY
26 DENIED BY THE AFFIDAVIT OF DEFENSE, OR AMENDMENT THEREOF DULY
27 ALLOWED. A COMPULSORY NONSUIT, UPON TRIAL, SHALL BE EQUIVALENT
28 TO A VERDICT FOR DEFENDANT, WHETHER THE PLAINTIFF APPEARED OR
29 NOT. IF PLAINTIFF RECOVERS A VERDICT, UPON TRIAL, IN EXCESS OF
30 THE AMOUNT ADMITTED BY THE DEFENDANT IN HIS AFFIDAVIT OF DEFENSE
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1 OR PLEADINGS, HE SHALL BE ENTITLED TO REASONABLE ATTORNEY FEES
2 FOR COLLECTION IN ACCORDANCE WITH SECTION 3.
3 SECTION 3. SECTION 31.2(B) OF THE ACT, AMENDED DECEMBER 14,
4 1992 (P.L.859, NO.135), IS AMENDED AND THE SECTION IS AMENDED BY
5 ADDING SUBSECTIONS TO READ:
6 Section 31.2. * * *
7 (b) The deed to the purchaser shall be executed,
8 acknowledged and delivered as in other real estate sales by the
9 sheriff. Deeds for property exposed for any sale under this act
10 shall not be executed, acknowledged and delivered any sooner
11 than twenty days nor later than forty-five days after any sale
12 held under this act. Any person interested may at any time prior
13 to the proposed sale pay all the costs of the proceedings,
14 including the cost for the title search or title insurance
15 policy, and all tax and municipal claims, penalties and interest
16 thereon, charged against the property whereupon the proceedings
17 on petition shall at once determine.
18 (b.1) A city of the first class may, within fifteen days of
19 any sale held under this act, petition the court of common pleas
20 to prohibit the transfer of any deed for any property exposed
21 for any sale under this act which is located in that city to any
22 purchaser who is proven to meet any of the criteria set forth in
23 subsection (b.2).
24 (b.2) The petition of a city of the first class shall, at a
25 minimum, allege that the purchaser has over the three years
26 preceding the filing of the petition exhibited a course of
27 conduct which demonstrates that the purchaser:
28 (1) permits PERMITTED an uncorrected housing code violation <--
29 to continue unabated after being convicted of such violation;
30 (2) fails FAILED to maintain property owned by the purchaser <--
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1 in a reasonable manner such that it poses POSED a threat to <--
2 health, safety or property;
3 (3) permits PERMITTED the use of property in an unsafe, <--
4 illegal or unsanitary manner such that it poses POSED a threat <--
5 to health, safety or property; or
6 (4) acts or has acted as an agent for a purchaser who seeks <--
7 SOUGHT to avoid the limitations placed on the purchase of <--
8 property by this act.
9 Allegations under this subsection shall be proved by a
10 preponderance of the evidence.
11 (b.3) A change of name or business status by the purchaser <--
12 shall not affect the operation DEFEAT THE PURPOSE of this <--
13 section.
14 (b.4) As used in this section:
15 "Purchaser" shall mean any individual, partner, shareholder,
16 trust, partnership, limited partnership, corporation, or any
17 other business association, or any trust, partnership, limited
18 partnership, corporation or any other business association that
19 has any individual as part of the business association who had
20 any ownership interest or rights in the property.
21 "Uncorrected housing code violation" shall mean any
22 conviction of a violation of the local housing BUILDING, <--
23 HOUSING, PROPERTY MAINTENANCE OR FIRE code which is not remedied
24 within six months of conviction.
25 "Violation" shall mean any conviction under a BUILDING, <--
26 housing, PROPERTY MAINTENANCE OR FIRE code which poses POSED a <--
27 threat to health, safety or property, but not a conviction
28 deemed by a court to be de minimis.
29 * * *
30 Section 2. This 4. THE AMENDMENT OF SECTION 31.2 OF THE act <--
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1 shall apply to all sales conducted on or after the effective
2 date of this act.
3 Section 3 5. This act shall take effect in 60 days. <--
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