Pennsylvania Act 2024-48 — REAL ESTATE TAX SALE LAW - TITLE OF THE ACT AND COUNTY DEMOLITION AND REHABILITATION FUND

Act text

Session of 2024

No. 2024-48

SB 149

AN ACT

Amending the act of July 7, 1947 (P.L.1368, No.542), entitled "An act amending, revising and consolidating the laws relating to delinquent county, city, except of the first and second class and second class A, borough, town, township, school district, except of the first class and school districts within cities of the second class A, and institution district taxes, providing when, how and upon what property, and to what extent liens shall be allowed for such taxes, the return and entering of claims therefor; the collection and adjudication of such claims, sales of real property, including seated and unseated lands, subject to the lien of such tax claims; the disposition of the proceeds thereof, including State taxes and municipal claims recovered and the redemption of property; providing for the discharge and divestiture by certain tax sales of all estates in property and of mortgages and liens on such property, and the proceedings therefor; creating a Tax Claim Bureau in each county, except counties of the first and second class, to act as agent for taxing districts; defining its powers and duties, including sales of property, the management of property taken in sequestration, and the management, sale and disposition of property heretofore sold to the county commissioners, taxing districts and trustees at tax sales; providing a method for the service of process and notices; imposing duties on taxing districts and their officers and on tax collectors, and certain expenses on counties and for their reimbursement by taxing districts; and repealing existing laws," further providing for the title of the act; and, in sale of property, providing for county demolition and rehabilitation fund.

The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:

Section 1. The title of the act of July 7, 1947 (P.L.1368, No.542), known as the Real Estate Tax Sale Law, is amended to read:

AN ACT

Amending, revising and consolidating the laws relating to delinquent county, city, except of the first and second class and second class A, borough, town, township, school district, except of the first class and school districts within cities of the second class A, and institution district taxes, providing when, how and upon what property, and to what extent liens shall be allowed for such taxes, the return and entering of claims therefor; the collection and adjudication of such claims, sales of real property, including seated and unseated lands, subject to the lien of such tax claims; the disposition of the proceeds thereof, including State taxes and municipal claims recovered and the redemption of property; providing for the discharge and divestiture by certain tax sales of all estates in property and of mortgages and liens on such property, and the proceedings therefor; creating a Tax Claim Bureau in each county, except counties of the first and second class, to act as agent for taxing districts; defining its powers and duties, including sales of property, the management of property taken in sequestration, and the management, sale and disposition of property heretofore sold to the county commissioners, taxing districts and trustees at tax sales; providing a method for the service of process and notices; imposing duties on taxing districts and their officers and on tax collectors, and certain expenses on counties and for their reimbursement by taxing districts; providing for a county demolition and rehabilitation fund; and repealing existing laws.

Section 2. The act is amended by adding a section to read:

Section 631. County Demolition and Rehabilitation Fund.--(a) A county of the first, second, second class A, third, fourth, fifth, sixth, seventh or eighth class and home rule charter county of any of these classes that imposes the fee authorized under subsection (b) shall, by ordinance, establish a county demolition and rehabilitation fund.

(b) The governing body of a county may, by ordinance, impose a fee not to exceed two hundred fifty dollars ($250) for the sale of any property being sold in accordance with this act or an action for mortgage foreclosure and shall provide a public notice stating the establishment of the fee and its rate in accordance with this act. In addition to the purchase price, the bureau conducting the sale of the property in accordance with this act or the sheriff in a mortgage foreclosure action shall collect the fee authorized by this section at the time of sale from the buyer as a condition of conveying title to the property. The fee collected shall be deposited into a fund established under subsection (a).

(c) An ordinance establishing a fund under subsection (a) shall include all of the following:

(1) The method of custody, divestiture, disbursement and application of money deposited into the fund consistent with the laws of this Commonwealth and generally accepted accounting principles.

(2) The manner of notifying the bureau, the sheriff and the prothonotary of the sale of a property in accordance with this act or a mortgage foreclosure action that a fund under subsection (a) has been established and that the fee imposed under subsection (b) shall be collected and deposited as provided by this section.

(3) The fee imposed under subsection (b) shall apply to the sale of a property for delinquent taxes or mortgage foreclosure conducted in the calendar year beginning not less than ninety (90) days after the effective date of the ordinance.

(4) Any other terms and conditions the county deems reasonable and necessary for operation of a fund established under subsection (a).

(d) A fund established under subsection (a) may be used only:

(1) by the county; and

(2) upon approval of the county commissioners or other governing body, by a not-for-profit or for-profit corporation that has a contract with the county or a taxing district, redevelopment authority, land bank or other government entity, for the demolition or rehabilitation of blighted property located in the county.

(e) This section shall not apply to a property sold for delinquent real property taxes to a nonprofit entity, land bank or government entity or to a property acquired by the Pennsylvania Housing Finance Agency.

Section 3. This act shall take effect in 60 days.

APPROVED--The 8th day of July, A.D. 2024.

JOSH SHAPIRO