PRINTER'S NO. 1974
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1743
Session of
2021
INTRODUCED BY RYAN AND GLEIM, JULY 30, 2021
REFERRED TO COMMITTEE ON URBAN AFFAIRS, JULY 30, 2021
AN ACT
1 Amending the act of July 7, 1947 (P.L.1368, No.542), entitled
2 "An act amending, revising and consolidating the laws
3 relating to delinquent county, city, except of the first and
4 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," in short title and definitions, further
29 providing for definitions; and, in sale of property, further
30 providing for upset sale price and for hearing and order for
31 judicial sale and providing for sale of residential property.
32 The General Assembly of the Commonwealth of Pennsylvania
33 hereby enacts as follows:
 1 Section 1. Section 102 of the act of July 7, 1947 (P.L.1368,
2 No.542), known as the Real Estate Tax Sale Law, is amended by
3 adding a definition to read:
4 Section 102. Definitions.--As used in this act, the
5 following words shall be construed as herein defined, unless the
6 context clearly indicates otherwise:
7 * * *
8 "Minimum value," the following:
9 (1) (i) eighty per centum (80%) of the value of a
10 residential property as determined by a real estate appraiser
11 licensed or certified by the State Board of Certified Real
12 Estate Appraisers for the year in which notice of sale is given
13 under section 602 or during the prior three years; or
14 (ii) if there has been more than one appraisal during that
15 period, the value as determined by the most recent appraisal; or
16 (2) a value jointly stipulated by the bureau and the owner
17 of the residential property.
18 * * *
19 Section 2. Section 605 of the act is amended to read:
20 Section 605. Upset Sale Price.--The bureau shall fix as the
21 upset price to be realized at the sale of any property upon a
22 claim absolute, the sum of (a) the tax liens of the
23 Commonwealth, (b) the amount of the claim absolute and interest
24 thereon on which the sale is being held, (c) the amount of any
25 other tax claim or tax judgment due on such property and
26 interest on the judgment to the date of sale, (d) the amount of
27 all accrued taxes including taxes levied for the current year,
28 whether or not returned, a record of which shall be furnished to
29 the bureau by tax collectors, receivers of taxes and taxing
30 districts, (e) the amount of the municipal claims against the
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 1 property, and (f) the record costs and costs of sale, including
2 pro rata costs of the publication of notice and costs of mail
3 and posted notices in connection with the return of the claim
4 and mail and posted notices of sale[.], provided that, for the
5 sale of owner-occupied residential real estate, the upset price
6 shall not be less than the minimum value of the property unless
7 the property is purchased by the holder of an obligation secured
8 by a mortgage on the property.
9 It shall be the duty of all taxing districts, and municipal
10 authorities having municipal claims against any such property,
11 to certify, by August 30 of the year of the scheduled sale, the
12 amount thereof to the bureau for the purpose of including the
13 same in the upset price. If a taxing district or municipal
14 authority fails to certify the amount of any municipal claim
15 which has become a claim against the property prior to August 1
16 of the year of the scheduled sale, the claim shall be divested
17 by the upset sale, notwithstanding any provision of this act to
18 the contrary.
19 No sale of property shall be made by the bureau unless a bid
20 equal to the upset price is made. If no bid equal to the upset
21 price is received, the sale shall be continued without further
22 advertisement in order to give the bureau a chance to sell the
23 property at private sale, or to petition court for an order to
24 sell the same, freed and discharged of all liens as hereinafter
25 provided. No upset sale may be continued beyond the end of the
26 calendar year, and no property may be sold at private sale or
27 judicial sale unless the property has first been exposed to
28 upset sale and was not sold at upset sale.
29 Section 3. Section 612(a) of the act is amended and the
30 section is amended by adding a subsection to read:
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 1 Section 612. Hearing and Order for Judicial Sale.--
2 (a) If upon hearing, the court is satisfied that service of
3 the rule has been made upon the parties named in the rule, in
4 the manner provided by this act, and that the facts stated in
5 the petition are true, it shall order and decree that [said] the
6 property be sold at a subsequent day to be fixed by the court or
7 in the manner provided under subsection (e), freed and cleared
8 of all tax and municipal claims, mortgages, liens, charges and
9 estates, except separately taxed ground rents, to the highest
10 bidder or the purchaser for a sale as provided under subsection
11 (e), and that the purchaser at such sale shall take and
12 thereafter have an absolute title to the property sold free and
13 clear of all tax and municipal claims, mortgages, liens, charges
14 and estates of whatsoever kind, except ground rents, separately
15 taxed. Out of the proceeds of such sale shall be paid the costs
16 set forth in the upset price at the prior sale, and the
17 additional costs incurred relative to this sale, including the
18 fee for title search and any broker's commission under
19 subsection (e). The court order may specify that no sale shall
20 be made except to the county unless a bid equal to such costs is
21 offered. The remainder of said proceeds shall be distributed by
22 the office designated by the county commissioners under section
23 205. After the purchaser shall have paid over the purchase
24 price, the bureau shall make and deliver a deed in the manner
25 hereinbefore provided.
26 * * *
27 (e) Except for the sale of property to the holder of an
28 obligation secured by a mortgage on the property, a judicial
29 sale of a residential property shall be made by listing the
30 property for sale by a real estate broker licensed by the State
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 1 Real Estate Commission and selected in an open and competitive
2 manner by the bureau. In selecting a broker, the bureau may
3 contract to retain for use by the bureau, the county or any
4 taxing district, a portion of the commission payable upon the
5 sale of the property. The broker shall offer the property for
6 sale in a commercially reasonable manner at a price no lower
7 than the minimum value and on the terms and conditions
8 established by the bureau. If the broker does not obtain an
9 offer to purchase the property for at least the minimum value
10 within a reasonable time, the court, after hearing, may:
11 (1) approve the highest outstanding offer, if any;
12 (2) reduce the minimum value of the property to a
13 commercially reasonable amount and order that the property
14 continue to be offered for an additional time; or
15 (3) order that the property be sold as otherwise provided
16 under this act.
17 Section 4. The act is amended by adding a section to read:
18 Section 620. Sale of Residential Property.--The requirements
19 under sections 605 and 612 relating to the minimum sale price
20 and procedures for the sale of residential property shall apply
21 to a sale of residential property to satisfy municipal claims or
22 delinquent taxes under the act of May 16, 1923 (P.L.207,
23 No.153), referred to as the Municipal Claim and Tax Lien Law,
24 and the act of October 11, 1984 (P.L.876, No.171), known as the
25 "Second Class City Treasurer's Sale and Collection Act," except
26 that the authority granted to the bureau under sections 605 and
27 612 shall be granted to the claimant under the Municipal Claim
28 and Tax Lien Law or to the city treasurer under the Second Class
29 City Treasurer's Sale and Collection Act.
30 Section 5. This act shall take effect in 120 days.
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Statutes/Laws affected:
Printer's No. 1974: P.L.1368, No.542