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An Ordinance of the County of Allegheny, Commonwealth of Pennsylvania, amending Ordinance No. 57-03-OR adopting a schedule of charges, expenses, and fees pursuant to the Act of May 16, 1923, P.L. 207, as amended, 53 P.S. §7101, §7103, and §7106 and repealing any other Ordinance inconsistent herewith.
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WHEREAS, the County of Allegheny (hereinafter “County”), through its duly elected Treasurer, is required to collect unpaid delinquent taxes, tax claims, and tax liens (hereinafter collectively referred to as “Delinquent Taxes” or “Tax Claims”); and
WHEREAS, the in-house collection of Delinquent Taxes by the County places a significant demand upon the County's resources, the expense of which is borne by the taxpayers of Allegheny County; and
WHEREAS, there are third-party service providers who specialize in providing collection and recordkeeping services related to the collection of Delinquent Taxes (“Servicing” and/or “Servicer”);
WHEREAS, §1, §2, and §3 of the Act of May 16, 1923, P.L. 207, as amended, 53 P.S. §7101, §7103, and §7106, respectively, permit the County to recover as part of each unpaid Tax Claim, amongst other things, the charges, expenses, and fees relating to the taxpayer's failure to pay the Tax Claim promptly; and
WHEREAS, by Ordinance No. 57-03-OR, known as the “Tax, Tax Claim, and Tax Lien Attorney Fees and Servicing Charges, Expenses, and Fees Ordinance” the County adopted a schedule of attorney fees, charges, expenses, and fees to be charged and collected in enforcement proceedings initiated by counsel to collect Delinquent Taxes; and
WHEREAS, the County desires to exercise all of its legal authority in order to encourage the prompt payment of Delinquent Taxes, and to reduce, the expense associated with Servicing the collection of Delinquent Taxes not specifically provided for in Ordinance No. 57-03-OR; and
WHEREAS, the County and the Treasurer desire this Ordinance to amend Ordinance No. 57-03-OR; and
WHEREAS, the County and the Treasurer desire this Ordinance to repeal any prior Ordinances which are inconsistent herewith;
NOW, THEREFORE, IT IS HEREBY ORDAINED AND ENACTED by the County of Allegheny, Commonwealth of Pennsylvania, as follows:
Section 1.
ARTICLE I. ADD NEW ARTICLE I.A.:
Article I.A. Servicing Charges, Expenses, and Fees Approved:
Section 1. The following schedule of charges, expenses, and fees (hereinafter collectively referred to as “Servicing Fees”) is hereby approved and adopted by the County pursuant to §1, §2, and §3 of the Act of May 16, 1923, as amended, 53 P.S. §7101, §7103, and §7106, which amounts are the direct result of each person's or property's failure to pay Tax Claims promptly. The Servicing Fees established, assessed, and collected hereunder shall be in addition to record costs, Article III - Attorney Fees, and Article II - Expenses associated with legal proceedings initiated by or on behalf of the County to collect its Tax Claims.
Section 2. Servicing of Tax Claims may result in voluntary payment of the Tax Claims due without the initiation of enforcement proceedings. It is the intent of this Article I.A. to pass the expense of Servicing on to the delinquent person or property as part of each Tax Claim due making the County whole on all Tax Claims collected. The recovery of Servicing Fees established herein shall not be contingent upon the initiation of enforcement proceedings. The Servicing Fees established herein are exclusive of attorney fees and expenses, if any, due to legal counsel in enforcement proceedings.
Section 3. Schedule: The following schedule of Servicing Fees shall constitute reasonable and appropriate Servicing Fees for each indicated service. The Servicing Fees shall be added to and become part of each Tax Claim, together with the face, penalties, interest, costs, Attorney Fees, and other charges, expenses, and fees, if any, and shall be payable in full before the discharge or satisfaction of each Tax Claim. The schedule of Servicing Fees is separate and distinct from any amounts imposed under Article II and III of County Ordinance No. 57-03-OR or imposed by the Sheriff, Prothonotary, Court, or any other public office in connection with the collection of the County's Tax Claims.
A. Servicing including, but not limited to, staffing,
computers, office space, telephones, equipment,
database, statements, claims, notices, disbursements,
and claim satisfactions
Not to exceed 10% of gross collections*
B. Postage Actual Cost
*Gross collections for the purpose of calculating the Servicing Fees shall include the face, penalty, interest, and lien costs for each Tax Claim collected. Gross collections shall not include any record costs, attorney fees, or expenses related to enforced collection proceedings.
Section 4. The postage expense approved in Article I.A., Section 3.B. above, shall also apply to the Treasurer of Allegheny County in any mailings relating to the collection of Tax Claims not yet the responsibility of Servicer to collect.
Section 5. Liability for payment of the Servicing Fee provided in Article I.A., Section 3.A., shall accrue 120 days following the expiration of the Gross Tax period for each Tax Year. Liability for payment of the Servicing Fee provided in Article I.A., Section 3.B. shall accrue on any mailing which occurs following the expiration of the Gross Tax period for any Tax Year. The ability to assess and collect the postage expense shall not be affected by the fact that the mailing shall also include a statement containing Net or Gross taxes due the County.
Section 6. The Servicing Fee charged shall be set at the discretion of the Treasurer, not to exceed the amount set by this Article I.A., Section 3.A.
Section 2.
ARTICLE II. REVISE ARTICLE V BY ADDING SUBPART D.
Article V. Effective Date and Retroactivity:
D. This Ordinance shall take effect immediately. The Charges, Expenses, and Fees set forth in Article 1.A. of this Ordinance relate to all unpaid Taxes, Tax Claims, and Tax Liens in favor of the County for tax years 2003 and prior and to all future County Taxes.
SECTION 3. If any provision of this Ordinance shall be determined to be unlawful, invalid, void or unenforceable, then that provision shall be considered severable from the remaining provisions of this Ordinance which shall be in full force and effect.
SECTION 4. Any Resolution or Ordinance or part thereof conflicting with the provisions of this Ordinance is hereby repealed so far as the same affects this Ordinance.