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Under A Successful Severe Hardship Application In Pennsylvania , The Owner Of Owner Occupied Real Estate Can Both Stay A Tax Sale As Well As Abate, Suspend, Or Stay The Tax Sale Proceedings Pending With Respect To That Real Estate .
A. Under Pennsylvania’s Real Estate Tax Sale Law, A County May, At The Option Of Its Commissioners, Enact Legislation Extending The Period For Discharge Of Tax Claim For Real Estate Taxes For Taxpayers Up To Twelve ( 12) Additional Months.
See 72 P.S. § 5860.308 Notice of Filing of Returns and Entry Of Claim.–(a) Not later than the thirty-first day of July of each year, the bureau shall give only one notice of the return of said taxes and the entry of such claim ….for taxes that are delinquent…… Each …notice shall, ….(3) state that on July first of the year in which such notice is given a one (1) year period for discharge of tax claim shall commence or has commenced to run, and that if full payment of taxes is not made during that period as provided by this act, the property shall be advertised for and exposed to sale under this act, ….
See 72 P.S. § 5860. 502.1. Option of County to Extend Period for Discharge of Tax Claim.—A county may at the option of its commissioners enact legislation extending the period for discharge of tax claim for real estate taxes for taxpayers for up to twelve (12) additional months.
B. Similarly , An Owner May , At The Option Of The County Tax Claim Bureau, Enter Into An Agreement In Writing To Stay the Sale Of The Subject Property For One Year From The Date Of The Agreement Upon The Owner’s Agreement To Pay The Tax Claim In Certain Installments.
See 72 P.S. § 5860.603. Removal from Sale; Agreements to Stay Sale.—Any owner ….. may, at the option of the bureau, prior to the actual sale,… (2) enter into an agreement, in writing, with the bureau to stay the sale of the property upon the payment of twenty-five percentum (25%) of the amount due on all tax claims and tax judgments filed or entered against such property and the interest and costs on the taxes returned to date, as provided by this act, and agreeing there into pay the balance of said claims and judgments and the interest and costs thereon in not more than three(3)installments all within one(1)year of the date of said agreement, the agreement to specify the dates on or before which each installment shall be paid, and the amount of each installment. So long as said agreement is being fully complied with by the taxpayer, the sale of the property covered by the agreement shall be stayed. ……
See 72 P.S. § 5860. 601. Date of Sale.
(b) No property shall be exposed to sale where the delinquent taxes involved in a claim are being paid by the owner under any law abating penalties, interests and costs, or either, unless there has been a default by the owner in payment, in which case the sale of the property shall be proceeded with, as herein provided, at the time fixed for the next scheduled sale, occurring at least ninety (90) days after such default.
C. However, The Owner Of Owner Occupied Real Estate Can Apply To The County Commissioners, Acting Through The County Tax Claim Bureau, For An Extension Of The Period For Discharge Of The Tax Claim For Up To Twelve Additional Months If The Tax Claim : 1. Constitutes A Severe Hardship ; 2. Extenuating Circumstances Beyond The Taxpayer’s Control Have Caused The Tax Claim ; And 3. There Is a Reasonable Probability That The Taxpayer Will Be Able To Meet The Indebtedness If Granted An Extension Of The Period For Discharge Of Tax Claims For Up To Twelve (12) Additional Months .
See 72 P.S. § 5860.308.Notice of Filing of Returns and Entry Of Claim.
(a.1) In addition to the requirements of subsection(a)(1),(2),(3)and(4),each mailed and posted notice shall state that the owner of any owner-occupied real estate can apply for an extension of the period for discharge of tax claim for up to twelve (12) additional months under and subject to the provisions of sections 502.1 and 503.1.
See 72 P.S. § 5860.503.1.Extension of Period for Discharge of Tax Claim.—
(a) If the county commissioners of the county enact legislation pursuant to section 502.1,then the county commissioners, acting through the county tax claim bureau, determine that a tax claim or tax claims constitute severe hardship to the taxpayer and that extenuating circumstances beyond the taxpayer’s control have caused the tax claim or claims to be filed or remain unpaid and there is a reasonable probability that the taxpayer will be able to meet the indebtedness if granted an extension of the period for discharge of tax claim for up to twelve(12)additional months,…
D. For An Example , Extenuating Circumstances Can Mean An Owner’s Unemployment If The Unemployment Occurred Or Persisted During Any Of The Tax Years For Which Delinquent Taxes Were Assessed Or During The Year Immediately Preceding Any Such Delinquency, And The Unemployment Has Been A Substantial Cause Of The Taxpayer’s Failure To Pay Such Delinquent Tax or Taxes To The Date Of The Application For Relief .
See 72 P.S. § 5860.503.1.Extension of Period for Discharge of Tax Claim
(d) For the purpose of this section, the phrase “extenuating circumstances” means: ….(2)Unemployment if:(i)the taxpayer is a permanent resident of the Commonwealth,(ii)the unemployment occurred or persisted during any of the taxyears for which the delinquent taxes were assessed or during the year immediately preceding any such delinquency, and(iii)the unemployment has been a substantial cause of the taxpayer’s failure to pay any such delinquent tax or taxes to the date of application for relief under this section.(e)For the purpose of this section, an extension of the period for discharge of tax claim shall only apply to one(1)owner-occupied property per taxpayer
E. If The Owner’s Application Is Successful, The County Tax Claim Bureau Can Not Only Stay The Sale Of The Owner’s Home, But Also Abate, Suspend, Or Stay Tax Sale Proceedings Pending With Respect To That Owner Occupied Real Estate .
See 72 P.S. § 5860.503.1.Extension of Period for Discharge of Tax Claim.—
(a) …. they shall have the authority in the event of an application for extension submitted by the taxpayer to:(1) Extend the period for discharge of tax claim for owner-occupied real estate for up to twelve(12)additional months: Provided, That the tax payer enters into an equitable apportioned payment schedule consistent therewith. (2) Abate, suspend, continue or stay the tax sale proceedings pending with respect to the owner-occupied residential real estate.(b)The payment schedule authorized under subsection(a)shall permit the taxpayer to make payment of the amount due in at least four(4)separate payments, spaced at least thirty(30)days apart, and shall require the initial payment to be not more than twenty-five percentum (25%)of the total indebtedness calculated to be due under the schedule. However,the provisions of this subsection and of section 603 notwithstanding, the county commissioners may, in their discretion, in special hardship cases, establish payment schedules specifically suited to the capabilities of the particular affected taxpayer……
F. The Pending Of Tax Sale Proceedings Can Be Important, As They Affect Whether Or Not A Real Estate Tax Claim Is Absolute, Is Enforceable As A Lien, Involves Consumer Reporting Agencies, or Risks The Sequestration Of Owner Occupied Property .
See 72 P.S. § 5860.308 Notice of Filing of Returns and Entry Of Claim.—
(a) Not later than the thirty-first day of July of each year, the bureau shall give only one notice of the return of said taxes and the entry of such claim ….for taxes that are delinquent…… Each …notice shall,….(2) state that if payment of the amount due the several taxing districts for said taxes is not made to the bureau on or before the thirty-first day of December next following, and no exceptions thereto are filed, the said claim shall become absolute…
See 72 P.S. § 5860.311 Claims Become Absolute
On the first day of January next following the notice herein before prescribed, if the amount of the tax claim referred to in the notice has not been paid, or no exceptions thereto filed, the claims shall become absolute……
See 53 P.S. § 7106(a)(2) Municipal claims first lien; cities of first class; docketing; judgment; execution
A claim for property taxes that has been reduced to judgment shall (2) be enforceable as a lien against real property in the same manner and to the same extent as a judgment for money under the generally applicable laws of this Commonwealth.. For purposes of this clause, “reduced to judgment” means a claim rendered absolute under section 311 of the act of July 7, 1947 (P.L. 1368, No. 542), known as the “Real Estate Tax Sale Law,” and those given the effect of a judgment in accordance with this act.
See 72 P.S. § 5860.315 Claims; Dockets; Satisfaction and Public Record Lists.–
(c) The bureau may report any nonpayment of taxes, including liens, to one or more consumer reporting agencies, as defined by the Fair Credit Reporting Act
See 72 P.S. § 5860.401. Petition for Sequestrator.—
After the expiration of twenty (20) days from the time the claim becomes absolute,….the court shall, on the petition of the bureau, appoint it as sequestrator of the rents ,issues and profits of the property bound by the claim.
See 72 P.S. § 5860.403. Procedure to Obtain Possession.—
If either the owner against whom the claim is entered, being in possession of the property sequestered, or the party in possession,refusesto paya fair rent to the sequestrator,the court shall, upon the petition filed, grant a rule on the property owner or party in possession to show cause why possession of the property should not be delivered to the sequestrator.The petition and rule shall be served on the owner or party in possession in such manner and within such time as the court may direct. If the rule is made absolute, the court shall award a writ in the nature of a writ of habere facias possessionem directed to the owner or party in possession, commanding him to deliver possession to the sequestrator within fifteen (15) days thereafter, unless such property is occupied by the owner and his family for a home, in which case he shall be commanded to deliver possession within thirty (30) days thereafter:……
G. Within Thirty (30) Days of Receipt Of The Application, The Director Of The Bureau Shall Either Allow or Disallow the Extension. If The Extension Is Allowed, The Bureau Shall Set The Length of The Extension. If The Owner Is Aggrieved By The Decision Of The Bureau, The Owner Has 15 Days After Notice Of The Decision To Appeal To The County Court Of Common Pleas For De Novo Review Of The Application.
See 72 P.S. § 5860.503.1.Extension of Period for Discharge of Tax Claim.—
….. (c)The application for extension ….shall be made in a form as shall be provided by the bureau. Within thirty (30) days of receipt of the application, the director of the bureau shall either allow or disallow the extension. If the extension is allowed, the bureau shall set the length of the extension. Any taxpayer aggrieved by the decision of the bureau may, within fifteen (15) days after notice thereof, appeal to the county court of common pleas for de novo review of the application.
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